Accounting, Chapters 14-26
27th Edition
ISBN: 9781337514095
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 3, Problem 3.27EX
The accountant for Eva's Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted
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The accountant for Eva’s Laundry prepared the following unadjusted and adjusted trialbalances. Assume that all balances in the unadjusted trial balance and the amounts of theadjustments are correct. Identify the errors in the accountant’s adjusting entries, assumingthat none of the accounts were affected by more than one adjusting entry.
The accountant for Eva's Laundry prepared the following unadjusted and adjusted trial balances.
Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are
correct. Identify the errors in the accountant's adjusting entries, assuming that none of the accounts
were affected by more than one adjusting entry.
Eva's Laundry
Trial Balances
May 31, 20Y9
Unadjusted
Adjusted
Debit
Balances
Credit
Balances
Debit
Balances
Credit
Balances
Cash
7,500
7,500
Accounts Receivable..
18,250
23,250
Laundry Supplies..
Prepaid Insurance
3,750
6,750
5,200
1,600
Laundry Equipment
Accumulated Depreciation-Laundry Equipment....
Accounts Payable
Wages Payable
190,000
177,000
48,000
48,000
9,600
9,600
1,000
Common Stock
35,000
35,000
Retained Earnings.
75,300
75,300
Dividends
28,775
28,775
Laundry Revenue.
Wages Expense
Rent Expense
Utilities Expense
Depreciation Expense
Laundry Supplies Expense
Insurance Expense
182,100
182,100
49,200
49,200
25,575
18,500
25,575
18,500
13,000…
While reviewing a work paper on “pre-paid expenses” an auditor noticed that the schedule prepared by the audit team gave the opening balance, debits to the account, credits to the account and closing balance. Is the same sufficient documentation?
Chapter 3 Solutions
Accounting, Chapters 14-26
Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Is the matching concept related to (a) the cash...Ch. 3 - Why are adjusting entries needed at the end of an...Ch. 3 - What is the difference between adjusting entries...Ch. 3 - Identify the four different categories of...Ch. 3 - If the effect of the debit portion of an adjusting...Ch. 3 - If the effect of the credit portion of an...Ch. 3 - Does every adjusting entry affect net income for...Ch. 3 - Prob. 9DQCh. 3 - (a) Explain the purpose of the two accounts:...
Ch. 3 - Accounts requiring adjustment Indicate with a Yes...Ch. 3 - Accounts requiring adjustment Indicate with a Yes...Ch. 3 - Prob. 3.2APECh. 3 - Type of adjustment Classify the following items as...Ch. 3 - Adjustment for accrued revenues At the end of the...Ch. 3 - Adjustment for accrued expense Prospect Realty Co....Ch. 3 - Adjustment for accrued expense We-Sell Realty Co....Ch. 3 - Adjustment for unearned revenue On June 1, 2019,...Ch. 3 - Adjustment for unearned revenue The balance in the...Ch. 3 - Adjustment for prepaid expense The prepaid...Ch. 3 - Adjustment for prepaid expense The supplies...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Effect of omitting adjustments For the year ending...Ch. 3 - Effect of omitting adjustments For the year ending...Ch. 3 - Effect of errors on adjusted trial balance For...Ch. 3 - Effect of errors on adjusted trial balance For...Ch. 3 - Vertical analysis Two income statements for...Ch. 3 - Vertical analysis Two income statements for Cornea...Ch. 3 - Classifying types of adjustments Classify the...Ch. 3 - Classifying adjusting entries The following...Ch. 3 - Adjusting entry for accrued fees At the end of the...Ch. 3 - Effect of omitting adjusting entry The adjusting...Ch. 3 - Adjusting entries for accrued salaries Garcia...Ch. 3 - Determining wages paid The wages payable and wages...Ch. 3 - Effect of omitting adjusting entry Accrued...Ch. 3 - Effect of omitting adjusting entry When preparing...Ch. 3 - Adjusting entries for unearned fees The balance in...Ch. 3 - Effect of omitting adjusting entry At the end of...Ch. 3 - Adjusting entry for supplies The balance in the...Ch. 3 - Determining supplies purchased The supplies and...Ch. 3 - Effect of omitting adjusting entry At August 31,...Ch. 3 - Adjusting entries for prepaid insurance The...Ch. 3 - Adjusting entries for prepaid insurance The...Ch. 3 - Adjusting entries for unearned and accrued fees...Ch. 3 - Adjusting entries for prepaid and accrued taxes...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Determining fixed asset's book value The balance...Ch. 3 - Book value of fixed assets In a recent balance...Ch. 3 - Effects of errors on financial statements For a...Ch. 3 - Effects of errors on financial statements For a...Ch. 3 - Effects of errors on financial statements The...Ch. 3 - Effects of errors on financial statements If the...Ch. 3 - Adjusting entries for depreciation; effect of...Ch. 3 - Adjusting entries from trial balances The...Ch. 3 - Adjusting entries from trial balances The...Ch. 3 - Prob. 3.28EXCh. 3 - Prob. 3.29EXCh. 3 - Prob. 3.30EXCh. 3 - Adjusting entries On December 31, the following...Ch. 3 - Prob. 3.2APRCh. 3 - Adjusting entries Milbank Repairs Service, an...Ch. 3 - Adjusting entries Good Note Company specializes in...Ch. 3 - Adjusting entries and adjusted trial balances...Ch. 3 - Adjusting entries and errors At the end of April,...Ch. 3 - Adjusting entries On May 31, the following data...Ch. 3 - Prob. 3.2BPRCh. 3 - Adjusting entries Crazy Mountain Outfitters Co.,...Ch. 3 - Adjusting entries The Signage Company specializes...Ch. 3 - Adjusting entries and adjusted trial balances...Ch. 3 - Prob. 3.6BPRCh. 3 - The unadjusted trial balance that you prepared for...Ch. 3 - Prob. 3.1CPCh. 3 - Ethics in Action Daryl Kirby opened Squid Realty...Ch. 3 - Prob. 3.4CPCh. 3 - Prob. 3.5CP
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- Adjusting entries from trial balances The accountant for Evas Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct. Identify the errors in the accountants adjusting entries, assuming that none of the accounts were affected by more than one adjusting entry.arrow_forwardThe accountant for Eva's Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct. Identify the errors in the accountant's adjusting entries, assuming that none of the accounts were affected by more than one adjusting entry. Eva's Laundry Trial Balances May 31, 2019 Unadjusted Adjusted Debit Balances Credit Balances Debit Balances Credit Balances Cash 7,500 18,250 3,750 5,200 190,000 7,500 Accounts Receivable. 23,250 Laundry Supplies.. Prepaid Insurance* Laundry Equipment . Accumulated Depreciation-Laundry Equipment.... Accounts Payable Wages Payable... Eva Baldwin, Capital. Eva Baldwin, Drawing Laundry Revenue. Wages Expense Rent Expense .. Utilities Expense Depreciation Expense Laundry Supplies Expense Insurance Expense Miscellaneous Expense 6,750 1,600 177,000 48,000 48,000 9,600 1,000 9,600 110,300 110,300 28,775 28,775 182,100 182,100 49,200 49,200 25,575 25,575…arrow_forwardWhat's the best option?arrow_forward
- Identify the errors in the following trial balance. All accounts have normal balances.arrow_forwardThe following errors were made in journalizing transactions. In each case, calculate the amount of the error and indicate whether the debit or the credit column of the trial balance will be understated or overstated.arrow_forwardThe following Post-Closing Trial Balance contains errors. Prepare a corrected Post-Closing Trial Balance:arrow_forward
- Using the percentage of sales method, the balance in Allowance for Doubtful Accounts must be taken into consideration before making the adjusting entry.arrow_forwardPlease answer the questions correctly. Thank you.arrow_forwardIn performing an audit, you encounter an adjusting journal entry recorded at year-end that contains a debit to rental revenue and a credit to deferred rental revenue. The purpose of this journal entry is to recordarrow_forward
- A journal entry for a $75 payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash. Which of the following statements correctly states the effect of the error on the trial balance? O A. The sum of the debits will exceed the sum of the credits by $75. O B. The sum of the debits will exceed the sum of the credits by $150. O C. The sum of the credits will equal the sum of the debits. O D. The sum of the credits will exceed the sum of the debits by $150.arrow_forwardAllowance for Uncollectible Accounts is a contra asset account, which means that its normal balance is a credit. However, it is possible for the account to have a debit balance before year-end adjustments are recorded. Explain how this could happen. How does an accountant calculate the year-end adjustment for Allowance for Uncollectible Accounts with a debit balance before year-end adjustments recorded? Please explain both answers in good detail answerarrow_forwardErrors in trial balance Identify the errors in the following trial balance. All accounts have normal balances.arrow_forward
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