Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th

14th Edition

ISBN: 9781305878839

Author: Carl Warren, Jonathan Duchac, James M. Reeve

Publisher: Cengage Learning

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Textbook Question

Chapter 3, Problem 3.6BPR

Adjusting entries and errors

At the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker jacobs, an attorney:

Net income for August	$112,500
Total assets at August 31	650,000
Total liabilities at August 31	225,000
Total stockholders’ equity at August 31	425,000

In preparing the financial statements, adjustments for the following data were overlooked:

Unbilled fees earned at August 31, $31,900.
Depreciation of equipment for August, $7,500.
Accrued wages at August 31, $5,200.
Supplies used during August, $3,000.

Instructions

1. journalize the entries to record the omitted adjustments.

2. Determine the correct amount of net income for August and the total assets, liabilities, and stockholders’ equity at August 31. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table similar to the following. The first adjustment is presented as an example.

Chapter 3, Problem 3.6BPR, Adjusting entries and errors At the end of August, the first month of operations, the following

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Chapter 3, Problem 3.5BPR

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Chapter 3 Solutions

Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th

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 - Prob. 8DQ Ch. 3 - Prob. 9DQ Ch. 3 - (A) Explain the purpose of the two accounts:...

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Solution Summary: The author explains the rules of debiting and crediting different accounts while they occur in business transactions.

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