Chapter 3, Problem 4E

your client, failed to record accrued salaries expense of P 50,000 as of December 31, 2022.   Based on the foregoing, answer the following questions: Question 1:  Which of the following accounts is(are) understated by P 50,000 at the end of year 2022 as a result of the error?        Question 2:  Which of the following accounts is(are) overstated by P 50,000 at the end of year 2023 as a result of the error?      Question 3: What would be the adjusting entry if the error is discovered in year 2022?        Question 4: What would be the adjusting entry if the error is discovered in year 2023?        Question 5:  What would be the adjusting entry if the error is discovered in year 2024?

"On December 31, 2019, Krug Company prepared adjusting entries that included the following items: Depreciation expense: $31,000. Sales revenue not collected in cash: $29,000. Expenses incurred but not paid: $12,000. Prepaid Insurance used up: $9,000; the insurance was initially recorded as prepaid. Rent revenue earned: $7,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue. If Krug Company reported total liabilities of $110,000 prior to adjusting entries, how much are Krug's total liabilities after the adjusting entries?"

"On December 31, 2019, Krug Company prepared adjusting entries that included the following items: Depreciation expense: $31,000. Sales revenue not collected in cash: $29,000. Expenses incurred but not paid: $12,000. Prepaid Insurance used up: $9,000; the insurance was initially recorded as prepaid. Rent revenue earned: $7,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.If Krug Company reported pretax income of $120,000 prior to the adjusting entries, how much is Krug's pretax income after the adjusting entries?"

in december 2022, the fixed monthly insurance debit order was not processed due to an oversight by insurance company. this was rectified by Ss managing director, sam who informed the insurance company. On 2 January 2023 the insurance DEBIT order was processed twice, resulting in total deduction of R55000 from Ss bank account. the trail balance needs to be adjusted to account for this. Prepare the adjustment journal entries

Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting for bad debts expense. Assume that Business Solutions has total revenues of $54,000 during the first three months of 2020, and that the Accounts Receivable balance on March 31, 2020, is $22,567.1a. Prepare the adjusting entry to record bad debts expense, which are estimated to be 1% of total revenues on March 31, 2020. There is a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31. 1b. Prepare the adjusting entry to record bad debts expense, which are estimated to be 2% of accounts receivable on March 31, 2020. There is a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31.2. Assume that Business Solutions's Accounts Receivable balance at June 30, 2020, is $20,850 and that one account of $89 has been written off against the Allowance for Doubtful Accounts since March 31, 2020. If Rey uses the method in part 1b, what adjusting journal entry is made to…

Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting for bad debts expense. Assume that Business Solutions has total revenues of $63,000 during the first three months of 2020, and that the Accounts Receivable balance on March 31, 2020, is $22,217.Required:1a. Prepare the adjusting entry to record bad debts expense, which are estimated to be 1% of total revenues on March 31, 2020. There is a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31. 1b. Prepare the adjusting entry to record bad debts expense, which are estimated to be 2% of accounts receivable on March 31, 2020. There is a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31.2. Assume that Business Solutions's Accounts Receivable balance at June 30, 2020, is $21,000 and that one account of $100 has been written off against the Allowance for Doubtful Accounts since March 31, 2020. If Rey uses the method in part 1b, what adjusting journal entry is…

Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting for bad debts expense. Assume that Business Solutions has total revenues of $63,000 during the first three months of 2020, and that the Accounts Receivable balance on March 31, 2020, is $22,217.Required:1a. Prepare the adjusting entry to record bad debts expense, which are estimated to be 1% of total revenues on March 31, 2020. There is a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31. 1b. Prepare the adjusting entry to record bad debts expense, which are estimated to be 2% of accounts receivable on March 31, 2020. There is a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31.2. Assume that Business Solutions's Accounts Receivable balance at June 30, 2020, is $21,000 and that one account of $100 has been written off against the Allowance for Doubtful Accounts since March 31, 2020. If Rey uses the method in part 1b, what adjusting journal entry is…

Luong Corporation encounters the following situations: Identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, or accrued revenue) is needed in each situation at December 31, 2020. 1. Luong collects $1,300 from a customer in 2020 for services to be performed in 2021. 2. Luong incurs utility expense which is not yet paid in cash or recorded. 3. Luong's employees worked 3 days in 2020 but will not be paid until 2021. 4. Luong performs services for customers but has not yet received cash or recorded the transaction. 5. Luong paid $2,800 rent on December 1 for the 4 months starting December 1. 6. Luong received cash for future services and recorded a liability until the service was performed. 7. Luong performed consulting services for a client in December 2020. On December 31, it had not billed the client for services provided of $1,200. 8. Luong paid cash for an expense and recorded an asset until the item was used up. 9. Luong purchased $900 of supplies…

Under the Revised Chart of Accounts (2019), the following are the expense accounts for: Utility Expenses a. Water Expenses b. Electricity Expenses c. Gas/Heating Expenses d. Other Utility Expenses General Services a. Environment/Sanitary Services b. Janitorial Services C. Security Services d. Other General Services Agency A issued MDS checks for the following payments : 1. Meralco bill - P150,000.00 2. Maynilad bill - P70,000.00 3. Tagalinis Janitorial Services - P250,000.00O 4. Tagabantay Security Services - P300,000.00 What is the accounting entry to be recorded in Journal Entry Voucher (JEV) for the above transactions? Answer in this format. Account Title Dr. Cr.