The following journal entries were prepared and posted by an employee of International Marketing Company who...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following journal entries were prepared and posted by an employee of International Marketing Company who does not have an adequate knowledge of accounting. Date 20X1 GENERAL JOURNAL Description April 1 Accounts Payable Fees Income Performed services on credit 2 Cash Telephone Expense Paid for March telephone Post. PAGE 3 Ref. Debit Credit 13,400 13,400 570 570 service, Check 1917 3 Office Equipment Office Supplies Accounts payable Purchased file cabinet and office supplies, Check 1918 7,760 870 8,630 (Assume that Office Equipment and Office Supplies were recorded at the correct values. However, the items were paid for entirely in cash, not on credit. Assume the errors are found and corrected on the last day of the month.) Required: Examine the above journal entries carefully and prepare the correcting journal entries. Analyze: After the correcting journal entries have been posted, what effect do the correcting entries have on the company's reported assets? Complete this question by entering your answers in the tabs below. General Journal Analyze Examine the above journal entries carefully and prepare the correcting journal entries. View transaction list Journal entry worksheet 2 3 4 Record the rectification entry for Performing services on credit. Note: Enter debits before credits. Date Apr 30, 20X1 General Journal Debit Credit Record entry Clear entry View general journal > General Journal Analyze After the correcting journal entries have been posted, what effect do the correcting entries have on the company's reported assets? Assets by The following journal entries were prepared and posted by an employee of International Marketing Company who does not have an adequate knowledge of accounting. Date 20X1 GENERAL JOURNAL Description April 1 Accounts Payable Fees Income Performed services on credit 2 Cash Telephone Expense Paid for March telephone Post. PAGE 3 Ref. Debit Credit 13,400 13,400 570 570 service, Check 1917 3 Office Equipment Office Supplies Accounts payable Purchased file cabinet and office supplies, Check 1918 7,760 870 8,630 (Assume that Office Equipment and Office Supplies were recorded at the correct values. However, the items were paid for entirely in cash, not on credit. Assume the errors are found and corrected on the last day of the month.) Required: Examine the above journal entries carefully and prepare the correcting journal entries. Analyze: After the correcting journal entries have been posted, what effect do the correcting entries have on the company's reported assets? Complete this question by entering your answers in the tabs below. General Journal Analyze Examine the above journal entries carefully and prepare the correcting journal entries. View transaction list Journal entry worksheet 2 3 4 Record the rectification entry for Performing services on credit. Note: Enter debits before credits. Date Apr 30, 20X1 General Journal Debit Credit Record entry Clear entry View general journal > General Journal Analyze After the correcting journal entries have been posted, what effect do the correcting entries have on the company's reported assets? Assets by
Expert Answer:
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
4th edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
Students also viewed these accounting questions
-
Suppose you manage Campbell Appliance. The store's summarized financial statements for 2017, the most recent year, follow: Campbell Appliance Income Statement Year Ended December 31, 2017 Sale...
-
Below is information regarding the capital structure of Micro Advantage Incorporated On the basis of this information you are asked to respond to the following three questions: Required: 1. Micro...
-
The following journal entries were prepared by an employee of Global Travel Agency who does not have an adequate knowledge of accounting. INSTRUCTIONS Examine the journal entries carefully to locate...
-
Fox rented a house from Chiodini, but before he moved in, he noticed exposed electrical wiring in the basement, so he refused to move in. City inspectors confirmed a code violation and Chiodini fixed...
-
Will the probable continued increase in electronic communication within and between organizations be likely to increase or decrease the communication issues/problems faced by the typical manager?...
-
Which of the following features would increase the value of a corporate bond? Which would reduce its value? a. The borrower has the option to repay the loan before maturity. b. The bond is...
-
You have heard the following statements made. Comment critically on them. (a) Equity only increases or decreases as a result of the owners putting more cash into the business or taking some out. (b)...
-
Hatcher Enterprises uses a chemical called Rbase in production operations at five divisions. Only six suppliers of Rbase meet Hatchers quality control standards. All six suppliers can produce Rbase...
-
A payment of cash to settle accounts payable would: a . Decrease liabilities and decrease owner s equity. b . Decrease liabilities and increase owner s equity. c . Decrease assets and decrease...
-
HQ Drugs is a distributor of pharmaceutical products. Its ABC system has five activities: Rick Flair, the controller of HQ Drugs, wants to use this ABC system to examine individual customer...
-
A simple pendulum has time period of 2s. It is called second pendulum. Find the length o second pendulum of Earth and on Moon? (gm = g/6 = 1.6ms-)
-
Wage negotiations at the South African Road Passenger Bargaining Council (SARPBAC) are ongoing. The employers are represented by the South African Bus Employers Association (SABEA) and the Commuter...
-
McGyver runs a hot air balloon company in Liverpool that takes customers on flights. He hears that Murdock has inherited a hot air balloon from his aunt Penny. McGyver asks to inspect the balloon,...
-
Grand Slam Incorporated incurred the following costs during March: Selling expenses Direct labor Interest expense Manufacturing overhead, actual $ 158,000 298,000 40,800 154,220 Raw materials used...
-
Fantasy sports are a well-entrenched phenomenon. Tens of millions of people play, and many of them do so at work. Here are some statistics: The U.S. Bureau of Labor Statistics (BLS) estimates that...
-
Cost Accumulated Fair Market Tax Basis Depreciation Value (UCC) Inventory $80,000 n/a $80,000 $80,000 Accounts 100,000 n/a 100,000 100,000 Receivable Land 140,000 n/a 200,000 140,000 Buildings...
-
Consider the following abbreviated financial statements forWeston Enterprises: WESTON ENTERPRISES 2019 and 2020 PartialBalance Sheets Assets Liabilities and Owners?? Equity 2019 2020 20192020 Curr 0...
-
Charles owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $800,000 and $100,000, respectively. During the current year,...
-
Esteban Almada was recently promoted to loan officer at First Federal Bank. He has authority to issue loans up to $75,000 without approval from a higher bank official. This week two small companies,...
-
Refer to CVS Corporations annual report in the Supplement to Chapter 1 to answer the following questions. (Note that 2004 refers to the year ended January 1, 2005, and 2003 refers to the year ended...
-
Review the multistep income statement presented in Exhibits 3 and 4. In your group, discuss how this form of the income statement meets each of these qualitative characteristics of accounting...
Study smarter with the SolutionInn App