KEW Enterprises began operations in January 2012 to manufacture a hand sanitizer that promised to be more
Question:
1. The office manager expensed rent on equipment and facilities when paid. Amounts paid in 2012, 2013, and 2014 that represent prepaid rent are $5,000, $4,500, and $4,900, respectively.
2. No adjusting entries were ever made to reflect accrued salaries. The amounts $12,000, $13,500, and $8,300 should have been accrued in each of the three prior years, respectively.
3. Errors occurred in the depreciation calculations that resulted in depreciation expense being overstated by $3,500 in 2012, understated by $7,000 in 2013, and understated by $6,000 in 2014.
4. In February 2015 some surplus production equipment that originally had cost $14,000 was sold for $4,000; $12,000 in depreciation had correctly been taken on this equipment. The office manager made this entry to record the sale:
To record sale of surplus equipment
5. Supplies expenses in the amount of $2,400 were incorrectly classified as administrative expenses in 2014.
Required:
Complete the worksheet shown below to assist in preparing the correcting entry. (By way of example, the first required entry on the worksheet has beenmade.)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Question Posted: