Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Year-end wages payable as of the end of the current year of $3,720 were not recorded because the bookkeeper thought that they were immaterial.

image text in transcribed 1. Year-end wages payable as of the end of the current year of $3,720 were not recorded because the bookkeeper thought that "they were immaterial." 2. Accrued vacation pay for the current year of $31,100 was not recorded because the bookkeeper "never heard that you had to do it." 3. Insurance for a 12 -month period purchased on November 1 of this year was charged to insurance expense in the amount of $2,448 because "the amount of the check is about the same every year." 4. Reported sales revenue for the year is $1,935,560. This includes all sales taxes collected for the year. The sales tax rate is 6%. Because the sales tax is forwarded to the state's Department of Revenue, the Sales Tax Expense account is debited. The bookkeeper thought that "the sales tax is a selling expense." At the end of the current year, the balance in the Sales Tax Expense account is $93,560. Prepare the necessary correcting entries during the current year, assuming that Carla uses a calendar-year basis. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Anxiety Audit

Authors: Lynn Lyons

1st Edition

0757324258, 978-0757324253

More Books

Students also viewed these Accounting questions