Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2 3 1 1. Make adjusting entries in the journal (rounding to the nearest dollar) using the information below: A physical count of inventory

image text in transcribedimage text in transcribedimage text in transcribed

2 3 1 1. Make adjusting entries in the journal (rounding to the nearest dollar) using the information below: A physical count of inventory revealed $441,020.00 of inventory A physical count of supplies revealed $7232.00 of supplies 4 Depreciation for the year was $24,005 5 The balance in prepaid rent represents an amount paid Dec. 1st for one year 6 7 Even though the notes receivable aren't due until April 30 2021 they will include 8% interest. The Dec. 31 balance represents a 6 month note originating on Nov. 1st 2020. Dec. 31st is a Thursday and $11,000 of salaries for a five day workweek are paid every Friday. 8 2. On the designated pages, make an Adjusted Trial Balance and then Create Financial Statements for 2020 9 10 11 Additional information needed for cash flow statement (not adjusting entries): Furniture was bought for cash and equipment was bought on credit. No assets were sold. Cash dividends of $50,000 were paid during the year. Use the indirect method for creating the Statement of Cash Flows assets liabilities retained earnings 13 12 3. Answer these questions: a. How would the financial statements be different if (each of these scenerios are independent): 14 15 We had missed counting incoming inventory of $1,700 16 17 We had forgotten to count supplies 18 19 20 21 22 23 We had forgotten to record depreciation The bookkeeper had thought the $40,000 we received 12-1 was for past services instead of services to be performed in January The bookkeper wasn't aware that the note payable includes 8% interest to be paid at maturity (calculated on the average balance) (record the amount the assets, liabilities, and retained earnings would change and indicate the direction of change with a + or - so that a poitive number would indicate it is too high by that amount and a negative number indicates it is too low by that amount.) b. How would the financial statements be different if all of these scenerios happened in 2020? 24 25 26

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_2

Step: 3

blur-text-image_3

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

Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

26th edition

128574361X, 978-1305446052, 1305446054, 978-1285743615

More Books

Students also viewed these Accounting questions

Question

What is a price floor and what are its economic effects?

Answered: 1 week ago

Question

Are direct costs and variable costs the same thing?

Answered: 1 week ago

Question

Explain all drawbacks of the application procedure.

Answered: 1 week ago

Question

Determine Leading or Lagging Power Factor in Python.

Answered: 1 week ago