For understatements and overstatements, please use T-accounts.

trying to determine if im using the correct t-accounts and journal entries.

what journal entries would you make for #5

Alpha sold merchandise to Beta on credit with terms F.O.B. Destination. As of December 31, the merchandise had not yet been received by Beta. Alpha recorded the sale and counted the merchandise in ending inventory (periodic system) 5. it ne caeh Overstatements and Understatements More Practice with Overs/Unders Using HO 1 For more practice with overstatements and understatements using Handout 1, here are the answers. 1. Only affects the trial balance. 2 Only affects the trial balance. 3. NNN 4. NNN 5. NNU 6. ONN 7. NOU 8. NNO 9. NON 10. UUU More Practice with Overs/Unders Using the Visualization Transactions Below is a list of the transactions used in class for the visualizations (and the overstatements and under- statements if these transactions had not been recorded). Purchased furniture & fotures for cash and a note. (UUN) Paid rent for the month when the bill was received. (ONO) Collected cash from customers on account. (NNN) The Board of Directors declared a cash dividend. (NUN) The dividend payable was paid. (OON) Made a credit sale to a customer. (UNU) Paid employee salaries for the month. (ONO) Paid cash owed to satisfy an account payable. (OON) Purchased supplies on account. (UUN) Received cash from a customer in advance of eaming it. (UUN) Sold land at a gain for cash and a note receivable. (UNU) New Overs/Unders 1. Alpha purchased equipment for cash but did not record it. Nor was an AJE recorded for the deprecation on the equipment. 2. Alpha received cash in advance from a customer for services to be performed in the future but failed to record the transaction. Alpha also failed to record an AJE. By year end, some of the services had not been performed. 3. Alpha failed to record a refund of cash to a customer for the return of merchandise sold during the year using the periodic inventory system. 4. Alpha issued common stock to an investor for cash. However, the transaction was erroneously recorded as a cash sale. Alpha sold merchandise to Beta on credit with terms F.O.B. Destination. As of December 31, the merchandise had not yet been received by Beta. Alpha recorded the sale and counted the merchandise in ending inventory (periodic system) . Alpha paid a dividend to shareholders (to satisfy dividends payable) but erroneously recorded it as cash paid to satisfy an account payable. 7. Alpha emoneously recorded an AJE for interest on a note payable instead of the correct AJE for interest on a note receivable. The interest won't be received by Alpha until next year. Apha recorded cash received in advance from a customer for services to be performed in the future as a debit to cash and credit to service revenue. Allpha also failed to record an AJE at year end for half the services performed. Alpha recorded the prepayment of one year of rent as a debit to rent expense and a credit to accounts payable. Alpha failed to record an AJE at the end of the year when there were still two months of rent remaining in the lease. 10. Alpha failed to record the return of inventory to the manufactturer for a credit (periodic inventory system). 11. Alpha purchased merchandise on credit with terms F.O.B. Destination. As of December 31, the merchandise had not yet been received by Alpha. Alpha recorded the purchase and included that merchandise in ending inventory (periodic system). 12 Alpha should have recorded the purchase of supplies on credit but didn't As a result, no AJE was recorded at year end for the amount of those supplies used. 13. Alpha failed to record the prepayment of one year of rent paid. Alpha also failed to record an AJE at the end of the year when there was still nine months of time remaining on the lease 14. Alpha sold merchandise to Beta on credit with terms F.O.B. Shipping Point. As of December 31, the merchandise had not yet been received by Beta Alpha did not record the sale and counted the merchandise in ending inventory (periodic system). 15. Alpha paid cash to satisfy an account payable but erroneously recorded it as a dividend paid to shareholders. The declaration of the dividend was previously recorded 16. Alpha made a cash sale but erroneously recorded it as a loan from a bank 17. Alpha erroneously recorded an AJE for interest on a note receivable instead of the correct AJE for interest on a note payable. The interest won't be paid by Alpha until next year. 18. Alpha purchased equipment on credit but did not record it. No payments were made during the year and no AJE was recorded for the depreciation on the equipment. 19. Alpha failed to record an AJE for interest eamed on a note receivable. The interest won't be received until next year. 20. Alpha received cash from a bank but erroneously recorded it as a cash sale instead of a loan that must be repaid next year (ignore interest). 21. Alpha paid cash for one year of rent in the third month of the year but erroneously recorded it as cash paid to satisfy an account payable. Alpha also failed to record the required AJE for the rent used during the year. 22. Alpha recorded the credit purchase of supplies as a debit to Supplies and a credit to Cash. 23. Alpha made a cash sale but erroneously recorded it as cash received from a customer as payment to satisfy an existing account receivable. 24. Alpha failed to record the return of inventory to the vendor for cash. Assume the use of the periodic inventory system 25, Alpha failed to record the following AJE: The Sales account includes a $5,000 payment received in advance from a customer. By year end, only $3,000 of the merchandise had been delivered to the customer. 26. Alpha failed to record rent paid in advance to its landlord. By year end, all but one month of the rent had been used. [This omission includes both a transaction and an AJE.] 27. Failed to record AJE: Salaries are paid every Friday for a 5-day work week. The nomal payroll is $40,000. The year-end falls on a Tuesday this year. 28. Failed to record AJE: Examining the Rent Expense account, the controller finds that it includes a $4,800 advance payment for 3 months' rent. The payment was made on November 1 29. Failed to record AJE: There is $500 of office supplies left in the storeroom. At the beginning of the year, there were no office supplies. During the year, $3,500 of office supplies was purchased. 30. Failed to record AJE: Alpha received an order in May with a $13,000 advance payment, which was credited to Uneamed Revenue. In November, the last of the order was shipped to the customer. 31. Failed to record AJE: Alpha has a $20,000, 9-month, 12 % note payable outstanding at the end of the year. The note was issued on October 1. The interest is to be paid when the note is paid. 32. Failed to record AJE: Examining the Uneamed Revenue account, Alpha's controller finds that it includes $6,000 for 12 months of rent received from one of the tenants on October 1 33. Alpha recorded a cash purchase of inventory (using the periodic inventory system) but erroneously recorded it as a debit to Supplies and a credit to Accounts Payable. The inventory was counted in ending inventory 34. Alpha made a cash sale to a customer but erroneously recorded it as a payment to satisfy an existing account receivable. 35. Alpha failed to record a cash sale 36. Alpha recorded the purchase of equipment for cash as a debit to Equipment and a credit to Accounts Payable 37. Alpha failed to record the purchase of merchandise (inventory) on account using the periodic inventory system 38. Cash received from a customer in payment of the existing account is recorded by Alpha as if the receipt was for a current period sale. 39. Alpha recorded a credit sale as a debit to Cash and credit to Sales. 40. Alpha failed to record depreciation at the end of the current period. 1. ONO 2. UUU 3. ONO 4. NNO 5. ONO 6. NNN 7. UOU 8. NUO 9. OOU 10. NOU 11. OON 12. UUO 13. ONO 14. UNU 15. NNN 16. NOU 17. OUO 18. UUO 19. UNU 20. NUO 21. UUO 22. UUN 23. UNU 24. UNU 25. NUO Alpha sold merchandise to Beta on credit with terms F.O.B. Destination. As of December 31, the merchandise had not yet been received by Beta. Alpha recorded the sale and counted the merchandise in ending inventory (periodic system) 5. it ne caeh Overstatements and Understatements More Practice with Overs/Unders Using HO 1 For more practice with overstatements and understatements using Handout 1, here are the answers. 1. Only affects the trial balance. 2 Only affects the trial balance. 3. NNN 4. NNN 5. NNU 6. ONN 7. NOU 8. NNO 9. NON 10. UUU More Practice with Overs/Unders Using the Visualization Transactions Below is a list of the transactions used in class for the visualizations (and the overstatements and under- statements if these transactions had not been recorded). Purchased furniture & fotures for cash and a note. (UUN) Paid rent for the month when the bill was received. (ONO) Collected cash from customers on account. (NNN) The Board of Directors declared a cash dividend. (NUN) The dividend payable was paid. (OON) Made a credit sale to a customer. (UNU) Paid employee salaries for the month. (ONO) Paid cash owed to satisfy an account payable. (OON) Purchased supplies on account. (UUN) Received cash from a customer in advance of eaming it. (UUN) Sold land at a gain for cash and a note receivable. (UNU) New Overs/Unders 1. Alpha purchased equipment for cash but did not record it. Nor was an AJE recorded for the deprecation on the equipment. 2. Alpha received cash in advance from a customer for services to be performed in the future but failed to record the transaction. Alpha also failed to record an AJE. By year end, some of the services had not been performed. 3. Alpha failed to record a refund of cash to a customer for the return of merchandise sold during the year using the periodic inventory system. 4. Alpha issued common stock to an investor for cash. However, the transaction was erroneously recorded as a cash sale. Alpha sold merchandise to Beta on credit with terms F.O.B. Destination. As of December 31, the merchandise had not yet been received by Beta. Alpha recorded the sale and counted the merchandise in ending inventory (periodic system) . Alpha paid a dividend to shareholders (to satisfy dividends payable) but erroneously recorded it as cash paid to satisfy an account payable. 7. Alpha emoneously recorded an AJE for interest on a note payable instead of the correct AJE for interest on a note receivable. The interest won't be received by Alpha until next year. Apha recorded cash received in advance from a customer for services to be performed in the future as a debit to cash and credit to service revenue. Allpha also failed to record an AJE at year end for half the services performed. Alpha recorded the prepayment of one year of rent as a debit to rent expense and a credit to accounts payable. Alpha failed to record an AJE at the end of the year when there were still two months of rent remaining in the lease. 10. Alpha failed to record the return of inventory to the manufactturer for a credit (periodic inventory system). 11. Alpha purchased merchandise on credit with terms F.O.B. Destination. As of December 31, the merchandise had not yet been received by Alpha. Alpha recorded the purchase and included that merchandise in ending inventory (periodic system). 12 Alpha should have recorded the purchase of supplies on credit but didn't As a result, no AJE was recorded at year end for the amount of those supplies used. 13. Alpha failed to record the prepayment of one year of rent paid. Alpha also failed to record an AJE at the end of the year when there was still nine months of time remaining on the lease 14. Alpha sold merchandise to Beta on credit with terms F.O.B. Shipping Point. As of December 31, the merchandise had not yet been received by Beta Alpha did not record the sale and counted the merchandise in ending inventory (periodic system). 15. Alpha paid cash to satisfy an account payable but erroneously recorded it as a dividend paid to shareholders. The declaration of the dividend was previously recorded 16. Alpha made a cash sale but erroneously recorded it as a loan from a bank 17. Alpha erroneously recorded an AJE for interest on a note receivable instead of the correct AJE for interest on a note payable. The interest won't be paid by Alpha until next year. 18. Alpha purchased equipment on credit but did not record it. No payments were made during the year and no AJE was recorded for the depreciation on the equipment. 19. Alpha failed to record an AJE for interest eamed on a note receivable. The interest won't be received until next year. 20. Alpha received cash from a bank but erroneously recorded it as a cash sale instead of a loan that must be repaid next year (ignore interest). 21. Alpha paid cash for one year of rent in the third month of the year but erroneously recorded it as cash paid to satisfy an account payable. Alpha also failed to record the required AJE for the rent used during the year. 22. Alpha recorded the credit purchase of supplies as a debit to Supplies and a credit to Cash. 23. Alpha made a cash sale but erroneously recorded it as cash received from a customer as payment to satisfy an existing account receivable. 24. Alpha failed to record the return of inventory to the vendor for cash. Assume the use of the periodic inventory system 25, Alpha failed to record the following AJE: The Sales account includes a $5,000 payment received in advance from a customer. By year end, only $3,000 of the merchandise had been delivered to the customer. 26. Alpha failed to record rent paid in advance to its landlord. By year end, all but one month of the rent had been used. [This omission includes both a transaction and an AJE.] 27. Failed to record AJE: Salaries are paid every Friday for a 5-day work week. The nomal payroll is $40,000. The year-end falls on a Tuesday this year. 28. Failed to record AJE: Examining the Rent Expense account, the controller finds that it includes a $4,800 advance payment for 3 months' rent. The payment was made on November 1 29. Failed to record AJE: There is $500 of office supplies left in the storeroom. At the beginning of the year, there were no office supplies. During the year, $3,500 of office supplies was purchased. 30. Failed to record AJE: Alpha received an order in May with a $13,000 advance payment, which was credited to Uneamed Revenue. In November, the last of the order was shipped to the customer. 31. Failed to record AJE: Alpha has a $20,000, 9-month, 12 % note payable outstanding at the end of the year. The note was issued on October 1. The interest is to be paid when the note is paid. 32. Failed to record AJE: Examining the Uneamed Revenue account, Alpha's controller finds that it includes $6,000 for 12 months of rent received from one of the tenants on October 1 33. Alpha recorded a cash purchase of inventory (using the periodic inventory system) but erroneously recorded it as a debit to Supplies and a credit to Accounts Payable. The inventory was counted in ending inventory 34. Alpha made a cash sale to a customer but erroneously recorded it as a payment to satisfy an existing account receivable. 35. Alpha failed to record a cash sale 36. Alpha recorded the purchase of equipment for cash as a debit to Equipment and a credit to Accounts Payable 37. Alpha failed to record the purchase of merchandise (inventory) on account using the periodic inventory system 38. Cash received from a customer in payment of the existing account is recorded by Alpha as if the receipt was for a current period sale. 39. Alpha recorded a credit sale as a debit to Cash and credit to Sales. 40. Alpha failed to record depreciation at the end of the current period. 1. ONO 2. UUU 3. ONO 4. NNO 5. ONO 6. NNN 7. UOU 8. NUO 9. OOU 10. NOU 11. OON 12. UUO 13. ONO 14. UNU 15. NNN 16. NOU 17. OUO 18. UUO 19. UNU 20. NUO 21. UUO 22. UUN 23. UNU 24. UNU 25. NUO