General Concepts

In each of the following questions, you have transactions that were either "missed" or wrong in the annual financial statements ending on December 31^st.

Indicate the amounts involved and the effects on each of the accounts listed, using the following notation:

overstated (O), understated (U) or no effect (NE)

Each transaction is independent (i.e., the first transaction does not affect the second, etc...).

For each question be sure to show by what amounts the financial statements are wrong before the corrections are made for the forgotten or mistaken transactions.Ignore any tax effects.

1.On December 31^st, 2012, Bingo Corp. borrowed $50,000 from a bank.Half of the loan was to be repaid in 2013, and the other half in 2014.This entry was never recorded. The effect of this error in the financial statements for the fiscal year end 2012 was:

Record these transactions in a transaction worksheet.

Current Assets

Long-term assets

Current Liabilities

Long-term liabilities

Capital Stock

Retained Earnings

Net Income

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