Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help. appreciate you The following transactions were recorded in the accounting records of Pud. in error. The company's year-end is on December 31 Assume that

help. appreciate you
image text in transcribed
The following transactions were recorded in the accounting records of Pud. in error. The company's year-end is on December 31 Assume that double entry is in effect and accrual basis of reporting Independent Errors a. A payment of $4,500 for the first three months rent in 2021 was recorded as rent expense account on Dec 31, 2020. b. No entry was made to accrue half of the $5,400 revenue earned in 2020. The whole amount of revenue was credited on Jan. 5. 2021 when cash was received c $60,000 of dividends declared was properly recorded in 2020. In 2021, the payment of dividends was debited to salary expense Required: Analyze each error and indicate its effect on 2020 and 2021 net earnings, assets, and liabilities if not corrected Do not assume any other errors. Use these codes to indicate the effect of each dollar amount o - overstated, U = understated, and N= no effect (Enter all amounts in positive values. If no effect please enter "O) Assets Liabilities Net Earnings 2020 2021 Shareholders' Equity 2020 2021 2020 2021 2020 2021 Error (a) (b) (c)

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

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

11th Edition

0273708708, 9780273708704

More Books

Students also viewed these Accounting questions

Question

If you were Akio, what would you do now?

Answered: 1 week ago