Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information [The following information applies to the questions displayed below) Quinlan-Cohen, Inc.publishers of movie and song triva books, made the following errors in adjusting
Required information [The following information applies to the questions displayed below) Quinlan-Cohen, Inc.publishers of movie and song triva books, made the following errors in adjusting the accounts at year-end (December 31) a Did not accrue S1,600 owed to the company by another company renting part of the building as a storage facility b. Did not record $15,100 depreciation on the equipment costing $117.000 c Failed to adjust the Unearned Fee Revenue account to reflect that 51100 was earned by the end of the year d. Recorded a full year of accrued interest expense on a $13,200,12 percent note payable that has been outstanding only since November 1 e Failed to adjust Prepaid Insurance to reflect that $670 of insurance coverage had been used. 2. Using the following headings, indicate the effect of each error and the amount of the effect (that is, the difference between the entry that was or was not made and the entry that should have been made) Use of the effect overstates the item, if the effect understates the item (Reminder: Assets Liabilities. Stockholders' Equity, Revenues - Expenses - Net Income, and Net Income accounts are closed to Retained Earnings, a part of Stockholders' Equity) (Select "NE" for no effect.) Balance Sheet Assets Liabilities Effect Amount Effect Amount Stockholders' Equity Effect Amount Income Statement Revenues Expenses Effect Amount Elect Amount Transaction Net Income Effect Amount a b C d e
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started