see attached image.
please provide answers so I can check work for required questions (a-e)
b. David Grossman Corp. received a $12.500 deposit from a customer for services to be Question 3 (35 Points) performed next year (2021), and incorrectly recorded this deposit as revenue. As of the end of the year, David Grossman Corp. had not yet performed any of the service required to In each of the following five items, I have described transactions that, possibly, were either satisfy the contract, and did not make any year-end adjustments to correct the mistaken "missed" or made in error in the annual financial statements ending on December 31, 2020. entry. Indicate in the tables provided by what amounts the financial statements are wrong before the Current Assets Long-term Assets corrections are made for the forgotten or mistaken transactions. Ignore any effect of taxes. Current Liabilities Long-term Liabilities Use the following notation: Paid-in-Capital Retained Earnings Net Income iPhone 13 launch date Overstated (O), Understated (U) or No Effect (NE). Each transaction is independent (i.e., the first transaction does not affect the second, etc...). c. On December 31, 2020. Michal Shalev Corp. borrowed $50,000 from a bank. The loan is due to be repaid in three years (2023). This entry was never recorded. Example: A firm neglected to record a payment to a supplier of $10,000. Current Assets Long-term Assets Current Assets 0) 10,000 Long-term Assets NE Current Liabilities Long-term Liabilities Current Liabilities 0) 10,000 Long-term Liabilities NE Paid-in-Capital Retained Earnings Net Income Dow Jones Index Paid-in-Capital NE Retained Earnings NE Net Income NE Our Manhattanville NE d. On January 1. 2020. Tsruya Shalev paid $150.000 as a five-year rent for a property with a Campus lake view. The entire amount was recorded as an expense in the Income Statement. (Cash and Accounts Payable are overstated.) Current Assets Long-term Assets a. On November 15. Naomi Ragen neglected to record a collection from a customer of Current Liabilities Long-term Liabilities $15,000. Paid-in-Capital Retained Earnings Net Income Your GMAT Score Current Assets Long-term Assets e. Ychoshua Bar-Yosef has a. non-GAAP. policy of capitalizing all of its general-purpose Current Liabilities Long-term Liabilities Research and Development (R&D) costs as long-term assets. Yehoshua amortizes these Paid-in-Capital Retained Earnings costs as an expense over 3 years (equal amount every year - the straight-line method). On Net Income Super Bowl Winner January 1, 2020, Yehoshua paid $45,000 in cash for R&D and recorded the entire amount as an asset. Relative to GAAP, how were the following accounts mis-stated as of December 31, 20207 Current Assets Long-term Assets Current Liabilities Long-term Liabilities Paid-in-Capital Retained Earnings Net Income Elon Musk 1Q (or EQ)
