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The following are independent errors made by a company that uses the periodic inventory system: a. Goods in transit, purchased on credit and shipped FOB

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The following are independent errors made by a company that uses the periodic inventory system: a. Goods in transit, purchased on credit and shipped FOB destination, $10,000, were included in purchases but not in the physical count of ending inventory. b. Purchase of a machine for $2,000 was expensed. The machine has a 4-year life, no residual value, and straightline depreciation is used. c. Wages payable of $2,000 were not accrued. d. Payment of noxt year's rent, $4,000, was recorded as rent expense. e. Allowance for doubtful accounts of $5,000 was not recorded. The company normally uses the aging method. 1. Equipment with a book value of $70,000 and a fair value of $100,000 was sold at the beginning of the year. A 2year, non-interest-bearing note for $129,960 was received and recorded at its face value, and a gain of $59,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest. General Ledger Chart of Accounts 189 Accumulated Depreciation 521 Wages Expense 532 Bad Debt Expense LIABILITIES 540 Interest Expense 211 Accounts Payable 541 Depreciation Expense 221 Notes Payable 559 Miscellaneous Expenses 231 Wages Payable 910 Income Tax Expense 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings General Journal Instructions Question not attempted. c. Wages payable of $2,000 were not accrued. Assume the wages are unpaid at the time of the entry. General Journal instructions Question not attempted. d. Payment of next year's rent, $4,000, was recorded as rent expense. General Journal Instructions Question not attempted. Question not attempted. 8. Equipment with a book value of $70,000 and a fair value of $100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for $129,960 was recoived and recorded at iss face value, and a gain of $59,960 was recognizod. No interest revenue was recorded and 14% is a fair rate of inferest. f(1). Fecord the adjustment needed to correct the sale of equipment. General. Joumal instructions Question not attempted. \begin{tabular}{|l|l|l|l|l|l|} \hline \multicolumn{1}{|c|}{ GENERAL JOURNAL } & & SCORE: O/25 \\ \hline 1 & DATE & ACCOUNT TITE & POST. REF. & DEBIT & CREOT \\ \hline & & & & \\ \hline & & & \\ \hline \end{tabular} Feedback f (2). Prepare the adjustment needed to correct interest related to the note. General Joumal Instructions Question not attempted. The following are independent errors made by a company that uses the periodic inventory system: a. Goods in transit, purchased on credit and shipped FOB destination, $10,000, were included in purchases but not in the physical count of ending inventory. b. Purchase of a machine for $2,000 was expensed. The machine has a 4-year life, no residual value, and straightline depreciation is used. c. Wages payable of $2,000 were not accrued. d. Payment of noxt year's rent, $4,000, was recorded as rent expense. e. Allowance for doubtful accounts of $5,000 was not recorded. The company normally uses the aging method. 1. Equipment with a book value of $70,000 and a fair value of $100,000 was sold at the beginning of the year. A 2year, non-interest-bearing note for $129,960 was received and recorded at its face value, and a gain of $59,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest. General Ledger Chart of Accounts 189 Accumulated Depreciation 521 Wages Expense 532 Bad Debt Expense LIABILITIES 540 Interest Expense 211 Accounts Payable 541 Depreciation Expense 221 Notes Payable 559 Miscellaneous Expenses 231 Wages Payable 910 Income Tax Expense 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings General Journal Instructions Question not attempted. c. Wages payable of $2,000 were not accrued. Assume the wages are unpaid at the time of the entry. General Journal instructions Question not attempted. d. Payment of next year's rent, $4,000, was recorded as rent expense. General Journal Instructions Question not attempted. Question not attempted. 8. Equipment with a book value of $70,000 and a fair value of $100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for $129,960 was recoived and recorded at iss face value, and a gain of $59,960 was recognizod. No interest revenue was recorded and 14% is a fair rate of inferest. f(1). Fecord the adjustment needed to correct the sale of equipment. General. Joumal instructions Question not attempted. \begin{tabular}{|l|l|l|l|l|l|} \hline \multicolumn{1}{|c|}{ GENERAL JOURNAL } & & SCORE: O/25 \\ \hline 1 & DATE & ACCOUNT TITE & POST. REF. & DEBIT & CREOT \\ \hline & & & & \\ \hline & & & \\ \hline \end{tabular} Feedback f (2). Prepare the adjustment needed to correct interest related to the note. General Joumal Instructions Question not attempted

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