Homework Answers
a)
The unearned revenue of $12000 has been understated the total value of income of the business.
answer)Revenues Understated by $12000
b)
The supplies expense of $8400 and insurance of $3100 has been understated the total value of expenses of the business, and it overstated the value of net income of the business.
answer) Expenses understated by $11500 ($8400 + $3100).
c)
Therefore net income was understated by $500 ($12000 - $11500)
answer) Net income understated by $500.
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Effect of Omitting Adjustments For the year ending April 30, Peck Medical Services Co. mistakenly omitted...
The accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for...
The accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for (a) unearned revenue earned during the year ($28,200) and (b) accrued wages ($4,820). Indicate the effect of each error, considered individually, on the income statement for the current year ended July 31. Also indicate the effect of each error on the July 31 balance sheet. Enter all amounts as positive numbers. Enter "O" in those spaces where there is no overstatement or no understatement....
Calculator For the year ending December 31, Orion, Inc. mistakenly omitted adjusting entries for (1) $1,500...
Calculator For the year ending December 31, Orion, Inc. mistakenly omitted adjusting entries for (1) $1,500 of supplies that were used, (2) unearned revenue of $4,200 that was earne and (3) insurance of $5,000 that expired. For the year ending December 31, what is the effect of these errors on revenues, expenses, and net income? a. revenues are overstated by $4,200 b. expenses are understated by $3,500 Cc. expenses are overstated by $6,500 Adjusted Trial Balance December 31 Cash 6,042...
Effects of Errors on Financial Statements The accountant for Healthy Medical Co., a medical services consulting...
Effects of Errors on Financial Statements The accountant for Healthy Medical Co., a medical services consulting firm, mistakenly omitted adjusting entries for $291,100 of uneared revenue that had been earned during the year and accrued wages of $16,800. If the net income for the current year had been $4,220,800, what would have been the correct net income if the proper adjustments had been made?
Effect of Omitting Adjusting Entry At the end of January, the first month of the business...
Effect of Omitting Adjusting Entry At the end of January, the first month of the business year, the usual adjusting entry transferring rent earned from the unearned rent account to a revenue account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a) the income statement for January and (b) the balance sheet as of January 31. Also indicate whether the items in error will be overstated or understated. a. Income Statement Revenues Expenses Net...
Effects of Errors on Financial Statements The accountant for Healthy Life Company, a medical services consulting...
Effects of Errors on Financial Statements The accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for (a) unearned revenue earned during the year ($34,900) and (b) accrued wages ($12,770). Indicate the effect of each error, considered individually, on the income statement for the current year ended July 31. Also indicate the effect of each error on the July 31 balance sheet. Enter all amounts as positive numbers. Enter "0" in those spaces where there...
Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of...
Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits Accounts Receivable $75,000 250,000 Equipment Accumulated Depreciation Equipment $12,000 Prepaid Rent 12,000 3,170 Supplies Wages Payable Unearned Fees 10,000 Fees Earned 400,000 Wages Expense 140,000 Rent Expense Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: • Supplies on hand at November 30, $550. Depreciation of equipment during year, $1,675. Rent expired during year, $8,500....
Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of...
Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits Accounts Receivable $75,000 Equipment 250,000 Accumulated Depreciation—Equipment $12,000 Prepaid Rent 12,000 Supplies 3,170 Wages Payable – Unearned Fees 10,000 Fees Earned 400,000 Wages Expense 140,000 Rent Expense – Depreciation Expense – Supplies Expense – Data needed for year-end adjustments are as follows: Required: Supplies on hand at November 30, $550. Depreciation of equipment during year, $1,675. Rent expired...
Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of...
Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits Accounts Receivable Equipment Accumulated Depreciation-Equipment $75,000 250,000 $12,000 Prepaid Rent 12,000 3,170 Supplies Wages Payable Unearned Fees Fees Earned 10,000 400,000 Wages Expense 140,000 Rent Expense Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: • Supplies on hand at November 30, $550. • Depreciation of equipment during year, $1,675. • Rent expired during year,...
Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following unadjusted trial balance...
Crazy Mountain Outfitters Co., an outfitter store for fishing
treks, prepared the following unadjusted trial balance at the end
of its first year of operations:
Crazy
Mountain Outfitters Co.
Unadjusted Trial Balance
April 30,
20Y5
Debit
Balances
Credit
Balances
Cash
13,880
Accounts Receivable
92,140
Supplies
22,200
Equipment
464,980
Accounts Payable
21,650
Unearned Fees
24,420
Common Stock
55,000
Retained Earnings
264,000
Dividends
18,320
Fees Earned
555,060
Wages Expense
128,770
Rent Expense
98,250
Utilities Expense
70,490
Miscellaneous Expense
11,100
920,130
920,130
For...
Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of...
Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits $54,800 Accounts Receivable Equipment 85,000 Accumulated Depreciation - Equipment $8,440 6,900 Prepaid Rent Supplies 1,640 Wages Payable Unearned Fees 7,560 Fees Earned 320,030 Wages Expense 107,960 Rent Expense Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: Supplies on hand at November 30, $490. • Depreciation of equipment during year, $820. Rent expired during year,...
The accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for (a) unearned revenue earned during the year ($28,200) and (b) accrued wages ($4,820). Indicate the effect of each error, considered individually, on the income statement for the current year ended July 31. Also indicate the effect of each error on the July 31 balance sheet. Enter all amounts as positive numbers. Enter "O" in those spaces where there is no overstatement or no understatement....
Calculator For the year ending December 31, Orion, Inc. mistakenly omitted adjusting entries for (1) $1,500 of supplies that were used, (2) unearned revenue of $4,200 that was earne and (3) insurance of $5,000 that expired. For the year ending December 31, what is the effect of these errors on revenues, expenses, and net income? a. revenues are overstated by $4,200 b. expenses are understated by $3,500 Cc. expenses are overstated by $6,500 Adjusted Trial Balance December 31 Cash 6,042...
Effects of Errors on Financial Statements The accountant for Healthy Medical Co., a medical services consulting firm, mistakenly omitted adjusting entries for $291,100 of uneared revenue that had been earned during the year and accrued wages of $16,800. If the net income for the current year had been $4,220,800, what would have been the correct net income if the proper adjustments had been made?
Effect of Omitting Adjusting Entry At the end of January, the first month of the business year, the usual adjusting entry transferring rent earned from the unearned rent account to a revenue account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a) the income statement for January and (b) the balance sheet as of January 31. Also indicate whether the items in error will be overstated or understated. a. Income Statement Revenues Expenses Net...
Effects of Errors on Financial Statements The accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for (a) unearned revenue earned during the year ($34,900) and (b) accrued wages ($12,770). Indicate the effect of each error, considered individually, on the income statement for the current year ended July 31. Also indicate the effect of each error on the July 31 balance sheet. Enter all amounts as positive numbers. Enter "0" in those spaces where there...
Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits Accounts Receivable $75,000 250,000 Equipment Accumulated Depreciation Equipment $12,000 Prepaid Rent 12,000 3,170 Supplies Wages Payable Unearned Fees 10,000 Fees Earned 400,000 Wages Expense 140,000 Rent Expense Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: • Supplies on hand at November 30, $550. Depreciation of equipment during year, $1,675. Rent expired during year, $8,500....
Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits Accounts Receivable Equipment Accumulated Depreciation-Equipment $75,000 250,000 $12,000 Prepaid Rent 12,000 3,170 Supplies Wages Payable Unearned Fees Fees Earned 10,000 400,000 Wages Expense 140,000 Rent Expense Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: • Supplies on hand at November 30, $550. • Depreciation of equipment during year, $1,675. • Rent expired during year,...
Crazy Mountain Outfitters Co., an outfitter store for fishing
treks, prepared the following unadjusted trial balance at the end
of its first year of operations:
Crazy
Mountain Outfitters Co.
Unadjusted Trial Balance
April 30,
20Y5
Debit
Balances
Credit
Balances
Cash
13,880
Accounts Receivable
92,140
Supplies
22,200
Equipment
464,980
Accounts Payable
21,650
Unearned Fees
24,420
Common Stock
55,000
Retained Earnings
264,000
Dividends
18,320
Fees Earned
555,060
Wages Expense
128,770
Rent Expense
98,250
Utilities Expense
70,490
Miscellaneous Expense
11,100
920,130
920,130
For...
Adjusting Entries Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow: Debits Credits $54,800 Accounts Receivable Equipment 85,000 Accumulated Depreciation - Equipment $8,440 6,900 Prepaid Rent Supplies 1,640 Wages Payable Unearned Fees 7,560 Fees Earned 320,030 Wages Expense 107,960 Rent Expense Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: Supplies on hand at November 30, $490. • Depreciation of equipment during year, $820. Rent expired during year,...
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