1. The following is Trial Balance of Ricky's Repair for the financial year ended 31 December 20X3: Non-current ass ets Inventory Accountreceivables Cash Capital Revenue Rent Electricity Repair and maintenance Salaries and wages Advertisement expensese DR $ 2,000 2,000 5,000 1,500 2,000 1,000 500 2,000 3,500 19,500 CR $ 14,000 5,500 19,500 The accounts clerk has made the following mistakes while preparing the above trial balance a) b) Sales to a customer on credit on 30 December 20X3 amounting to $165 was wrongly taken up as $105 in both revenue and accounts receivables Non-current assets consist of 2 office equipment bought during the year. The company's policy is to charge a full year depreciation in the year of acquisition. The depreciation rate for office equipment is 20% on straight line basis. This depreciation amount has been omitted in the preparation of the trial balance c) Rental amounting to $1.200 for 3 months has been paid on 1 November 20X3. The full amount has be taken up as rental expense as at 31 Dec 20X3.

1. The following is Trial Balance of Ricky's Repair for the financial year ended 31 December 20X3: Non-current ass ets Inventory Accountreceivables Cash Capital Revenue Rent Electricity Repair and maintenance Salaries and wages Advertisement expensese DR $ 2,000 2,000 5,000 1,500 2,000 1,000 500 2,000 3,500 19,500 CR $ 14,000 5,500 19,500 The accounts clerk has made the following mistakes while preparing the above trial balance a) b) Sales to a customer on credit on 30 December 20X3 amounting to $165 was wrongly taken up as $105 in both revenue and accounts receivables Non-current assets consist of 2 office equipment bought during the year. The company's policy is to charge a full year depreciation in the year of acquisition. The depreciation rate for office equipment is 20% on straight line basis. This depreciation amount has been omitted in the preparation of the trial balance c) Rental amounting to $1.200 for 3 months has been paid on 1 November 20X3. The full amount has be taken up as rental expense as at 31 Dec 20X3.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 18E: Errors During the course of your examination of the financial statements of Burnett Co., a new...

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Question 1. Trial balanceLand and premises 2000000Furniture 120000Inventory (01/04/19) 80000Import on duty 4000Wages of contract workers 46000Salaries 64000Carriage for goods purchased 5200Carriage for goods sold 12400Discounts 24900 25080Purchases and sales 705200 237252200 Rent 11200 13000Commission 15600 17400Bills receivable 1080012% investment (1/10/19) 136000Donation to national fund 1260010% bank loan 112000Factory rent 64000Receivables and payables 920000 240000eBank 728000Bad debts 66000 Provision for doubtful debts 20000Rates and taxes 31200BrokerageCapitalQueen corona 500000Queen covid 500000Current accountQueen corona 20000Queen covid 128000 Additional informationDue to the economic recession at the moment, the partners estimated that more of their receivables may not be able to settle their debts, hence, they wrote off additional debts of GHc 15000 and agreed to maintain provisions for doubtful debts at 5%.They agreed to provide for discount on receivables at 5%.All…
Pachel corpolatian re Ports the per teining vecevicable Days Past Due 3-60 followinginfamethon to iti accounts cuNent 1-30 ever90 $2500 1200. $2000 Jhe companys cradit depaltment Plovided the following statement estima ter vegarding the pocent of occounts enfc ted to eventuallyy be writtenoff form. each category current veceveiNable receivables -30 days past due listed aboue aut standing rELENables 31-ho days past due 16 feceivables 6L-G0 days Pajt due receivable Cuer 20 days due. 90 Recold the company's uncollectible account afsuming it hal expense fredit balance for in its llawance Deuhtful accounts pror to the necessaty maling endjustment.
Refer to the information provided in E19-13. Required: Using the years-of-future-service method, prepare a set of schedules to determine (1) the amortization fraction for each year and (2) the amortization of the prior service cost.
Errors During the course of your examination of the financial statements of Burnett Co., a new client, for the year ended December 31, 2019, you discover the following: Inventory at January 1, 2019, was understated by 6,000. Inventory at December 31, 2019, was overstated by 5,000. During 2019, the company received a 1,000 cash advance from a customer for merchandise to be manufactured and shipped during 2020. It had credited the 1,000 to sales revenue. The companys gross profit on sales is 50%. Net income reported on the 2019 income statement (before reflecting any adjustments for the above items) is 20,000. Required: Next Level What is the correct net income for 2019?
Prepare an annual income statement from the following adjusted trial balance.Blossom EnterprisesAdjusted Trial Balance December 31, 2020AccountDebitCreditCash$1,900Accounts Receivable 14, 100Allowance for Doubtful Accounts$900Prepaid Insurance1, 900Equipment26, 400Accumulated Depreciation4, 600Notes Payable9, 000Accounts Payable2, 800Salaries and Wages Payable2, 000 Interest Payable100Common Stock16,000Retained Earnings7, 800Dividends2, 500Service Revenue123, 500Salaries and Wages Expense84, 700Rent Expense23, 000Supplies Expense5, 500Insurance Expense3, 000Interest Expense600Bad Debt Expense900Depreciation Expense2, 200$166, 700$166, 700
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uncollectible accounts in each age category are as follows: Age Class Balance Percent Uncollectible Not past due $902,000 3/4% 1-30 days past due 292,000 1 31-60 days past due 98,500 8 61-90 days past due 68,000 16 91-180 days past due 44,700 50 Over 180 days past due 15,500 80 $1,420,700 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. Estimated Estimated Uncollectible Accounts Uncollectible Accounts Age Class Balance Percent Not past due $902,000 3/4% 1-30 days past due 292,000 1 31-60 days past due 98,500 8 61-90 days past due 68,000 16 91-180 days past due 44,700 50 Over 180 days past due 15,500 80 Total $1,420,700 Check My Work Amount
Wolmore Resources Ltd. is authorized to issue unlimited numbers of common shares, of which 40,500,000 have been issued at an average price of $22 per share. On 1 January 20X3, when shares were trading for $30 per share, the company granted stock options to each of its 42 senior executives. The stock options provide that each individual will be eligible to purchase, no earlier than 31 December 20X7, 3,000 common shares at a base option price of $30 per share. The options are nontransferable, vest on 31 December 20X7, and expire on 31 December 20X8. Option pricing models indicate that the options have a total value of $480,000. Estimates of retention are: End of Year Employees expected to remain until vesting Employees expected to forfeit Employees actually forfeiting in the year Employees actually receiving options (42 - 7) 20X3 32 (76%) 10 (24%) 0 20X4 30 (71%) 12 (29%) 5 20X5 35 (83%) 7 (17%) 2 20X6 34 (81%) 8 (19%) 0 20X7 n/a n/a 0 35 Twenty-five individuals who received the options…
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MC Qu. 12-127 The purchase of.. The purchase of $112,000 of equipment by Issulng a note would be reported: Multiple Choice In a supplementary schedule. as a $112,000 operating Inflow, and a $112,000 financing outflow. as a $112,000 Investing outflow, and a $112,000 financing Inflow. as a $112.000 investing Inflow, and a $112,000 financing outflow.