During the adjusting process, the receptionist miscounted the office supplies in the closet. She thought there were $750 worth of supplies left, but there are only $500. What is the effect of this error on the financial statements? What specific accounts are being effected? Which financial statements are incorrect? How will net income be effected? Draw T accounts if it will help you think this through.

During the adjusting process, the receptionist miscounted the office supplies in the closet. She thought there were $750 worth of supplies left, but there are only $500. What is the effect of this error on the financial statements? What specific accounts are being effected? Which financial statements are incorrect? How will net income be effected? Draw T accounts if it will help you think this through.

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter2: T Accounts, Debits And Credits, Trial Balance, And Financial Statements

Section: Chapter Questions

Problem 3A

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During the adjusting process, the receptionist miscounted the office supplies in the closet. She thought there were $550 worth of supplies left, but there are only $300. What is the effect of this error on the financial statements? What specific accounts are being effected? Which financial statements are incorrect? How will net income be effected? Draw T accounts if it will help you think this through. Thank you in advance!!
An employee working on her first trial balance discovers that the Equipment account has a credit balance of $2500 and a customer's A/R account has a credit balance of $25. Based on the knowledge you have gained in this course and how account balances are recorded and increase/decrease, has the accountant made a mistake in her records or are these situations possible?
What Would You Do? A new bookkeeper cant find the errors that are causing the companys month-end trial balance to be out of balance. The bookkeeper is too shy to ask for help at the office, so she takes the financial records home and asks her uncle, a retired bookkeeper, to help her locate the errors. Even with the help of her uncle, the trial balance is still out of balance, and now she is too embarrassed to return to the office and ask for help. The bookkeeper decides to show the trial balance is in balance and hope no one notices. Explain if there is anything wrong with this practice.
Hello, would you be willing to assist me with solving this problem? I am curious as to how you do the math to get 800 on the allowance for doubtful accounts as well. The Adjusting journal entry portion is also confusing on the t-accounts and balance sheet.
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A student remembered that the side toward the window in the classroom was the debit side of an account. The student took an examination in a room where the windows were on the other side of the room and became confused and consistently reversed debits and credits. Would the student’s trial balance have equal debit and credit totals? If there were no existing balances in any of the accounts to begin with, would the error prevent the student from preparing correct financial statements? Why?
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The accountant for Kerns company mistakenly posted an expense amount as an asset in the general ledger. What is the financial statement impact of this error?