Do not give image format Salaries and Wages ExpenseSalaries and Wages PayableSalaries and Wages ExpenseSalaries and Wages PayablePrepaid InsuranceInsurance Expense(To record the sales taxes due.)(To correct prior entry.)3,55029,7002,1203,55029,70010000100 002.120 You have been engaged to review the financial statements of Swifty Corporation. In the course of your examination, you conclude thatthe bookkeeper hired during the current year is not doing a good job. You notice a number of irregularities as follows.1.2.3.4.Year-end wages payable as of the end of the current year of $3,550 were not recorded because the bookkeeper thought that"they were immaterial."Accrued vacation pay for the current year of $29.700 was not recorded because the bookkeeper "never heard that you had todo it."Insurance for a 12-month period purchased on November 1 of this year was charged to insurance expense in the amount of$2,544 because the amount of the check is about the same every year."Reported sales revenue for the year is $2,125,300. This includes all sales taxes collected for the year. The sales tax rate is 6%.Because the sales tax is forwarded to the state's Department of Revenue, the Sales Tax Expense account is débited. Thebookkeeper thought that "the sales tax is a selling expense." At the end of the current year, the balance in the Sales TaxExpense account is $103,800.Prepare the necessary correcting entries during the current year, assuming that Swifty uses a calendar-year basis. (Credit account titlesare automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter O for the amounts. List all debit entries before credit entries.)

Correcting journal entries rectify errors in previously recorded financial transactions. They ensure…

Prepare the necessary correcting entries during the current year, assuming that Swifty uses a calendar-year basis. are automatically indented when the amount is entered. Do not indent manually. If ng entry is required select "bie Ent

Prepare the necessary correcting entries during the current year, assuming that Swifty uses a calendar-year basis. are automatically indented when the amount is entered. Do not indent manually. If ng entry is required select "bie Ent

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter4: Adjusting Entries And The Work Sheet

Section: Chapter Questions

Problem 4A: Your client is preparing financial statements to show the bank. You know that he has incurred a...

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