The following selected accounts are taken from the Crandle Corporation's December 31, 2017 adjusted trial balance: Retained earnings, January 1, 2017 Interest Expense Depreciation Expense – Sales Fixtures Sales Returns and Allowances $428,900 4,900 8,500 11,300 14,100 110,000 29,500 900 Advertising Expense Common Stock, $10 par Administrative and Office Salaries expense Dividend Revenue 378,000 7,700 5,000 1,800 6,000 191,200 5,200 1,900 4,600 16,500 10,000 15,870 Sales Property Tax Expense Gain on sale of sales fixtures (pre-tax) Office supplies expense Transportation out - deliveries Cost of goods sold Sales discount taken Bad debt expense Sales supplies expense Sales salaries expense Depreciation expense – buildings and office equipment Income tax expense | In addition to the preceding account balances, you have available the following information: In the middle of December 2017, the company incurred a material $5,500 pretax loss as a result of a freak flood of a river that had never flooded before. While making its December 31, 2017 adjusting entries, the company discovered the following: • In records its December 31, 2016 adjusting entries, it had inadvertently recorded depreciation expense twice for the same asset. The amount of the error was $4,000 pretax
The following selected accounts are taken from the Crandle Corporation's December 31, 2017 adjusted trial balance: Retained earnings, January 1, 2017 Interest Expense Depreciation Expense – Sales Fixtures Sales Returns and Allowances $428,900 4,900 8,500 11,300 14,100 110,000 29,500 900 Advertising Expense Common Stock, $10 par Administrative and Office Salaries expense Dividend Revenue 378,000 7,700 5,000 1,800 6,000 191,200 5,200 1,900 4,600 16,500 10,000 15,870 Sales Property Tax Expense Gain on sale of sales fixtures (pre-tax) Office supplies expense Transportation out - deliveries Cost of goods sold Sales discount taken Bad debt expense Sales supplies expense Sales salaries expense Depreciation expense – buildings and office equipment Income tax expense | In addition to the preceding account balances, you have available the following information: In the middle of December 2017, the company incurred a material $5,500 pretax loss as a result of a freak flood of a river that had never flooded before. While making its December 31, 2017 adjusting entries, the company discovered the following: • In records its December 31, 2016 adjusting entries, it had inadvertently recorded depreciation expense twice for the same asset. The amount of the error was $4,000 pretax
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 54CE
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