(1)
To state: If the errors equal total debit and total credit on the
Introduction: The financial statements of a company include the
(b)
To identify: The account with incorrect balance along with the amount.
Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company.
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HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
- Please help. I can't figure out the answer. Thanks Questions needed answer: a. Prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustment. b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet. Note: The general journal in the picture are the parts I attempted to answer as you can see there are green check marks that represent a correct answer and red x for a wrong answer. The parts that has the red X are what I needed answers. Thanksarrow_forwardA fire destroyed certain accounting records of Green Books. The controller, Marilyn Green, asks your help in reconstructing the records. All of the sales are on account, with credit terms of n/30. The only accounting record preserved from the fire is the accounts receivable subsidiary ledger, which follows. Requirements Determine the beginning and ending balances of Accounts Receivable. Determine the sales on account in the month of April. Determine total cash receipts on account from customers during Aprilarrow_forwardApplying the direct write-off method to account for uncollectible Susan Knoll is an attorney in Los Angeles. Knoll uses the direct write-off method to account for uncollectible receivables. At January 31, 2016, Knoll’s accounts receivable totaled $18,000. During February, she earned revenue of $21,000 on account and collected $23,000 on account. She also wrote off uncollectible receivables of $1,050 on February 29, 2016. Requirements Use the direct write-off method to journalize Knoll’s write-off of the uncollectible receivables. What is Knoll’s balance of Accounts Receivable at February 29, 2016?arrow_forward
- Which of the following errors would be detected by a trial balance? Group of answer choices The cashier pocketed the cash from a cash sale and did not record it on the register A cash sale was recorded in the sales account as $548 instead of $584 but was correctly recorded in the bank account Supplies purchased on credit were recorded as a debit to the plant and equipment account and a credit to the accounts payable account Staff wages were recorded as office expensesarrow_forwardIn the trial balance for March, you see that Notes Receivable-Fast Feet Co. has a negative balance of $105, which would seem to indicate that Fast Feet paid too much. Looking back through the journal entries for March, you find that on March 19 the accounting intern recorded receipt of $3,605 in payment of this note receivable. Further investigation reveals that on November 19, 20Y7, this note receivable was received from Fast Feet Co. for $3,500. You can find no additional information about this note in the accounting records. Assume a 360 day year. Using the preceding information, compute the term and the interest rate of the note receivable from Fast Feet. Term of the note: 120 days Interest rate of the note: 9 % 3. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 20Y7. Assume that the entry on November 19, 20Y7 is correct. Refer to the Chart of Accounts of exact wording of account titles. Round all amounts to…arrow_forwardApril showers sells goods on credit to most of its customers. In order to control its debtor collection system, the company maintaiņs a sales ledger control account. In preparing the accounts for the year to 31 October 2019 the accountant discovers that the total of all the personal accounts in the sales ledger amounts to sh12, 802, whereas the balance on the sales ledger control account is sh12,550. Upon investigating the matter, the following errors were discovered: 1. Sales for the week ending 27 March 2019 amounting to sh850 had been omitted from the control accoun t. 2. A debtor's account balance of sh300 had not been included in the list of balances. &. Cash received of sh 750 had been entered in a personal account as sh570. 4. Discounts allowed totaling sh100 had not been entered in the control account. 5. A personal account balance had been undercast by sh200. a. A contra item of sh400 with the purchase ledger had not been entered in the control account. 1. A bad debt of sh500…arrow_forward
- During the preparation of the bank reconciliation for Apache Grading Co., Sarah Ferrari, the assistant controller, discovered that Rocky Spring Bank incorrectly recorded a $610 check written by Apache Grading Co. as $160. Sarah has decided not to notify the bank but wait for the bank to detect the error. Sarah plans to record the $450 error as Other Income if the bank fails to detect the error within the next three months. Discuss whether Sarah is behaving in a professional manner.arrow_forwardApplying the direct write-off method to account for uncollectibles Shawm Valley is an attorney in Los Angeles. Valley uses the direct write-off method to account for uncollectible receivables. At April 30 2018, Valley’s accounts receivable totaled $1 9,000. During May, she revenue of $22,000 on account and collected $15,000 on account. She also wrote off uncollectible receivables of $1,100 on May 31, 2018. Requirements Use the direct write-off method to journalize Valley’s write-off of the uncollectible receivables. What is Valley’s balance of Accounts Receivable at May 31,2018?arrow_forwardMpho cannot understand why the balance of her bank account in the general ledger does not balance to the monthly bank statement that she receives from the bank. Required: Give Mpho three (3) reasons why a difference may occur between the balance of her bank account in the general ledger and the balance on the monthly bank statement. For each reason briefly explain, in your own words, why the difference arises. Provide one example of each reason.arrow_forward
- Working It Out Ann Kerrigan mistakenly recorded the collection of a $1,000 receivable as a debit to Cash and a credit to Service Revenue for $1,000. 1. Prepare the correcting entry. 2. Assume that Kerrigan's net income before the correction was $26,000. How much is her corrected net income?arrow_forwardJohn’s bank statement shows a closing balance for a given month as $2,200, and his personal account register shows a closing balance for the same month as $2,050. John investigated his accounts to identify the following discrepancies: · The bank charged $200 in bank charges. · Checks for $200 were not yet paid. · Deposits not yet credited were $300. · The bank credited $450 to John’s account. What will be the reconciled amount of John’s bank account?arrow_forwardElton John, a friend of yours, overheard a discussion at work about changes his employer wants to make in accounting for uncollectible accounts. John knows little about accounting, and he asks you to help make sense of what he heard. Specifically, he asks you to explain the differences between the percentage-of-sales, percentage-of-receivables, and the direct write-off methods for uncollectible accounts. Instructions In a letter of one page (or less), explain to John the three methods of accounting for uncollectibles. Be sure to discuss differences among these methods. Elton John, a friend of yours, overheard a discussion at work about changes his employer wants to make in accounting for uncollectible accounts. John knows little about accounting, and he asks you to help make sense of what he heard. Specifically, he asks you to explain the differences between the percentage-of-sales, percentage-of-receivables, and the direct write-off methods for uncollectible accounts. Instructions In…arrow_forward
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