College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 4, Problem 4CE
To determine
Prepare the correcting entry for the given transaction.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
In November 2019, Yammy Fun Inc. purchased advertising for $1,000 that ran in the local November newspaper. All purchases and services are made on credit. The bookkeeper, PatrickFitz, recorded the advertising by crediting Supplies Inventory (asset) and debiting accounts payable. In 2020 (the following year), the new bookkeeper, Tua, saw this entry and asked you to help him analyze the entry. What is the correcting entry for 2020?
Debit Supplies Inventory and credit Advertising Expense for 1,000.Debit Supplies Inventory and credit Retained Earnings for 1,000Debit Retained Earnings for 1,000 and credit Accounts Payable for 1,000.Debit Advertising Expense for 1,000, debit Supplies Inventory for 1,000, and credit Accounts Payable for2,000Debit Retained Earnings for 1,000, debit Supplies Inventory for 1,000, and credit Accounts Payable for2,000
Travel Planners, Incorporated borrowed $5,000 from First State Bank and signed a promissory note. What entry should Travel Planners record when the note is repaid?
On December 29, Patel Products, Incorporated, sells a delivery van that cost $20,000. After recording the entry to bring the
accumulated depreciation up-to-date, the delivery van had accumulated depreciation of $18,000. Patel received $2,000 cash from the
purchaser of the delivery van.
Complete the necessary journal entry to record the sale by selecting the account names from the drop-down menus and entering the
dollar amounts in the debit or credit columns.
View transaction list
Journal entry worksheet
1
On December 29, Patel Products, Inc., sells a delivery van that cost $20,000.
After recording the entry to bring the accumulated depreciation up-to-date,
the delivery van had accumulated depreciation of $18,000. Patel received
$2,000 cash from the purchaser of the delivery van.
Note: Enter debits before credits.
Date
Dec. 29
General Journal
Debit
Credit
Chapter 4 Solutions
College Accounting, Chapters 1-27
Ch. 4 - Source documents serve as historical evidence of...Ch. 4 - The chart of accounts lists capital accounts...Ch. 4 - No entries are made in the Posting Reference...Ch. 4 - When entering the credit item in a general...Ch. 4 - When an incorrect entry has been journalized and...Ch. 4 - Prob. 1MCCh. 4 - A revenue account will begin with the number...Ch. 4 - To purchase an asset such as office equipment on...Ch. 4 - When fees are earned and the customer promises to...Ch. 4 - When the correct numbers are used but are in the...
Ch. 4 - Prob. 1CECh. 4 - Prob. 2CECh. 4 - Prob. 3CECh. 4 - Prob. 4CECh. 4 - Trace the flow of accounting information through...Ch. 4 - Name a source document that provides information...Ch. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Where is the first formal accounting record of a...Ch. 4 - Describe the four steps required to journalize a...Ch. 4 - In what order are the accounts customarily placed...Ch. 4 - Explain the primary advantage of a general ledger...Ch. 4 - Explain the five steps required when posting the...Ch. 4 - Prob. 10RQCh. 4 - Explain why the ledger can still contain errors...Ch. 4 - Prob. 12RQCh. 4 - What is a transposition error?Ch. 4 - What is a correcting entry?Ch. 4 - Prob. 1SEACh. 4 - GENERAL JOURNAL ENTRIES For each of the following...Ch. 4 - GENERAL LEDGER ACCOUNTS Set up T accounts for each...Ch. 4 - GENERAL JOURNAL ENTRIES Diane Bernick has opened...Ch. 4 - GENERAL LEDGER ACCOUNTS; TRIAL BALANCE Set up...Ch. 4 - FINANCIAL STATEMENTS From the information in...Ch. 4 - Prob. 7SEACh. 4 - FINDING AND CORRECTING ERRORS On May 25, after the...Ch. 4 - SERIES A PROBLEMS JOURNALIZING AND POSTING...Ch. 4 - JOURNALIZING AND POSTING TRANSACTIONS Jim Andrews...Ch. 4 - CORRECTING ERRORS Assuming that all entries have...Ch. 4 - Prob. 1SEBCh. 4 - GENERAL JOURNAL ENTRIES For each of the following...Ch. 4 - GENERAL LEDGER ACCOUNTS Set up T accounts for each...Ch. 4 - GENERAL JOURNAL ENTRIES Sengel Moon opened The...Ch. 4 - GENERAL LEDGER ACCOUNTS; TRIAL BALANCE Set up...Ch. 4 - FINANCIAL STATEMENTS From the information in...Ch. 4 - Prob. 7SEBCh. 4 - FINDING AND CORRECTING ERRORS On April 25, after...Ch. 4 - JOURNALIZING AND POSTING TRANSACTIONS Benito...Ch. 4 - Prob. 10SPBCh. 4 - CORRECTING ERRORS Assuming that all entries have...Ch. 4 - MANAGING YOUR WRITING You are a public accountant...Ch. 4 - MASTERY PROBLEM Barry Bird opened the Barry Bird...Ch. 4 - CHALLENGE PROBLEM Journal entries and a trial...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Craig has decided to start snow plowing during the winter months. He purchased a heavy-duty dump truck with plow and salter from Power Equipment for $40,000 on October 1st, 2026. He paid $1,000 as a down payment and the remaining balance on a 5% -7 year note to Power Equipment. You will be completing several accounting activities in regards to this purchase. What would the journal entry be for the check 1. Use the write check function in QB Online to record the entire purchase (down payment and capitalization of the truck and related liability). Use check number 171. Create accounts as needed in QB Online. You may find it helpful to write out the journal entry first before completing it in QB Online.arrow_forwardDo not copy from bartleby. Otherwisw i will give you dislike When DeSoto Water Works purchased equipment at the end of 2020 at a cost of $64,000, the company debited Buildings and credited Cash $64,000. The error was discovered in 2021. Prepare the journal entry DeSoto will use to correct the error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record entry to correct error. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journalarrow_forwardBlue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.arrow_forward
- When Lowes Home Improvements sells a new $223 air compressor to a customer, the sale is subject to an additional 6% sales tax. When Lowes records the transaction, what amount is recorded into the revenue account? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123 ASUS f5 f6 f7 f8 团 f9 f10 f11 %24 4 5 7 8 T. Y G H. J K. B 因 6 151 F. 图 Rarrow_forwardOrion Flour Mills purchased a new machine and made the following expenditures: Purchase price Sales tax $74,000 5,950 Shipment of machine Insurance on the machine for the first year Installation of machine 990 690 1,980 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet re to search ASUSarrow_forwardOn December 12, 2024, Park Electronics received $24,000 from a customer toward a cash sale of $240,000 of diodes to be completed on January 16, 2025. What journal entries should Park record on December 12 and January 16? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.arrow_forward
- Identify the letter for the principle or assumption from A through F in the blank space next to situation that it best explains or justifies: _________In December of this year, Chavez Landscaping received a customer’s order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. Chavez should record the revenue from the customer order in March of next year, not in December of this year.arrow_forwardPrepare journal entries for each of the following transactions entered into by the City of Loveland. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest whole dollar.)arrow_forwardRequired: When should Ski West recognize revenue from the sale of its season passes? Prepare the appropriate journal entries that Ski West would record on November 6 and December 31. What will be included in the Ski West 2021 income statement and balance sheet related to the sale of the season pass to Jake Lawson?arrow_forward
- PB&J Cafe has the following transactions that need to be recorded: On April 7, 2019, $250 for peanuts the cafe purchased from The Peanut Gallery to make its patented peanut butter On April 30, 2019 $375 For Rover's Sake paid for catering a corporate event How would Reha record these transactions in the general journals for these accounts? Why does she need to keep separate general journals for each account? Your answer should be at least 100 words.arrow_forwardPrepare appropriate journal entries for each relevant event. nearest dollar). Show your working. What is a qualifying asset? Provide two (2) examples. (Round amounts to the maximum 300 words)arrow_forwardCy discovers a receipt for renter insurance for the storage locker rental. The renter insurance was purchased from Cyrus Insurance to provide insurance coverage for the inventory that Cy planned to store in the storage locker. Mookie The Beagle™ Concierge purchased 1 month of renter insurance coverage for the period January 1 through January 31, 2022. Using the company credit card, Mookie The Beagle™ Concierge paid $16.00 on January 16, 2022 for the 1 month of insurance coverage. So at the end of the accounting period on January 31, 1 month of rent had expired at $16.00. Since Mookie The Beagle™ Concierge had not recorded the transaction, the entire $16.00 should be recorded as Renter Insurance Expense with an adjusting entry to bring accounts up to date at January 31. Create Adjusting Journal Entry. (Round your answer to 2 decimal places.) Select Create (+) icon > Journal Entry Enter the adjusting journal entry in QBO on January 31, 2022 Enter Journal No.: ADJ 8 Complete the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY