Question
In: Accounting
In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation. 2021...
In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation.
|
2021 |
2020 |
2019 |
|
|
Items not recognized: |
|||
|
Prepaid expenses |
$1,300 |
$900 |
$550 |
|
Accrued expenses |
950 |
700 |
800 |
|
Other information: |
|||
|
Reported net income |
$23,000 |
$25,000 |
$20,000 |
|
Dividends declared and paid |
4,100 |
2,600 |
5,000 |
|
Common stock and additional paid in capital at 12/31 |
22,000 |
17,000 |
15,000 |
Corrected 12/31/21 Total Equity will be:
Select one:
a. $78,450
b. $110,300
c. $77,950
d. $110,650
e. $78,650
Solutions
ekkarill92 answered 2 years agoRelated Solutions
In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation. 2021...
In 2022, Draper Company discovered errors made in 2019-2021, its
first three years of operation.
2021
2020
2019
Items not recognized:
Prepaid expenses
$1,300
$900
$550
Accrued expenses
950
700
800
Other information:
Reported net income
$23,000
$25,000
$20,000
Dividends declared and paid
4,100
2,600
5,000
Common stock and additional paid in capital at
12/31
22,000
17,000
15,000
Restated 2020 Net Income will be:
Select one:
a. $25,250
b. $26,600
c. $25,200
d. $24,550
e. $25,450
In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation. 2021...
In 2022, Draper Company discovered errors made in 2019-2021, its
first three years of operation.
2021
2020
2019
Items not recognized:
Prepaid expenses
$1,300
$900
$550
Unearned Revenues
950
700
800
Other information:
Reported net income
$23,000
$25,000
$20,000
Dividends declared and paid
4,100
2,600
5,000
Common stock and additional paid in capital at
12/31
22,000
17,000
15,000
Indicate the error in 12/31/21 Retained
Earnings:
Select one:
a. $400 overstated
b. $350 overstated
c. $400 understated
d. $350 understated
e....
In 2022, Draper Company discovered errors made in 2019-2021, itsfirst three years of operation.2021...
In 2022, Draper Company discovered errors made in 2019-2021, its
first three years of operation.202120202019Items not recognized:Prepaid expenses$1,300$900$550Accrued expenses950700800Other information:Reported net income$23,000$25,000$20,000Dividends declared and paid4,1002,6005,000Common stock and additional paid in capital at
12/3122,00017,00015,000Indicate the error in 12/31/21 Working
Capital:Select one:a. $400 overstatedb. $350 overstatedc. $400 understatedd. $350 understated
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years...
The following events occur for The Underwood Corporation during
2021 and 2022, its first two years of operations.
June
12,
2021
Provide services to customers on account for $38,600.
September
17,
2021
Receive $23,000 from customers on account.
December
31,
2021
Estimate that 45% of accounts receivable at the end of the year
will not be received.
March
4,
2022
Provide services to customers on account for $53,600.
May
20,
2022
Receive $10,000 from customers for services provided in
2021....
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years...
The following events occur for The Underwood Corporation during
2021 and 2022, its first two years of operations. June 12, 2021
Provide services to customers on account for $35,000. September 17,
2021 Receive $20,000 from customers on account. December 31, 2021
Estimate that 40% of accounts receivable at the end of the year
will not be received. March 4, 2022 Provide services to customers
on account for $50,000. May 20, 2022 Receive $10,000 from customers
for services provided in 2021....
In 2023, the Berryhill Company discovers a self-correcting error made in 2021, affecting 2021 and 2022...
In 2023, the Berryhill Company discovers a self-correcting error
made in 2021, affecting 2021 and 2022 Net Incomes. The 2022 books
are closed. Accounting for the error correction will include:
Select one:
a. An adjustment to Retained Earnings, but not a Restatement of
prior-year presented financial statements
b. A Restatement of prior-year presented financial statements,
but not an adjustment to Retained Earnings
c. Both an adjustment to Retained Earnings and a Restatement of
prior-year presented financial statements
d. Neither an...
In 2021, the internal auditors of Guzi Company discovered the following material error made in a...
In 2021, the internal auditors of Guzi Company discovered the
following material error made in a prior year:
Equipment was purchased on January 1, 2019, for $100,000. The
purchase was incorrectly recorded as a debit to repair and
maintenance expense. The equipment has a useful life of five years
and no residual value. Guzi Company uses the straight-line method
of depreciation for all depreciable assets.
The journal entry Guzi Company would prepare at December 31,
2021 to correct the error...
The following accounting events affected Stratford Manufacturing Company during its first three years of operation. Assume...
The following accounting events affected Stratford Manufacturing
Company during its first three years of operation. Assume that all
transactions are cash transactions.
Transactions for 2017
1. Started manufacturing company by issuing common stock for
$2,000.
2. Purchased $600 of direct raw materials.
3. Used $400 of direct raw materials to produce inventory.
4. Paid $200 of direct labor wages to employees to make
inventory.
5. Applied $125 of manufacturing overhead cost to Work in
Process Inventory.
6. Finished work on...
Fred Inc. has the following financial results for the years 2019 through 2021 for its three...
Fred Inc. has the following financial results for the years 2019
through 2021 for its three regional divisions:
2019
2020
2021
Revenue
Southwest
$
14,550
$
21,650
$
25,650
Midwest
6,350
6,650
6,850
Southeast
12,050
12,650
12,950
Total
$
32,950
$
40,950
$
45,450
Net Operating Income
Southwest
$
750
$
850
$
1,000
Midwest
900
1,250
1,200
Southeast
650
850
1,250
Total
$
2,300
$
2,950
$
3,450
Average Total Operating Assets
Southwest
$
13,650
$
13,850
$
16,450...
Scherer Company provided the following income statements for its first 3 years of operation: Scherer Company...
Scherer Company provided the following income statements for its
first 3 years of operation:
Scherer Company
Income Statements
Years of Operation
1
Year 1
Year 2
Year 3
2
Net sales
$960,000.00
$1,056,000.00
$1,248,000.00
3
Less: Cost of goods sold
295,000.00
324,000.00
363,000.00
4
Gross margin
$665,000.00
$732,000.00
$885,000.00
5
Less:
6
Operating expenses
425,000.00
484,000.00
595,500.00
7
Income taxes
109,600.00
121,200.00
136,600.00
8
Net income
$130,400.00
$126,800.00
$152,900.00
Required:
Prepare common-size income
statements by using net sales as the...
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