Question

In: Accounting

The balance sheet of Ipod Corporation on December 31, 2024: Ipod Corporation

The balance sheet of Ipod Corporation on December 31, 2024:

Ipod Corporation

BALANCE SHEET AS OF DECEMBER 31, 2024

Assets

Cash

$ 40,000

Accounts and notes receivable

    30,000

Inventory

    90,000


$160,000

Liabilities and Capital

Accounts and notes payable

$ 20,000

Common stock

100,000

Retained earnings

    40,000


$160,000

These errors were made by Ipod on December 31, 2023 and were not corrected: Ending inventory understated $2,400 and prepaid expense of $1,000 omitted. On December 31, 2024, unearned revenue of $1,100 was omitted, and accrued revenue of $1,400 was omitted.

The net income shown by the books for 2024 was $13,200.

The correct 2024 Net Income is:

Select one:

a. $7,300

b. $12,300

c. $12,100

d. $14,900

e. $10,100

Solutions

Expert Solution

Answer: e. $10,100

Calculations:

Net income shown by the books for 2024 $13,200
Ending inventory overstated in last year ($2,400)
Prepaid expenses omitted in last year ($1,000)
Unearned revenue omitted in current year ($1,100)
Accrued revenue omitted in current year $1,400
The correct 2024 net income $10,100

Thus, Option e is correct and remaining options are incorrect.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The following is a December 31, 2024, post-closing trial balance for the Jackson Corporation.
The following is a December 31, 2024, post-closing trial balance for the Jackson Corporation.Account TitleDebitsCreditsCash$ 59,000 Accounts receivable53,000 Inventory94,000 Prepaid rent (for the next 8 months)35,000 Investment in equity securities (short term)29,000 Machinery240,000 Accumulated depreciation $ 30,000Patent (net)98,000 Accounts payable 17,500Salaries payable 13,500Income taxes payable 51,000Bonds payable (due in 10 years) 260,000Common stock 170,000Retained earnings 66,000Totals$ 608,000$ 608,000Required:Prepare a classified balance sheet for Jackson Corporation at December 31, 2024, by properly classifying each of the accounts.Note: Amounts to be deducted...
Hudson Corporation’s balance sheet at December 31, 2016, is presented below. Hudson Corporation Balance Sheet December...
Hudson Corporation’s balance sheet at December 31, 2016, is presented below. Hudson Corporation Balance Sheet December 31, 201 Hudson Corporation Balance Sheet December 31, 2016 Cash $ 13,100 Accounts payable $ 8,750 Accounts receivable 19,780 Common stock 20,000 Allowance for doubtful accounts ( 800 ) Retained earnings 12,730 Inventory 9,400 $ 41,480 $ 41,480 During January 2016, the following transactions occurred. Hudson Corporation uses the perpetual inventory method. Jan. 1 Hudson Corporation accepted a 4-month, 8% note from Betheny Company...
Corporation provided the following balance sheet for December 31 of the current year. Carson Corporation Balance...
Corporation provided the following balance sheet for December 31 of the current year. Carson Corporation Balance Sheet At December 31 Assets Current Assets: Cash $600,000 Investments at Fair Value 685,000 Accounts Receivable 235,000 Merchandise Inventory 910,000 Total Current Assets $2,430,000 Noncurrent Assets: Investments in Affiliate Companies $90,000 Property, Plant, and Equipment – net 3,350,000 Equipment Under Capital Lease 370,000 Intangible Assets – net 330,500 Total Noncurrent Assets $4,140,500 Total Assets $6,570,500 Liabilities Current Liabilities: Accounts Payable $505,000 Current Portion of...
Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019...
Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets Cash Accounts receivable Prepaid insurance Prepaid insurance Prepaid rent Office equipment Accumulated depreciation—Office equipment 0 Accumulated depreciation—Computer equipment Computer equipment 0 Total Assets 0 Liabilities Accounts payable Wages payable Unearned computer services revenue Total Liabilities 0 Equity Retained earnings Common stock Total equity $0 Total Liabilities and Equity $0 After the success of the company’s first two months, Santana Rey continues to operate...
industries' balance sheet at December 31, 2015, is presented below. INDUSTRIES Balance Sheet December 31, 2015...
industries' balance sheet at December 31, 2015, is presented below. INDUSTRIES Balance Sheet December 31, 2015 Assets Current assets     Cash $7,400     Accounts receivable 82,000     Finished goods inventory (1,500 units) 29,500     Total current assets 118,900 Equipment $39,500 Less: Accumulated depreciation 10,000 29,500         Total assets $148,400 Liabilities and Shareholders' Equity Liabilities     Notes payable $24,500     Accounts payable 44,500     Total liabilities 69,000 Shareholders’ equity     Common stock $49,500     Retained earnings 29,900         Total shareholders’ equity 79,400          ...
The Total Liabilities for Ozium Corporation as of the Balance Sheet date of December 31, 2020...
The Total Liabilities for Ozium Corporation as of the Balance Sheet date of December 31, 2020 are: Salaries & Wages Payable         5,500 Long-Term Debt    300,000 ($250,000 is due for payment in 2021) Notes Payable    750,000 ($250,000 is due for payment after December 31, 2021) Unearned Revenue      16,500 Accounts Payable      25,000 In addition, the company is involve in two lawsuits that are expected to be closed by March 31, 2021. The first lawsuit is for $150,000 and...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets Liabilities Cash $ 17,000 Accounts payable $ 19,000 Accounts receivable 22,000 Notes payable 27,000 Inventory 32,000 Bonds payable 57,000 Prepaid expenses 12,700 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 257,000 Preferred stock $ 27,000 Less: Accumulated depreciation 51,400 Common stock 62,000 Paid in Capital 32,000 Net plant and equipment $ 205,600 Retained earnings 65,300 Total assets $ 289,300 Total liabilities and stockholders’...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets Liabilities Cash $ 30,000 Accounts payable $ 32,000 Accounts receivable 35,000 Notes payable 40,000 Inventory 45,000 Bonds payable 70,000 Prepaid expenses 14,000 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 270,000 Preferred stock $ 40,000 Less: Accumulated depreciation 54,000 Common stock 75,000 Paid in Capital 45,000 Net plant and equipment $ 216,000 Retained earnings 38,000 Total assets $ 340,000 Total liabilities and stockholders’...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets Liabilities Cash $ 13,000 Accounts payable $ 15,000 Accounts receivable 18,000 Notes payable 23,000 Inventory 28,000 Bonds payable 53,000 Prepaid expenses 12,300 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 253,000 Preferred stock $ 23,000 Less: Accumulated depreciation 50,600 Common stock 58,000 Paid in Capital 28,000 Net plant and equipment $ 202,400 Retained earnings 73,700 Total assets $ 273,700 Total liabilities and stockholders’...
The December 31, Year 4, balance sheet for Rundle Corporation is presented here. These are the...
The December 31, Year 4, balance sheet for Rundle Corporation is presented here. These are the only accounts on Rundle’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: RUNDLE CORPORATION Balance Sheet As of December 31, Year 4 Assets Cash $ 33,000 Accounts receivable (net) ? Inventory ? Property, plant, and equipment (net) 301,000 $ 420,000 Liabilities and Stockholders’ Equity Accounts payable (trade) $ ? Income taxes payable (current) 33,000 Long-term debt...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT