Question

In: Accounting

I'll rate thanks Adjusting Entries and Errors At the end of August, the first month of...

I'll rate thanks

Adjusting Entries and Errors

At the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker Jacobs, an attorney:

Net income for August	$156,900
Total assets at August 31	832,000
Total liabilities at August 31	275,000
Total owner’s equity at August 31	557,000

In preparing the financial statements, adjustments for the following data were overlooked:

Required:

Unbilled fees earned at August 31, $8,680.

Depreciation of equipment for August, $3,900.

Accrued wages at August 31, $2,780.

Supplies used during August, $2,430.

1. Journalize the entries to record the omitted adjustments.

Aug. 31

31

31

31

2. Determine the correct amount of net income for August and the total assets, liabilities, and owner’s equity at August 31. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by completing the columnar table below. Use the minus sign to indicate decreases. If an effect is zero, enter "0". Adjustment (a) is presented as an example.

Tucker Jacobs
For the Month ofAugust 31

Net Income

Total Assets

=

Total Liabilities

+

Total Owner’s Equity

Reported amounts

$156,900

$832,000

$275,000

$557,000

Corrections:

Unbilled fees earned

+8,680

0

+8,680

Equipment depreciation

Accrued wages

Supplies used

Corrected amounts

$

Check My Work2 more Check My Work uses remaining.

Expert Solution

ekkarill92 answered 2 years ago

Errors and Adjusting Entries Use the following information to record necessary end of period journal entries:

Errors and Adjusting Entries Use the following information to record necessary end of period journal entries: A man came into Cutting Edge on 31 March 2020 to pay for repairs to his mower which he will bring in later. He paid $2,500 cash. The mower was arranged to be delivered to Cutting Edge on 10 April, 2020.  Repair services of $6,250 were provided on 31 March 2020 but have not yet been recorded in the transactions. Payment has...

do comapnies need to amke adjusting and closing entries at the end of every month

1)Record the end of month adjusting entries in the general journal. Music Equipment owned by the...

1)Record the end of month adjusting entries in the general journal. Music Equipment owned by the business: original purchase price was $50,000, estimated useful life was 8 years, and estimated residual value was $8,900 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year. A number of music lessons totalling $3,700...

Preparing Adjusting Entries, Financial Statements, and Closing Entries Murdock Carpet Cleaners ended its first month of...

Preparing Adjusting Entries, Financial Statements, and Closing Entries Murdock Carpet Cleaners ended its first month of operations on June 30, 2015. Monthly Financial statements will be prepared. The unadjusted account balances are as follows. MURDOCK CARPET CLEANERS Unadjusted Trial Balance June 30, 2015 Debit Credit Cash ........................................................ $ 1,180 Accounts receivable............................................ 450 Prepaid rent .................................................. 3,100 Supplies ..................................................... 2,520 Equipment ................................................... 4,440 Accounts payable.............................................. $ 760 Common stock................................................ 2,000 Retained earnings ............................................. 5,300 Service fees earned ............................................ 4,650 Wages expense...

Adjusting Entries – III. Provide the adjusting journal entries at year-end 2019 for the following independent...

Adjusting Entries – III. Provide the adjusting journal entries at year-end 2019 for the following independent situations (assume calendar year) 1. On March 1, 2019. Finland Tutorials received P60,000 representing an advance payment for services to be rendered in November 2019. This was booked using a real account. At year end, only 70% of the expected service was rendered. 2. The trial balance of Mangolia Café shows Kitchen Supplies and Kitchen Supplies Expense accounts at balances of P8,400 and P0,...

Explain the purpose of adjusting entries at the end of a period.

Prepare necessary adjusting entries to correct the errors on all issues (ii) to (v) in the...

Prepare necessary adjusting entries to correct the errors on all issues (ii) to (v) in the financial statements of GHL for the year ended 31 March 2020 in accordance with relevant HKFRSs. (ii) At 1 April 2019 there was a deferred tax liability of $6.6 million in the statement of financial position and no adjustments have been made to this figure at 31 March 2020. This deferred tax liability was solely in relation to the differences between the carrying amount...

Winners industries perform adjusting entries every month, but close its accounts only at year-end. The Agency’s...

Winners industries perform adjusting entries every month, but close its accounts only at year-end. The Agency’s year –end adjusted trail balance dated December 31, 2016, appears below. DATA Inventory 6,500 General and admin. Expenses 850 Common Stock 45,000 Cash 16,550 Operating expenses 1,350 Notes payable 600 Interest expense 900 Depreciation expense 500 Net Sales 12,800 Accounts receivable 9,600 Accounts payable 4,800 Long-Term Debt 55,000 Cost of Goods sold 5,750 Buildings and Equipment 122,000 Accumulated Depreciation 34,000 Taxes 1,440 Retained earnings...

preparation of adjusting entries at the end of the financial year is required: a. To ensure...

preparation of adjusting entries at the end of the financial year is required: a. To ensure that cash inflows and cash outflows are accurately measured b. To correct errors made during the year in the accounts c. To provide for the correct recognition of income and expenses for the period d. To achieve accurate reporting of all expenses paid at balance date e. To eliminate the need for closing entries to be made in the accounts preparing the financial statements...

I'll rate this is one question two part thanks Stockholders' Equity Section of Balance Sheet The...

I'll rate this is one question two part thanks Stockholders' Equity Section of Balance Sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock, $15 par $603,000 Paid-In Capital from Sale of Treasury Stock 24,800 Paid-In Capital in Excess of Par—Common Stock 16,080 Retained Earnings 947,000 Treasury Stock 12,445 Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of...