Question
In: Accounting
Cherokee Company's auditor discovered some errors. No errors were corrected during 2017. The errors are described...
Cherokee Company's auditor discovered some errors. No errors were corrected during 2017. The errors are described as follows: (1.) Beginning inventory on January 1, 2017, was understated by $5,000. (2.) A two-year insurance policy purchased on April 30, 2017, in the amount of $20,400 was debited to Prepaid Insurance. No adjustment was made on December 31, 2017, or on December 31, 2018. Required: Prepare appropriate journal entries (assume the 2018 books have not been closed). Ignore income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Beginning inventory on January 1, 2017, was understated by $5,000. A two-year insurance policy purchased on April 30, 2017, in the amount of $20,400 was debited to Prepaid Insurance. No adjustment was made on December 31, 2017, or on December 31, 2018.
Solutions
the above entries are for
December 31, 2017.
ekkarill92 answered 2 years agoRelated Solutions
Cherokee Company's auditor discovered some errors. No errors were corrected during 2017. The errors are described...
Cherokee Company's auditor discovered some errors. No errors
were corrected during 2017. The errors are described as follows:
(1.) Beginning inventory on January 1, 2017, was understated by
$5,000. (2.) A two-year insurance policy purchased on April 30,
2017, in the amount of $27,000 was debited to Prepaid Insurance. No
adjustment was made on December 31, 2017, or on December 31, 2018.
Required: Prepare appropriate journal entries (assume the 2018
books have not been closed). Ignore income taxes. (If no...
Cherokee Company's auditor discovered some errors. No errors were corrected during 2015. The errors are described...
Cherokee Company's auditor discovered some errors. No errors
were corrected during 2015. The errors are described as
follows:
(1.)
Beginning inventory on January 1, 2015,
was understated by $5,000.
(2.)
A two-year insurance policy purchased on April 30, 2015, in the
amount of $18,600 was debited to Prepaid Insurance. No adjustment
was made on December 31, 2015, or on December 31, 2016.
Required:
Prepare appropriate journal entries (assume the 2016 books have
not been closed). Ignore income taxes. (If no...
An auditor discovered an error while conducting Black Inc.'s 2016 audit. No errors were corrected during...
An auditor discovered an error while conducting Black Inc.'s
2016 audit. No errors were corrected during 2015.
A 2 year insurance policy was purchased on April 30, 2015. This
policy resulted in $24,000 being debited to Prepaid Insurance [On
April 30, 2015]. However, no adjustmnet was made on December 31,
2015 or on December 31, 2016.
Required:
Prepare the appropriate journal entries. Assume the 2016 books
have not been closed but the tax entries have been completed. The
tax rate...
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During the course of the 2017 audit of Smithson Company, the
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Krafty Kris, Inc., discovered the following errors after the 2017 financial statements were issued: a. A...
Krafty Kris, Inc., discovered the following errors after the
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Kris on consignment. This merchandise was mistakenly included in
the inventory taken by Krafty Kris on December 31, 2016. (Goods
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During the course of the audit of Nature Sporting Goods, the auditor discovered the following: The...
During the course of the audit of Nature Sporting Goods, the
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During the Spock Hotel's last audit, the auditor noticed that
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the economic entity concept.
the revenue recognition principle.
the going concern concept
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True
False
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transactions appear in parentheses. Find what will credit and debit
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See case below
Playtime, Inc. / Supply Chain Management
10e
Playtime, Inc. manufactures toys for children under the age of
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