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...
1. How are errors corrected when they are discovered in the current year? In a subsequent...
1. How are errors corrected when they are discovered in the
current year? In a subsequent year? Utilize at least one online
resource to support your response.
2. The directors of The Dress Shoppe are considering declaring
either a stock dividend or a stock split. They have asked you to
explain the difference between a stock dividend and a stock split
and the accounting for a small stock dividend versus a large stock
dividend.
During the course of the 2017 audit of Smithson Company, the auditor discovered the following situations...
During the course of the 2017 audit of Smithson Company, the
auditor discovered the following situations that may or may not
require an adjusting journal entry. Each audit finding is
independent of any of the other findings. Indicate the adjusting
journal entry, if required, to correct the audit finding. If no
entry is required, indicate whether or not a related footnote
should be included in the financial statements. Would any of the
findings cause you to consider increasing your assessment...
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
2017 financial statements were issued:
a. A major supplier shipped inventory valued at $8,550 to Krafty
Kris on consignment. This merchandise was mistakenly included in
the inventory taken by Krafty Kris on December 31, 2016. (Goods
shipped on consignment are the property of the consignor and should
not have been included in Krafty Kris's inventory.)
b. Krafty Kris renewed its liability insurance policy on October
1, 2016, paying a $36,000 premium...
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
auditor discovered the following:
The accounts receivable confirmation work revealed one pricing
misstatement. The book value of $12,955.68 should be $11,984.00.
The total misstatement based on this difference is $14,465, which
includes a $972 known misstatement and an unknown projected
misstatement of $13,493.
Nature Sporting Goods had understated the accrued vacation pay
by $13,000. A review of the prior-year documentation indicates the
following uncorrected misstatements:
Accrued vacation pay was...
During the Spock Hotel's last audit, the auditor noticed that the financial statements were missing some...
During the Spock Hotel's last audit, the auditor noticed that
the financial statements were missing some footnotes important for
users using them for decision making. This action by the Spock
Hotel is a violation of:
the full disclosure principle.
the economic entity concept.
the revenue recognition principle.
the going concern concept
A trial balance is a necessary checkpoint for uncovering certain
types of errors before one proceeds to other steps in the
accounting process.
True
False
When posting transactions from...
The following errors were discovered on the books of A-Line Distributors. Record correcting entries, complete with...
The following errors were discovered on the books of A-Line
Distributors. Record correcting entries, complete with detailed
explanations, for these errors. The dates of the original
transactions appear in parentheses. Find what will credit and debit
for these entries.
(a) $67 was debited to Office Equipment but should have been
debited to Office Supplies Expense. (December 3)
(b) $25 was debited to Advertising Expense instead of Postage
Expense. (December 5)
(c) $250 was charged to the Insurance on Stock account...
What are some potential forecasting errors that could be discovered by Playtime Inc? Which specific forecasting...
What are some potential forecasting errors that could be
discovered by Playtime Inc? Which specific forecasting techniques
would you recommend to alleviate any errors from taking place? why?
See case below
Playtime, Inc. / Supply Chain Management
10e
Playtime, Inc. manufactures toys for children under the age of
12 and has been in business for 50 years. While Playtime does not
hold a major share of the toy market, it has experienced
significant growth over the last five years because...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A pension fund manager is considering three mutual funds. The first is a stock fund, the...
- Compute the cost of not taking the following cash discounts. (Use a 360-day year. Do not...
- During his project presentation, Bob falls sick and performs poorly. However, his colleague, Dan, concludes that...
- A sample human input file that contains test values that a human would enter on the...
- A solution is prepared by dissolving 15 ml of methanol in 150.0 ml water at 25...
- Consider a newlywed who is planning a wedding anniversary gift of a trip to Canada for...
- We are evaluating a project that costs $868,000, has a life of eight years, and has...
ADVERTISEMENT