Question
In: Accounting
Orange Co. began operations on January 1, 2020. Financial statements for 2020 and 2021 contained the...
Orange Co. began operations on January 1, 2020. Financial statements for 2020 and 2021 contained the following errors:
Dec. 31, 2020 Dec. 31, 2021
Ending inventory $198,000 overstated $219,000 understated
Depreciation expense 126,000 overstated —
In addition, on December 31, 2021 fully depreciated equipment was sold for $44,000, but the sale was not recorded until 2022. No corrections have been made for any of the errors. Ignore income tax considerations.
The total effect of the errors on the balance of Orange's retained earnings at December 31, 2021 is understated by _______
Solutions
ekkarill92 answered 1 year agoRelated Solutions
XYZ Co. began operations on January 1, 2020. Financial statements for 2020 and 2021 contained the...
XYZ Co. began operations on January 1, 2020. Financial
statements for 2020 and 2021 contained the following
errors:
Dec. 31, 2020
Dec. 31, 2021
Ending inventory $198,000
overstated $219,000 understated
Depreciation expense 126,000
overstated
—
No corrections have been made for any of the errors.
Ignore income tax considerations.
The total effect of the errors on the balance of XYZ’s
retained earnings at December 31, 2021 is overstated or understated
by
_______
Peru Industries began operations on January 1, 2020.
Problem 8-6A Recording accounts receivable transactions and bad
debt adjustments LO1, 2, 3Peru Industries began operations on January 1, 2020. During the
next two years, the company completed a number of transactions
involving credit sales, accounts receivable collections, and bad
debts (assume a perpetual inventory system). These transactions are
summarized as follows:2020Sold merchandise on credit for $2,310,000, terms n/30 (COGS =
$1,276,000).Wrote off uncollectible accounts receivable in the amount of
$35,200.Received cash of $1,378,000 in payment of outstanding accounts
receivable.In...
Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1....
Rios Financial Co. is a regional insurance company that began
operations on January 1, Year 1. The following transactions relate
to trading securities acquired by Rios Financial Co., which has a
fiscal year ending on December 31:
Record these transactions on page 10:
Year 1
Feb.
1.
Purchased 6,600
shares of Caldwell Inc. as a trading security at $43 per share plus
a brokerage commission of $660.
May
1.
Purchased 1,800
shares of Holland Inc. as a trading security at...
Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1....
Rios Financial Co. is a regional insurance company that began
operations on January 1, Year 1. The following transactions relate
to trading securities acquired by Rios Financial Co., which has a
fiscal year ending on December 31:
Record these transactions on page 10:
Year 1
Feb.
1.
Purchased 6,300 shares of Caldwell Inc. as a trading security
at $41 per share plus a brokerage commission of $630.
May
1.
Purchased 1,700 shares of Holland Inc. as a trading security at...
Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1....
Rios Financial Co. is a regional insurance company that began
operations on January 1, Year 1. The following transactions relate
to trading securities acquired by Rios Financial Co., which has a
fiscal year ending on December 31:
Record these transactions on page 10:
Year 1
Feb.
1.
Purchased 7,300 shares of Caldwell Inc. as a trading security
at $37 per share plus a brokerage commission of $730.
May
1.
Purchased 1,800 shares of Holland Inc. as a trading security at...
Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1....
Rios Financial Co. is a regional insurance company that began
operations on January 1, Year 1. The following transactions relate
to trading securities acquired by Rios Financial Co., which has a
fiscal year ending on December 31:
Record these transactions on page 10:
Year 1
Feb.
1.
Purchased 7,300
shares of Caldwell Inc. as a trading security at $37 per share plus
a brokerage commission of $730.
May
1.
Purchased 1,800
shares of Holland Inc. as a trading security at...
Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1....
Rios Financial Co. is a regional insurance company that began
operations on January 1, Year 1. The following transactions relate
to trading securities acquired by Rios Financial Co., which has a
fiscal year ending on December 31:
Record these transactions on page 10:
Year 1
Feb.
1.
Purchased 7,400 shares of Caldwell Inc. as a trading security
at $38 per share plus a brokerage commission of $740.
May
1.
Purchased 1,700 shares of Holland Inc. as a trading security at...
Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1....
Rios Financial Co. is a regional insurance company that began
operations on January 1, Year 1. The following transactions relate
to trading securities acquired by Rios Financial Co., which has a
fiscal year ending on December 31:
Record these transactions on page 10:
Year 1
Feb.
1.
Purchased 7,400 shares of Caldwell Inc. as a trading security
at $38 per share plus a brokerage commission of $740.
May
1.
Purchased 1,700 shares of Holland Inc. as a trading security at...
Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1....
Rios Financial Co. is a regional insurance company that began
operations on January 1, Year 1. The following transactions relate
to trading securities acquired by Rios Financial Co., which has a
fiscal year ending on December 31: Record these transactions on
page 10: Year 1 Feb. 1. Purchased 6,300 shares of Caldwell Inc. as
a trading security at $41 per share plus a brokerage commission of
$630. May 1. Purchased 1,700 shares of Holland Inc. as a trading
security at...
Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1....
Rios Financial Co. is a regional insurance company that began
operations on January 1, Year 1. The following transactions relate
to trading securities acquired by Rios Financial Co., which has a
fiscal year ending on December 31:
Record these transactions on page 10:
Year 1
Feb.
1.
Purchased 4,700 shares of Caldwell Inc. as a trading security
at $36 per share plus a brokerage commission of $470.
May
1.
Purchased 1,800 shares of Holland Inc. as a trading security at...
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