Question

In December 2014, the company failed to recognize $4,000 in consulting revenue earned during 2014. This...

In December 2014, the company failed to recognize $4,000 in consulting revenue earned during 2014. This revenue was recognized when the cash was received in January 2015.  Make the necessary correcting entry, assuming that (1) the error was found in May 2015 after the 2014 books had been closed and (2) the error was found in May 2016 after the 2015 books had been closed.  Ignore income taxes.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The company miscounted its inventory at the end of the year. The correct amount of inventory...
The company miscounted its inventory at the end of the year. The correct amount of inventory was $100,000. The error was not discovered until the following May when the books for the preceding year were already closed. Make the correcting entry necessary the following May, assuming that the incorrectly reported amount of inventory at the end of the preceding year was (1) $75,000 and (2) $110,000. Ignore income taxes.
Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2014. Assume...
Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2014. Assume the books have not been closed. 1. Craig uses the periodic method of recording inventory. A physical count reveals $299,250 of inventory on hand at December 31, 2014. 2. Not included in the physical count of inventory is $17,097 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived...
It is December 31, 2014 and Hortons Co. is about to prepare its year end adjusting...
It is December 31, 2014 and Hortons Co. is about to prepare its year end adjusting journal entries. REQUIRED: Prepare the December 31, 2014 annual adjusting entries for each of the items listed below. Explanations are not required.  Only adjusting entries are required. On August 1, 2014, the company paid $4,800 for a 2-year insurance policy. On October 1, 2014, the company received $6,000 cash in advance for consulting services. As at December 31, 2014, $4,000 had not yet been earned....
Prepare journal entries to correct these errors on December 31, 2018. Ignore income taxes and write...
Prepare journal entries to correct these errors on December 31, 2018. Ignore income taxes and write “None’ if no correcting entry is required.  Record the required correcting entry only. You will lose a few points for unnecessary entries. 1) On January 1, 2016, a machine had been purchased for $6,500. The machine had an estimated life of five years, but it was expensed in error. Straight-line depreciation with no salvage value should have been used. 2) On January 1, 2017, the...
The first audit of the books of Sandhill Company was made for the year ended December...
The first audit of the books of Sandhill Company was made for the year ended December 31, 2018. In examining the books, the auditor found that certain items had been overlooked or incorrectly handled in the last 3 years. These items are: 1. At the beginning of 2016, the company purchased a machine for $516,000 (salvage value of $51,600) that had a useful life of 6 years. The bookkeeper used straight-line depreciation but failed to deduct the salvage value in...
Austin, Inc., acquired 10 percent of McKenzie Corporation on January 1, 2014 for $313,400. During 2014,...
Austin, Inc., acquired 10 percent of McKenzie Corporation on January 1, 2014 for $313,400. During 2014, McKenzie earned a net income of $287,000 while declaring and paying cash dividends of $108,000. On January 1, 2015, Austin purchased an additional 30 percent of McKenzie for $932,700. The initial 10 percent investment had been maintained at fair value, and the fair value of McKenzie on January 1, 2015 is implied by the second purchase. The equity method will now be applied. During...
Austin, Inc., acquired 10 percent of McKenzie Corporation on January 1, 2014 for $313,400. During 2014,...
Austin, Inc., acquired 10 percent of McKenzie Corporation on January 1, 2014 for $313,400. During 2014, McKenzie earned a net income of $287,000 while declaring and paying cash dividends of $108,000. On January 1, 2015, Austin purchased an additional 30 percent of McKenzie for $932,700. The initial 10 percent investment had been maintained at fair value, and the fair value of McKenzie on January 1, 2015 is implied by the second purchase. The equity method will now be applied. During...
Please answer a,b,c! a. Quigley Down Under Co. bought a machine on January 1, 2017 for...
Please answer a,b,c! a. Quigley Down Under Co. bought a machine on January 1, 2017 for $1,400,000. The machine had an estimated residual value of $120,000 and a ten-year life. “Machine expense” was debited on the purchase date for $1,400,000. Quigley uses straight-line depreciation for all assets. The error was discovered on June 15, 2018 after the books had been closed for 2017. What journal entry (if any) should Quigley record on 6/15/18 related to this error? (ignore taxes) 6/15/18...
Austin, Inc., acquired 10 percent of McKenzie Corporation on January 1, 2014 for $313,400. During 2014,...
Austin, Inc., acquired 10 percent of McKenzie Corporation on January 1, 2014 for $313,400. During 2014, McKenzie earned a net income of $287,000 while declaring and paying cash dividends of $108,000. On January 1, 2015, Austin purchased an additional 30 percent of McKenzie for $932,700. The initial 10 percent investment had been maintained at fair value, and the fair value of McKenzie on January 1, 2015 is implied by the second purchase. The equity method will now be applied. During...
Jaworski’s Ski Store is completing the accounting process for its first year ended December 31, 2015....
Jaworski’s Ski Store is completing the accounting process for its first year ended December 31, 2015. The transactions during 2015 have been journalized and posted. The following data are available to determine adjusting journal entries: a. The unadjusted balance in Supplies was $880 at December 31, 2015. The unadjusted balance in Supplies Expense was $0 at December 31, 2015. A year-end count showed $100 of supplies on hand. b. Wages earned by employees during December 2015, unpaid and unrecorded at...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT