Reference no: EM131008521
Conrad Playground Supply underwent a restructuring in 2011. The company conducted a thorough internal audit, during which the following facts were discovered. The audit occurred during 2011 before any adjusting entries or closing entries are prepared.
a. Additional computers were acquired at the beginning of 2009 and added to the company's office network. The $45,000 cost of the computers was inadvertently recorded as maintenance expense. Computers have five-year useful lives and no material salvage value. This class of equipment is depreciated by the straight-line method.
b. Two weeks prior to the audit, the company paid $17,000 for assembly tools and recorded the expenditure as office supplies. The error was discovered a week later.
c. On December 31, 2010, merchandise inventory was understated by $78,000 due to a mistake in the physical inventory count. The company uses the periodic inventory system.
d. Two years earlier, the company recorded a 4% stock dividend (2,000 common shares, $1 par) as follows:
Retained earnings ........................................ 2,000
Common stock ........................................... 2,000
The shares had a market price at the time of $12 per share.
e. At the end of 2010, the company failed to accrue $104,000 of interest expense that accrued during the last four months of 2010 on bonds payable. The bonds, which were issued at face value, mature in 2015. The following entry was recorded on March 1, 2011, when the semiannual interest was paid:
Interest expense ........................................ 156,000
Cash ......................................................... 156,000
f. A three-year liability insurance policy was purchased at the beginning of 2010 for $72,000. The full premium was debited to insurance expense at the time.
Required:
For each error, prepare any journal entry necessary to correct the error as well as any year-end adjusting entry for 2011 related to the situation described. (Ignore income taxes.)
The energy stored in the dielectric in joules
: A dielectric slab with 500mm x 500mm cross-section is 0.4m long. The slab is subjected to a uniform electric field of E = 6ax + 8aykV /mm . The relative permittivity of the dielectric material is equal to 2. The value of constant ε0 is8.85 × 10-12F /..
|
What is the mad for the moving average forecast
: What is the forecast for year 13 based on the 5-year moving average? What is the forecast for year 13 based on the 5-year weighted moving average? What is the MAD for the moving average forecast
|
Summarize this information using a comparative bar graph
: Summarize this information using a comparative bar graph that shows differences between males and females within the two different age groups. Comment on the interesting features of your graphical display.
|
The effective capacitance across the terminals
: Three capacitors C1, C2, and C3 whose values are 10µF, 5µF and 2µF respectively, have breakdown voltages of 10V, 5V and 2V respectively. For the interconnection shown, the maximum safe voltage in Volts that can be applied across the combination and t..
|
The company conducted a thorough internal audit
: The company conducted a thorough internal audit, during which the following facts were discovered. The audit occurred during 2011 before any adjusting entries or closing entries are prepared.
|
Recognize the company product
: Radio ads. A company is willing to renew its advertising contract with a local radio station only if the station can prove that more than 20% of the residents of the city have heard the ad and recognize the company's product. The radio station con..
|
How men and women differ in their perceptions
: The article did not state how the author arrived at the given percentages. What are two questions that you would want to ask the author about how the data used to compute the percentages were collected?
|
A bulb in a staircase has two switches,
: A bulb in a staircase has two switches, one switch being at the ground floor and the other one at the first floor. The bulb can be turned ON and also can be turned OFF by any one of the switches irrespective of the state of the other switch. The logi..
|
The output clearly defined for all combinations of two inp
: For which of the flip-flops has the output clearly defined for all combinations of two inputs?
|