Calculate the effect of each of the adjustments

Assignment Help Other Subject
Reference no: EM132376314

Assignment: PART B: The draft accounts for the year ended 30 June 2019 and a balance sheet as at that date for S. Steiner are submitted to you. Towards the end of the financial year her accountant resigned and she had completed the records herself. She thinks that errors have occurred and asks your help. An examination of the accounting records reveals the following.

1. Interest of $1920 on the investments held by the business was due, but has not been received.

2. A payment of $4160 for new office furniture has been incorrectly debited to the Sundry Expenses account. The furniture had been purchased late in June 2019.

3. Rent due from customers Raggatt and Petney amounting to $2560 is not included in the accounts.

4. Repairs to Steiner's private motor vehicle, $1700, have been debited to the Vehicle Expenses account.

5. Commission due to sales representatives for the month of June, $4480, has been overlooked.

6. An insurance policy covering contents and buildings was taken out on 1 March 2019, the annual premium of $2400 being paid in advance on this date and debited to the Prepaid Insurance account.

7. A payment of $35 000 on 1 July 2018 for additions to buildings has been debited to Repairs and Maintenance.

8. No depreciation has been recognised for the year ending 30 June. The draft balance sheet shows the following.

Depreciation is to be calculated as follows.

(a) Buildings: 2% on cost

(b) Office furniture and equipment: 20% on cost.

Required: (a) Ignoring GST, show the journal entries required to make the necessary adjustments.

(b) Calculate the effect (increase or decrease) of each of the adjustments on the profit figure of $64 900 as shown in the draft accounts.

Reference no: EM132376314

Questions Cloud

What was the profit to jp morgan chase : At the end of the contract the spot exchange rate was$1.65 per pound. What was the profit to JP Morgan Chase?
What monthly annuity investment : What monthly annuity investment (deposit per month) is required to achieve $20,000 in 4 years, if the nominal annual interest rate is 6%?
What is the percentage change in the price of the bonds : If interest rates suddenly rise by 1 percent, what is the percentage change in the price of the bonds?
How many yen will you be able to purchase : Over the next three months, the dollar is expected to depreciate against the yen by 1.97%. Today's quote is: ¥/$ = 101.34.
Calculate the effect of each of the adjustments : Calculate the effect (increase or decrease) of each of the adjustments on the profit figure of $64 900 as shown in the draft accounts.
Clearly outline the steps you undertake to earn : Indicate how you might earn a risk-free profit by engaging in a forward contract. Clearly outline the steps you undertake to earn this risk-free profit.
Post the entries from the general journal : Post the entries from the general journal to running balance general ledger accounts and enter the posting references in the journal.
How much should you deposit annually over : The fund will earn 6% annually during the 20-year retirement period. How much should you deposit annually over the 30-year savings period?
Identify the specific conduct violations : Identify specific conduct violations committed by the organization and accounting firm in question. Next, create an argument supporting the actions against.

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd