Prepare analysis of each error showing the incorrect entry

Assignment Help Accounting Basics
Reference no: EM131923306

Problem - Joe Edmonds, CPA, was retained by Clark Cable Inc. to prepare financial statements for April 2011. Edmonds accumulated all the ledger balances per Clark's records and found the following.

Clark Cable Inc. Trial Balance April 30, 2011


Dr.

Cr.

Cash

$4,800


Accounts Receivable

3,900


Supplies

1,500


Equipment

11,300


Accumulated Depreciation


$2,050

Accounts Payable


2,800

Salaries Payable


770

Unearned Revenue


1,590

Common Stock


10,000

Retained Earnings


3,600

Service Revenue


6,150

Salaries Expense

4,000


Advertising Expense

670


Miscellaneous Expense

290


Depreciation Expense

500



$26,960

$26,960

Joe Edmonds reviewed the records and found the following errors.

1. Cash received from a customer on account was recorded as $840 instead of $480.

2. A payment of $135 for advertising expense was entered as a debit to Miscellaneous Expense $135 and a credit to Cash $135.

3. The first salary payment this month was for $1,970, which included $770 of salaries payable on March 31. The payment was recorded as a debit to Salaries Expense $1,970 and a credit to Cash $1,970. (No reversing entries were made on April 1.)

4. The purchase on account of a printer costing $360 was recorded as a debit to Supplies and a credit to Accounts Payable for $360.

5. A cash payment of repair expense on equipment for $75 was recorded as a debit to Equipment $57 and a credit to Cash $57.

Required -

Prepare an analysis of each error showing (1) the incorrect entry, (2) the correct entry, and (3) the correcting entry. Items 4 and 5 occurred on April 30, 2011.

Prepare a correct trial balance.

Reference no: EM131923306

Questions Cloud

What is the amount of the current of the second wire in amps : Due to the total magnetic field from both wires at that point, the magnetic force on the charge is 26 x 10-7 Newtons in the +z direction.
Specify the equation for a swap : Specify the equation for a swap that will replace the parallel loan arrangement with each company in part a. (Standard notation for an interest rate swap is.
What if the defendant was deliberately avoiding the police : Does it matter whether the law enforcement officer had an opportunity to attempt to obtain consent from the defendant and deliberately failed to take it?
Define the immigration surplus and how it can be calculated : Define the immigration surplus, and discuss how it can be calculated. Why are immigrant flows positively selected and other immigrant flows negatively selected?
Prepare analysis of each error showing the incorrect entry : Prepare an analysis of each error showing (1) the incorrect entry, (2) the correct entry, and (3) the correcting entry. Items 4 and 5 occurred on April 30, 2011
Can you identify any improvements to these processes : Provide some examples of customer- and provider-routed services that you have encountered that are different from those described in this chapter.
Chemical potential of h2o : The movement of H2O in the biosphere is governed by the chemical potential of H2O (also called the "water potential").
Who wish to maximize the present value of lifetime earnings : Show how workers who wish to maximize the present value of lifetime earnings calculate the net gains to migration.
What is the yield to maturity : What is the yield to maturity (total yield) on a $1,000 bond selling for 113.42 if the bond has a coupon rate of 9% and matures in ten years?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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