Error analysis and correcting entry

Assignment Help Accounting Basics

Reference no: EM131009512

Error Analysis and Correcting Entry

You have been engaged to review the financial statements of Gottschalk Corporation. In the course of your examination you conclude that the bookkeeper hired during the current year is not doing a good job. You notice a number of irregularities as follows.

Year-end wages payable of $3,400 were not recorded because the bookkeeper thought that "they were immaterial."
Accrued vacation pay for the year of $31,100 was not recorded because the bookkeeper "never heard that you had to do it."
Insurance for a 12-month period purchased on November 1 of this year was charged to insurance expense in the amount of $2,640 because "the amount of the check is about the same every year."
Reported sales revenue for the year is $2,120,000. This includes all sales taxes collected for the year. The sales tax rate is 6%. Because the sales tax is forwarded to the state's Department of Revenue, the Sales Tax Expense account is debited. The bookkeeper thought that "the sales tax is a selling expense." At the end of the current year, the balance in the Sales Tax Expense account is $103,400.

Instructions:

Prepare the necessary correcting entries, assuming that Gottschalk uses a calendar-year basis.

Reference no: EM131009512

Questions Cloud

What are the core qualities of an inclusive leader : What are the core qualities of an inclusive leader? How would you model this in your organization? What challenges do organizational leaders face today in managing diversity? Be specific by giving examples in your organization if possible

Monopolist faces a linear demand curve : Please answer the following questions one by one with detailed explanations.1.If a profit maximizing monopolist faces a linear demand curve and has zero marginal cost, it will produce at:A. lowest point of marginal revenue curve

Accounting for accounting changes and errors : Accounting for Accounting Changes and Errors Listed below are various types of accounting changes and errors.

What statistical test would appropriate for analyzing data : If lorazepam interferes with the storage of material in memory, then recall only of the second list should be affected. If lorazepam interferes with retrieval rather than storage, then recall of both lists should be disrupted. What statistical tes..

Error analysis and correcting entry : You have been engaged to review the financial statements of Gottschalk Corporation. In the course of your examination you conclude that the bookkeeper hired during the current year is not doing a good job. You notice a number of irregularities as ..

Building renovation partnership : Joe proposes that he direct the IRA to sell the securities and to use the proceeds to invest in the building renovation partnership.

Purchases of the goods of foreign nations : 1) Without the foreign exchange markets (by which citizens all over the world acquire the foreign money they need for purchases of the goods of foreign nations) international trade would not be possible.

What conflict resolution advice would you give to the person : In a 2 page paper, based on the subjects covered throughout the quarter, what conflict resolution advice would you give to the person who will be replacing you (minimum of 5 pieces of advice)? Use proper spelling, grammar, and punctuation. Cite yo..

Prepare a state tax return : Based on the information provided, you are to complete the appropriate 2014 individual tax form and any supporting schedules/forms for the Grants.

User Account

All Pages