How does the omission affect daisy

Assignment Help Accounting Basics
Reference no: EM132648479

Problem 1: Mr. Donald, the accountant for the Daisy Co., failed to make an adjusting entry for prepaid insurance at the end of 2019. Specifically, Daisy began the year with a balance of $400 in prepaid insurance, but the policy expired as of October 2019 and was not renewed. This is the only transaction or event that was not properly recorded in 2019. How does this omission affect Daisy's 2019 ?nancial statements?

a. Reported income is overstated K

b. Balance In total assets IS understated

c. Balance in total liabilities is understated 

d. Balance In retained earnings IS overstated

e. All of the above .

f. B and C g. A and D

h. Mistake has no effect on total assets, total liabilities, or retained earnings

Reference no: EM132648479

Questions Cloud

How much loss may Michelle recognize : Suppose Michelle's 18-year-old son uses the car for his personal use for one year before Michelle sells it for $28,000. How much loss may Michelle recognize
Calculate the number of units in the first year : Calculate the number of units (in total and per product) - in the first year of the two products - to earn the same profit as for 2015.
What basis will Jamie take in each parcel : The partnership holds both parcels of land for investment, and the parcels have fair market values of $20,000 each. What basis will Jamie take in each parcel
Calculate the break-even in units and sales dollars : Calculate the break-even in units and sales dollars for 2015. Break-even: Single product; profit calculation; second product introduced.
How does the omission affect daisy : The only transaction or event that was not properly recorded in 2019. How does this omission affect Daisy's 2019 ?nancial statements?
What basis will Paula take in the inventory : Based on the information in your spreadsheet, how much gain or loss, if any, will Paula recognize on the distribution? What basis Paula take in the inventory
Determine que basis in land recevied : Que buys the land for $16,000 and signs a mortgage. Show the formula used to determine Que's basis in the land received
Determine gain or loss realized and recognized on a sale : $30,000 that is subject to a $3,000 mortgage. Show the formula to determine gain or loss realized and recognized on a sale or exchange of property.
What basis will Parker take in the inventory and land : Parker's basis in his PQ Partnership interest is $180,000. What basis will Parker take in the inventory and land

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the adjusting entries necessary at december

Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2008

  Suggest to management two advantage of purchasing the assets

Suggest to management two advantages of purchasing the assets from an outside organization, as opposed to constructing the assets internally.

  Statement of financial accounting standards

As of the beginning of each reporting entitys rst scal year that begins after November 15, 2007; this Statement should not be applied retrospectively to scal years beginning prior to the effective date, except as permitted in paragraph 30 for earl..

  How would costs of repairing a defective product be recorded

General Motors Corporation reported $7.0 billion of product warranties. How would costs of repairing a defective product be recorded

  Define who the stakeholders are in this situation

Define who the stakeholders are in this situation and discuss the ethical issues regarding this case. How would you act if you were Nick

  Describe a logical alternative to this accounting treatment

GAAP requires that debt issue costs be recorded separately and amortized over the term of the related debt. Describe a logical alternative to this accounting treatment.

  Determine the agreement to share profits

Daniel is the owner of a chain of shoe stores. He hires Rubya to be the manager of a new store, which is to open in Charleston, WV.

  How much Tim deduct on tax return for the medical expense

Tim and Faith are a married couple living in a non-community property state. How much can Tim deduct on his tax return for the medical expense incurred

  Grand champion, inc., purchased america''s sweethearts corpor

Using the information from RE12-9, assume that three years later the fair value of America's Sweethearts is $720,000. Of this fair value, $350,000 is attributable to identifiable assets and liabilities. Calculate the impairment loss (if any) and reco..

  Determine philip taxable income

Philip, 27, is a single self-employed plumbing contractor. During the year, he earns gross revenues of $49,000 and incurs $6,000 of business expenses. His itemized deductions for the year are $7,000. Determine Philip's taxable income and his total..

  What was the income before extraordinary items

Company reported the following results from operations for 2014: income tax rate....40%. What was the income before extraordinary items

  What is the capital balance of C on December

During 2021, A and B made additional investments of P200,000 and P500,000, respectively. What is the capital balance of C on December 31, 2021

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