User Account

All Pages

Overall overstatement or understatement of net income

Assignment Help Financial Accounting
Reference no: EM13823041

An Accountant made the following adjustment at December 31, the end of the accounting period:

a. Prepaid insurance , beginning , $600. Payments for insurance during the period  $2,400. Prepaid insurance ending $700

b. Interest revenue accrued $2,600

c. Unearned service revenue beginning $1,700. Unearned service revenue, ending $500

d. Depreciation, $5,800

e. Employee's salaries owed for two days of a five day work week; weekly payroll, $20,000

f. Income before income tax $21,000. Income tax rate is 35%

Requirements

1. Journalized the adjusting entries

2. Suppose the adjustment were not made. Compute the overall overstatement or understatement of net income as a result of the omission of their adjustments.

Reference no: EM13823041

Questions Cloud

Reserve expands and contracts the money supply : Describe why the Federal Reserve expands and contracts the money supply. Describe the four ways the Fed accomplishes this task. Make sure to discuss how each of the methods accomplishes the intentions of the Fed. Which method(s) is most important/des..
Write a review milestones in motor development : Write a Review "Milestones in Motor Development," Based on the information you have learned from the Learning Resources.
Fixed overhead volume variance for the month : The Fitzgerald Company reported the following information for 2014: Budgeted fixed overhead for the year - $300,000. The fixed overhead volume variance for the month of August would be:
Consider an electric dipole on the x-axis : Consider an electric dipole on the x-axis
Overall overstatement or understatement of net income : An Accountant made the following adjustment at December 31, the end of the accounting period: Prepaid insurance , beginning , $600. Payments for insurance during the period  $2,400. Prepaid insurance ending $700.  Journalized the adjusting entries. S..
Evaluation of effectiveness of firm business level strategy : Evaluation of effectiveness of firm's business level strategy. Identification and VRI analysis of firm important resources, capabilities, and sources or bases of firm's business-level strategy and evaluation of associated advantages, potential for ..
Benefits of business analytics : Business analytics can provide a significant benefit to organizations. If the organization utilizes business analytics and analyzes the data correctly, they will be able to make informed decisions that will benefit the organization in many ways.
Discuss the defenses that an employer may raise to a osha : Define and discuss the defenses that an employer may raise to a (OSHA) citation. Give some examples of case law in your response.
Determine the equipments book value : The business has interest expense of $3,600 that it must pay early in January 2015. Interest revenue of $4,100 has been earned but not yet received. Equipment was purchased at the beginning of this year at a cost of $60,000. The equipment’s useful li..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Computation of common stock dividendreiner wholesale

computation of common stock dividend.reiner wholesale merchandise had 20000 shares of 6 20 par value preferred stock

  Evaluate and present the difference in eps and net income

Determine EPS under IFRS rules; Criticize and Defend IFRS Accounting; Evaluate and present the difference in EPS and Net Income between US GAAP and IFRS;

  Adventure holidays should take to improve profitability

Develop an alternative report on the profitability of each package for the year and identify the actions Fast East Adventure Holidays should take to improve profitability

  What is impact of this transaction on net operating income

ABC Company accepted a national credit card for a $3,000 purchase. The cost of the goods sold is $2,400. The credit card company charges a 3% fee. What is the impact of this transaction on net operating income?

  1nbspmyron gordon and john lintner believe that the

1.nbspmyron gordon and john lintner believe that the reshyquired return on equity increases as the dividend payout

  Faulty budget

Jackson Daniels graduated from Lynchberg State College two years ago. Since graduating from the college, he has worked in the accounting department of Lynchberg Manufacturing. Daniels was recently asked to prepare a sales budget for the year 2011. He..

  Write a brief report to the firms remuneration committee

How (and why) individual remuneration packages of executives can be structured to motivate managers to maximize equity value?

  Was hoopers computer an expense of the business

Bill Hooper opened a software consulting firm that immediately paid $6,000 for a computer. Was Hooper’s computer an expense of the business? If not, explain.

  Prepare an overhead budget for the expected activity level

Prepare an overhead budget for the expected activity level for the coming year and Prepare an overhead budget that reflects production that is 25 percent lower than expected.

  Create the journal entries to record the transaction

The stated interest rate on the note is 8%. By issuing the note Lambert acquired some office equipment with a fair value of $107893. Create the journal entries to record the transaction and the interest expense at the end of the first year.

  Prepare bank reconciliation for donovan company

Prepare bank reconciliation for Donovan Company for September which reconciles the balance per books and the balance per bank to their adjusted accurate balances.

  Explain the impact that the pacific acceptance case

Explain the impact that the Pacific Acceptance case had on existing auditing practice. List four of the procedures or practices that were identified in the ruling as being part of a competent audit.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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