Prepare journal entries to correct these errors ignore

Reference no: EM13481787

Kris Inc discovered the followingerrors after the 2008 financial statements were issued:

a. A major supplier shipped inventory valued at $8,550 to Kris onconsignment. This merchandise was mistakenly included in theinventory taken by Kris on December 31 2007. (Goods shipped onconsignment are the property of the consignor and should beincluded in its inventory)

b. Kris renewed its liability insurance policy on 1 October 2007,paying a $36,000 premium and debiting Insurance expense. No furtherentries have been made. The premium purchased insurance coveragefor a period of 36 months

c. Repair expense was debited at the time equipment was purchasedfor $100,000 on Jan 8 2008. The equipment has a life of 5 years;its salvage value is considered immaterial. Kris use straight linedepreciation method.

1. Prepare journal entries to correct these errors, ignore taxes

2. Assuming that these errors remained uncorrected, explain theireffect on the 2009 financial statements issued by Kris.

Reference no: EM13481787

Questions Cloud

A borrower has two alternatives for a loan 1 issue a 180000 : a borrower has two alternatives for a loan 1 issue a 180000 45-day 10 note or 2 issue a 180000 45-day note that the

Dscribes changes in paid-in capital and retained earnings : the statement of changes in stockholders equity is part of the statement of retained earnings. shows only the ending

Xyz manufacturing company suffered major losses in a fire : xyz manufacturing company suffered major losses in a fire on december 18 2009. in addition to destroying several

Hardly a day goes by without an article appearing on the : hardly a day goes by without an article appearing on the crises affecting many of our financial institutions in the

Prepare journal entries to correct these errors ignore : kris inc discovered the followingerrors after the 2008 financial statements were issueda. a major supplier shipped

Callie was admitted to the adams amp beal partnership four : callie was admitted to the adams amp beal partnership four years ago. the partnership has a deficiency at year end for

For financial accounting purposes assets of an individual : for financial accounting purposes assets of an individual partner contributed to a partnership are recorded by the

What is the basic assumption underlying the percentage of : chang constructions entered into a fixed-price contract withtravels hotels on 1 jan 1993 to construct a 4-storey

Which of the following would be least likely to be used as : which of the following would be least likely to be used as a means of allocating profits among partners who are active

User Account

All Pages