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miskamm [114]
3 years ago
9

Adams Company has employed a bookkeeper who is inexperienced. On December 28, after reviewing the records for the year, you disc

over the following error.
On June 1, Adams Company paid a supplier $300 on account. The bookkeeper recorded this by debiting Cash for $300 and crediting Accounts Payable for $300.
Required: Prepare a correcting entry on December 28. Make sure to enter the day for each separate transaction.
Business
2 answers:
adell [148]3 years ago
6 0

Answer:

                                      Debit                  Credit

Trade payable                 $300

Cash                                                           $300                              

Explanation:

First we have to reverse the wrong journal entry which has been made by the inexperienced bookkeeper in the Adams Company accounts:

                                      Debit                  Credit

Trade payable                 $300

Cash                                                           $300                              

Now we have to record the correct journal entry in the accounts of Adam Company in respect of account settlement with supplier which is given as follow:

                                      Debit                  Credit

Trade payable                 $300

Cash                                                           $300                              

just olya [345]3 years ago
3 0

Answer: Dr: Account payable $300, Cr: cash $300

Explanation:

General journal

Date. Description of entry. Dr. Cr

$ $

June 1 Account payable. 300

Cash. 300

Being correction of

entry for December 28

The error made by the inexperienced bookkeeper can be corrected by simply reversing the entry to record the entry correctly.

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Furkat [3]

Answer

2

Explanation:

Cost index in dollar - value LIFO method is used to determine the change in prices since the beginning of he base year by comparing the year end inventory to the base layer cost.

The extended cost of the ending inventory at the most recent  price is divided by the cost of the ending inventory at the base year price.

Workings

Cost in term of base layer = $50,000

Cost in term of the layer layer $100,000

Cost index = 100000/50000 = 2

7 0
3 years ago
The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below.
Arlecino [84]

Answer:

Date   Accounts Titles & Explanation  Debit  Credit

Dec 31    Rent Expense                          $2,040

               ($6,120 *2/6)

                      Prepaid Rent                       $2,040

Dec 31     Deferred Revenue                 $525

                      Service Revenue                           $525

Dec 31    Salaries Expense                     $700

                      Salaries Payable                           $700

Dec 31     Supplies Expense                  $2,390

                ($3,100 - $710)

                      Supplies                                       $2,390

       

              Demon Deacons Corporation

                 Adjusted Trial balance

                  December 31, 2021

         Accounts             Debit$        Credit$

Cash                               9,100

Account receivable       14,100

Prepaid rent                   4080

Supplies                          710

Deferred revenue                               1,575

Salaries payable                                  700

Common stock                                    11,000

Retain earnings                                   5,100

Service revenue                                 45,245

Salaries expenses          31,200

Rent expenses                2,040

Supplies expenses         <u>2,390</u>          <u>              </u>

Total                                $<u>63,620</u>     $<u>63,620</u>

Prepaid rent = 6,120 - 2,040 =  4080

Supplies = 3100 - 2390 = 710

Deferred revenue = 2,100 - 525 = 1575

8 0
3 years ago
Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production
yuradex [85]

Answer:

The following scenarios from the listed are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States. They include;

1) The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government.

2) The variety of goods available to consumers

3) The costs of overfishing and other overly intensive uses of resources.

8 0
3 years ago
A relatively small team of people who collaborate on the same project is called a:
agasfer [191]
Enterprise, it's called an enterprise
5 0
3 years ago
A bond has a face value of $1,000, a coupon of 5% paid annually, a maturity of 34 years, and a yield to maturity of 8%. What rat
Lyrx [107]

Answer:

- 3.21%

Explanation:

In this question, we use the PV formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

Future value = $1,000

PMT = 1,000 × 5% = 50

NPER = 34 years -  1 year =  33 year

Rate of interest = 9%

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value would be $581.42

Now the return would be

=  Sale price + interest - purchase price

= $581.42 + $50 - $652.39

= -$20.97

And, the total return would be

=  Return ÷ purchase price

=  -$20.97 ÷ $652.39

= - 3.21%

5 0
2 years ago
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