Warning: Creating default object from empty value in taxonomy_term_page() (line 33 of /home/gerenrot/public_html/modules/taxonomy/taxonomy.pages.inc).

Accounting homework help

Get free Accounting homework help here or go to homework help

E22-19B (Error Analysis and Correcting Entries) A partial trial balance of Opticar Corp. is as follows on December 31, 2014. Dr. Cr. Supplies expense $ 35,000 Accrued salaries and wages $ 7,500 Interest receivable on investments 650 Insurance expense 156,

E22-19B (Error Analysis and Correcting Entries) A partial trial balance of Opticar Corp. is as follows on December 31, 2014.

                                                                       Dr.                         Cr.    

E22-18B (Error Analysis) Six Above Company’s December 31 year-end financial statements contained the following errors. December 31, 2013 December 31, 2014 Ending inventory $15,600 overstated $36,000 overstated Depreciation expense $21,500 understated — Re

E22-18B (Error Analysis) Six Above Company’s December 31 year-end financial statements contained the   following errors.

                                                 December 31, 2013                             December 31, 2014

E22-17B (Error Analysis and Correcting Entry) The reported net incomes for the first 2 years of US Books Corp. were as follows: 2013, $268,000; and 2014, $412,000. Early in 2015, the following errors were discovered. 1. Depreciation of equipment for 2013

E22-17B (Error Analysis and Correcting Entry) The reported net incomes for the first 2 years of US Books Corp. were as follows: 2013, $268,000; and 2014, $412,000. Early in 2015, the following errors were discovered.

1. Depreciation of equipment for 2013 was understated $68,500.

2. Depreciation of equipment for 2014 was overstated $39,000.

3. December 31, 2013, inventory was overstated $12,000.

4. December 31, 2014, inventory was understated $73,600.

Instructions

E22-16B (Error Analysis and Correcting Entry) You have been engaged to review the financial statements of Water Sync Inc. In the course of your investigation you find a number of irregularities during the current year. 1. Insurance for a 6-month period pu

E22-16B (Error Analysis and Correcting Entry) You have been engaged to review the financial statements of Water Sync Inc. In the course of your investigation you find a number of irregularities during the current year.

1. Insurance for a 6-month period purchased on October 1 of this year was charged to prepaid insurance in the amount of $5,000.

2. Year-end estimate of bonuses totaled $61,000 and was not recorded because the payment would not be made until next year.

E22-15B (Error Correction Entries) The first audit of the books of Nuvo Corp. was made for the year ended December 31, 2014. In examining the books, the auditor found that certain items had been overlooked or incorrectly handled in the last 3 years. These

E22-15B (Error Correction Entries) The first audit of the books of Nuvo Corp. was made for the year ended December 31, 2014. In examining the books, the auditor found that certain items had been overlooked or incorrectly handled in the last 3 years. These items are:

1. Nuvo Corp. amortized goodwill of $400,000 recorded from an acquisition in 2013 over 40 years.

2. The company did not record the estimated warranty accrual of $66,000 at the end of 2014.

E22-14B (Various Changes in Principle—Inventory Methods) Below is the net income of Jonesey Laboratories computed under the three inventory methods. FIFO Average-Cost LIFO 2012 $75,000 $50,000 $30,000 2013 55,000 50,000 38,000 2014 58,000 50,000 42,000 20

E22-14B (Various Changes in Principle—Inventory Methods) Below is the net income of Jonesey Laboratories

computed under the three inventory methods.

                FIFO             Average-Cost         LIFO  

2012   $75,000             $50,000            $30,000

E22-13B (Change in Principle—Long-term Contracts) Black Hoe Construction changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2015.

E22-13B (Change in Principle—Long-term Contracts) Black Hoe Construction changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2015. For tax purposes, the company employs the completed-contract method and will continue this approach in the future. The appropriate information related to this change is as

follows.

E22-12B (Change in Estimate—Depreciation) Zebra Corp. changed from the straight-line method to the double-declining-balance method in 2015 on all its equipment. There was no change in the salvage values or useful lives. The equipment was purchased in 2014

E22-12B (Change in Estimate—Depreciation) Zebra Corp. changed from the straight-line method to the double-declining-balance method in 2015 on all its equipment. There was no change in the salvage values or useful lives. The equipment was purchased in 2014, and the original cost was $600,000 with no salvage value and a 6-year estimated useful life. Income before depreciation expense was $560,000 in 2014 and $760,000 in 2015. Zebra’s tax rate is 40%.

Instructions

(a) Prepare the journal entry(ies) to record the change in depreciation method in 2015.

E22-11B (Change in Estimate—Depreciation) Via Rio Co. purchased equipment for $1,000,000 which was estimated to have a useful life of 15 years with a salvage value of $25,000 at the end of that time. Depreciation has been entered for 5 years on a straight

E22-11B (Change in Estimate—Depreciation) Via Rio Co. purchased equipment for $1,000,000 which was estimated to have a useful life of 15 years with a salvage value of $25,000 at the end of that time. Depreciation has been entered for 5 years on a straight-line basis. In 2015, it is determined that the total estimated life should be 10 years with no salvage value at the end of that time.

Instructions

(a) Prepare the entry (if any) to correct the prior years’ depreciation.

(b) Prepare the entry to record depreciation for 2015.

E22-10B (Depreciation Changes) On January 1, 2010, Apartments Plus Company purchased an apartment building and related equipment that have the following useful lives, salvage values, and costs.

E22-10B (Depreciation Changes) On January 1, 2010, Apartments Plus Company purchased an apartment building and related equipment that have the following useful lives, salvage values, and costs. Building, 25-year estimated useful life, $300,000 salvage value, $2,500,000 cost Equipment, 10-year estimated useful life, no salvage value, $300,000 cost The building has been depreciated under the straight-line method through 2014. In 2015, the company decided to switch to the double-declining-balance method of depreciation for the building. Apartments

Syndicate content