Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. below are three independent and unrelated errors.

Below are three independent and unrelated errors. On December 31, 2020, Wolfe-Bache Corporation...

50.1K

Verified Solution

Question

Accounting

Below are three independent and unrelated errors.

  1. On December 31, 2020, Wolfe-Bache Corporation failed to accrue salaries expense of $2,050. In January 2021, when it paid employees for the December 27January 2 workweek, Wolfe-Bache made the following entry:
Salaries expense 2,050
Cash 2,050
  1. On the last day of 2020, Midwest Importers received a $95,000 prepayment from a tenant for 2021 rent of a building. Midwest recorded the receipt as rent revenue. The error was discovered midway through 2021.
  2. At the end of 2020, Dinkins-Lowery Corporation failed to accrue interest of $8,500 on a note receivable. At the beginning of 2021, when the company received the cash, it was recorded as interest revenue.

Required: For each error: 1. What would be the effect of each error on the income statement and the balance sheet in the 2020 financial statements? 2. Prepare any journal entries each company should record in 2021 to correct the errors.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

An ecosystem isa. all the organisms in a community and the abiotic environment in which...

Algebra
1.2K views

S What is the end behavior of this graph 5 4 3 2 4 cy...

Physics
1.2K views

Using only the spring gun with the catcher removed, fire the steel ball, making sure the...

Physics
1.2K views

38 If radius of a solid sphere is decreased to half keeping density of sphere...

Basic Math
1.2K views

aw a Venn diagram showing birds bees and living creatures living creatures bees birds living...

Algebra
1.2K views

The height h in feet of a ball suspended from a spring as a function...

Algebra
1.2K views

The comprehensive graphs of four polynomial functions are shown in A D A C 1000...

Accounting
1.2K views

E6-12 (Algo) Calculating Target...

Accounting
1.2K views

On February 1, 2019 Kate Dodson began operating a clinic counselling youth called Kate Dodson...

Accounting
1.2K views

The following cost data pertains to Crazy Cow Corp. for December 31st, 2022: Ending Raw...

Finance
1.2K views

07:28 07:28

Finance
1.2K views

Dax borrows $300,000 and the loan is governed by compound interest at an annual effective...