Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. x company prepares monthly financial statements. t

X Company prepares monthly financial statements. The balance in Unearned (Deferred) Revenue on October 1...

90.2K

Verified Solution

Question

Accounting

X Company prepares monthly financial statements. The balance in Unearned (Deferred) Revenue on October 1 is $1,126. As of October 31, $371 of the $1,126 had been earned, but the accountant failed to record the appropriate adjusting entry. What was the effect on the October 31 Balance Sheet?

In January, X Company, a merchandiser, purchased inventory on account. The accountant incorrectly recorded the transaction as an increase in Inventories and a decrease in Retained Earnings. As a result, which of the following is true regarding the January financial statements?

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

Basic Math
1.2K views

What is the power series representation of ln(1-2x)? What is its radius of convergence?

Statistics
1.2K views

#16 A random sample of companies in electric utilities (I), financial services (II), and food processing (III)...

Physics
1.2K views

47 A light rod carries three equal masses P Q and R as shown in...

Basic Math
1.2K views

3 Write the trigonometric expression in terms of sine and cosine and then simplify cos...

Statistics
1.2K views

12 66 of adults cannot name a supreme court justice You randomly select five adults...

Calculus
1.2K views

Find the derivative of the following function f x 4x 9 In 3x 2 f...

Algebra
1.2K views

If 320 feet of fence are used to enclose a rectangular pen the resulting area...

Algebra
1.2K views

Solve the system of equations by the addition method.3x + y = 1- 12x -...

Accounting
1.2K views

TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and...

Accounting
1.2K views

Problem 6-7A Gross profit comparisons and cost flow assumptionsperpetual LO2, 3 Ontario Skateboard Company has...

Accounting
1.2K views

Haffner Corporation uses the weighted-average method in its process costing system. Data concerning the first...

Accounting
1.2K views

1:107