Chapter 4 week 2 P4-31A

Chapter 4 week 2 P4-31A - P431A

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P4-31A     Link Back to Chapter 2 (Accounting Errors). The accountant for William Smith, M.D.,  encountered the following situations while adjusting and closing the books at December  31. Consider each situation independently     a. The accountant failed to make the following adjusting entries at December 31:  1. Accrued salary expense, $600.  2. Supplies expense, $1,100.  3. Accrued interest expense on a note payable, $1,600.  4. Depreciation of equipment, $400.  5. Earned service revenue that had been collected in advance, $200.      Compute the overall net income effect of these omissions. (p. 204, Challenge)  b. Record each adjusting entry identified in item a. (p. 204)  c. The $16,000 balance of Equipment was entered as $1,600 on the trial balance.     Answer:   a.   1.        Debit Salary expense  Credit Salary Payable   2.       
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This note was uploaded on 06/13/2011 for the course ACC 205 taught by Professor Robertcarr during the Spring '10 term at Ashford University.

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Chapter 4 week 2 P4-31A - P431A

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