Description
I need four accounting questions answered for a class. need to know about accounting and calucating assets
Unformatted Attachment Preview
Error
At the end of 2013, Castle consulting did not make the
wees nie.
Indicate the effect of the error on 2013 Net Income, Assets, and west
December 31, 2013). Please specify the dollar effect of the error setove, a to
understate, and NE for no effect. Assume each error is independent of the others
Net
Assets
Income
1. Entry to record interest expense on a short-
term Note Payable. The note as a balance
of 90,000. The annual interest rate of 8%,
dated May 1. The interest is payable with
the principal at maturity.
2. On July 1st, 2012 the company bought a
machine for 160,000 and debited the entire
amount to expense. The machine has a
useful life of 10 years and no salvage value.
Equity
The company would normally have used
the straight line depreciation method. The
company did not correct the error in both
2012 and 2013.
3. Entry to record the expired portion of a
three-year life insurance policy paid for on
August 1, 2013 for 72,000 and charged to a
permanent account.
4. Entry to record accrued salaries and wages
earned by employees at fiscal year-end in
the amount of 7,500.
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Explanation & Answer
I completed the answer. let me know if there is any correction required
CASTLE CONSULTING Journal Adjustment For the year 31st Dec 2013
Balance bf (Note payable)
Interest Expense = 90,000* 8/100*8/12
interest + Principal = 4800 + 90000
Machine =1...
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