On December 31, 2014, before the books were closed, the management and accountants of Madrasa Inc. made the following determinations about three pieces of equipment.
Additional data:
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Prepare all necessary entries in 2014 to record these determinations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) |
| Account Titles | Debit | Credit |
| 1. | ||
| 2. | ||
| 3. (To correct Equipment Expensed) | ||
| 4. (To record depreciation) | ||
Prepare comparative retained earnings statements for Madrasa Inc. for 2013 and 2014. The company had retained earnings of $200,000 at December 31, 2012.
| MADRASA INC. Comparative Retained Earnings Statements For the Years Ended | ||||
| 2014 | 2013 | |||
| Error in Recording EquipmentNet Income/(Loss)Retained Earnings, December 31Retained Earnings, January 1, as adjustedRetained Earnings, January 1, as reported | $ | $ | ||
| AddLess: Error in Recording EquipmentNet Income/(Loss)Retained Earnings, December 31Retained Earnings, January 1, as adjustedRetained Earnings, January 1, as reported | ||||
| Error in Recording EquipmentNet Income/(Loss)Retained Earnings, December 31Retained Earnings, January 1, as adjustedRetained Earnings, January 1, as reported | ||||
| AddLess: Error in Recording EquipmentNet Income/(Loss)Retained Earnings, December 31Retained Earnings, January 1, as adjustedRetained Earnings, January 1, as reported | ||||
| Error in Recording EquipmentNet Income/(Loss)Retained Earnings, December 31Retained Earnings, January 1, as adjustedRetained Earnings, January 1, as reported | $ | $ | ||
Accounts:
Accounts Payable Accounts Receivable Accumulated Depreciation-Building Accumulated Depreciation-Equipment Accumulated Depreciation-Machinery Advertising Expense Amortization Expense Allowance for Doubtful Accounts Bad Debt Expense Cash Compensation Expense Consignment Out Construction in Process Copyrights Cost of Goods Sold Deferred Gross Profit Deferred Tax Liability Depreciation Expense Dividend Revenue Due to Customer Discount on Bonds Payable Equipment Equity Investments (Available-for-Sale) Equity Investments (Equity Method) Fair Value Adjustment Finance Expense Gain on Disposal of Plant Assets Income Tax Receivable Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Inventory on Consignment Investment Revenue Lawsuit Liability Lawsuit Loss Loss Due to Market Decline of Inventory Machinery Maintenance and Repairs Expense No Entry Prepaid Insurance Property, Plant, and Equipment Purchases Rent Revenue Retained Earnings Revenue from Investment Salaries and Wages Expense Salaries and Wages Payable Sales Sales Commission Expense Sales Commission Payable Sales Revenue Sales Tax Expense Sales Tax Payable Share Capital Supplies Supplies Expenses Trademarks Unearned Rent Revenue Unrealized Holding Gain or Loss - Equity Unrealized Holding Gain or Loss - Income Warranty Expense Warranty Liabilit |
10 years ago
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- problem_22-6.xlsx