Given the Schedule Below, Indicate the Impact of the Following

question 39

Essay

Given the schedule below, indicate the impact of the following errors made during the adjusting entry process. Use a "+" followed by the amount for overstatements, a "-" followed by the amount for understatements, and a "0" for no effect.(1) Recorded accrued salaries expense of $1,200 with a debit to Prepaid Salaries.(2) The bookkeeper forgot to record $2,700 of depreciation on office equipment.(3) Failed to accrue $300 of interest on a note receivable. Ex. Failed to recognize that $600 of unearned revenues, previously recorded as liabilities, had been earned by year-end.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

Journalizing

The process of recording financial transactions in a journal or diary, marking the first step in the accounting cycle.

General Journal

A general journal is a fundamental accounting record where all day-to-day financial transactions of a business are initially recorded.

Ledger Accounts

Financial records within a ledger that summarize the transactions related to a company's assets, liabilities, equity, revenues, and expenses.