The Chief Accountant Was Reviewing the Financial Statements That You

question 109

Essay

The chief accountant was reviewing the financial statements that you had prepared for the current year with comparative results from last year. She asked you the following questions. Why is Trucking Expense so high? Why is Supplies Expense so low? Why is Unearned Revenue so high? You then investigated the records, and as a result, determined the following: The $20,000 cost of a truck was posted to Trucking Expense. Office supplies costing $1,500 were used, and the entry to record the use debited Depreciation Expense. The company had received a large payment for an order to be delivered next year. Required: Prepare the necessary journal entries to correct any errors discovered as part of the investigation.

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Definitions:

Taper Ratio

The ratio indicating the change in diameter of a tapered object over its length, commonly used in engineering to specify conical elements.

Conical Taper

The gradual reduction or increase in diameter from one end of a cylindrical object to the other, forming a cone-like shape.

Shims

Thin pieces of material used to fill small gaps or spaces between objects, often for adjustment, leveling, or support purposes.

Dowels

Small, cylindrical rods inserted into a hole to either join parts together or to provide a location and alignment.