During 2021, the Following Independent Events Occurred at Sarajavo Corporation

question 15

Essay

During 2021, the following independent events occurred at Sarajavo Corporation on the dates indicated:
1. Sales were understated by $ 145,000 for 2020. This error was discovered on January 20, 2021, when trying to reconcile the accounts receivable balance.
2. On March 31, 2021, Sarajavo Corporation discovered that Depreciation Expense on factory equipment for the year ended December 31, 2020, had been recorded twice, for a total amount of $ 60,000 instead of the correct amount of $ 30,000.
3. On June 30, 2021, Sarajavo Corporation discovered that its 2020 cost of goods sold was overstated by $ 14,500 as a result in counting inventory.
Assume Sarajavo has a 20% income tax rate.
Instructions
Prepare any journal entries required as a result of the information provided.

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Definitions:

Damaged Brain Area

A region of the brain that has been impaired or injured due to trauma, disease, or other conditions.

Parietal Lobes

The region of the brain located behind the frontal lobes, responsible for integrating sensory information, including spatial sense and navigation.

Mathematical Reasoning

The ability to use logical and critical thinking to solve mathematical problems and to understand concepts beyond mere computation.

Spatial Reasoning

The ability to understand and remember the spatial relations among objects.