Witherfork Company Was Recently Acquired by a New Owner Who

question 54

Essay

Witherfork Company was recently acquired by a new owner who has decided to correct the prior accounting records during the current reporting period ending December 31,2014.The accounts have been partially adjusted but have not been closed for 2014.The following items have been discovered:
Required:
Provide the appropriate entry to record any change or correction and give any adjusting entry needed in each instance at the end of 2014.Show computations for entries made,and provide explanations for situations for which no entry is required.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to update accounts before the financial statements are prepared.

Net Income

The residual earnings of a company after all costs including expenses and taxes are taken out from the total revenue.

Accrued Revenue

Revenue earned in one accounting period but not received until a later period, recognized in the financial statements when earned, not when received.

Services Provided

The act or process of delivering professional, technical, or operational assistance to customers or clients.