Top Posters
Since Sunday
y
2
m
2
m
2
u
2
m
2
B
2
M
2
e
2
k
2
N
2
y
2
m
2
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
Tomm Tomm
wrote...
Go to Answer
Posts: 653
Rep: 0 0
6 years ago
Blitz Limited has recently hired a junior accountant. The accountant noticed that his predecessor had made several mistakes in recording transactions during the most recent fiscal year. For each of the following situations, prepare the adjusting entry that should be made to correct the error.
   
1.   Blitz received a $15,000 advance from a client for work that is going to be completed in the next year. The bookkeeper debited cash and credited revenue.

2.   Blitz purchased a new piece of equipment at a cost of $36,000. At the time of purchase, the equipment was debited to repairs and maintenance expense. The equipment is expected to have a useful life of 10 years. Blitz uses straight-line depreciation. Assume that the equipment had been in use for a full year.

3.   During the year Blitz declared $5,000 in dividends. The bookkeeper had recorded this payment as a debit to dividends expense and a credit to cash.
Textbook 
Financial Accounting, Canadian Edition

Financial Accounting, Canadian Edition


Edition: 5th
Authors:
Read 195 times
1 Reply
ACC 925
Replies
Answer verified by a subject expert
TheSinTheSin
wrote...
#1
Posts: 380
Rep: 16 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Tomm Author
wrote...

6 years ago
This helped my grade so much Perfect
lubennick
wrote...

Yesterday
This site is awesome
yen
wrote...

2 hours ago
Correct Slight Smile TY
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1336 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 177
  
 249
  
 853
Your Opinion
What's your favorite coffee beverage?
Votes: 304
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?