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Home Q & A Board Other Fields Homework Help Business Accounting
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Tomm Tomm
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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:
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ACC 925
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TheSinTheSin
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6 years ago
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Tomm Author
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6 years ago
Helped a lot
megan.xo
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Correct Slight Smile TY
bahajo
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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