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    Traas

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    ARIS
    This document contains examples of incorrect accounting entries and how they should be corrected. The first example is of prepaid insurance where the entry to expense it was omitted in 2018. The second is of unearned rent revenue where the rent revenue was not recognized in 2018. The third example is of supplies purchased in 2018 but not used until 2019, so the entry to create a prepaid supplies asset was omitted.

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    Traas

    Uploaded by

    ARIS
    13 views2 pages
    This document contains examples of incorrect accounting entries and how they should be corrected. The first example is of prepaid insurance where the entry to expense it was omitted in 2018. The second is of unearned rent revenue where the rent revenue was not recognized in 2018. The third example is of supplies purchased in 2018 but not used until 2019, so the entry to create a prepaid supplies asset was omitted.

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    This document contains examples of incorrect accounting entries and how they should be corrected. The first example is of prepaid insurance where the entry to expense it was omitted in 2018. The second is of unearned rent revenue where the rent revenue was not recognized in 2018. The third example is of supplies purchased in 2018 but not used until 2019, so the entry to create a prepaid supplies asset was omitted.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    13 views2 pages

    Traas

    Uploaded by

    ARIS
    This document contains examples of incorrect accounting entries and how they should be corrected. The first example is of prepaid insurance where the entry to expense it was omitted in 2018. The second is of unearned rent revenue where the rent revenue was not recognized in 2018. The third example is of supplies purchased in 2018 but not used until 2019, so the entry to create a prepaid supplies asset was omitted.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    1) 2017 2018

    Entry Made Mar. 1 Prepaid Insurance 36,000 Mar. 1 No Entry


    Cash 36,000
    Dec. 31 NO AJE Dec. 31 NO AJE
    Should Be Mar. 1 Prepaid Insurance 36,000 Mar. 1 Insurance Expense
    Cash 36,000 Prepaid Insurance
    Dec. 31 Insurance Expense 30,000
    Prepaid Insurance 30,000
    2) 2017 2018
    Entry Made Apr. 30 Cash 30,000 Mar. 1 No Entry
    Unearned Rent Revenue 30,000
    Dec. 31 NO AJE Dec. 31 NO AJE
    Should Be Apr. 30 Cash 30,000 Apr. 30 Unearned Rent Reve
    Unearned Rent Revenue 30,000 Rent Revenue
    Dec. 31 Unearned Rent Revenue 20,000
    Rent Revenue 20,000
    3)
    2018

    6,000
    Prepaid Insurance 6,000

    2018

    10,000
    Rent Revenue 10,000

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