11. Problem 20-15 Correction of errors; six errors [LO20-6] Conrad Playground Su

Question

11.

Problem 20-15 Correction of errors; six errors [LO20-6]

Conrad Playground Supply underwent a restructuring in 2013. The company conducted a thorough internal audit, during which the following facts were discovered. The audit occurred during 2013 before any adjusting entries or closing entries are prepared.

Additional computers were acquired at the beginning of 2011 and added to the company

Conrad Playground Supply underwent a restructuring in 2013. The company conducted a thorough internal audit, during which the following facts were discovered. The audit occurred during 2013 before any adjusting entries or closing entries are prepared.

Explanation / Answer

a.) Journal Entry debit credit Computers....................................44500 Cash.......................................................................44500 b.) assembly tools................................16500 Cash.......................................................................16500 c.) its effect will occur on retained earning because assets = liabilities + equity if we assign less to cost of cost of goods which is an asset then equity will also be low. Inventory.....................................77000 Revenue..................................................................77000 e.) Accrude interest paid.......................102000 Interest expense..............................51000 cash......................................................................153000 f.) Liability......................................71700 cash......................................................................71700

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