Discussion week two ACC213_1
Consider the following potential errors a bookkeeper may encounter:
$13,000 of insurance expense incorrectly entered as an interest expense
Omission of $4,000 adjustment for depreciation on equipment
A check for $5,000 issued to pay Accounts Payable was entered as a debit to Supplies Expense and credit to Cash
The revenue account was not closed during the closing process
What are the errors we would find in the financial statements? Do these errors have an impact on the current period? Future periods? What are some steps that need to be taken to correct these errors? In which of the nine steps of the accounting cycle did these errors occur? Discuss your rationale.