It is obvious that an error occurred in the preparation and/or posting of closing entries if:

If Rollings Services’ office supplies account balance on March 1 was $1,400, the company purchased $675 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,250 unused, what is the amount of the adjusting entry for office supplies on March 31?

A roofing company collects fees when jobs are complete.  The work for one customer, whose job was bid at $3,000, has been completed as of December 31, but the customer has not yet been billed.  Assuming adjustments are only made at year-end, what is the adjusting entry the company would need to make on December 31, the calendar year-end?

Bob’s Lawn Service purchased $7,000 worth of supplies and paid cash immediately. Which of the following general journal entries will Bob’s Lawn Service make to record this transaction? Assume the company’s policy is to initially record prepaid and unearned items in balance sheet accounts.

Reversing entries overcome the disadvantage of more complex entries to pay accrued liabilities from the previous accounting period.

Kopter Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets.

On November 1, Jewell Company loaned another company $100,000 at a 6.0% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company’s annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is:

Peters Consulting purchased $500 of office supplies on credit. The company’s policy is to initially record prepaid and unearned items in balance sheet accounts. Which of the following general journal entries will Peters consulting make to record this transaction?

Earned but uncollected revenues are recorded during the adjusting process with a credit to a revenue account and a debit to an expense account.

Dapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and stockholder investments of $6,000. Its ending equity is: