An inexperienced accountant for Can't Add Company recorded the following transactions in the records of the company for the year ended December 31, 2021. The controller has questioned the appropriateness of the entries since she thinks that they have not been recorded in accordance with generally accepted accounting principles. Profit for the year, including the entries described below, is $ 200,000. Instructions
a) For each of the above entries, indicate the concept or constraint that was violated.
b) Determine the correct profit for 2021.

Question

An inexperienced accountant for Can't Add Company recorded the following transactions in the records of the company for the year ended December 31, 2021. The controller has questioned the appropriateness of the entries since she thinks that they have not been recorded in accordance with generally accepted accounting principles. Profit for the year, including the entries described below, is $ 200,000.  Instructions 
a) For each of the above entries, indicate the concept or constraint that was violated.
b) Determine the correct profit for 2021.

Quizplus · Accepted Answer

The Answer of An inexperienced accountant for Can't Add Company recorded the following transactions in the records of the company for the year ended December 31, 2021. The controller has questioned the appropriateness of the entries since she thinks that they have not been recorded in accordance with generally accepted accounting principles. Profit for the year, including the entries described below, is $ 200,000.  Instructions 
a) For each of the above entries, indicate the concept or constraint that was violated.
b) Determine the correct profit for 2021.

An Inexperienced Accountant for Can't Add Company Recorded the Following