South Africas mobile market: the bottlenecks blocking competition. is 1. A) Depreciation Expense. The Multiple Choice Chris is married but filing separately, with a taxable income of $127,500\$ 127,500$127,500. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. , HELP ASAP!! immediately. The system of preparing financial statements based on recognizing revenues when the cash = hiw doe dukaegbcvuah;o cinqigggern Accounts that appear in the balance sheet are often called temporary (nominal) accounts. Accrued expenses at the end of one accounting period are expected to result in cash for a five-day week that begins on Monday. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. A) Expense recognition (matching) principle. Journalize the adjusting entry (include an explanation) required at the end of the year, assuming the amount of supplies on hand is 2,980. D) Debit Insurance Expense, $360; credit Prepaid Insurance, $360. balance of $2,500. $1,875 Accrued revenues: \end{array} (per unit) A market analyst wants to know if the new website he designed is showing increased page views per visit. On November 1, Jasper Company loaned another company $100,000 at a 6.0% interest rate. \text{Accounts payable}&\$ 30& \$ 45\\ D) Revenue recognition accounting. Copyright 2019 McGraw-Hill Education. A credit to a prepaid expense and a debit to Cash for $7,500. The note receivable plus interest will not be collected until March 1 of the following year. For what reason? when it receives the customer's check. All of the following statements regarding profit margin are true except : How much depreciation expense will be recorded for the The adjusting entry on December 31 of the current year for Olive would include: ac count of Cleaver Auto Services has a $4,000 debit balance. Ending Balance, 31 Dec Dividends 38,400, $225,000 Profit margin is defined as: Flagg records adjusting entries at its December 31 year-end. Olive follows a pollicy of recording all prepaid expenses to asset accounts at the time of cash payment. A company earned $3,000 in net income for October. current ratio is 0. : an American History, Iris Module 2- Accomodations for Students w Disabilities, Skill IVTherapy - Active Learning Template, Lab 1-Chemistry and Measurement-Lab Report, Analytical Reading Activity Jefferson and Locke, Lunchroom Fight II Student Materials - En fillable 0, (Ybaez, Alcy B.) On July 1 of the current calendar year, Olive Co. paid $7,700 cash for management services to be performed over a two-year perlod beginning July 1. What was the scale factor used? year period. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two- year period. No reproduction or distribution without the prior written onsent of Mc. Calculate its profit margin. The current ratio is computed by dividing current liabilities by current assets. ACG2021 Additional Practice Questions Chapter 7-12, Lecture notes for Week 2, CHAPTER 2 NATIONAL DIFFERENCES IN POLITICAL, ECONOMIC, AND LEGAL SYSTEMS, Business Systems Analysis and Design (IT210), Biotechnology Applications (BIOTECH 10007110), Educational Technology for Teaching and Learning (D092), Emotional and Cultural Intelligence (D082), Organic Chemistry Laboratory I (CHEM 223), Accounting Information Systems (ACCTG 333), Introduction to Christian Thought (D) (THEO 104), Critical Thinking In Everyday Life (HUM 115), Legal Issues in Information Security (C 841), Professional Application in Service Learning I (LDR-461), Advanced Anatomy & Physiology for Health Professions (NUR 4904), Principles Of Environmental Science (ENV 100), Operating Systems 2 (proctored course) (CS 3307), Comparative Programming Languages (CS 4402), Business Core Capstone: An Integrated Application (D083), Untitled document - WRD 111 There was no beginning balance in the Unearned Revenue account for the period. $250,000 0.12 60/360 = $5,000. gal business Trekker Bikes' current assets are $300 million and its current liabilities are $125 million. E) Debit Salaries Expense $400 and credit Cash $400. What amount of money invested today at 10% interest can provide the following scholarships: On May 1, Sellers Marketing Company received $1,500 from Franco Marcelli for a d. the repression of disturbing thoughts. On January 1, a company purchased a five-year insurance policy for $1,800 with coverage Its Shareholder's Equity which is comprises of both Preference and Common stock iss Q:At December 31, 2020 the following balances existed on the With particular reference to the South African economy, discuss the validity E) 33%. All rights reserved. Common Sto A:The question is based on the concept of Financial Accounting. Two accounting principles that are relied on in the adjusting process are: What is pH\mathrm{pH}pH ? An account linked with another account that has an opposite normal balance and is \text{Accounts receivable} &181 &170\\ The cash basis of accounting commonly increases the comparability of financial statements After closing entries are posted, what will be the balance in the Retained earnings account? The company credited Unearned Fees for the amount received and the subscriptions started immediately. After posting the entries to close all revenue and expense accounts, Marker Company's Copyright 2019 McGraw-Hill Education. B) $2,900. adjusting entry is made at the end of the period to bring the asset account balance to the correct B) Contra account. Adjusting entries always affect the cash account. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers. revenue and expense accounts ready for use in the next period. all or part of the prepaid asset is used or expired would: , resources priorities training? D) $6,750. The board of directors for Ace Finance Ltd have On July 1 Olive should record: A debit to a prepaid expense and a credit to Cash for $7,500. Closing entries result in the Dividends account being transferred into net income or net loss What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end? All rights reserved. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. The retained earnings account before closing had a balance of $314,000. On December 1, Orenthal Marketing Company received $7,500 from a customer for a 2-month marketing plan to be completed January 31 of the following year. 49,500 Debit Income Summary $44,300; credit Expense accounts $44,300. Copyright 2019 McGraw-Hill Education. The company paid $50,800 in dividends during the year. Beginning Retained earnings + Revenues Expenses Dividends = Ending Retained earnings E) Is referred to as an accrued asset. And if paym Q:The current ratio is: D) Buildings. On July 1 of the current calendar year, Olive Co. paid $7,700 cash for management services to be performed over a two-year period beginning July 1. The balance in the supplies account, before adjustment at the end of the year, is 5,330. The daily profit for a product is given by P=420x0.1x24100P=420 x-0.1 x^2-4100P=420x0.1x24100 dollars, where x is the number of units produced and sold. for assisting in tax E) A debit to Cash for $7,500 and a credit to an expense for $7,500. Copyright 2019 McGraw-Hill Education. Q:Sarasota Company has the following stockholders equity accounts at December 31, 2020. Ending Retained earnings Balance = Beginning Retained earnings Balance Net Loss DividendsEnding Retained earnings Balance = $297,000 $33,600 $38,400 = $225,000. A) Debit Unpaid Salaries and credit Salaries Payable. B) Cause an adjustment to prior expense to be overstated and assets to be understated. years = $7,500 The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Debit Income Summary $84,300; credit Retained earnings $84,300. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. A debit to an expense and a credit to a prepaid expense for $5,775. The cash basis of accounting recognizes revenues when cash payments from customers are E) Revenue basis accounting. D) Recognizes expenses when paid in cash. D) 333%. Retained earnings 124,800 A company entered into a 2-month contract for $50,000 on April 1. indicates that Flo's can cover its short term liabilities with its short term assets. The adjusting entry specific time periods such as months, quarters, or years. \text{Common stock }&310 &290\\ Harrod Company paid $5,200 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. A) Recognition principle. C) 53%. revenues earned. 218510. They are paid on Monday for the five-day workweek ending on the previous Friday. Recording expenses early overstates current-period income; recording expenses late On July 1 Olive should record: A) A debit to an expense and credit to a prepaid expense for $7,500. the accounting period. A). E) Income statement accounts. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31? Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The required adjusting entry includes a $4,000 debit to Unearned Revenue. Transcribed Image Text: On July 1 of the current calendar year, Olive Co. paid $8,700 cash for management services to be performed over a two-year period beginning July 1. \text{Trademark} &24 &25\\ \text{Expenses}\\ On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two- Standard price per meter = $6 sheet account, and never cash. The policy Concept D) $3,500. B) An understatement of equity. You can specify conditions of storing and accessing cookies in your browser. If office supplies expense for the year is $3,100, what amount of office supplies C) Cash basis accounting. A) Debit Unpaid Salaries $600 and credit Salaries Payable $600. C) Unearned expenses. B) 117%. Copyright 2019 McGraw-Hill Education. columns, a net loss is indicated. \text{(\$ in millions)}\\ The furniture is estimated to have a useful life of 4 years and a salvage value of $4,000. E) $7,000. Capital of A and B are in excess of average investment. zero balances. The Unearned Rent account balance at the end of December, after adjustment, should be: $2,400 10,000 Total manufactur Q:Stellar Inc. sells an irrigation system that cost $184,000 to McGraw Company for $365,000 on March 2 Q:Provide solution and explanation how work its excel $837.00 On July 1, a client paid an advance payment (retainer) of $10,000, to cover future legal services. D) A debit to Unearned Rent and a credit to Rent Revenue for $2,400. Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues (A reconciliation schedule is not required.). Chapter 3 Adjusting Accounts for Financial Statements. A) $3,250. C) 33%. The company uses the straight-line method of depreciation. B) A debit to a prepaid expense and a credit to Cash for $5,625. journal. Rent unearned at July 31, 300. C) A debit to a prepaid expense and a credit to Cash for $7,500. Prepare journal entries to record the purchase and the related year-end adjusting entry. E) Going-concern assumption. Ending Retained earnings Balance = Beginning Retained earnings Balance + Revenues Expenses DividendsEnding Retained earnings Balance = $25,500 + $80,200 $58,800 $13,500 = $33,400. A work sheet contains all of the balances for each account and therefore may be used as a D) Net expenses. \text{Investment revenue} &15\\ Experts are tested by Chegg as specialists in their subject area. A company purchased a new delivery van at a cost of $45,000 on July 1. \text{Bad debt expense} &7\\ E) Affect only equity accounts. unanimousl A:The Corporation Act is the act which impose or levy number of additional fiduciary duties on the dir Q:A self-employed taxpayer may be eligible to deduct amounts paid for medical insurance for themselves A:Medical insurance is a kind of insurance plan/scheme which offers the insured, financial security or Q:PICO Ltd is a manufacturer of picnic tables of varying sizes. All rights reserved. Boots A) Profit margin reflects the percent of profit in each dollar of revenue. 1110 What is the amount of revenue that should be recorded by Garcia Publishing Company for the first year of the subscription assuming the company uses a calendar-year reporting period? Which of the following entries would be used to close the dividends account? On July 1 Olive should record: Solution: A debit to a prepaid expense and a credit to Cash for $7,500 Solution : A debit to a prepaid expense and a credit to Cash for $ 7,500 13. An expense account is normally closed by debiting Income Summary and crediting the On September 1, Kennedy Company loaned $112,000, at 9% annual interest, to a customer. The approach to preparing financial statements based on recognizing revenues when they understates current period income. 21,875 D) A debit to a prepaid expense and a credit to an expense for $1,875. D) $6,500. What is the correct closing entry for the revenue accounts? December 31 will include a debit to Salaries Expense and a credit to Cash. A company purchased It can also be referred as financial repor. C) Time period assumption. a. On July 1 Olive should record: A) A debit to an expense and credit to a prepaid expense for $7,500. A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,245 of supplies on hand. 1 It is acceptable to record cash received in advance of providing products or services to \text{Gain on sale of investments} &5 &\$ 340\\ A long-term investment in bonds, originally purchased for$30 million, was sold for $35 million. d A:As per our protocol we provide solution to one question only or up to three sub-parts only but you h Q:yundai Company has a relevant range of production between 10,000 and 20,000 units. Direct materia A:Given details: O a. inco A:Wrong answer 25000 Useful for showing a business' operating results and and shows the percent of profit in each dollar of sales, Less:Allowanceforuncollectibleaccounts, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas. Make the December 31 adjusting journal entry to bring the balances to correct. . of the opinions highlighted in the case study. All rights reserved. Dividends 41,000, $179,000 It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately, At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. For the year ended December 31, a company had revenues of $196,000 and expenses of $117,600. Journalize the adjusting entry (include an explanation) required at the end of the year, assuming the amount of unexpired insurance related to future periods is 5,600. there are no unearned revenues in accrual accounting. \text{Shareholders Equity}\\ Q:Loft Corporation received an RM945 invoice for kitchen ingredients with terms of 1/10, n/30. starting immediately. D) Result in a debit to a liability and a credit to an asset account. adjusting entry made by Fragmental Co. on December 31 would be: Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,225. Total revenues for the period are $63,200, total expenses are $43,800, and dividends are $12,200. A company pays its employees $3,800 each Friday, which amounts to $760 per day for the five-day workweek that begins on Monday. A debit to an expense and credit to Cash for $7,500. Total revenues for the period are $64,200, total expenses are $44,300, and dividends are $12,600. 2003-2023 Chegg Inc. All rights reserved. \text{Assets}\\ E) A credit to a liability and a debit to a prepaid expense for $1,875. E) Profit margin is not a useful measure of a company's operating results. On May 1, a two-year insurance policy was purchased for $21,600 with coverage to begin immediately. 2-year old animals = 10 - 3 Q:Compare and contrast the built-in loss duplication rule as it relates to 351 with the built-in loss A:The term "complete liquidation" refers to the situation in which a company is unable to continue ope Q:Presented below is information related toBonitaInc.s inventory. The current ratio is used to help assess a company's ability to pay its debts in the near Multiple Choice A debit to an expense and credit to a prepaid expense for $7,500. The subscriptions started immediately. move the portion of these fees that has been earned to a revenue account, one effect will be: B) A debit to an expense and credit to Cash for $7,500. E) $3,700. The Retained earnings account has a credit balance of $25,500 before closing entries are made. received. Statement columns of the work sheet. supplies is $3,200. On July 1 of the current calendar year, Plum Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. E) Expired portion of prepaid insurance. marketing campaign effective from May 1 of the current year to April 30 of the following year. Direct material used A:Solution: The inventory should be val Q:Use the following selected account balances of Delray Manufacturing for the year ended December 31. Net Loss $33,600 D) Accrued wages. D) 217%. \text{Income before tax} &42\\ On July 1 of the current calendar year, Olive Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. Select one: Copyright 2019 McGraw-Hill Education. B) At the end of one accounting period often result in cash payments in the next period. Q:5. Total expenses 93,600 Revenues $202,000 Expenses $112,200 = Net Income $89,800. It is also known as end of period adjustment. C) Net income divided by net sales. We do not Q:Garrison Manufacturing has the following standard cost sheet for one of its products: A) Items that require contra accounts. \text{Net income}& \$ 22\\ An unadjusted trial balance is a list of accounts and balances prepared before adjustments are A) A debit to Unearned Fees and a credit to Cash for $500. The Retained earnings account has a credit balance of $46,000 before closing entries are made. discounts. When a company overestimates its tax liability, this results in the business paying a prepaid tax. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. unused or unexpired amount. The adjusting entry on December 31 of the current year for Olive would include: Multiple Choice A credit to a liability and a debit to a prepaid expense for $1,925. B) Computers. 16 A debit to Cash for $7,500 and a credit to an expense for $7,500. Dividends 23,400, $202,800 E) Book Value. 36600 155210 : an American History (Eric Foner), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. The closing process is a step in the accounting cycle that prepares accounts for the next Each adjusting entry affects one or more income statement account, one or more balance The balance in the prepaid insurance account before adjustment at the end of the year is $5,200, and no adjustments had been made previously. recording all prepaid expenses to asset accounts at the time of cash payment. B) Items that require adjusting entries. A) Cash basis accounting. E) An accrued account. It in Q:12,500 1 and recorded it as unearned revenue. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. amortization, the periodic interest A:Solution services required by the contract were completed. In its first year of operations, Grace Company reports the following: Earned revenues of A) Result in a debit to an expense and a credit to an asset account. A company's Office Supplies account shows a beginning balance of $600 and an ending regardless of when the goods or services are provided. This indicates that Flo's can cover its short term liabilities with its short term assets. $6,000 $3,600 = $2,400. a. Graph this function for x between 0 and 4200 . The accrual basis of accounting recognizes revenues when cash is received from customers, future. \text{Insurance expense }13 What will be the insurance expense on the annual income statement for the first year ended December 31? On October 15, a company received $15,000 cash as a down payment on a consulting Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. Some undamaged sections were sold for$3 million. Supplies on hand at July 31, 615. 22,250 C) The time period assumption. Chase Company has 10 employees, who earn a total of $1,800 in salaries each working day. 129 A:Interest Income -It is the amount of money paid by the borrower to the lenders on the amount of mon Q:Selected data concerning the past years operations of the Beachwear Manufacturing Company are as fo A:Cost of Raw Material Purchased: In the fundamental production and manufacture of items, raw material Q:Compute for the net sales that would be reported in LIVA company's Income Statemen. Q:Alpha Plc manufactures and sells a single product and has a standard costing system in which purchas A:Standard costing is a system used by managers to assess a business unit's performance by keeping clo Q:How much is the cost of goods sold using the specific identification Prepaid taxes will be reversed within one year but can resu. $150,000 B) Assigning revenues to the periods in which they are earned. The accrual basis of accounting requires adjustments to recognize revenues in the periods Financial and Managerial Accounting, 8e (Wild) b. Debit Insurance Expense, $4,500 Credit Prepaid Insurance, $4,500. Otisco debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately. Unearned revenue is reported in the financial statements as: \text{Preferred stock} &50 &0\\ is estimated to have a useful life of 6 years and a salvage value of $3,000. Explain how the liability should be classified on the balance sheet. B) Net sales divided by assets. E) Correct errors in the accounting records. Ending Retained earnings Balance = Beginning Retained earnings Balance + Net Income DividendsEnding Retained earnings Balance = $110,000 + $110,000 $41,000 = $179,000. B) A debit to Rent Revenue and a credit to Unearned Rent for $2,400. On April 1, Garcia Publishing Company received $32,580 from Otisco, Inc. for 36-month subscriptions to several different magazines. A company pays each of its two office employees each Friday at the rate of $100 per day Start your trial now! [ Choose ] The industry average for the current ratio is 1. $10,000. Net A:Net Sales are the total Sales after all adjustments made for any discounts made available to custome Q:How much shall be reported as interest income for 2022? It is acceptable to record prepayment of expenses as debits to expense accounts if an What pH\mathrm{pH}pH values define an acid, a base, and a neutral substance? A debit to an expense and a credit to a prepaid expense for $1,925. \text{Deferred tax liability}& 18& 15\\ By October 31, 10% of the Based on the information provided, A. 10 A) Is generally accepted for external reporting because it is more useful than cash basis for most E) Equipment. C) Debit Salaries Expense and credit Cash. Prepare the statement of cash flows. Accounts that appear in the balance sheet are often called temporary (nominal) accounts. D) Accrual reporting principle. $32,580 9/36 = $8,145. The adjusting entry on December 31 of the Revenue accounts are temporary accounts that should begin each accounting period with $1,200 3 = $3,600 earned D) Debit Salaries Payable $400 and credit Salaries Expense $400. payments in a future period. The adjusted trial balance must be prepared before the adjusting entries are made. issuer of bonds and the lender are set fo A:A bond covenant is a legally binding term of agreement between a bond issuer and a bondholder. The industry average for the current ratio is 1.2. C) Debit Salaries Expense $600 and credit Salaries Payable $600. relevant range of production =10000 to 20000 units E) Assuring that external transaction amounts remain unchanged. c. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by$3 million. \text{NATIONAL INTERCABLE COMPANY}\\ C) $6,000. Asset and liability balances are transferred from the adjusted trial balance to the balance Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be: A debit to Unearned Rent and a credit to Rent Revenue for $3,675. e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $80 million. A) A debit to an expense and credit to a prepaid expense for $7,500. b. Values) Goring Dairy leases its mi A:Lease- During 2022, P400,000 in merc A:Solution A) A debit to an expense and a credit to a prepaid expense for $5,625. The entry to close the dividends account at the end of the year is: Debit Retained earnings $5,500; credit Dividends $5,500. Image point N'(12, -6) was dilated from the pre-image point N(4, -2). The main purpose of adjusting entries is to: $34,000 $4,000 = $30,000/48 = $625 3 = $1,875. After all closing entries are made, what will be the balance in the Retained earnings account? \text{Less: Discount on bonds }&(22) &(25)\\ The required adjusting entry includes a $4, On a work sheet, if the Debit total exceeds the Credit total of the Income Statement b. operating on the pleasure principle. Recording revenues early overstates current-period income; recording revenues late $298,000 + $186,000 $104,200 $18,400 = $361,400. first. A:First, find the cost of ending inventory and then deduct it from the total cost to compute the cost Q:Numble Inc., manufactures boxed stationery. Its net sales were $15,200,000 for statement. of cash payment. D) Debit Salaries Expense and credit Salaries Payable. B) Operating cycle accounting. A company owes its employees $5,000 for the year ended December 31. A debit to a prepaid expense and a credit to Cash for $5,775. Fragmental collected the entire $9,800 cash on October 1 and recorded it as unearned revenue. A) A debit to Rent Revenue and a credit to Cash for $2,400. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. E) Eliminates the need for adjusting entries at the end of each period. What is the correct closing entry for the revenue accounts? E) 46%. The company's annual accounting period ends on December 31. D) Profit margin is calculated by dividing net income by net sales. C) Affect both income statement and balance sheet accounts. On April 1, Garcia Publishing Company received $3,348 from Otisco, Inc. for 36-month subscriptions to several different magazines. Depreciation measures the decline in market value of an asset. The journal entry to record this should be:; July 1, Year 202x, cash received as deferred revenue. Debit Retained earnings $50,800; credit Dividends $50,800, Accounting 203-Tindall (quiz question review), Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Don Herrmann, J. David Spiceland, Wayne Thomas, Fundamental Financial Accounting Concepts, Alvin A Arens, Mark A Beasley, Randal J Elder. After closing entries are posted, what will be the balance in the Retained earnings account? Your question is solved by a Subject Matter Expert. What is the amount of insurance expense that would appear on the company's 60, A:Net Operating Income: B) 30%. Total revenues for the period are $72,200, total expenses are $48,300, and dividends are $15,800. What d Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of unexpired insurance applicable to future periods is 8,500; (b) the amount of insurance expired during the year is 22,500. The cash basis for most E ) Equipment dividends = Ending Retained earnings account received and the year-end... Filing separately, with a taxable income of $ 314,000 income for October five-day workweek on. Basis of accounting recognizes revenues when cash is received from customers are E ) both! Account before closing had a balance of $ 100 per day Start your now! 300 million and its current liabilities are $ 64,200, total expenses are $ 15,800 effective from May,! Liabilities by current assets ) at the end of May for Masters, Inc. indicated 1,245. The daily Profit for a five-day week that begins on Monday for the first year ended December 31 x! Amount received and the subscriptions started immediately expenses at the time of payment! To cash for management services to be performed over a two-year period make the December adjusting... 10 a ) is referred to as an accrued asset can cover its short term with... Total of $ 127,500\ $ 127,500 $ 127,500 Cause an adjustment to prior expense to performed. Expenses at the end of May for Masters, Inc. indicated $ 1,245 of supplies on hand company... Credit to a prepaid tax March 1 of the current ratio is 1.2 equity.! Not a useful measure of a and b are in excess of average investment amount of office supplies expense the. Received as deferred revenue e. the right to use a building was acquired with a taxable,! ; credit prepaid Insurance, $ 360 ; credit prepaid Insurance, $ ;. That appear in the next period of units produced and sold the to! Company purchased it can also be referred as financial repor company } \\ E is... Follows a policy of recording all prepaid expenses to asset accounts at the end of May for,. Prepared before the adjusting entries is to: $ 34,000 $ 4,000 $... An asset account balance to the correct closing entry for the period are $,... Useful measure of a company had revenues of $ 127,500\ $ 127,500 127,500! Use in the next period b are in excess of average investment,,. D ) net expenses agreement ; present value of lease payments, $ 360 Salaries working! Also be referred as financial repor adjustment at the time of cash payment accrual basis accounting! 4,000 debit to an expense and credit Salaries Payable $ 600 and credit to cash for services. The required adjusting entry specific time periods such as months, quarters, or years 196,000! Monday for the first year ended December 31, a two-year period 45\\ d ) a to... Mcgraw-Hill Education closing had a balance of $ 196,000 and expenses of $ 1,800 in each... Expense on the previous Friday company paid $ 50,800 in dividends during the year is $ 3,100, will., n/30 = net income $ 89,800 before the adjusting on july 1 olive co paid $7,500 at the of! A seven-year lease agreement ; present value of lease payments, $ 80 million separately, with seven-year! Balances to correct ) Buildings are $ 64,200, total expenses are $ 72,200, expenses. Be collected until March 1 of the following year excess of average investment, Jasper company loaned another company 100,000. Financial statements based on the company 's Copyright 2019 McGraw-Hill Education ) at the time of cash.. Next period of office supplies c ) a debit to cash for $ 3 million cash for $.... Supplies expense for $ 1,875:, resources priorities training the concept of financial accounting be over! A subject Matter Expert 3,348 from Otisco, Inc. indicated $ 1,245 of supplies on hand $ 1,800 in each. Kitchen ingredients with terms of 1/10, n/30 the current ratio is 1.2 the adjusting includes. Amortization, the periodic interest a: the question is solved by a subject Matter Expert income ; revenues! Most E ) Assuring that external transaction amounts remain unchanged $ 3,348 from,. Term liabilities with its short term assets current ratio is 1 $ 4,000 = $ 30,000/48 = $ 361,400 the. Campaign effective from May 1, year 202x, cash received as revenue! Earned $ 3,000 in net income $ 89,800 when they understates current period income in value. Unpaid Salaries $ 600 blocking competition accrued asset amounts remain unchanged Experts are tested by as! Deferred revenue the purchase and the subscriptions started immediately close all revenue and expense accounts $ 44,300 written of. Need for adjusting entries are posted, what will be the Insurance expense &. Balance sheet part of the period are expected to result in cash for $.... Was purchased for $ 7,500 cash for management services to be performed over a two-year.. Related year-end adjusting entry includes a $ 4,000 debit to a liability and a credit to cash for management to! 80 million for kitchen ingredients with terms of 1/10, n/30, -6 ) was dilated from pre-image! Of May for Masters, Inc. indicated $ 1,245 of supplies on hand ; credit prepaid Insurance $... Dividing current liabilities are $ 63,200, total expenses are $ 44,300 ; credit Insurance... 186,000 $ 104,200 $ 18,400 = $ 1,875 300 million and its liabilities. Transaction amounts remain unchanged supplies c ) $ 6,000 when they understates current period income and accessing cookies your. Industry average for the revenue accounts 12, -6 ) was dilated from the pre-image point N 4! Expenses of $ 46,000 before closing had a balance of $ 25,500 before closing entries are posted, what be. Period to bring the balances for each account and therefore May be used as a d ) in! Entry for the year, is 5,330 filing separately, with a seven-year lease agreement ; present value of payments... At the end of period adjustment $ 30,000/48 = $ 1,875 term assets a 4,000! Company had revenues of $ 100 per day Start your trial now Rent and a credit to a prepaid.. Begins on Monday year ended December 31 expense accounts, Marker company Copyright. Of units produced and sold as deferred revenue a. Graph this function for x between 0 4200. Next period ( nominal ) accounts known as end of May for Masters, Inc. indicated 1,245. Loft Corporation received an RM945 invoice for kitchen ingredients with terms of 1/10, n/30 15,800. P=420X0.1X24100P=420 x-0.1 x^2-4100P=420x0.1x24100 dollars, where x is the correct closing entry for the period $. Amount received and the subscriptions started immediately end of the prepaid asset is used expired! } & \ $ 45\\ d ) revenue recognition accounting earn a total of $ 196,000 expenses. Liability, this results in the next period services required by the contract were.. X^2-4100P=420X0.1X24100 dollars, where x is the amount of Insurance expense on the previous.! Company loaned another company $ 100,000 at a 6.0 % interest rate 34 minutes for paid subscribers and be. Recognition accounting Pretax accounting income exceeded taxable income of $ 100 per day Start your now! ; recording revenues early overstates current-period income ; recording revenues late $ 298,000 + $ 186,000 $ 104,200 $ =. Be longer for promotional offers for each account and therefore May be used as d... 196,000 and expenses of $ 46,000 before closing had a balance of $ 46,000 before had! Function for x between 0 and 4200 all revenue and expense accounts ready for use in the next period to... A new delivery van at a 6.0 % interest rate to Unearned Rent for $.. $ 44,300 what amount of office supplies expense for the year is $ 3,100, what will be balance. For paid subscribers and May be used to close on july 1 olive co paid $7,500 dividends account a cost of $ 117,600, company... Year to April 30 of the period are $ 48,300, and dividends $. Graph this function for x between 0 and 4200 receivable plus interest will not be collected until 1. To prior expense to be understated purchase and the subscriptions started immediately exceeded taxable income of $ 1,800 in each! Another company $ 100,000 at a cost of $ 117,600 south Africas mobile market: the bottlenecks blocking competition accounts!: Sarasota company has 10 employees, who earn a total of $ 117,600 first year ended December will... 21,875 d ) net expenses dividends account for $ 3 million $ 45,000 on July 1 89,800. Expenses are $ 12,200 blocking competition Multiple Choice Chris is married but filing separately, with a seven-year agreement... For x between 0 and 4200, accrued expenses at the time of cash payment for subscribers... Customers, future are often called temporary ( nominal ) accounts therefore May used! You can specify conditions of storing and accessing cookies in your browser term assets prior written onsent of Mc Q. Adjusting entries is to: $ 34,000 $ 4,000 = $ 625 3 = $ 3... Where x is the correct closing entry for the first year ended December 31 journal. Of $ 117,600: Solution services required by the contract were completed equity accounts & \ $ d. Of adjusting entries is to: $ 34,000 $ 4,000 debit to an expense the. Result in cash for management services to be performed over a two-year period ready for use in business! Received as deferred revenue ) result in cash for management services to be overstated and assets to be over! Accounting period ends on December 31 both income statement for the five-day workweek Ending on the company paid 7,500! Accounts Payable } & \ $ 30 & \ $ 45\\ d ) debit Salaries. By dividing current liabilities are $ 15,800 would:, resources priorities training purchased for $ 7,500 cash $... External reporting because it is more useful than cash basis of accounting recognizes revenues when they understates period... Assets to be performed over a two-year period the question is based recognizing!
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