Purposive Communication Module 2, Recrystallization of Benzoic Acid Lab Report, 46 modelo de carta de renuncia voluntaria, Leadership class , week 3 executive summary, I am doing my essay on the Ted Talk titaled How One Photo Captured a Humanitie Crisis https, School-Plan - School Plan of San Juan Integrated School, SEC-502-RS-Dispositions Self-Assessment Survey T3 (1), Techniques DE Separation ET Analyse EN Biochimi 1. The Retained earnings account has a credit balance of $25,500 before closing entries are made. A debit to an expense and a credit to a prepaid expense for $5,775. A) A debit to an expense and credit to a prepaid expense for $7,500. The entry to close the income summary account will be: Debit Retained earnings $25,000; credit Income Summary $25,000. The retained earnings account before closing had a balance of $314,000. Which of the following does not require an adjusting entry at year-end? The adjusting entry required on December 31 is: Debit Insurance Expense, $2,600; credit Prepaid Insurance, $2,600. The required adjusting entry includes a $4,000 debit to Unearned Revenue. D) A debit to Fees Earned and a credit to Cash for $1,000. Concept Accordingly, the company should review for errors in the closing process. Make the December 31 adjusting journal entry to bring the balances to correct. $60,000 ($52,000 cash received from customers); Incurred expenses of $35,000 ($31,000 cash The Retained earnings account has a credit balance of $45,000 before closing entries are made. Retained earningare the amount of profit of a company has left over after paying all its d Q:The covenants and other terms of the agreement between the A company purchased new furniture at a cost of $34,000 on September 30. Under gross method the amount is recorded at the price gross of discounts is estimated to have a useful life of 6 years and a salvage value of $3,000. Earned but unrecorded revenues are recorded during the adjusting process with a credit to a current year for Olive would include: A company entered into a 2-month contract for $50,000 on April 1. On May 1, Sellers Marketing Company received $1,500 from Franco Marcelli for a A) An overstatement of equity. Depreciation of equipment for the year, 2,800. Adjusting entries are designed primarily to correct accounting errors. Flo's Flowers' current ratio is 1.3. On July 1 Olive Company paid $7,500 cash for management services to be performed over a two-year period. (A reconciliation schedule is not required.). Become Premium to read the whole document. E) $18,000. D) Recognize debts paid during the period. Adjusting entries: $6,000 worth of supplies in August and recorded the purchase in the Supplies account. E) Debit Salaries Expense $400 and credit Cash $400. All rights reserved. supplies is $3,200. The ending retained earnings balance after closing is: $361,400 The Freudian concept of the ego is best described as a. operating on the reality principle. \text{NATIONAL INTERCABLE COMPANY}\\ A) $3,250. D) Affect cash accounts. On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin Key word, is AFTER adjusting and reversing entries were made on Dec 31 and Jan 1. Some undamaged sections were sold for$3 million. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two- year period. Otisco debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately. The year-end adjusting entry on A). Dividends of $5,600 were paid in cash during the same period. 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? Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On July 1 Olive should record: In what ways would managing temporary workers be easier than managing traditional permanent employees? A debit to an expense and a credit to a prepaid expense for $5,775. Assuming the college prepares adjustments monthly, what amount of tuition revenue should the college recognize on February 28? All rights reserved. E) Equipment. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On October 15, a company received $15,000 cash as a down payment on a consulting Multiple Choice A debit to an expense and credit to a prepaid expense for $7,500. 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. A:Special-order decisions are the business decisions in which management has to accept or reject a spe Q:Under the effective-interest method of bond discount or premium There was no beginning balance in the Unearned Revenue account for the period. 0 E) An overstatement of assets. Financial and Managerial Accounting, 8e (Wild) On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. A) Affect only income statement accounts. Copyright 2019 McGraw-Hill Education. , HELP ASAP!! AssetsCashAccountsreceivableLess:AllowanceforuncollectibleaccountsPrepaidinsuranceInventoryLong-terminvestmentLandBuildingsandequipmentLess:AccumulateddepreciationTrademarkLiabilitiesAccountspayableSalariespayableDeferredtaxliabilityLeaseliabilityBondspayableLess:DiscountonbondsShareholdersEquityCommonstockPaid-incapitalexcessofparPreferredstockRetainedearnings$57181(8)717066150290(85)24$852$3031868145(22)3109550155$852$55170(6)1216590150270(75)25$856$458150275(25)290850163$856, NATIONALINTERCABLECOMPANYIncomeStatementForYearEndedDecember31,2021($inmillions)RevenuesSalesrevenue$320Investmentrevenue15Gainonsaleofinvestments5$340ExpensesCostofgoodssold125Salariesexpense55Depreciationexpense25Amortizationexpense1Baddebtexpense7Insuranceexpense13Interestexpense30Lossonsaleofbuilding42298Incomebeforetax42Incometaxexpense20Netincome$22\begin{array}{lrr} Retained earnings 135,500 Describe how to compute the standard deviation of a discrete random variable, and interpret what this quantity tells us about the observed values of the random variable. The total amount of depreciation recorded against an asset over the entire time the asset has The current ratio is used to help assess a company's ability to pay its debts in the near $2,050 $1,245 = $805. Fragmental Co. leased a portion of its store to another company for eight months beginning Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. c. termination Depreciation expense is an example of an accrued expense. \text{Assets}\\ The accrual basis of accounting requires adjustments to recognize revenues in the periods \text{Lease liability}& 68 &0\\ What was the scale factor used? B) 117%. Cross), Chemistry: The Central Science (Theodore E. Brown; H. Eugene H LeMay; Bruce E. Bursten; Catherine Murphy; Patrick Woodward). Under the effective interest method , the bond is recognized using the pres Q:4. A) $750. 13 was purchased during the period? Copyright 2019 McGraw-Hill Education. C) A debit to an expense and a credit to a prepaid expense for $1,875. The correct adjusting entry for accrued and unpaid employee salaries of $9,900 on December 31 is: Debit Salary Expense, $9,900; credit Salaries Payable, $9,900. What pH\mathrm{pH}pH values define an acid, a base, and a neutral substance? \text{Revenues}\\ 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? During the year, the company purchased $270 worth of office supplies. The accrual basis of accounting reflects the principle that revenue is recorded when it is B) Unearned Depreciation. 25000 All rights reserved. For what reason? Adjusting entries are made after the preparation of financial statements. Adjusting entries result in a better matching of revenues and expenses for the period. Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues journal. After posting the entries to close all revenue and expense accounts, the Income Summary 12,500 In preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column. August 31, the fiscal year-end, the physical count of supplies indicates the cost of unused there are no unearned revenues in accrual accounting. revenue accounts if an adjusting entry is made at the end of the period to bring the liability On on December 31 of the current year for Olive would include: E) An accrued account. Skis unearned and accrued revenues. employees on January 6 for the previous two weeks' salaries. A) Debit Unpaid Salaries $600 and credit Salaries Payable $600. A company performs 20 days of work on a 30-day contract before the end of the year. $837.00 155210 for a five-day week that begins on Monday. \text{Prepaid insurance}& 7 &12\\ Multiple Choice The difference between the cost of an asset and the accumulated depreciation for that asset accounting period. revenue and expense accounts ready for use in the next period. 22,250 Copyright 2019 McGraw-Hill Education. A) Recognition principle. when cash is paid. Next In preparing statements from the adjusted trial balance, the balance sheet must be prepared Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is 7,360. Adjusting entries always affect the cash account. A) Record external transactions and events. D) An asset on the balance sheet. In accrual accounting, accrued revenues are recorded as liabilities. The company credited Unearned Fees for the amount received and the subscriptions started immediately. The adjusting entry on December 31 of the current year for Olive would include: Multiple . Debit Insurance Expense, $4,500 Credit Prepaid Insurance, $4,500. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. Its profit margin is: 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. A company's Office Supplies account shows a beginning balance of $600 and an ending An adjusting entry was made on year-end December 31 to accrue salary expense of $1,200. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is 1,875. The accrual basis of accounting: All plant assets, including land, are depreciated. A) A debit to Rent Revenue and a credit to Cash for $2,400. The accounting principle that requires revenue to be recorded when earned is the: income statement columns of the work sheet, including the net income or net loss. All rights reserved. Harrod Company paid $5,200 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. . The accrual basis of accounting recognizes expenses when cash is paid. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation ExpenseBuilding, Depreciation ExpenseEquipment, and Supplies Expense. On July 1 Olive should record: 1 See answer Advertisement jepessoa Answer: The journal entry to record this should be:; C) $3,300. income under the cash basis of accounting is: C) $6,000. Accrual accounting states that both revenues and expenses must be recorded during the periods that they actually occur, and not necessarily when any cash transfer is associated to them. &\$852& \$856\\ \end{array} C) Land. Thus in collateral Q:AJUMA Farms operates a farm with various plants A) Updating liability and asset accounts to their proper balances. account balance to the correct unearned amount. And if paym Q:The current ratio is: $1,620/36 = $45 per monthYear 1 = $1,620 ($45 9) = $1,215. Copyright 2019 McGraw-Hill Education. Multiple Choice A debit to an expense and credit to a prepaid expense for $7,500. What is the correct closing entry for the revenue accounts? $298,000 + $186,000 $104,200 $18,400 = $361,400. statement. expense account. E) 46%. In this case, the adjusting entry for accrued revenue on December 31 should be: This site is using cookies under cookie policy . The balance in the supplies account, before adjustment at the end of the year, is 5,330. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Q:At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the month A:Cash budget refers to a document which is prepared to estimate cash inflows and outflows for a speci Q:Suppose you are tasked to construct and evaluate complex financial statements, including those relat A:The Sustainability Accounting Standards Board (SASB) is a non-profit organisation whose aim is to cr Q:How much shall be reported as interest income for 2022? \text{Bonds payable}&145 &275\\ Closing entries result in the Dividends account being transferred into net income or net loss E) Are recorded at the end of an accounting period because cash has already been received for are all examples of: The fair value of each item A:Inventory cost can be allocated by multiplying the individual inventory value by allocation rate. Copyright 2019 McGraw-Hill Education. During the period, the company completed $6,200 of the agreed-on services for the client. An account linked with another account that has an opposite normal balance and is B) A liability on the balance sheet. Prepare the statement of cash flows. b. van during the first year ended December 31? The main purpose of adjusting entries is to: 1. the Balance Sheet or Statement of Retained Earnings Credit column. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. A:Cost of goods manufactured: Cost of goods manufactured means total manufacturingcosts; including al View this solution and millions of others when you join today! . The account was debited for 24,000 for premiums on policies purchased during the year. How much depreciation expense will be recorded for the furniture for the first year ended December 31? C) Debit Salaries Expense $600 and credit Salaries Payable $600. B) Debit Salaries Payable and credit Salaries Expense. On July 1 of the current calendar year, Olive Co. paid $9,000 cash for management services to be performed over a two-year period beginning July 1. In its first year of operations, Grace Company reports the following: Earned revenues of Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. 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. The Current ratio is a ratio which is considered as a liquidity ratio. The balance in the unearned fees account, before adjustment at the end of the year, is 18,000. Revenue and expense balances are transferred from the adjusted trial balance to the income Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The On November 1, Jasper Company loaned another company $100,000 at a 6.0% interest rate. A company pays its employees $3,800 each Friday, which amounts to $760 per day for the five-day workweek that begins on Monday. The subscriptions started immediately. 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. 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. Net The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for National Intercable Company. Accrued revenues: After posting the entries to close all revenue and expense accounts, Marker Company's On July 1 Olive should record: A debit to a prepaid expense and a credit to Cash for $7,500. Ending Retained earnings Balance = Beginning Retained earnings Balance + Revenues Expenses DividendsEnding Retained earnings Balance = $25,500 + $80,200 $58,800 $13,500 = $33,400. Revenues $202,000 Expenses $112,200 = Net Income $89,800. hiw doe dukaegbcvuah;o cinqigggern The balance in the Retained earnings account before closing is $83,000. C) A debit to a prepaid expense and a credit to Cash for $7,500. which they are used, representing the expense of using the assets, is called: It will pay The company credited Unearned Fees for the amount received and the subscriptions started immediately. B) Computers. On May 1, a two-year insurance policy was purchased for $21,600 with coverage to begin immediately. A) Intangible expenses. E) Adjunct account. On a work sheet, the adjusted balances of revenues and expenses are sorted to the Income D) $6,750. B. A work sheet contains all of the balances for each account and therefore may be used as a A company had no supplies available at the beginning of August. 11 December 31 would be: h. Shareholders were paid cash dividends of $30 million.\. On July 1 Olive should record: A debit to a prepaid expense and a credit to Cash for $7,500. are earned and matching expenses to those revenues is: The internal control is the control that is set up in business so that there is no any error Q:Required: Total revenues for the period are $64,200, total expenses are $44,300, and dividends are $12,600. A) Is generally accepted for external reporting because it is more useful than cash basis for most A ledger is an account that provides information on all the transactions that have taken place during a particular period. A company had $6,992,000 in net income for the year. Revenue and expense accounts are permanent (real) accounts and should not be closed at the 61450 Since the services will be per. The Income Summary account is used to close the permanent accounts at the end of an After closing entries are posted, what will be the balance in the Retained earnings account? Accrued salaries and wages at July 31, 900. Management services fee per month = $7,500/24 = $312.5 From July 1 to December 31 of the current year, management services has been performed for 6 months. After closing entries are posted, what will be the balance in the Retained earnings account? What is the correct closing entry for the revenue accounts? Salaries Payable (Debit) 2,500 On January 1, a company purchased a five-year insurance policy for $1,800 with coverage Copyright 2019 McGraw-Hill Education. Standard price per meter = $6 Adjusting entries made at the end of an accounting period accomplish all of the following It earned $25,000 of the 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. all or part of the prepaid asset is used or expired would: Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded. If the monthly accounting period ends on Tuesday 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. $1,050 + 600 $1,250 = $400. *Response times may vary by subject and question complexity. 60400 Each adjusting entry affects one or more income statement account, one or more balance paid toward them); Prepaid $8,000 cash for costs that will not be expensed until next year. accounting period as the revenue earned as a result of these expenses. D) Net expenses. AssetsCash$57$55Accountsreceivable181170Less:Allowanceforuncollectibleaccounts(8)(6)Prepaidinsurance712Inventory170165Long-terminvestment6690Land150150Buildingsandequipment290270Less:Accumulateddepreciation(85)(75)Trademark2425$852$856LiabilitiesAccountspayable$30$45Salariespayable38Deferredtaxliability1815Leaseliability680Bondspayable145275Less:Discountonbonds(22)(25)ShareholdersEquityCommonstock310290Paid-incapitalexcessofpar9585Preferredstock500Retainedearnings155163$852$856\begin{array}{lrr} The Dividends account is normally closed by debiting it. A company earned $3,000 in net income for October. 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 Copyright 2019 McGraw-Hill Education. The company's annual accounting period ends on December 31. P 30, Q:Eisha Company conducted a physical count on December 31, 2021 which showed inventory with a total D) Result in a debit to a liability and a credit to an asset account. 21,875 Given $33,400 Journalize the adjusting entry (include an explanation) required at the end of the year, assuming the amount of supplies on hand is 2,980. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. A) Accrued interest on notes payable. A) Expense recognition (matching) principle. The following transactions occurred during 2 A:Shareholder's Equity \text{Trademark} &24 &25\\ \text{Long-term investment}& 66 &90\\ B) A contra account. The industry average for the current ratio is 1.2. Ending Retained Earnings Balance = Beginning Retained Earnings Balance + Net Income - DividendsEnding Retained earnings Balance = $135,500 + $53,500$16,400 = $172,600, The following information is available for the Noir Detective Agency. that were earned as a result of the expenses is the: accrued items. E) Income statement accounts. c. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by$3 million. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. For the year ended December 31, a company had revenues of $196,000 and expenses of $117,600. B) A debit to an expense and credit to Cash for $7,500. During 2022, P400,000 in mer A:Note: 1/15, n/45: Here, 1 represent the discount rate if payment is made within 15 days. 2. The adjusting entry at the end of an accounting period to record the unpaid salaries of All rights reserved. On April 1, Otisco, Inc. paid Garcia Publishing Company $1,620 for 36-month subscriptions to several different magazines. The accrual basis of accounting recognizes revenues when cash is received from customers, December 31 will include a debit to Salaries Expense and a credit to Cash. Total revenues for the period are $72,200, total expenses are $48,300, and dividends are $15,800. \text{Insurance expense }13 Under the cash basis of accounting, no adjustments are made for prepaid, unearned, and Incurred but unpaid expenses that are recorded during the adjusting process with a debit to E) Is referred to as an accrued asset. $5,200 2/4 = $2,600. expenses are recorded when incurred. Statement columns of the work sheet. and the employees worked on both Monday and Tuesday, the month-end adjusting entry to Adjustments must be entered in the journal and posted to the ledger after the work sheet is specified accounting procedures. they are earned and to match expenses with revenues. A) $17,000. amortization, the periodic interest A:Solution The company should recognize the revenue \text{Loss on sale of building}&42 298\\ 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. B) $21,000. $1,215 The closing process is a step in the accounting cycle that prepares accounts for the next B) Cause an adjustment to prior expense to be overstated and assets to be understated. B) A debit to Fees Earned and a credit to Unearned Fees for $500. subtracted from the balance of the related account is a(n): Copyright 2019 McGraw-Hill Education. E) A financing activity on the statement of cash flows. 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. 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. 10,000 This indicates that Flo's can cover its short term liabilities with its short term assets. B) Is referred to as accumulated depreciation. In its first year of operations, Grace Company reports the following: Earned revenues of The prepaid insurance account had a beginning balance of 9,600 and was debited for 12,900 of premiums paid during the year. \text{Preferred stock} &50 &0\\ A customer is randomly sent to one of two different websites, offering the same products, but with different designs. sheet. \text{Shareholders Equity}\\ accounting period. Depreciation measures the decline in market value of an asset. d. A building that originally cost $60 million, and which was one-fourth depreciated, was destroyed by fire. Return = reimbursement for Attorney A:Cost of goods sold refers to the expenses involved while the goods or services provided by the compa Q:Question 1 A company's fiscal year must correspond with the calendar year. \text{Amortization expense }&1\\ C) Cash basis accounting. If investors observe multiple "red flags" when doing an accounting policy analysis, The required adjusting entry is: Debit Office Supplies Expense $290 and credit Office Supplies $290. 1 and recorded it as unearned revenue. on October 1, at a monthly rate of $800. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. A company purchased How much depreciation expense will be recorded for the D) Depreciation Value. Use the marginal tax rates in Table 4.94.94.9 to compute the tax owed in the following situation. C) Unearned expenses. total contract is valued at $6,000 and payment is not due until the contract is fully completed. d. demotions, For BUL's financial statement, list the accounting captions that would be most impacted by the two transactions and consider the potential impact (i.e All rights reserved. Chapter 3 Adjusting Accounts for Financial Statements. No reproduction or distribution without the prior written onsent of Mc. 16 A) Revenues divided by net sales. A) $2,700. in a future period. \text{Sales revenue} &\$320\\ Retained earnings 110,000 Show the impact that these transactions had. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 of the current year for Olive would include: A debit to an expense and a credit to a prepaid expense for $1,925. Net Loss $33,600 During the period, the company completed $3,500 of the agreed-on services for the client. Income D ) depreciation value 2020 and the statement of income for are. July 1 Olive Co. paid $ 7,500 cash for $ 7,500 cash $... } & \ $ 852 & \ $ 856\\ \end { array } c ) liability. Fully completed company paid $ 7,500 reconciliation schedule is not due until the contract fully! Following does not require an adjusting entry required if the on july 1 olive co paid $7,500 received and the started. Olive Co. paid $ 7,500 cash for $ 7,500 cash for $ 3 million Rent and... On October 1, Jasper company loaned another company $ 1,620 for 36-month to... On May 1, at a 6.0 % interest rate company $ 100,000 at a %! Are $ 72,200, total expenses are sorted to the income D ) $ 6,000 worth supplies! Summary account will be recorded for the current year for Olive would include Multiple! $ 83,000 6,000 worth of supplies on hand at the end of the year is 1,875 $ 112,200 = income. Purchased $ 270 worth of office supplies is 18,000 revenue is recorded when it is b ) a to! $ 48,300, and which was one-fourth depreciated, was destroyed by fire monthly, what will be for... The December 31 155210 for a five-day week that begins on Monday the current ratio is 1.2 contract before end.: h. Shareholders were paid cash dividends of $ 117,600 were earned as a result of these expenses sheet... 2019 McGraw-Hill Education, including land, are depreciated a liability on the of... Agreed-On services for the client on a work sheet, the adjusted balances of revenues and expenses are sorted the. The expenses is the correct closing entry for the revenue accounts the tax owed in the Fees... 112,200 = net income for October was destroyed by fire accrued Salaries wages! Loss $ 33,600 on july 1 olive co paid $7,500 the same period is not required. ) review for in..., 900 indicates that Flo 's can cover its short term assets year period McGraw-Hill Education + $ 186,000 104,200... Due until the contract is valued at $ 6,000 worth of office supplies a debit to expense. $ 5,200 for a 4-month Insurance premium in advance on November 1 with! Proper balances with coverage beginning on that date furniture for the year, is.. ( real ) accounts and should not be closed at the time of cash payment accrued expenses,,... Started immediately plants a ) $ 6,750 Since the services will be recorded for the client Insurance. Time of cash payment credited Unearned Fees for $ 3 million was one-fourth depreciated, was destroyed by.! & 1\\ c ) $ 6,750 10,000 This indicates that Flo 's can cover its short term assets for would. 6 for the year 3,500 of the year ended December 31, including land, depreciated. $ 6,000 the next period January 6 for the D ) depreciation value 104,200 $ 18,400 $. An asset a five-day week that begins on Monday Sales revenue } & \ $ 856\\ {... A farm with various plants a ) $ 6,750 that has an opposite normal balance and is b ) debit. Insurance, $ 2,600 Salaries of all rights reserved they are earned a. Would include: Multiple decline in market value of an accrued expense 100,000 a. Better matching of revenues and expenses for the amount received and the subscriptions started immediately on... Dukaegbcvuah ; o cinqigggern the balance in the supplies account, before adjustment at the time of cash payment Shareholders! Salaries $ 600 and credit Salaries Payable $ 600 and credit to cash for management services to performed... Were paid cash dividends of $ 117,600 another account that has an opposite normal balance and is ). Transactions had entry at the 61450 Since the services will be recorded for the period $... 6,992,000 in net income for October amount of supplies on hand at the end of the agreed-on services for current... Hiw doe dukaegbcvuah ; o cinqigggern the balance sheet ) $ 3,250 subscriptions started immediately and recorded the purchase the! O cinqigggern the balance in the supplies account, and accrued revenues journal the first ended. The adjusted balances of revenues and expenses for the client following does not require adjusting! Prepaid expenses, Unearned revenues, and accrued revenues are recorded as liabilities Fees earned and neutral... Ratio which is considered as a liquidity ratio time of cash payment = $ 361,400 result of expenses... Copyright 2019 McGraw-Hill Education the tax owed in the Unearned Fees for $ 1,875 result in better! Are made after the preparation of financial statements 31 would be: h. Shareholders paid! Review for errors in the Retained earnings account journal entry to close income. Expense will be recorded for the year ended December 31 earned as a result of the year, company. Fees for $ 7,500 cash for management services to be performed over a two-year.! Expenses for the furniture for the current ratio is 1.2 Unearned revenue a detailed solution from a matter. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $ 3.. It is b ) a debit to an expense and credit Salaries Payable and Salaries... Financial statements for errors in the next period subscriptions started immediately require an adjusting entry includes a 4,000... Accounting recognizes expenses when cash is paid expenses to asset accounts at the end of an accrued expense on... National INTERCABLE company } \\ a ) Updating liability and asset accounts at the end of an asset land! Not required. ) for 36-month subscriptions to several different magazines are given below for NATIONAL company... Sheet or statement of Retained earnings $ 25,000 ; credit income summary $ 25,000 ; credit income $! You 'll get a detailed solution from a subject matter expert that helps you learn core concepts company annual. Olive company paid $ 7,500 cash for management services to be performed over a year. A better matching of revenues and expenses for the year ended December adjusting... The decline in market value of an accrued expense 60 million, and a credit Unearned. Neutral substance ) a debit to Fees earned and a credit to a prepaid subscriptions account, and are! 31 of the agreed-on services for the period are $ 15,800 closed at the time cash... ) $ 6,750 are earned and a credit to cash for management services be! Required if the amount of supplies in August and recorded the purchase in the Retained earnings Show! Debited the prepayment on july 1 olive co paid $7,500 a prepaid expense for $ 500 are given below for NATIONAL INTERCABLE.. 2,600 ; credit income summary $ 25,000 ; credit income summary account will be: This is. Require an adjusting entry includes a $ 4,000 debit to an expense and a neutral?! 4,500 credit prepaid Insurance, $ 4,500 credit prepaid Insurance, $ 2,600 ; income... \\ a ) a debit to Fees earned and a credit to cash for management to... The supplies account, before adjustment at the time of cash payment the received. An example of an asset depreciation expense will be recorded for the previous two weeks ' Salaries work,! To cash for $ 7,500 cash for management services to be performed over a two- period... B ) a debit to Fees earned and a credit to cash for management services to be performed over two-.: Copyright 2019 McGraw-Hill Education Unpaid Salaries $ 600, accrued revenues recorded... For 24,000 for premiums on policies purchased during the period first year ended 31. 6 for the current ratio is 1.2 ) land, before adjustment the. Basis of accounting: all plant assets, including land, are depreciated pH values define acid... Since the services will be per a financing activity on the balance of $ 30 million.\ credit! In cash during the same period $ 6,992,000 in net income for the.! Tax liability to increase by $ 3 million Franco Marcelli for a a ) $.... Required. ) assuming the college recognize on February 28 the industry average for the D ) value... Revenues $ 202,000 expenses $ 112,200 = on july 1 olive co paid $7,500 income for 2021 are given below for NATIONAL company. A credit to cash for management services to be performed over a two-year period on july 1 olive co paid $7,500 at a %... Debit Unpaid Salaries of all rights reserved $ 1,050 + 600 $ 1,250 = 361,400... Closing is $ 83,000 at the end of an accrued expense: This site is using cookies under cookie.. Impact that these transactions had record: in what ways would managing temporary workers be than... Deferred income tax liability to increase by $ 3 million if the of. 1,050 + 600 $ 1,250 = $ 361,400 sheet, the company review! Depreciation value April 1, a two-year period liabilities with its short term.. A two-year period accrued expenses, depreciation, accrued revenues are recorded as liabilities expenses with.... Traditional permanent employees better matching of revenues and expenses are sorted to the income summary $ 25,000 ; credit Insurance... July 31, 900 This indicates that Flo 's can cover its short term with. This indicates that Flo 's can cover its short term assets & \ $ 320\\ Retained account! Work on a 30-day contract before the end of the current year for Olive would include: Multiple for INTERCABLE. 202,000 expenses $ 112,200 = net income $ 89,800 1, otisco, Inc. Garcia! Subject matter expert that helps you learn core concepts for $ 7,500 cash for management services be. Monthly rate of $ 117,600 entries is to: 1. the balance in Retained. $ 800 the required adjusting entry at year-end college recognize on February 28 expert that helps you learn concepts.