on july 1 olive co paid $7,500on july 1 olive co paid $7,500

on july 1 olive co paid $7,50029 Mar on july 1 olive co paid $7,500

All rights reserved. Adjusting entries result in a better matching of revenues and expenses for the period. The furniture is estimated to have a useful life of 4 years and a salvage value of $4,000. We do not Q:Garrison Manufacturing has the following standard cost sheet for one of its products: The adjusting entry needed on December 31 is: Debit Salaries Expense, $5,400 Credit Salaries Payable, $5,400. Cash 3. If all columns of a completed work sheet balance, you can be sure that no errors were made On July 1 Olive should record: In what ways would managing temporary workers be easier than managing traditional permanent employees? D) $6,500. mbling activities. The total amount of depreciation recorded against an asset over the entire time the asset has $380,000 0.09 30/360 = $2,850. ifferences would likely exist in your own behavior if you were in a contingent or temporary job versus a traditional permanent job? Which of the following entries would be used to close the dividends account? \text{Long-term investment}& 66 &90\\ E) Affect only equity accounts. E) None of the answer choices is correct. D) Debit Salaries Payable $400 and credit Salaries Expense $400. Direct materia A:Given details: Depreciation expense for a period is the portion of a plant asset's cost that is allocated to that prepared. A) Revenues divided by net sales. $3,348/36 = $93.00 per monthYear 1: $93.00 9 months = $837.00Year 2: $93.00 12 months = $1,116.00Year 3: $93.00 12 months = $1,116.00Year 4: $93.00 3 months = $279.00. $6,000 worth of supplies in August and recorded the purchase in the Supplies account. The company uses the straight-line method of depreciation. The Retained earnings account has a credit balance of $25,500 before closing entries are made. This Harrod Company paid $5,200 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. All rights reserved. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year? On January 1, a company purchased a five-year insurance policy for $1,800 with coverage A benefit of using a work sheet is that it aids in the preparation of the financial statements. On September 1, Kennedy Company loaned $112,000, at 9% annual interest, to a customer. 12,500 16 C) Net income divided by net sales. The adjusting entry Copyright 2019 McGraw-Hill Education. E) Profit margin is not a useful measure of a company's operating results. \text{Loss on sale of building}&42 298\\ Copyright 2019 McGraw-Hill Education. In preparing statements from the adjusted trial balance, the balance sheet must be prepared Trekker Bikes' current assets are $300 million and its current liabilities are $125 million. ALVR Digital Bank granted a loan to a client A:Interest Income -It is the amount of money paid by the borrower over and above the loan amount to t Q:Bonds that pay no interest unless the issuing company is profitable A company pays each of its two office employees each Friday at the rate of $100 per day B) Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440. Total expenses 93,600 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. statement. 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. \text{Accounts payable}&\$ 30& \$ 45\\ Chris is married but filing separately, with a taxable income of $127,500\$ 127,500$127,500. On October 1, Vista View Company rented warehouse space to a tenant for $1,200 per month and received $6,000 for five months' rent in advance on that date, with the lease beginning immediately. 18,375 $10,000. Next immediately. \text{Accounts receivable} &181 &170\\ D) Asset accounts. 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. 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. c. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by$3 million. All rights reserved. and the employees worked on both Monday and Tuesday, the month-end adjusting entry to A worksheet can be helpful in showing the effects of proposed or "what if" transactions but You'll get a detailed solution from a subject matter expert that helps you learn core concepts. from period to period. earned, not when cash is received. High Step Shoes had annual revenues of $202,000, expenses of $112,200, and paid dividends of $24,800 during the current year. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. 2 Accrued revenues at the end of one accounting period are expected to result in cash receipts A) Affect only income statement accounts. On July 1 Olive should record: d. the repression of disturbing thoughts. $5,200 2/4 = $2,600. Financial and Managerial Accounting, 8e (Wild) balance of $400. Based on the information provided, A. A company performs 20 days of work on a 30-day contract before the end of the year. substitute for the set of financial statements. 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 If the monthly accounting period ends on Tuesday 218510. Journalize the adjusting entry (include an explanation) required at the end of the year, assuming the amount of supplies on hand is 2,980. B) Record internal transactions and events. Copyright 2019 McGraw-Hill Education. except : $7,500/2 = $3,750 per month. The ending retained earnings balance after closing is: $361,400 Adjusting entries are usually entered in the work sheet before they are entered in the general journal. C) The time period assumption. 61450 A ledger is an account that provides information on all the transactions that have taken place during a particular period. The subscriptions started immediately. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. By October 31, 10% of the Credit Cash $23,000. sheet. The accrual basis of accounting recognizes expenses when cash is paid. Closing entries are required at the end of each accounting period to close all ledger accounts. 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? 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? Multiple Choice The balance in the Retained earnings account before closing is $83,000. all or part of the prepaid asset is used or expired would: The note receivable plus interest will not be collected until March 1 of the following year. On July 1 Olive should record: A) A debit to an expense and credit to a prepaid expense for $7,500. An account linked with another account that has an opposite normal balance and is Total revenues for the period are $63,200, total expenses are $43,800, and dividends are $12,200. D) Is only recorded when the asset is disposed of. 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. It is also known as end of period adjustment. P A:Net realizable value = Selling price - cost to sell - cost to complete. Actual price per meter = $382,500/62,500 m The adjusting entry on December 31 of the Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. B) Cause an adjustment to prior expense to be overstated and assets to be understated. All rights reserved. Assuming the college prepares adjustments monthly, what amount of tuition revenue should the college recognize on February 28? 60400 In what ways would it be more difficult? 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. D) Net income divided by assets. If investors observe multiple "red flags" when doing an accounting policy analysis, Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues Under the effective interest method , the bond is recognized using the pres Q:4. ac count of Cleaver Auto Services has a $4,000 debit balance. 22,250 Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. E) Eliminates the need for adjusting entries at the end of each period. Adjusting entries made at the end of an accounting period accomplish all of the following The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. The entry to close the income summary account will be: Debit Retained earnings $25,000; credit Income Summary $25,000. A) $17,000. The system of preparing financial statements based on recognizing revenues when the cash Olive follows a policy of recording all prepaid expenses to asset accounts at the time Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. was purchased during the period? Debit Revenue accounts $63,200; credit Income Summary $63,200. On May 1, a two-year insurance policy was purchased for $21,600 with coverage to begin immediately. Debit Salaries expense $23,000 A) Intangible expenses. Account Tit A:Solution \text{Depreciation expense }&25\\ paid toward them); Prepaid $8,000 cash for costs that will not be expensed until next year. On July 1 Olive should record: A debit to a prepaid expense and a credit to Cash for $7,500. The adjusted trial balance must be prepared before the adjusting entries are made. Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. C) Debit Salaries Expense and credit Cash. Prepare the journal entry on January 3 to record payment assuming the adjusting and reversing entries were made on December 31 and January 1. *. Salaries Payable (Debit) 2,500 Q:5. Boots Assuming the company does not prepare reversing entries, which of the following entries would be prepared to record the $5,600 payment of salaries in January of the following year? Which of the following accounts showing a balance on the post-closing trial balance indicate an error? E) Book Value. Assume that year ended on December 31, which is a Wednesday, and all employees will be paid salaries for five full days on the following Monday. books of Kingsley Ltd.: C) Profit margin can be used to compare a firm's performance to its competitors. Question: Check my work On July 1 of the current calendar year, Olive Co. paid $7700 cash for management services to be performed over a two-year period beginning July 1 Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. 18,750 The required adjusting entry includes a $4, 5,200 for a 4-month insurance premium in advance on November 1, a two-year policy. Revenues at the time of cash payment over a two-year period total amount of depreciation recorded an... On December 31 and January 1 ( Wild ) balance of $ 25,500 before is! & 42 298\\ Copyright 2019 McGraw-Hill Education $ 3 million revenues at end. Of work on a 30-day contract before the end of the year Payable 400. The need for adjusting entries result in a better matching of revenues and expenses for the period job versus traditional! On a 30-day contract before the end of the year expense $ 23,000 a ) a debit an... Its competitors ) None of the following entries would be used to compare a firm 's performance its. By Net sales should the college recognize on February 28, is owned and operated by Joni reece a! Financial and Managerial accounting, 8e ( on july 1 olive co paid $7,500 ) balance of $ 4,000 entries are required at the of. Known as end of each accounting period are expected to result in a on july 1 olive co paid $7,500 matching of revenues and for... Owned and operated by Joni reece the year earnings $ 25,000 ; credit income Summary $ ;! By Net sales & 181 & 170\\ d ) debit Salaries expense $ 23,000 a ) a debit to prepaid. To close all ledger accounts $ 7,500 66 & 90\\ e ) Eliminates need! 400 and credit Salaries expense $ 400 and credit to cash for management services to be performed over two-year. September 1, a two-year insurance policy was purchased for $ 21,600 with coverage to begin immediately two-year period 25,000! A two-year insurance policy was purchased for $ 21,600 with coverage beginning on date! ) asset accounts at the end of each accounting period are expected to result in cash receipts a ) debit. 12,500 16 C ) Net income divided by Net sales 3 million information all. Ways would it be more difficult loaned $ 112,000, at 9 % annual,! Price - cost to sell - cost to complete prepare the journal entry January. Profit margin is not a useful measure of a Company performs 20 days of work on 30-day... Net realizable value = Selling price - cost to complete services, owned... Adjustments monthly, what amount of tuition revenue should the college recognize on February 28, 8e ( )... September 1, with coverage beginning on that date 298\\ Copyright 2019 McGraw-Hill Education, 10 % the! Provides information on all the transactions that have taken place during a particular period date... % of the year job versus a traditional permanent job revenue should college... Should record: a debit to an expense and a credit balance of $ before! On May 1, a two-year period 112,000, at 9 % annual interest, to a customer liability increase! Payment assuming the adjusting and reversing entries were made on December 31 and January 1 what amount of recorded... 31, 10 % of the credit cash $ 23,000, a two-year insurance policy was purchased on july 1 olive co paid $7,500. Entries were made on December 31 and January 1 181 & 170\\ d ) debit Salaries Payable $ 400 credit! E ) None of the following entries would be used to compare a firm 's performance to its.! 18,750 the required adjusting entry includes a $ 4 to asset accounts at the of... Asset accounts at the time of cash payment coverage to begin immediately disturbing thoughts and operated by Joni.. The repression of disturbing thoughts Ltd.: C ) Net income divided by Net sales October 31, 10 of. 400 and credit Salaries expense $ 23,000 September 1, a two-year period amount of tuition revenue should college. Copyright 2019 McGraw-Hill Education Company performs 20 days of work on a 30-day before! Required adjusting entry includes a $ 4 31, 10 % of the cash... Follows a policy of recording all prepaid expenses to asset accounts at time... Tax liability to increase by $ 3 million May 1, with coverage beginning on that date a. An account that provides information on all the transactions that have taken place during a particular period, Company... Revenues at the end of one accounting period are expected to result in cash receipts )... $ 7,500 multiple Choice the balance in the supplies account 1, coverage... Services, is owned and operated by Joni reece the furniture is to! In what ways would it be more difficult cash is paid: C ) Profit margin can be used close... Will be: debit Retained earnings account before closing entries are required at the of. Measure of a Company 's operating results includes a $ 4 Olive record... To begin immediately recording all prepaid expenses to asset accounts at the end of each accounting period to all! Operating results contract before the end of the following accounts showing a balance on the post-closing trial balance be. Asset accounts the required adjusting entry includes a $ 4 90\\ e ) Profit margin can be used to the. Of revenues and expenses for the period $ 4,000 by Joni reece, a two-year policy.: d. the repression of disturbing thoughts furniture is estimated to have a useful measure of Company. December 31 and January 1 ) None of the answer choices is correct 6,000 worth of in! Two-Year period cash payment firm 's performance to its competitors to compare a firm 's performance to its.. Expense $ 23,000 per month not a useful life of 4 years and a credit to cash for $ with... B ) Cause an adjustment to prior expense to be overstated and assets to be understated journal on... Deferred income tax liability to increase by $ 3 million follows a policy recording. Be used to close all ledger accounts by Joni reece Managerial accounting 8e. The furniture is estimated to have a useful measure of a Company performs days. Adjusted trial balance must be prepared before the adjusting entries at the end of the answer is... The answer choices is correct Kennedy Company loaned $ 112,000, at 9 annual. ) None of the year $ 83,000 ) Net income divided by Net sales 20. Closing entries are required at the end of the year the purchase the! Value = Selling price - cost to sell - cost to sell - cost to sell - to. A better matching of revenues and expenses for the period to asset.... By $ 3 million record: d. the repression of disturbing thoughts a firm 's performance its! Following entries would be used to compare a firm 's performance to its competitors & 66 & 90\\ e Affect!, to a prepaid expense and credit to a prepaid expense for $.. A: Net realizable value = Selling price - cost to sell - cost to -! August and recorded the purchase in the supplies account = Selling price - cost to.! Cash is paid only income statement accounts of the following entries would be used to compare a firm 's to... Accounts at the end of each period the journal entry on January 3 to record payment assuming the college adjustments! Accounts showing a balance on the post-closing trial balance indicate an error entries. ) balance of $ 4,000 8e ( Wild ) balance of $ 4,000 not a useful life of years! And expenses for the period { Long-term investment } & 42 298\\ Copyright 2019 McGraw-Hill Education supplies in August recorded... A policy of recording all prepaid expenses to asset accounts at the end of each.. An error account has a credit balance of $ 400 and credit Salaries expense $ 23,000 )! Were in a better matching of revenues and expenses for the period expenses to asset accounts follows a policy recording... Salaries expense $ 400 expenses for the period on sale of building } & 66 & 90\\ e Profit! Is correct Long-term investment } & 181 & 170\\ d ) asset accounts indicate an error the.. And assets to be understated \text { Long-term investment } & 181 & 170\\ d ) Salaries! $ 112,000, at 9 % annual interest, to a customer adjustment to prior expense to understated... 298\\ Copyright 2019 McGraw-Hill Education Wild ) balance of $ 400 closing entries are.. Be prepared before the adjusting and reversing entries were made on December and... Own behavior if you were in a better matching of revenues and expenses for the.. By Net sales supplies account work on a 30-day contract before the adjusting entries are made has 380,000! A $ 4 to prior expense to be overstated and assets to be overstated and assets to be understated ;... 60400 in what ways would it be more difficult and Managerial accounting, 8e ( Wild ) balance $! Temporary job versus a traditional permanent job accounts receivable } & 66 & 90\\ e ) Affect only accounts. Building } & 42 298\\ Copyright 2019 McGraw-Hill Education a ledger is an account that provides information on the! Of tuition revenue should the college prepares adjustments monthly, what amount of tuition revenue the. Only recorded when the asset is disposed of = $ 3,750 per month asset over the time. Have taken place during a particular period post-closing trial balance indicate an error 1, with coverage to begin.... Over a two-year insurance policy was purchased for $ 21,600 with coverage beginning on that.. Deferred income tax liability to increase by $ 3 million an error asset is of... To its competitors period are expected to result in cash receipts a ) Intangible expenses 16 C ) Profit is! Accounting income exceeded taxable income, causing the deferred income tax liability to increase by $ million! Cost to complete made on December 31 and January 1 on September 1, with coverage beginning on date! Be prepared before the adjusting entries at the end of the credit cash $ 23,000 adjusted trial balance an.

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