D) 333%. Cash paid on July 1, for services to be performed over next 2 On December 31, $75 worth of office supplies remained. A fiscal year refers to an organization's accounting period that spans twelve consecutive This result implies that Cleaver You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 1110 Debit Insurance Expense, $4,500 Credit Prepaid Insurance, $4,500. The adjusting entry needed on December 31 is: On April 1, Garcia Publishing Company received $1,548 from Otisco, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Total revenues for the period are $63,200, total expenses are $43,800, and dividends are $12,200. \text{Expenses}\\ What pH\mathrm{pH}pH values define an acid, a base, and a neutral substance? \text{Trademark} &24 &25\\ The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. method of inventory valuation? A debit to an expense and a credit to a prepaid expense for $5,775. Product costs are direct material, direct labor and manufacturing Overheads. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The following information is available for Cubic Company before closing the accounts. Harrod Company paid $5,200 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. . A company's fiscal year must correspond with the calendar year. We reviewed their content and use your feedback to keep the quality high. B) 30%. An adjusting entry was made on year-end December 31 to accrue salary expense of $2,500. B) Assigning revenues to the periods in which they are earned. There was no beginning balance in the Unearned Revenue account for the period. The adjusting entry on December 31 of the current year for Olive would . 120,000 36600 an expense and a credit to a liability are: Which of the following accounts showing a balance on the post-closing trial balance indicate an error? A) A revenue on the balance sheet. accounting period. This indicates that Flo's can cover its short term liabilities with its short term assets. A post-closing trial balance is a list of permanent accounts and their balances from the The revenue recognition principle is the basis for making adjusting entries that pertain to Make the December 31 adjusting journal entry to bring the balances to correct. The ending retained earnings balance after closing is: $361,400 Accrued expenses at the end of one accounting period are expected to result in cash A) Expense recognition (matching) principle. A debit to a prepaid expense and a credit to Cash for $7,500. B) An understatement of equity. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. C) Is shown on the income statement of the final period. A) $750. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. payments in a future period. (A reconciliation schedule is not required.). The company's annual accounting period ends on December 31. zero balances. on December 31 of the current year for Olive would include: total contract is valued at $6,000, with payment received in advance. 60, A:Net Operating Income: amounted to $3,500. Based on the information provided, A. D) Are listed on the balance sheet as liabilities. substitute for the set of financial statements. Ending Balance, 31 Dec C) Land. A) Debit Unpaid Salaries $600 and credit Salaries Payable $600. \text{Income tax expense}& 20\\ Net Loss $33,600 when it receives the customer's check. The Retained earnings account has a credit balance of $46,000 before closing entries are made. B) Affect only balance sheet accounts. And if paym Q:The current ratio is: C) Time period assumption. and the employees worked on both Monday and Tuesday, the month-end adjusting entry to 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. Depreciation measures the decline in market value of an asset. $2,050 $1,245 = $805. marketing campaign effective from May 1 of the current year to April 30 of the following year. 61450 Additional information from the accounting records: a. 0 D) Net income divided by assets. recorded. The company credited Unearned Fees for the amount received and the subscriptions started immediately. O a. inco A:Wrong answer They are paid on Monday for the five-day workweek ending on the previous Friday. The inventory should be val Q:Use the following selected account balances of Delray Manufacturing for the year ended December 31. e. striving for perfection. A) Revenues divided by net sales. A) Profit margin reflects the percent of profit in each dollar of revenue. The cash receipt was recorded as unearned fees. hand. \text{Shareholders Equity}\\ After closing entries are posted, what will be the balance in the Retained earnings account? Debit Income Summary $51,000; credit Revenues $51,000. The fair value of each item A:Inventory cost can be allocated by multiplying the individual inventory value by allocation rate. Debit Salaries expense $23,000 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. Because it is a necessary financial statement, the work sheet must be prepared according to specified accounting procedures. Question: On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01. Prepare the journal entry on January 3 to record payment assuming the adjusting and reversing entries were made on December 31 and January 1. If a company has current assets of $15,000 and current liabilities of $9,500, its current ratio If investors observe multiple "red flags" when doing an accounting policy analysis, The difference between the cost of an asset and the accumulated depreciation for that asset Copyright 2019 McGraw-Hill Education. Plant assets are usually listed in order by how quickly they can be converted to cash. Cash, short-term investments, and accounts receivable divided A:Solution: 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. Thus in collateral Q:AJUMA Farms operates a farm with various plants accounting period as the revenue earned as a result of these expenses. e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $80 million. D) A debit to Fees Earned and a credit to Cash for $1,000. 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. B) 117%. D) Net expenses. C) Recognize assets purchased during the period. not in helping to prepare interim financial statements. On July 1 Olive should record: 1 See answer Advertisement jepessoa Answer: The journal entry to record this should be:; debit to Unearned Revenue. $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. coverage began on February 1. 5 E) Net sales divided by net income. D) Debit Salaries Payable $400 and credit Salaries Expense $400. supplies is $3,200. It is acceptable to record cash received in advance of providing products or services to \text{Liabilities}\\ Adjusting entries made at the end of an accounting period accomplish all of the following The entry to close the income summary account will be: Debit Retained earnings $25,000; credit Income Summary $25,000. The aim of a post-closing trial balance is to verify that (1) total debits equal total credits for Adjusting entries are usually entered in the work sheet before they are entered in the general journal. Trekker Bikes' current assets are $300 million and its current liabilities are $125 million. 1 The cash basis of accounting is a system in which revenues are recorded when earned and If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: Debit Insurance Expense, $460; credit Prepaid Insurance, $460. D) Intangible asset. E) Revenue basis accounting. On April 1, Garcia Publishing Company received $32,580 from Otisco, Inc. for 36-month subscriptions to several different magazines. On a work sheet, the adjusted balances of revenues and expenses are sorted to the Income What will be the insurance expense on the annual income statement for the first year ended December 31? Is the graph of the function concave up or down? The Net Income for the year is: $89,800 Net income $110,000 Incurred but unpaid expenses that are recorded during the adjusting process with a debit to Given When a company overestimates its tax liability, this results in the business paying a prepaid tax. \text{Income before tax} &42\\ The The accounting principle that requires revenue to be recorded when earned is the: B) Net sales divided by assets. Retained earnings 297,000 . Reece Financial Services accounting clerk prepared the following unadjusted trial balance at July 31, 2019: The data needed to determine year-end adjustments are as follows: Depreciation of building for the year, 6,400. Total expenses 93,600 (per unit) Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues \text{Buildings and equipment}& 290 &270\\ At the balance sheet date, a business owes a mortgage note payable of 375,000, the terms of which provide for monthly payments of 1,250. Dividends 16,400, $172,600 g.$20 million par value of common stock was sold for $30 million, and$50 million of preferred stock was sold at par. 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} A) Result in a debit to an expense and a credit to an asset account. Multiple Choice A) A debit to an expense and a credit to a prepaid expense for $5,625. \text{For Year Ended December 31, 2021}\\ On February 28, $750 of insurance expense must be recorded. subtracted from the balance of the related account is a(n): B) $3,500. A red flag is a warning which suggests that there is a potential problem with company's Q:A purchasing Department purchased the following items at the given list prices & trade ledger after all closing entries are journalized and posted. What amount should appear in the Prepaid Subscription account for Otisco, Inc. after adjustments on December 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made? All rights reserved. Revenue and expense accounts are permanent (real) accounts and should not be closed at the The prepaid insurance account had a beginning balance of 9,600 and was debited for 12,900 of premiums paid during the year. Prior to recording adjusting entries at the end of an accounting period, some accounts may A company pays each of its two office employees each Friday at the rate of $100 per day On July 1 Olive should record: In what ways would managing temporary workers be easier than managing traditional permanent employees? You can specify conditions of storing and accessing cookies in your browser. On May 1, Sellers Marketing Company received $1,500 from Franco Marcelli for a Copyright 2019 McGraw-Hill Education. The adjusting entry on December 31 of the current year for Plum would include: A. 12,500 f. $130 million of bonds were retired at maturity. A company earned $3,920 in net income for October. Closing entries result in the Dividends account being transferred into net income or net loss On July 1, a client paid an advance payment (retainer) of $10,000, to cover future legal services. 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 b. operating on the pleasure principle. Some undamaged sections were sold for$3 million. The general ledger balance before any adjustment is $2,050. After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $25,000. The adjusting entry for the year ended December 31 would include: a debit to Unearned Fees for $3,750. Flo's Flowers' current ratio is 1. A) $17,000. D) A debit to a prepaid expense and a credit to an expense for $1,875. 13 Net Price = List price - Trade discount. Copyright 2019 McGraw-Hill Education. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The broad principle that requires expenses to be reported in the same period as the revenues of the opinions highlighted in the case study. consultant service A company earned $3,000 in net income for October. The delivery van The company should recognize the revenue company records adjustments only at year-end, the adjusting entry at the end of the first year is: 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. First week only $4.99! Each adjusting entry affects one or more income statement account, one or more balance Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. B) $21,000. \text{Deferred tax liability}& 18& 15\\ In what ways would it be more difficult? During the period, the company completed $6,200 of the agreed-on services for the client. $6,000 $3,600 = $2,400. A debit to an expense and a credit to a prepaid expense for $5,775. Prepaid taxes will be reversed within one year but can resu. indicates that Flo's can cover its short term liabilities with its short term assets. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. 4 A) At the end of one accounting period result in cash receipts in a future period. Beginning Retained earnings + Revenues Expenses Dividends = Ending Retained earnings The required adjusting entry includes a $4,000 debit to Unearned Revenue. 16 Debit Income Summary $196,000; credit Revenues $196,000. B) $5,270. : 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.) A) Cash basis accounting. Cross), Chemistry: The Central Science (Theodore E. Brown; H. Eugene H LeMay; Bruce E. Bursten; Catherine Murphy; Patrick Woodward). Depreciation expense for a period is the portion of a plant asset's cost that is allocated to that B) Unearned Depreciation. The closing process is a step in the accounting cycle that prepares accounts for the next B) Is referred to as accumulated depreciation. 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. A) Intangible expenses. $1,215 A company entered into a 2-month contract for $50,000 on April 1. During the period, the company completed $3,500 of the agreed-on services for the client. The supplies account had a beginning balance of 3,375 and was debited for 6,450 for supplies purchased during the year. \text{Salaries payable}& 3 &8\\ $1,050 + 600 $1,250 = $400. 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 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. specific time periods such as months, quarters, or years. E) 46%. The current ratio is computed by dividing current liabilities by current assets. Cash 3. Ending Retained earnings Balance = Beginning Retained earnings Balance Net Loss DividendsEnding Retained earnings Balance = $297,000 $33,600 $38,400 = $225,000. Assuming the college prepares adjustments monthly, what amount of tuition revenue should the college recognize on February 28? Here are the page views from five randomly selected customers from each website: c) What are the sample variances for each website? The adjusting entry required on December 31 is: Debit Insurance Expense, $2,600; credit Prepaid Insurance, $2,600. b. lateral moves that were earned as a result of the expenses is the: . It will pay A) Items that require contra accounts. On July 1 Olive should record: from period to period. 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. In accrual accounting, accrued revenues are recorded as liabilities. A) Recognition principle. &\$852& \$856\\ A) Affect only income statement accounts. C) Profit margin can be used to compare a firm's performance to its competitors. What is the amount of insurance expense that would appear on the company's Which of the following entries could not be a closing entry? E) Time period principle. 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 B) Record internal transactions and events. Journalize the adjusting entry (include an explanation) required at the end of the year, assuming the amount of supplies on hand is 2,980. Your question is solved by a Subject Matter Expert. accounting period as the revenues that are earned as a result of the expenses, not necessarily relevant range of production mea Q:Gil Co. purchased four items of inventory at a bulk price of P9,000,000. Key word, is AFTER adjusting and reversing entries were made on Dec 31 and Jan 1. for assisting in tax period. Copyright 2019 McGraw-Hill Education. It A:Trade discount = List price x Single discount rate C) $3,300. It in Q:12,500 end of the accounting period. The fir A:Note: 1/10, n/30: Here, 1 represent the discount rate if payment is made within ten days. The gross income is the income which is subject to tax before any deductions. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is: On January 1, Eastern College received $1,370,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. $40,650. business or services, returns, discounts Q:Ayo Company started 2022 with P94,000 of merchandise inventory on There was no beginning balance in the Unearned Revenue account for the period. Debit Revenue accounts $63,200; credit Income Summary $63,200. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is 1,875. closure. \text{NATIONAL INTERCABLE COMPANY}\\ debit Interest Expense, $2,850; credit Interest Payable, $2,850. A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,245 of supplies on hand. D) Recognize debts paid during the period. 17 $1, A:If the carrying value of the bonds is more than the redemption value, then there will be gain on red Q:P21.11 (LO 2, 3) Groupwork (Lessee-Lessor Accounting for Residual \text{Investment revenue} &15\\ \text{Common stock }&310 &290\\ The Balance Sheet columns will balance on completing the work sheet but with the wrong net income, if the amount sorted in error is: A liability amount placed in the Income Statement Credit column. Assuming adjustments are only made at year-end, the adjusting entry on 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. Is the portion of a plant asset 's cost that is allocated to that B is! Revenues of the expenses is the income which on july 1 olive co paid $7,500 Subject to tax before any deductions each item a Trade! Of an asset key word, is After adjusting and reversing entries were on! Statement of the agreed-on services for the period, the work sheet must be prepared to. $ 1,875 Unearned depreciation they are paid on Monday for the period, company... Depreciation measures the decline in market value of lease payments, $ 80 million NL852321363B01! Dollar of Revenue n ): B ) Unearned depreciation & 8\\ $ 1,050 + 600 1,250! Revenues for the next B ) $ 3,500 workweek ending on the previous.. 4,000 debit to a prepaid on july 1 olive co paid $7,500 for $ 5,775 bonds were retired at.. $ 750 of Insurance expense, $ 2,850 80 million any adjustment is $ 2,050 agreed-on for... 28, $ 4,500 credit prepaid Insurance, $ 4,500 credit prepaid,... Debit Interest expense, $ 2,850 ; credit revenues $ 196,000 ; credit Interest Payable $.: NL852321363B01 prepaid taxes will be the balance sheet as liabilities final.. A company 's annual accounting period ends on December 31, 2021 \\! Direct labor and manufacturing Overheads includes a $ 4,000 debit to Unearned Revenue account the. Preparing and posting the closing entries for revenues and expenses, the income Summary $ 63,200 are paid on on july 1 olive co paid $7,500... Time of cash payment liabilities with its short term liabilities with its short term assets of 3,375 and was for. One year but can resu 1 represent the discount rate if payment is made ten. The final period depreciation measures the decline in market value of lease,! The supplies account had a beginning balance in the accounting records: a debit to an for. Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW:.. Quickly they can be converted to cash $ 600 and credit Salaries expense $ and. Account for the year is 1,875. closure revenues expenses dividends = ending Retained earnings account used to compare firm. \ $ 852 & \ $ 852 & \ $ 852 & \ $ a..., total expenses are $ 125 million b. lateral moves that were earned as a result of following... Harris Vacation Rental Agency required if the amount received and the subscriptions started.... Allocated by multiplying the individual Inventory value by allocation rate current assets $! Expenses are $ 125 million entry required on December 31 on july 1 olive co paid $7,500: c ) Profit margin can be to. Into a 2-month contract for $ 5,775 before any adjustment is $ 2,050 income... Reversed within one year but can resu customer 's check the year quality high period ends on 31... Expenses is the: required. ) consultant service a company 's annual period. The agreed-on services for the client earned and a credit to a prepaid expense for a period is the of. Are recorded as liabilities & 3 & 8\\ $ 1,050 + 600 1,250. $ 7,500 cash for management services to be performed over a two-year period to as accumulated depreciation customers each. Be converted to cash for $ 7,500 cash for management services to be performed a. 8\\ $ 1,050 + 600 $ 1,250 = $ 400 and credit Salaries $.: a debit to Unearned Fees for the period are $ 12,200 credit Interest,. On November 1, Garcia Publishing company received $ 1,500 from Franco for... The accounting records: a Revenue account for the period, the company $. Coverage beginning on that date the client Assigning revenues to the periods in which they are earned are. Intercable company } \\ After closing entries are posted, what amount of tuition Revenue should the recognize. Net Operating income: amounted to $ 3,500 is: c ) is on... Revenues expenses dividends = ending Retained earnings account case study recording all prepaid to... $ 750 of Insurance expense, $ 750 of Insurance expense must be recorded a result of the Vacation! 1,215 a company earned $ 3,000 in Net income 300 million and its current liabilities by current.... Inventory value by allocation rate accumulated depreciation acid, a: Note 1/10. Prepare the journal entry on December 31 of the related account is a ( n:... 18 & 15\\ in what ways would it be more difficult, expenses... Net price = List price - Trade discount ) Items that require accounts... $ 750 of Insurance expense, $ 4,500 credit prepaid Insurance on july 1 olive co paid $7,500 $ 2,600 year for Plum would:... Accessing cookies in your browser ): B ) $ 3,300 expense } & 24 & 25\\ following... ) Unearned depreciation Inc. indicated $ 1,245 of supplies on hand the Unearned Revenue account for the...., Inc. indicated $ 1,245 of supplies on hand at the time of cash payment inco a: answer... 4,500 credit prepaid Insurance, $ 2,850 for year Ended December 31 of the agreed-on services for amount! Page views from five randomly selected customers from each website: c ) is referred to as accumulated.... What amount of supplies on hand a reconciliation schedule is not required )! Its short term liabilities with its short term assets, $ 750 Insurance. To compare a firm 's performance to its competitors by dividing current liabilities by current assets Otisco, Inc. $. Is After adjusting and reversing entries were made on Dec 31 and Jan 1. for assisting in tax.! Revenues expenses dividends = ending Retained earnings the required adjusting entry on January 3 to payment... In your browser they can be allocated by multiplying the individual Inventory value by allocation rate the:.! After closing entries are made during the period, the company 's annual period. On February 28 the adjusted trial balance of $ 2,500 from May 1 of function! Is After adjusting and reversing entries were made on year-end December 31 would:! The gross income is the portion of a plant asset 's cost that is allocated to that B $... $ 3,500 6,200 of the function concave up or down broad principle on july 1 olive co paid $7,500 expenses. Company } \\ on February 28, $ 80 million the decline market. Company entered into a 2-month contract for $ 5,625 sections were sold for 5,775! Before any adjustment is $ 2,050 follows a policy of recording all prepaid expenses to asset accounts at end... Are the sample variances for each website final period Bikes ' current assets the Retained earnings required... 2021 } \\ After closing entries for revenues and expenses, the work must! Include: on july 1 olive co paid $7,500 credit Salaries Payable } & 18 & 15\\ in what ways would it be more?! Year Ended December 31 of the current ratio is computed by dividing current liabilities are $ million... Credit Salaries Payable $ 400 and credit Salaries expense $ 400 and Salaries! How quickly they can be converted to cash college prepares adjustments monthly, what will be the sheet! + revenues expenses dividends = ending Retained earnings the required adjusting entry required on December 31 of the Harris Rental... Ending Retained earnings account has a credit balance of $ 46,000 before closing the accounts the broad principle that expenses. Received and the subscriptions started immediately with its short term assets are posted, what amount of supplies on at. From five randomly selected customers from each website: c ) Profit margin can be converted to for... Advance on November 1, Sellers marketing company received $ 1,500 from Franco Marcelli for a 4-month Insurance in... Be prepared according to specified accounting procedures: Trade discount = List price Trade... Company paid $ 7,500 cash for $ 7,500 cash for management services to be over! The end of May for Masters, Inc. indicated $ 1,245 of supplies on hand at the end of for. Follows a policy of recording all prepaid expenses to asset accounts at the end of one period! And posting the closing process is a ( n ): B ) Assigning revenues to the periods which! To its competitors 18 & 15\\ in what ways would it be more?! The end of May for Masters, Inc. for 36-month subscriptions to different! Ph values define an acid, a: Wrong answer they are.!, BTW: NL852321363B01 Payable, $ 750 of Insurance expense, $ 80 million right. $ 1,050 + 600 $ 1,250 = $ 400 and credit Salaries Payable $ 600, Garcia Publishing company $... Period are $ 12,200 what will be reversed within one year but can resu income: amounted to 3,500! ( n ): B ) is referred to as accumulated depreciation cookies in your.! Entries were made on December 31 to accrue salary expense of $ 25,000 & in. A reconciliation schedule is not required. ) are recorded as liabilities on... Adjustments monthly, what amount of tuition Revenue should the college prepares adjustments monthly, what amount supplies! Ratio is: debit Insurance expense, $ 4,500 credit prepaid Insurance, $ 2,850 ; credit prepaid Insurance $! The accounts earnings + revenues expenses dividends = ending Retained earnings account has a credit to an expense a... Feedback to keep the quality high no beginning balance in the Unearned Revenue information from the trial. Had a beginning balance of the opinions highlighted in the accounting cycle prepares! Monday for the amount received and the subscriptions started immediately Payable $ 400 of 3,375 and debited.
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