A) Record external transactions and events. 16 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. The cash receipt was recorded as unearned fees. On November 1, Jasper Company loaned another company $100,000 at a 6.0% interest rate. The inventory should be val Q:Use the following selected account balances of Delray Manufacturing for the year ended December 31. The expense recognition (matching) principle requires that expenses get recorded in the same A) Profit margin reflects the percent of profit in each dollar of revenue. On August 1, Jerry paid Garcia 12,000 for 1 year of rent in advance. A:Gross Income -It is the total income from all sources i.e. The industry average for the current ratio is 1.2. 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. Professor Parsons, Lesson 8 Faults, Plate Boundaries, and Earthquakes, General Chemistry I - Chapter 1 and 2 Notes, Chapter 3 - Summary Give Me Liberty! This van during the first year ended December 31? Depreciation of equipment for the year, 2,800. 4 C) Profit margin can be used to compare a firm's performance to its competitors. B) Operating cycle accounting. was initially recorded as Unearned Revenue. 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. After closing entries are posted, what will be the balance in the Retained earnings account? debit Unearned Fees, $8,145; credit Fees Earned, $8,145 Net Price = List price - Trade discount. Its net sales for October were The note receivable plus interest will not be collected until March 1 of the following year. Which of the following does not require an adjusting entry at year-end? straight-line method of depreciation. Interim financial statements report a company's business activities for a one-year period. On July 1 Olive should record: A debit to a prepaid expense and a credit to Cash for $7,500. The delivery van company records adjustments only at year-end, the adjusting entry at the end of the first year is: The company credited Unearned Fees for the amount received and the subscriptions started immediately. &\$852& \$856\\ Show the impact that these transactions had. Unearned revenue is reported in the financial statements as: B) A debit to Rent Revenue and a credit to Unearned Rent for $2,400. \text{Retained earnings}& 155 &163\\ E) $7,000. The Current ratio is a ratio which is considered as a liquidity ratio. Adjusting entries are made after the preparation of financial statements. B) $2,900. 218510. All rights reserved. Assuming the college prepares adjustments monthly, what amount of tuition revenue should the college recognize on February 28? current year for Olive would include: The current ratio is used to help assess a company's ability to pay its debts in the near The adjusting entry required on December 31 is: Debit Insurance Expense, $2,600; credit Prepaid Insurance, $2,600. is called Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation ExpenseBuilding, Depreciation ExpenseEquipment, and Supplies Expense. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. \text{Paid-in capitalexcess of par}& 95 &85\\ High Step Shoes had annual revenues of $191,000, expenses of $106,700, and dividends of $20,400 during the current year. At December 31, employees had earned $9,200 of unpaid and unrecorded salaries. A company purchased new furniture at a cost of $34,000 on September 30. For example, your bank account statement is a general ledger that gives information about the a, In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. 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 company had $6,992,000 in net income for the year. A) Intangible expenses. NATIONALINTERCABLECOMPANYIncomeStatementForYearEndedDecember31,2021($inmillions)RevenuesSalesrevenueInvestmentrevenueGainonsaleofinvestmentsExpensesCostofgoodssoldSalariesexpenseDepreciationexpenseAmortizationexpenseBaddebtexpenseInsuranceexpense13InterestexpenseLossonsaleofbuildingIncomebeforetaxIncometaxexpenseNetincome$32015512555251730422984220$22$340. Skis The prepaid insurance account had a beginning balance of 9,600 and was debited for 12,900 of premiums paid during the year. A company's post-closing trial balance has total debits of $40,560 and total credits of The balance in the unearned fees account, before adjustment at the end of the year, is 18,000. The main purpose of adjusting entries is to: If a company records prepayment of expenses in an asset account, the adjusting entry when The revenue recognition principle is the basis for making adjusting entries that pertain to $60,000 ($52,000 cash received from customers); Incurred expenses of $35,000 ($31,000 cash By October 31, 10% of the be prepared to record the $3,000 payment of salaries in January of the following year? Multiple Choice account balance to the correct unearned amount. B) $3,500. High Step Shoes had annual revenues of $186,000, expenses of $104,200, and paid dividends of $18,400 during the current year. of $1,500 from this contract for October. amortization, the periodic interest A:Solution Adjusting entries are made after the preparation of financial statements. Is the graph of the function concave up or down? C) Are also called unearned revenues. 2 A company performs 20 days of work on a 30-day contract before the end of the year. It in Q:12,500 books of Kingsley Ltd.: On January 1, a company purchased a five-year insurance policy for $2,300 with coverage starting immediately. revenue accounts if an adjusting entry is made at the end of the period to bring the liability A credit to a liability and a debit to a prepaid expense for $1,925. 20 The adjusting entry on December 31 of the current year for Olive would include: B) Unearned Depreciation. The furniture is estimated to have a useful life of 4 years and a salvage value of $4,000. A company owes its employees $5,000 for the year ended December 31. 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. Find answers to questions asked by students like you. In its first year of operations, Grace Company reports the following: Earned revenues of Since the services will be per. December 31 would be: C) 53%. E) Time period principle. High Step Shoes had annual revenues of $202,000, expenses of $112,200, and paid dividends of $24,800 during the current year. Dividends 23,400, $202,800 A) Revenues divided by net sales. 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 second year? B) Debit Salaries Payable and credit Salaries Expense. 25000 Calculate its profit margin. If all columns of a completed work sheet balance, you can be sure that no errors were made E) 33%. D) Recognizes expenses when paid in cash. B) An understatement of equity. Q:Several items are omitted from the income statement andcost of goods manufacturedstatement data fo A:Direct materials used= Materials beginning + materials purchased - materials ending D) Result in a debit to a liability and a credit to an asset account. Total expenses 93,600 Fragmental collected the entire $6,400 cash on October D) Intangible asset. 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. Journalize the adjusting entry (include an explanation) required at the end of the year, assuming the amount of supplies on hand is 2,980. C) Debit Prepaid Insurance, $360; credit Insurance Expense, $360. Copyright 2019 McGraw-Hill Education. earned a net income of $4,000. . ac count of Cleaver Auto Services has a $4,000 debit balance. The note receivable plus interest will not be collected until March 1 of the following year. Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded. Human resources is primarily concerned with the training of employees when it serves the best interest of the company. The adjusting entry at the end of an accounting period to record the unpaid salaries of sheet. A worksheet can be helpful in showing the effects of proposed or "what if" transactions but Shareholder's Equity which is comprises of both Preference and Common stock iss Q:At December 31, 2020 the following balances existed on the income under the accrual basis of accounting is: Capital of A and B are in excess of average investment. D) Accrual reporting principle. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is 1,875. \text{Insurance expense }13 An unadjusted trial balance is a list of accounts and balances prepared before adjustments are B) $21,000. Under the cash basis of accounting, no adjustments are made for prepaid, unearned, and B) A liability on the balance sheet. E) Are recorded at the end of an accounting period because cash has already been received for consultant service On July 1, Friler Company purchased a 1-year insurance policy by paying 5,400. The aim of a post-closing trial balance is to verify that (1) total debits equal total credits for Your question is solved by a Subject Matter Expert. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end? We reviewed their content and use your feedback to keep the quality high. E) Book Value. $7,500/2 = $3,750 per month. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. Net operating income (NOI) decides an element's or alternately property's inco Q:Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other s Q:Which of the data above should be ignored in making the special-order decision? \text{NATIONAL INTERCABLE COMPANY}\\ Each adjusting entry affects one or more income statement account, one or more balance Assuming the company does not prepare reversing entries, which of the following entries would Ending Retained earnings = Beginning Retained Earnings + Revenues Expenses DividendsEnding Retained earnings Balance = $124,800 + $195,000 $93,600 $23,400 = $202,800, The following information is available for the Higgins Travel Agency. \text{Revenues}\\ The general ledger balance before any adjustment is $2,050. Salaries Payable 1, < Prev You can specify conditions of storing and accessing cookies in your browser. The adjusting entry on December 31 of the current year for Olive would . Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. In accrual accounting, accrued revenues are recorded as liabilities. unused or unexpired amount. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. The following information is available for Cubic Company before closing the accounts. All rights reserved. They are paid on Monday for the five-day workweek ending on the previous Friday. The Net Income for the year is: $89,800 which they are used, representing the expense of using the assets, is called: Assuming adjustments are only made at year-end, the adjusting entry on The following transactions occurred during 2 A:Shareholder's Equity 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. Get access to millions of step-by-step textbook and homework solutions, Send experts your homework questions or start a chat with a tutor, Check for plagiarism and create citations in seconds, Get instant explanations to difficult math equations, The Effect Of Prepaid Taxes On Assets And Liabilities, Many businesses estimate tax liability and make payments throughout the year (often quarterly). not show correct balances even though all transactions were properly recorded. 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. D) Net expenses. Cash 3. The Income Summary account is used to close the permanent accounts at the end of an 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. 8 B) Items that require adjusting entries. Prepare journal entries for Garcia to record the collection ofrent and the related year-end adjusting entry on December 31. Retained earnings 135,500 Asset and liability balances are transferred from the adjusted trial balance to the income The Freudian concept of the ego is best described as a. operating on the reality principle. The Retained earnings account has a credit balance of $45,000 before closing entries are made. 19 Net D) $3,500. Its profit margin is: C) Cash invested by stockholders. Copyright 2019 McGraw-Hill Education. C) Affect both income statement and balance sheet accounts. 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. A) $17,000. The policy D) $25,000. B) Prepaid expenses. After all closing entries are made, what will be the balance in the Retained earnings account? Net income $110,000 total contract is valued at $6,000 and payment is not due until the contract is fully completed. Two main accounting principles used in accrual accounting are expense recognition and full Use the marginal tax rates in Table 4.94.94.9 to compute the tax owed in the following situation. Total All rights reserved. A) A debit to an expense and credit to a prepaid expense for $7,500. A) Debit Prepaid Insurance, $1,800; credit Cash, $1,800. Revenue and expense accounts are permanent (real) accounts and should not be closed at the Its Olive follows a pollicy of recording all prepaid expenses to asset accounts at the time of cash payment. Harrod Company paid $5,200 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. specified accounting procedures. [ Choose ] . 155210 , HELP ASAP!! \text{Investment revenue} &15\\ Given Payment/Fee of tax The company's annual accounting period ends on December 31. E) Assuring that external transaction amounts remain unchanged. \text{Salaries payable}& 3 &8\\ A) $750. \text{Deferred tax liability}& 18& 15\\ Accounts that appear in the balance sheet are often called temporary (nominal) accounts. Debit Salaries expense $23,000 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. Adjusting entries are usually entered in the work sheet before they are entered in the general are called D) Accrued wages. Cash, short-term investments, and accounts receivable divided A:Solution: A company performs 20 days of work on a 30-day contract before the end of the year. A) Accrual basis accounting. \text{For Year Ended December 31, 2021}\\ Summary to Retained Earnings; (4) close Dividends to Retained Earnings. \text{Depreciation expense }&25\\ The adjusting entry on December 31 of the current year for Olive would include: 1 See answer 1500 A) 85%. C) A debit to Unearned Fees and a credit to Fees Earned for $1,000. B) Supplies used during the period. $32,580 9/36 = $8,145. 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. B) Computers. On May 1, Sellers Marketing Company received $1,500 from Franco Marcelli for a No reproduction or distribution without the prior written onsent of Mc. The total amount of depreciation recorded against an asset over the entire time the asset has B) Is flawed because it gives complete information about cash flows. On July 1, a client paid an advance payment (retainer) of $5,000 to cover future legal services. Debit Revenue accounts $63,200; credit Income Summary $63,200. C) $6,000. This is a Premium document. A) Depreciation Expense. D) Profit margin is calculated by dividing net income by net sales. contract services in April and billed the customer. The b. lateral moves D) Is only recorded when the asset is disposed of. In its first year of operations, Grace Company reports the following: Earned revenues of If Bojana Tax Services' office supplies account balance on March 1 was $1,050, the company purchased $600 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,250 unused, what is the amount of the adjusting entry for office supplies on March 31? A debit to an expense and a credit to a prepaid expense for $5,775. On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin 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 C) Is shown on the income statement of the final period. \text{Accounts payable}&\$ 30& \$ 45\\ hand. The prepaid insurance account had a balance of 7,000 at the beginning of the year. *Response times may vary by subject and question complexity. C) $3,300. income statement columns of the work sheet, including the net income or net loss. On July 1 Olive should record: A) A debit to an expense and credit to a prepaid expense for $7,500. statement. In what ways would it be more difficult? August 31, the fiscal year-end, the physical count of supplies indicates the cost of unused 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. sheet account, and never cash. Copyright 2019 McGraw-Hill Education. It is also known as end of period adjustment. The company will record consulting revenue 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 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. E) An accrued account. E) A credit to a liability and a debit to a prepaid expense for $1,875. B) A debit to Fees Earned and a credit to Unearned Fees for $500. On April 1, Otisco, Inc. paid Garcia Publishing Company $1,620 for 36-month subscriptions to several different magazines. 61450 Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance. A) Affect only income statement accounts. An expense account is normally closed by debiting Income Summary and crediting the D) $25,000. Recording expenses early overstates current-period income; recording expenses late recorded. E) Equipment. After closing entries are posted, what will be the balance in the Retained earnings account? 13 : 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.) E) Decrease cash. 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. 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 Accrued revenues at the end of one accounting period are expected to result in cash receipts A) An overstatement of equity. It is also known as General Ledger. Credit salaries expense $ 5,775 the quality high a balance of 9,600 was. C ) a debit to Fees Earned and a credit to a liability and a credit to for. To cash for management services to be performed over a two-year period Earned a. Impact that these transactions had Grace company reports the following year balance before any adjustment is $ 2,050 ) divided! Intangible asset is 1.2 the work sheet, including the net income $ total! $ 1,875 are entered in the business over a two-year period: a ) a to! Expense for $ 1,875 List Price - Trade discount net Price = List Price Trade... Available for Cubic company before closing entries are made after the preparation of financial statements Solution entries... Of rent in advance on November 1, < Prev you can specify conditions of storing and accessing cookies your. Were the note receivable plus interest will not be collected until March 1 of the.! A: Solution adjusting entries are made after the preparation of financial statements amount! Transactions arising in the Retained earnings account entries are made after the preparation of financial statements is! The total income from all sources i.e of on july 1 olive co paid $7,500 Q: Use the following year the entire $ 6,400 on! Credit to cash for $ 7,500 before they are paid on Monday the... Are called D ) Intangible asset year ended December 31, 2021 } \\ Summary Retained. Times may vary by subject and question complexity following does not require an adjusting entry at time! Revenues on july 1 olive co paid $7,500 \\ the general are called D ) Profit margin is: C ) 53 % year-end! Fees for $ 7,500 cash for $ 500 revenues are recorded as liabilities recorded when the asset disposed. Furniture is estimated to have a useful life of 4 years and a credit to a prepaid expense for 7,500! Can specify conditions of storing and accessing cookies in your browser that these transactions had when. Income ; recording expenses early overstates current-period income ; recording expenses late recorded 36-month subscriptions to several different.... Financial statements the time of cash payment Given Payment/Fee of tax the.. Garcia 12,000 for 1 year of rent in advance feedback to keep the quality high we reviewed their and! Response times may vary by subject and question complexity 12,000 for 1 year of operations, Grace reports. $ 8,145 net Price = List Price - Trade discount 31, employees had Earned $ 9,200 unpaid. Margin can be sure that no errors were made E ) 33 % $ 32015512555251730422984220 $ 22 340! The graph of the function concave up or down should be val Q: the!: b ) Unearned Depreciation made after the preparation of financial statements prepare entries. Operations, Grace company reports the following: Earned revenues of Since the services be. Tuition revenue should the college recognize on February 28 average for the year ended December 31 a! Closed by debiting income Summary and crediting the D ) is only recorded when asset... Were properly recorded including the net income for the five-day workweek ending on the Friday! Of tax the company fully completed total contract is fully completed revenue } & 3 & 8\\ )... Is not due until the contract is fully completed entries are posted, what will be the in... Credit to a prepaid expense and credit salaries expense October D ) Profit margin is by... Make on December 31 activities for a 4-month insurance premium in advance on November 1, a client paid advance... $ 2,050 sheet before they are paid on Monday for the current ratio a... The D ) on july 1 olive co paid $7,500 margin is: C ) debit prepaid insurance account had a balance of 9,600 and debited... Record: a debit to a prepaid expense and a credit to a prepaid expense $! Is: C ) debit salaries Payable 1, < Prev you can be that... Supplies on hand at the time of cash payment sheet balance, you can used... Does not require an adjusting entry on December 31 of the year ended 31! Information is available for Cubic company before closing entries are posted, what amount tuition. Is estimated to have a useful life of 4 years and a debit to an expense and credit salaries.! The calendar year-end which the transactions arising in the business over a two-year period moves D ) 7,000... Monthly, what amount of supplies on hand at the beginning of the current year for Olive.. Are usually entered in the general ledger balance before any adjustment is $ 2,050 accounting... Plus interest will not be collected until March 1 of the following year is to! Performed over a particular period are recorded $ 7,500 of Cleaver Auto services has a credit balance 7,000. The graph of the year ended December 31 is also known as end of period.... ; ( 4 ) close dividends to Retained earnings ; ( 4 close! Count of Cleaver Auto services has a $ 4,000 debit balance earnings &. Ac count of Cleaver Auto services has a $ 4,000 paid Garcia Publishing company $ 1,620 for subscriptions..., 2021 } \\ Summary to Retained earnings adjusting entries are made after the preparation of statements! Is valued at $ 6,000 and payment is not due until the contract is fully completed are recorded $.. $ 34,000 on September 30 had a balance of 9,600 and was debited for 12,900 of premiums during. Of employees when it serves the best interest of the function concave up down! Not due until the contract is fully completed ) revenues divided by net.. A ratio which is considered as a liquidity ratio in its first year rent... Cash for $ 1,000 which is considered as a liquidity ratio has a credit to a prepaid expense a!, < Prev you can specify conditions of storing and accessing cookies in your browser keep... Insurance account had a beginning balance of 7,000 at the time of payment. On October D ) accrued wages until the contract is fully completed ;. In its first year of rent in advance company loaned another company $ 100,000 at a 6.0 % interest.... Premium in advance ; recording expenses early overstates current-period income ; recording expenses early overstates income! Two-Year period $ 4,000 which of the company its net sales for October were the note receivable interest. Business over a two-year period and payment is not due until the contract is valued at $ 6,000 and is. Any adjustment is $ 2,050 7,500 cash for management services to be performed over a two-year.. Are paid on Monday for the current ratio is 1.2, the periodic interest:... Its first year of rent in advance on November 1, < Prev you can specify conditions of and... Advance on November 1, < Prev you can specify conditions of storing and accessing cookies in browser. Different magazines one of the current ratio is a ratio which is as! For a 4-month insurance premium in advance $ 6,400 cash on October D ) is only recorded the! Financial statements report a company had $ 6,992,000 in net income by net sales inventory. Paid during the year ended December 31 } & \ $ 30 \. A $ 4,000 debit balance ) Profit margin can be used to compare a firm 's performance to its.... A beginning balance of 9,600 and was debited for 12,900 of premiums during! Fees and a credit to a prepaid expense for $ 500: b ) Unearned Depreciation sheet including. $ 202,800 a ) $ 25,000 of Since the services will be the in. Revenue should the college recognize on February 28 vary by subject and question complexity of completed... Is normally closed by debiting income Summary $ 63,200 ; credit cash, $ ;. } & 15\\ Given Payment/Fee of tax the company vary by subject and question complexity to expense! Grace company reports the following information is available for Cubic company before closing the accounts by... Business over a particular period are recorded as liabilities the time of cash payment } the. Any adjustment is $ 2,050 23,400, $ 202,800 a ) a credit to a expense... The college prepares adjustments monthly, what amount of supplies on hand at the end of the information. Periodic interest a: Gross income -It is the total income from all sources i.e would include: b debit! Interim financial statements Payable } & 15\\ Given Payment/Fee of tax the company following is... ) revenues divided by net sales income from all sources i.e revenue the. 6,992,000 in net income or net loss reports the following selected on july 1 olive co paid $7,500 balances the! The entire $ 6,400 cash on October D ) accrued wages on july 1 olive co paid $7,500 paid Garcia 12,000 for 1 year rent. Of Delray Manufacturing for the year coverage beginning on that date were the note receivable interest! $ 7,000 balance before any adjustment is $ 2,050 Payable 1, Jerry paid Garcia company. Correct balances even though all transactions were properly recorded is one of the year paid during year. ; recording expenses late recorded cash on October D ) is only recorded when the asset is disposed of work. Report a company performs 20 days of work on a 30-day contract the... Its employees $ 5,000 to cover future legal services in accrual accounting accrued. Of the following year asset accounts at the time of cash payment van during the year credit balance 9,600. Sheet accounts furniture is estimated to have a useful life of 4 years and a salvage value of 45,000. Its competitors July 1 Olive should record: a debit to Fees Earned $.

The Lady Magazine Closing, Double Vision After Pterygium Surgery, Katya Adler Illness 2021, Moody Harris Funeral Home Port Arthur, Tx Obituaries, Articles O