2. Consider the following: On May 5, My bookkeeper received a utility bill for the month of April of $523. She plans on paying the bill on June 5, to take advantage of the 30-day term. Describe the journal entry that will be recorded for April and June, in relation to this bill. Why is there no journal entry for May?

2. Consider the following: On May 5, My bookkeeper received a utility bill for the month of April of $523. She plans on paying the bill on June 5, to take advantage of the 30-day term. Describe the journal entry that will be recorded for April and June, in relation to this bill. Why is there no journal entry for May?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 5RE: Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. On August...

See similar textbooks

Similar questions

If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium, which was paid on July 1, what entry would be needed to adjust the Prepaid Insurance account at the end of December, before preparing the financial statements?
If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?
Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. On August 1, Jerry paid Garcia 12,000 for 1 year of rent in advance. Prepare journal entries for Garcia to record the collection ofrent and the related year-end adjusting entry on December 31.
As the owner of a hair salon business, you expect to recieve the utility bill on June 14 for the service provided in May. The average monthly bill is around $3,500. 1. When should the utility bill be recorded dated June 14? a) In June, because this is when you received the bill. b) In July, because this is when you will pay the bill. c) In May, because this is when the expense was incurred. Please explain for the answer.
Russell Co. received a $480 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it. Which of the following general journal entries will Russell Co. make to record the receipt of the bill?
A man received an invoice for washing machine for $455 dated April 17, with a sales term of 2/10 EOM. How much should he pay if he pay if he pays bill on April 28?
. Assume that a lawyer bills her clients $15,000 on June 30, for services rendered during June. The lawyer collects $8,500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue? A. June, $15,000; July, $0; and August, $0 B. June, $0; July $6,500; and August, $8,500 C. June, $8,500; July $6,500; and August, $0 D. June, $0; July, $8,500; and August, $6,500
On October 15, WTI greeted to teach a four-month class beginning immediately for an individual for 2961 tuition per month payable at the end of the class. The class started on October 15 but no payment has yet been received two accuarls are applied to the nearest half month, for example, October recognizes one half month accrual.My question is how do I get theaccounts receivable, and tuition fees earned for the journal entry worksheet is there a formula.
Office Depot has an invoice for $3,814 dated May 8, with terms of 3/10, 2/15, n/30. The invoice also has a 1% penalty per month for payment after 30 days. a. What amount is due if paid on May 12? b. What amount is due if paid on May 22? c. What amount is due if paid on June 7? d. What amount is due if paid on June 13?
On April 1, Tenity, Inc. paid $3,300 for an insurance premium on a three-year insurance policy. At the end of December, Tenity's fiscal year-end, what should be the balance in the prepaid insurance account?
Greg operates a sizeable newspaper delivery service. On the last day of each month, Greg receives a statement from the newspaper publisher detailing how much money Greg earned that month from delivering papers. On the 10th day of the following month, Greg receives the cash for the preceding month’s deliveries. On December 31, Greg received a statement from the newspaper publisher notifying him that he had earned $13,700 for his December deliveries. Because December 31 is the end of Greg’s fiscal year, he makes adjusting entries at that time. Prepare the ADJUSTING journal entry necessary on December 31 to record the revenue that Greg has earned but not yet received.
Assume it is now December 31, 2020, and Nicole has just completed her first year of operations at Nicole’s Getaway Spa. Looking through her trial balance, she notices that there are some items that have either not been recorded or are no longer up to date. a. Nicole’s Getaway Spa is renting its space at a cost of $1,075 per month. On September 1, 2020, Nicole paid eight months rent in advance using cash. This prepayment was recorded in the account Prepaid Rent back in September. b. The building purchased at the beginning of the year for $66,000 cash has estimated depreciation of $3,900 for 2020, but none has been recorded yet. c. Wages to the support staff at Nicole’s Getaway Spa have been paid up to December 26, 2020. The support staff worked both December 27 and 28 and will be paid on January 5, 2021. Wages amount to $1,950 per day. d. The insurance policy, purchased on June 1 for $8,700 cash, provides coverage for twelve months. The insurance coverage since June has now been used…