A business reports its own office stationery on the balance sheet at its $400 cost, although it cannot be sold for more than $10 as scrap paper. Which accounting principle and/or assumption justifies this treatment?
Q: Use the following information for the next two questions: The records of Afternoon Sun Co. show the…
A: Distribution expenses is the aggregate of every one of those costs which are brought about by the…
Q: Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an…
A: Single-Step income Statement doesn't classify the expenses and revenues no basis of operating and…
Q: Bertrand Incorporated purchased some shop equipment for $4,500 in cash. By mistake, the journal…
A: Correcting entries means a journal entries made to correct the error made in the previous journal…
Q: Two accountants for the irm of Elwes and Wnght are arguing about the merits of presenting an income…
A: Under multi-step income statement, the gross profit, operating profit are recognized step by step.…
Q: ABASE HUMILIATE Co. is currently preparing its combined financial statements for the year ended…
A: Given Adjustments : a. Allocated expense = 40000 b. Error Credited by home office = 100000 c. Error…
Q: 1. A firm, using the allowance method of recording credit losses, wrote off a customer's account in…
A: Allowance method is referring to record expected bad debts that can be generated from credit revenue…
Q: Directions: Identify the accounting principles that are being violated in the situation below. 1.…
A: 1. Explanation: Here, the matching principle is violated which requires related expenses should be…
Q: Quezon Co. is currently preparing its combined financial statements for the year ended December 31,…
A: Branch accounting is the accounting which is performed for branch office and home office which…
Q: As the accountant for Clean Air Controls, you attend a meeting with the sales managers to discuss…
A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…
Q: The SWIPE Company's Account Receivable Control Accounts had balance of P2,865,000, which the…
A: Trade Receivable: Trade receivables are defined as the amount owed to a business by its customers…
Q: PlantTita Company reported the following data for the current year: Legal and audit fees P10,000…
A: 16. Particulars Amount Legal and audit fees P10,000 Rent for office space (150,000/2) 75,000…
Q: ny revise its policy of recording allowance of bad debts from 5% to 2%. The company has significant…
A: All items that may be material to affect the true state of affairs of the financial statements…
Q: Sheridan Company has an inexperienced accountant. During the first month on the job, the accountant…
A: Journal entry refers to an entry that is made to record the transactions which are financial in…
Q: The following errors were discovered during the financial year ended 28 February 2021. a) A debtor…
A: Trial balance is used for summarization of all general ledger account balances as on a particular…
Q: Describe ONE MAIN accounting principle, concept, assumption, rule, quality or any other aspect of…
A: According to the given question, we are required to describe one accounting principle, concept,…
Q: On March 31, 20Y4, the balances of the accounts appearing in the ledger of Danns Furnishings…
A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization…
Q: Benxa company was found to have difficulty paying debts or so-called (to fail/fa and unsecured…
A: Solution : Given Benxa company was found to have difficulty paying debts Payment to unsecured…
Q: The following expenses were incurred by a merchandising business during the year. In which expense…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: The trial balance prepared at December 31 for Kim Yong San Inc., did not balance. Debit total was…
A: The question is based on the concept of Trial Balance.
Q: Below are some of the account balances of FDN Company. Advertising expense P180,000 Depreciation…
A: Answer Name of Expense Category Justification Advertising Expense Marketing and…
Q: The following items were among those that were reported on Cotabato Company's income statement:…
A: Solution: Amount of general and administrative expenses = Legal and audit fees + (Rent for office…
Q: The following errors were discovered during the financial year ended 28 February 2021. a) A debtor…
A: Trial balance is the summary of all general ledger account balances of the business.
Q: Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an…
A: Income statement Multi-step form For the year ending 2014 Sales $ -…
Q: Your company just hired a new employee who is unsure about proper accounting procedures. There was a…
A: Credit terms 3/15, n/60 means that customer will get a discount of 3% if payment is made within 15…
Q: The following items were among those that were reported on Cotabato Company’s income statement:…
A: Solution: Amount should be classified as general and administrative expenses = Legal and audit fees…
Q: Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an…
A: Multi-step Income Statement segregates the operating and non-operating expenses while calculating…
Q: Ms. Noor is an Account Assistant of a Merchandise business in Oman. The business paid monthly…
A: Rectification entry means where some error has been done in past and we need to rectify that errors.
Q: Creative Catering receives a $50,000 cash deposit from a customer on October 15, but will not…
A: DATE ACCOUNTS DEBIT CREDIT Oct 15 Cash $50,000 Deferred revenue $50,000
Q: 1. The next three items are based on the following: The bookkeeper of Latsch Company, which has an…
A: a) Answer "Understated by 2100" a) Effect on Profits Effects Amount Understated…
Q: Paid the Gazette $200 to place an employment advertisement for an accounting clerk olve this…
A: Solution General Journal is a book in which transaction are recorded for the first time The double…
Q: The Miller Company recognized $129,000 of service revenue earned on account during Year 2. There was…
A: NRV stands for Net realizable value is defined as the value of the asset which could be realized…
Q: ABASE HUMILIATE Co. is currently preparing its combined financial statements for the year ended…
A: Step 1 Branch accounting is a bookkeeping system in which separate Books and accounts are maintained…
Q: An accountant recommends a local computer company to a client that is trying to upgrade its…
A: Commission is a percentage fees charged for professional services in connection with executing a…
Q: rinciples Economic Entity Assumption Monetary Unit Assumption…
A: Accounting Concept/ Principal/ Assumption/ conventions: These are known as Generally Accepted…
Q: Explain why companies must use the Allowance Method, and not the Direct Write-Off Method, when…
A: Introduction:- The act of recording or keeping track of any financial or non-financial action is…
Q: Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an…
A: Income statement is one of the financial statement which shows all incomes and all expenses of the…
Q: Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance…
A: (a) Prepare journal entry to write-off the account of incorporation A, under direct-write off…
Q: ABC Cleaning Company paid off the $280 they owe to XYZ Corp, check #104. Which accounts are…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: At the year-end of Muscat Computer Supplies LLC, an imbalance in the list of account balances was…
A: Part (a) Muscat Computer Supplies LLC Journal Entry S/No Particulars Amt (Dr) (RO) Amt (Cr)…
Q: Knowing that you have some accounting experience, your friend David has sought your advice regarding…
A: Note: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
A business reports its own office stationery on the
sheet
than $10 as scrap paper. Which accounting principle and/or
assumption justifies this treatment?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Assume that you have been hired to work as an accountant in ASDA at 1/12/2020 and you found that the account receivable has a balance of 80000 and allowance for doubtful accounts 8000 and you have the following transaction that happened at Walmart during the month 1- At 1 / 12Sold goods on account to CVS, Inc. for $ 10,000, terms 2/10, n / 30 but some of these goods did not meet the quality requirement and goods worth 2000 was rețurned on 3/12. 2- At 5/12 you billed a customer who used his ASDA credit card (to purchase goods worth 15000 on 4/11 but didn't pay the balance) finance charge 396. 3- At 11/12 CVS paid what it owns to ASDA in full. 4- At 15/12 the manager at ASDA estimated the bad debts to be 1296 of account receivables. 5. At 20/12 the manager wrote of 654 of bad debts. 6- At 31/12 you were hired by the manager to be a custodian of the previously issued petty cash fund which worth 200 and you submitted the following cash receipts for replenishment when there is $ 50 cash in…The following items were among those that were reported on Cotabato Company’s income statement: Legal and audit fees P2,000,000 Rent for office space 6,000,000 Interest on acceptances payable 1,000,000 Loss on abandoned equipment 500,000 Insurance 200,000 The office space is used equally by the sales and accounting departments. What amount should be classified as general and administrative expenses?The following items were among those that were reported on A Company’s income statement: Legal and audit fees P2,000,000 Rent for office space 6,000,000 Interest on acceptances payable 1,000,000 Loss on abandoned equipment 500,000 Insurance 200,000 The office space is used equally by the sales and accounting departments. What amount should be classified as general and administrative expenses?
- Creative Solutions Company, a computer consulting firm, has decided to write off the $15,220 balance of an account owed by a customer, Wil Treadwell. Question Content Area a. Journalize the entry to record the write-off, assuming that the direct write-off method is used. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blank Bad Debt Expense Bad Debt Expense Accounts Receivable-Wil Treadwell Accounts Receivable-Wil Treadwell Feedback Area Feedback Remember that under the direct write-off method, Bad Debt Expense is not recorded until the customer's account is determined to be worthless. Question Content Area b. Journalize the entry to record the write-off, assuming that the allowance method is used. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blank Allowance for Doubtful Accounts Allowance for Doubtful AccountsA company runs into financial distress and needs cash immediately. It sells a factory that's listed at $100 on its Balance Sheet for $80. What happens on the 3 statements?On December 1, Anson's Drug Store concluded that a customer's $325 account receivable was uncollected and that the account should be written off. What effect will this write-off have on the company's net income and balance sheet totals assuming the direct write-off method is used to account for bad debts? a. decrease in net income; decrease in total assets b. no effect on net income; no effect on total assets c. increase in net income; no effect on total assets d. no effect on net income; decrease in total assets
- On July 8, Divo Company sold office supplies for $13,000. Determine the amount and the character of Divo’s gain or loss on sale under each of the following assumptions: Required: a) Divo is a retail store that sells office supplies to customers. Under the LIFO method of accounting, Divo’s cost basis in the supplies was $11,900. b) Divo is a law firm. Divo sold the supplies because it was overstocked and needed the storage space for a different purpose. Under its method of accounting, Divo expenses the cost of office supplies when purchased. c) Divo is an accounting firm. Divo sold the supplies because it is liquidating its business. Divo’s capitalized cost of the supplies was $14,250. Please dont give image based answers thank youRequired: Record all transactions in appropriate T-accounts (costs by nature), close all accounts and prepare an Income Statement.a) The company recorded an invoice for rubbish disposal in the current month; value 400.b) The company recorded bank fees; value 50.c) The company sold goods worth 2 000 for 3 500 on deferred payment.d) Goods were delivered to a customer – transport cost 500 and additional insurance cost of 200, both paid by bank money transfer..Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance of an account owed by a customer, Alliance Inc. Required: On March 1, journalize the entry to record the write-off, assuming that (a) the direct write-off method is used and (b) the allowance method is used. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Quantum Solutions Company General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Alliance Inc. 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215…
- Which of the following statements is TRUE? If a company provides service and bills its client $20,000, the journal entry to record this transaction will cause Total Assets to increase. If a company collects a cash deposit of $20,000 for services not yet performed, the journal entry to record this transaction will cause Net Income to increase. If a company pays $20,000 for inventory previously purchased on account, the journal entry to record this payment will cause Total Liabilities to increase. None of the above.A company made a sale on account to Tanya Thompson for 5000 and to John Brown for 4000. The company received 3000 from Ms. Thompson and 3000 from Mr. Brown, but does not expect to collect the balance from either customer. Using the direct writeoff method, what is the amount of bad debts expense?Record all transactions in appropriate T-accounts (costs by nature), close all accounts and prepare an Income Statement.a) The company recorded an invoice for rubbish disposal in the current month; value 400.b) The company recorded bank fees; value 50.c) The company sold goods worth 2 000 for 3 500 on deferred payment.d) Goods were delivered to a customer – transport cost 500 and additional insurance cost of 200, both paid by bank money transfer..
