A customer orders a heavy duty machinery from Yukon Inc in October. Yukon manufactures it in November and ships it along with their bill in December and receives payment in January. If Yukon is to recognize revenue in January, they are following: Multiple Choice Credit basis accounting Debit basis accounting Cash basis accounting Accrual-basis accounting

A customer orders a heavy duty machinery from Yukon Inc in October. Yukon manufactures it in November and ships it along with their bill in December and receives payment in January. If Yukon is to recognize revenue in January, they are following: Multiple Choice Credit basis accounting Debit basis accounting Cash basis accounting Accrual-basis accounting

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter11: Accounting For Transactions Using A General Journal

Section: Chapter Questions

Problem 1AP

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Comprehensive Problem 1, Period 2: The Accounting Cycle During the month of May 20--, The Generals Favorite Fishing Hole engaged in the following transactions. These transactions required an expansion of the chart of accounts as shown below. May 1In order to provide snacks for guests on a 24-hour basis, Night signed a contract with Snack Attack. Snack Attack will install vending machines with food and drinks and pay a 10% commission on all sales. Estimated payments are made at the beginning of each month. Night received a check for 200, the estimated commission on sales for May. 2Night purchased a surround sound system and big screen TV with a digital satellite system for the guest lounge. The surround sound system cost 3,600 and has an estimated useful life of five years and no salvage value. The TV cost 8,000, has an estimated useful life of eight years, and has a salvage value of 800. Night paid cash for both items. 2Paid for Mays programming on the new digital satellite system, 125. 3Nights office manager returned 100 worth of office supplies to Gordon Office Supply. Night received a 100 reduction on the account. 3Deposited registration fees, 52,700. May 3Paid rent for lodge and campgrounds for the month of May, 40,000. 3In preparation for the purchase of a nearby campground, Night invested an additional 600,000. 4Paid Gordon Office Supply on account, 400. 4Purchased the assets of a competing business and paid cash for the following: land, 100,000; lodge, 530,000; and fishing boats, 9,000. The lodge has a remaining useful life of 50 years and a 50,000 salvage value. The boats have remaining lives of five years and no salvage value. 5Paid Mays insurance premium for the new camp, 1,000. (See above transaction.) 5Purchased food supplies from Acme Super Market on account, 22,950. 5Purchased office supplies from Gordon Office Supplies on account, 1,200. 7Night paid 40 each for one-year subscriptions to Fishing Illustrated, Fishing Unlimited, and Fish Master. The magazines are published monthly. 10Deposited registration fees, 62,750. 13Paid wages to fishing guides, 30,000. (Dont forget wages payable.) 14A guest became ill and was unable to stay for the entire week. A refund was issued in the amount of 1,000. 17Deposited registration fees, 63,000. 19Purchased food supplies from Acme Super Market on account, 18,400. 21Deposited registration fees, 63,400. 23Paid 2,500 for advertising spots on National Sports Talk Radio. 25Paid repair fee for damaged boat, 850. 27Paid wages to fishing guides, 30,000. 28Paid 1,800 for advertising spots on billboards. 29Purchased food supplies from Acme Super Market on account, 14,325. 30Paid utilities bill, 3,300. 30Paid phone bill, 1,800. 30Paid Acme Super Market on account, 47,350. 31Bob Night withdrew cash for personal use, 7,500. Adjustment information at the end of May is provided below. (a) Total vending machine sales were 2,300 for the month of May. A 10% commission is earned on these sales. (b) Straight-line depreciation is used for the 10 boats purchased on April 2 for 60,000. The useful life for these assets is five years and there is no salvage value. A full months depreciation was taken in April on these boats. Straight-line depreciation is also used for the two boats purchased in May. Make one adjusting entry for all depreciation on the boats. (c) Straight-line depreciation is used to depreciate the surround sound system. (d) Straight-line depreciation is used to depreciate the big screen TV. (e) Straight-line depreciation is used for the building purchased in May. (f) On April 2, Night paid 9,000 for insurance during the six-month camping season. Mays portion of this premium was used up during this month. (g) Night received his May issues of Fishing Illustrated, Fishing Unlimited, and Fish Master. (h) Office supplies remaining on hand, 150. (i) Food supplies remaining on hand, 5,925. (j) Wages earned, but not yet paid at the end of May, 6,000. REQUIRED 1. Enter the transactions in a general journal. Enter transactions from May 14 on page 5, May 528 on page 6, and the remaining entries on page 7. To save time and space, dont enter descriptions for the journal entries. 2. Post the entries to the general ledger. (If you are not using the working papers that accompany this text, you will need to enter the account titles, account numbers, and balances from April 30 in the general ledger accounts.) 3. Prepare a trial balance on a work sheet. 4. Complete the work sheet. 5. Journalize the adjusting entries on page 8 of the general journal. 6. Post the adjusting entries to the general ledger. 7. Prepare the income statement. 8. Prepare the statement of owners equity. 9. Prepare the balance sheet. 10. Journalize the closing entries on page 9 of the general journal. 11. Post the closing entries to the general ledger. 12. Prepare a post-closing trial balance.
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Q3. TB 03-90 A customer orders a heavy duty machinery fro... A customer orders a heavy duty machinery from Yukon Inc in October. Yukon manufactures it in November and ships it along with their bill in December and receives payment in January. If Yukon is to recognize revenue in January, they are following: Multiple Choice Credit basis accounting Debit basis accounting Cash basis accounting Accrual-basis accounting
Question 12 A roofing company collects payment when jobs are complete. The work for one customer whose job was bid at $3,000, has been completed as of December 31, but the customer has not yet been billed. Assuming adjustments are only made at year-end what is the adjusting entry the company would need to make on December 31, the end? O Debit Cash, $3,000 credit Roofing Revenue, $3,000 O Debit Roofing Revenue, $3.000 credit Accounts Receivable tood O Debit Accounts Receivable $3.000 credit Roofing Revenue 3000 O Debit Cash, $3,000 credit Accounts Receivable, $3.000 O No adjustment is required Previous
Do not copy from bartleby On December 1, Oren Marketing Company received $4,500 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned revenue. The adjusting entry for the year ended December 31 would include: Mutiple Choice a debit to Services Revenue for $3,000. a credit to Unearned Revenue for $1,500. a debit to Unearned Revenue for $2,250. a credit to Services Revenue for $3,000. a debit to Services Revenue for $4,500.
Do not copy On December 1, Oren Marketing Company received $4,500 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned revenue. The adjusting entry for the year ended December 31 would include: Mutiple Choice a debit to Services Revenue for $3,000. a credit to Unearned Revenue for $1,500. a debit to Unearned Revenue for $2,250. a credit to Services Revenue for $3,000. a debit to Services Revenue for $4,500.
Question 8 Which journal entry reflects the adjusting entry needed on December 31?: In November, BOC received a $5,000 cash deposit from a customer for custom-build goods that will be delivered in January (BOC recorded an entry for this $5,000 in November). Now, it is December 31, the end of the fiscal year. a. Dr. Advances from Customers 5,000 Cr. Revenue 5,000 b. Dr. Unearned Revenue 5,000 Cr. Revenue 5,000 c. Dr. Cash 5,000 Cr. Revenue 5,000 d. No entry needed. e. Dr. Unearned Revenue 5,000 Cr. Inventory 5,000
Adjustment data at December 31 follow:a. On December 15, Aurora contracted to perform services for a client receiving$2,800 in advance. Aurora recorded this receipt of cash as Unearned Revenue. Asof December 31, Aurora has completed $1,800 of the services.b. Aurora prepaid two months of rent on December 1. Aurora used $600 of office supplies.d. Depreciation for the equipment is $700.e. Aurora received a bill for December’s online advertising, $1,000. Aurora will notpay the bill until January. (Use Accounts Payable.)f. Aurora pays its employees on Monday for the previous week’s wages. Its employeesearn $1,500 for a five-day workweek. December 31 falls on Wednesday this year.g. On October 1, Aurora agreed to provide a four-month air system check (beginningOctober 1) for a customer for $3,000. Aurora has completed the system check everymonth, but payment has not yet been received and no entries have been made.Requirements1. Journalize the adjusting entries on December 31.2. Using the…
Moore General Store purchased office supplies on account during the month of March for $5,000. Payment for the supplies will be made in April. On March 1, the balance in the supplies account was $350. On March 31, supplies on hand amounted to $310. What amount should appear on the company's March 31 balance sheet as Supplies, and what amount should appear on the company's March income statement as Supplies Expense, respectively? Select one: a. $310, $5,000 b. $350, $5,040 c. $310, $5,040 d. $350, $5,000 e. $310, $5,350
22. In which of the following situations would Daystar Company record unearned revenue in May? In April, Daystar Company received payment from a customer for services that are performed in May. Daystar Company completes a job for a customer in May; payment will be received in June. Daystar Company is paid on May 25 for work done in the first two weeks of May. Daystar Company receives payment in May for work to be performed in June and July. 23. The order of presentation of activities on the statement of cash flows is operating, investing, and financing. operating, financing, and investing. financing, operating, and investing. financing, investing, and operating. 24. Which of the following are the owners of a partnership business? (a) Proprietors (b) Partners (c) Shareholders (d) Managers 25. A trial balance that balances provides proof that all transactions were correctly…