a. The details of Prepaid Insurance are as follows: Prepaid Insurance Jan 2,800 Mar 31 3,000 Greens prepays insurance on March 31 each year. At December 31, $800 is still prepaid. b. Greens pays employees each Friday. The amount of the weekly payroll is $5.700 for a five-day work week. The current accounting period ends on Wednesday. 1 Bal c. Greens has a note receivable. During the current year, Greens has earned accrued interest revenue of $600 that it will collect next year. d. The beginning balance of supplies was $3,200. During the year, Greens purchased supplies costing $6,300, and at December 31 supplies on hand total $2,200. e. Greens is providing services for Dolphin Investments, and the owner of Dolphin paid Greens an annual service fee of $11,400. Greens recorded this amount as Unearned Service Revenue. Greens estimates that it has earned 70% of the total fee during the current year. f. Depreciation for the current year includes Office Furniture, $3,200, and Equipment, $5,300.

a. The details of Prepaid Insurance are as follows: Prepaid Insurance Jan 2,800 Mar 31 3,000 Greens prepays insurance on March 31 each year. At December 31, $800 is still prepaid. b. Greens pays employees each Friday. The amount of the weekly payroll is $5.700 for a five-day work week. The current accounting period ends on Wednesday. 1 Bal c. Greens has a note receivable. During the current year, Greens has earned accrued interest revenue of $600 that it will collect next year. d. The beginning balance of supplies was $3,200. During the year, Greens purchased supplies costing $6,300, and at December 31 supplies on hand total $2,200. e. Greens is providing services for Dolphin Investments, and the owner of Dolphin paid Greens an annual service fee of $11,400. Greens recorded this amount as Unearned Service Revenue. Greens estimates that it has earned 70% of the total fee during the current year. f. Depreciation for the current year includes Office Furniture, $3,200, and Equipment, $5,300.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1PA: Consider the following situations and determine (1) which type of liability should be recognized...

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Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees? 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
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