Allen Company received $12,000 cash from Gerry Corporation for cleaning services that Allen agrees to perform over a one year period beginning on June 1, Year 1. Howwould the adjustment on December 31, Year 1 to recognize the portion of the revenue that Allen earned during Year 1 affect Allen company's financial statements?A.B.C.D.Assets = Liabilities +n/a(7,000)n/a(7,000)12,000n/aMultiple ChoiceOption DOption AOption CBalance SheetOption B12,000(6,000)Stockholders'Equity7,0007,000n/a6,000Revenue7,000n/a12,0006,000Income StatementExpensen/an/an/an/a= Net Income7,000n/a12,0006,000Statement ofCash Flowsn/an/a12,000OperatingActivityn/a

Date Particulars Debit Amount Credit Amount June 1, Year 1 Bank A/c ......................Dr…

Allen Company received $12,000 cash from Gerry Corporation for cleaning services that Allen agrees to perform over a one year period beginning on June 1, Year 1. How would the adjustment on December 31, Year 1 to recognize the portion of the revenue that Allen earned during Year 1 affect Allen company's financial statements? Balance Sheet A. B. Assets = Liabilities + n/a (7,000) n/a (7,000) C. 12,000 D. n/a 12,000 (6,000) Stockholders' Equity 7,000 7,000 n/a 6,000 Revenue 7,000 n/a 12,000 6,000 Income Statement Expense = Net Income n/a n/a n/a n/a 7,000 n/a 12,000 6,000 Statement of Cash Flows n/a n/a 12,000 Operating Activity n/a

Allen Company received $12,000 cash from Gerry Corporation for cleaning services that Allen agrees to perform over a one year period beginning on June 1, Year 1. How would the adjustment on December 31, Year 1 to recognize the portion of the revenue that Allen earned during Year 1 affect Allen company's financial statements? Balance Sheet A. B. Assets = Liabilities + n/a (7,000) n/a (7,000) C. 12,000 D. n/a 12,000 (6,000) Stockholders' Equity 7,000 7,000 n/a 6,000 Revenue 7,000 n/a 12,000 6,000 Income Statement Expense = Net Income n/a n/a n/a n/a 7,000 n/a 12,000 6,000 Statement of Cash Flows n/a n/a 12,000 Operating Activity n/a

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.23E: Adjustment for depreciation The estimated amount of depredation on equipment for the current year is...

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Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?