Ann Felberg is the sole owner of Fehlberg's Craft Shop. Ann has provided the following trial balance (extract) and other information. FEHLBERG'S CRAFT SHOP Trial Balance (Extract) at 30 June 2006 Debit Credit Sales Sales returns Purchases Cartage inwards Commission revenue Advertising Delivery vehicle repairs Office wages Insurance Interest on loan Inventory 1 July 2005 Delivery vehicle Rates Office Supplies Other information at 30 June 2006 • Closing inventory $57 600. • Insurance of $6000 was paid on 31 March 2006 for the next 12 months. The commission revenue owing for this period was $1500. Advertising owing at the end of period was $1400. • Office supplies on hand at the end of the period is $500. 7 000 302 000 3 000 22 000 8 700 42 000 6 000 700 100 600 65 000 900 2 200 415 000 3 700

Ann Felberg is the sole owner of Fehlberg's Craft Shop. Ann has provided the following trial balance (extract) and other information. FEHLBERG'S CRAFT SHOP Trial Balance (Extract) at 30 June 2006 Debit Credit Sales Sales returns Purchases Cartage inwards Commission revenue Advertising Delivery vehicle repairs Office wages Insurance Interest on loan Inventory 1 July 2005 Delivery vehicle Rates Office Supplies Other information at 30 June 2006 • Closing inventory $57 600. • Insurance of $6000 was paid on 31 March 2006 for the next 12 months. The commission revenue owing for this period was $1500. Advertising owing at the end of period was $1400. • Office supplies on hand at the end of the period is $500. 7 000 302 000 3 000 22 000 8 700 42 000 6 000 700 100 600 65 000 900 2 200 415 000 3 700

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 2A

See similar textbooks

Similar questions

Identify the letter for the principle or assumption from A through F in the blank space next to each numberedsituation that it best explains or justifies.A. General accounting principleB. Measurement (cost) principleC. Business entity assumptionD. Revenue recognition principleE. Expense recognition (matching) principleF. Going-concern assumption In December of this year, Chavez Landscaping received a customer’s order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. Chavez should record the revenue from the customer order in March of next year, not in December of this year.
Bill Smithson runs a second-hand furniture business from a shop which he rents. He does notkeep complete accounting records, but is able to provide you with the following information about his financial position at 1 April 20X8: Inventories of furniture 3,210 Trade receivables 2,643, Trade payables 1,598, Motor vehicle 5,100, Shop fittings 4,200, Motor vehicle expenses owing 432He has also provided the following summary of his bank account for the year ended 31 March 20X9: Balance at 1 Apr 20X8 2,420, Payments of trade creditors 22,177, Receipts from trade debtor 44,846 Electricity 1,090Cash sales 3,921 Telephone 360 Rent 2,000 Advertising 1,430 Shop fittings 2,550Insurance 946 Motor vehicle expenses 2,116Drawings 16,743 Balance at 31 Mar 20X9 1,775 51,18751,187 You required to find that the following must also be considered: Depreciation is to be written off the motor vehicle at 20% and off the shop Fittings at 10%, calculated on the book values at 1 April 20X8 plus additions during…
You have a friend who is a seamstress specializing in Renaissance costumes. She received cash well in advance of the required date, often in the fiscal period prior to the date of delivery of the costume, not only to enable her to purchase material but also to cover her labor. She always debits Cash and credits Costume Income. First, explain to her why this entry violates the revenue recognition principle. Second, identify the classification of Unearned Revenue. Third, explain when the Unearned Revenue account is used.
Bonsu is the owner of a retail business. He has employed an inexperienced book-keeper to maintain the accounting records. On 31st December 2020, the end of the business’s accounting year, the book-keeper extracted the following trial balance. Trial balance as at 31st December 2020 Debit (GHS) Credit (GHS) Sales 1,250,000 Purchases 700,000 Discount Allowed 18,300 Carriage Inwards 28,000 Carriage Outwards 31,200 Rent, rate & insurance 61,700 Heating & Lighting 38,000 Postage & stationery 4,200 Advertising…
Green water, a sole merchant, has prepared and handed the accountant the following Trial Balance for adjusting before preparing the Income Statement and Statement of Financial position for the year ended 31December 2021. Debit Credit K’000 K’000 Turnover 131,940 Purchases 33,000 Sales Returns 260 Purchase Returns 315 Opening Inventory 6,900 Trade Receivables 14,125 Trade Payables 16,070 Discounts Allowed 755 Discounts Received 599 Wages and Salaries 20,600 Water 1,000 General Expenses 2,340 Bank 13,710 Premises 70,000 Motor Vehicles 5,000 Equipment 3,500 Capital 25,000 Drawings…
The following account balances were included in the trial balance of Ayayai Corporation at June 30, 2023: Sales revenue Cost of goods sold Salaries and wages expense (sales) Sales commission expense (a) Advertising expense (sales) Freight out Entertainment expense (sales) Telephone and internet expense (sales) Depreciation of sales equipment Repairs and maintenance expense (sales) Miscellaneous expenses (sales) Supplies expense (office) Depreciation expense on office furniture and equipment $1,837,150 1,061,770 53,460 99,400 29,230 21,900 15,420 9,930 5,880 6,400 5,315 3,950 7,350 Telephone and Internet expense (office) Salaries and wages (office) Supplies expense (sales) Repairs and maintenance expense (office) Depreciation understatement due to error-2021 (net of tax of $3,300) Miscellaneous expense (office) Dividend revenue Interest expense Income tax expense Dividends declared on preferred shares Dividends declared on common shares $2,920 8,020 5,450 9,830 19,600 7,800 38,800…
Juice World Jamaica Limited, a leading juice manufacturing company has recently hired you asan Accounting Officer. As per job description, you are required to assist in the preparation of thefinancial statements. The Accounts Manager has extracted a list of balances as at December 2021for you to review. $ Revenue 7 600 010Administrative Expenses 2 300 000Distribution Costs 980 231 Interest paid on loan 125 000Purchases 4 500 330Inventories at 1 January 2021 1 018 900Trade receivables 630 340Provision for doubtful debts at Jan 2021 19 634Bad debts 70 110Non- current Investment 300 900Additional notesi. Provide for…
In November, Year 2, your accounting firm placed a one-time website advertisement with Today's CPA. This is your first ad with this vendor. You pay for the one-time advertising with your company's Citibank Visa credit card. Below is the transaction you completed for this purchase. If you run the report Transaction List by Vendor, for all dates, what dollar amount will appear under the vendor Today's CPA? Why? Teacher Feedback: was the expense form completed properly?
The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing: 20Y3 Nov. 21 Received from McKenna Outer Wear Co., on account, a $48,000, 60-day, 6% note dated November 21 in settlement of a past due account. Dec. 31 Recorded an adjusting entry for accrued interest on the note of November 21. 20Y4 Jan. 20 Received payment of note and interest from McKenna Outer Wear Co. Required: Journalize the entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. If no entry is required, simply skip to the next transaction. Assume a 360-day year when calculating interest.
jue Jantz started a business in August 20-- called Jantz Plumbing Service. The trial balance showing balances for the month of August are shown. Jantz Plumbing ServiceUNADJUSTED TRIAL BALANCEAugust 31, 20-- ACCOUNT TITLEDEBITCREDIT1Cash20,200.00 2Accounts Receivable2,700.00 3Office Supplies300.00 4Prepaid Insurance800.00 5Plumbing Equipment6,000.00 6Van8,000.00 7Accounts Payable 4,500.008Sue Jantz, Capital 30,000.009Sue Jantz, Drawing3,000.00 10Service Fees 9,800.0011Rent Expense700.00 12Wages Expense500.00 13Phone Expense100.00 14Advertising Expense2,000.00 15Totals44,300.0044,300.00 Required: Determine the following information. Use the format provided below. 1.a.Total revenue for the month b.Total expenses for the month c.Net income for the month2.a.Sue Jantz’s original investment in the business + Net income for the month - Owner’s drawing Increase (decrease) in capital = Ending owner’s equity
You are to show the journal entries necessary to record the following items: a. 2018 April 1 Bought a van on credit from Deedon Garage for Ksh.5, 395,000. b. 2018 April 3 A debt of Ksh.81, 000 owing from P Knight was written off as a bad debt. c. 2018 April 8 Office furniture bought by us for Ksh.610, 000 was returned to the supplier Timewas Ltd, as it was unsuitable. Full allowance will be given to us. d. 2018 April 12 We are owed Ksh.320, 000 by R Twig. He is declared bankrupt and we received Ksh.51, 000 in full settlement of the debt. e. 2018 April 14 We take goods costing Ksh.22, 000 out of the business stock without paying for them. f. 2018 April 28 Some time ago we paid an insurance bill thinking that it was all in respect of the business. We now discover that Ksh.62, 000 of the amount paid was in fact insurance of our private house. g. 2018 April 28 Bought machinery for Ksh.1, 260,000 on credit from Electrotime Ltd.
The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing: 20Y3 Nov. 21 Received from McKenna Outer Wear Co., on account, a $96,000, 60-day, 7% note dated November 21 in settlement of a past due account. Dec. 31 Recorded an adjusting entry for accrued interest on the note of November 21. 20Y4 Jan. 20 Received payment of note and interest from McKenna Outer Wear Co. required: Journalize the entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles CHART OF ACCOUNTS Fasteners Inc. Co. General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-McKenna Outer Wear Co. 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…