Assuming the entity paid its lessor/landlord for the office spaces to be utilize for the next 6 months. The effect of the transaction would have a corresponding increase in? a.) Assets b.) Liabilities c.) Equity d.) The transaction would cause no effect.
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- Assuming the entity paid its lessor/landlord for the office spaces to be utilize for the next 6 months. The effect of the transaction would have a corresponding increase in?
a.) Assets
b.) Liabilities
c.) Equity
d.) The transaction would cause no effect.
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- On November 1 of the current year, a business paid the November rent on the building that it occupies.(a) Do the rights acquired at November 1 represent an asset or an expense? (b) What is the justificationfor debiting Rent Expense at the time of payment?From the list that follows, identify the accounts that should be closed to the owner’s capital account at the end of the fiscal year: a. Accounts Receivable b. Accumulated Depreciation c. Building d. Depreciation Expense e. Fees Earned f. Jackie Lindsay, Capital g. Jackie Lindsay, Drawing h. Land i. Supplies j. Supplies Expense k. Unearned Rent l. Wages ExpenseUnder accrual basis, an entity reported rental income for the current year of P1,500,000. The entity provided the following additional information regarding rental income: Unearned rental income, January 1 125,000 Unearned rental income, December 31 187,500 Accrued rental income, January 1 75,000 Accrued rental income, December 31 100,000 Under cash basis, what amount was received from rental in the current year? Group of answer choices 1,462,500 1,562,500 1,537,500 1,637,500
- Use the following year-end adjusted trial balance to answer. Prepare a statement of owner’s equity from the adjusted trial balance of Choi Company. Choi’s capital account balance of $40,340 consists of a $30,340 balance from the prior year-end, plus a $10,000 owner investment during the current year.Which of the following is an example of an implicit transaction? a. Payment of one year’s rent in advance b. Payment of dividends to stockholders c. Recording monthly depreciation on equipment d. Expiration of prepaid rent e. Both a and c f. Both c and dAssuming the entity received a cash worth of 80,000, this 80,000 is from the customer who advances payment for the service to be render next month. The proper credit for this transaction is: a. Service Revenue b. Accounts Payable c. Owner’s Equity d. Unearned Revenue
- Assuming the entity already render its services after 6 months from collecting the advance payment made by the client, what is the proper credit to this transaction? a.) Accounts Payable b.) Unearned Revenue c.) Owner’s Equity d.) Service RevenueAssuming the entity received a cash worth of 50,000, this 50,000 is from the customer who advances payment for the service to be render next month. The proper credit for this transaction is: a.) Accounts Payable b.) Unearned Revenue c.) Owner’s Equity d.) Service RevenueFor each of the following situations write the principle, assumption, or concept that justifies orexplains what occurred.A. A landscaper received a customer’s order and cash prepayment to install sod at a house that would notbe ready for installation until March of next year. The owner should record the revenue from thecustomer order in March of next year, not in December of this year.B. A company divides its income statements into four quarters for the year.C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at$205,000.D. Brandy’s Flower Shop is forecasting its balance sheet for the next five years.E. When preparing financials for a company, the owner makes sure that the expense transactions arekept separate from expenses of the other company that he owns.F. A company records the expenses incurred to generate the revenues reported.
- Select whether each of the following would appear on the income statement, statement of owner's equity, or balance sheet. If an item may appear on more than one statement, choose the option that indicates all possible statements. The first item is provided as an example. Item Classification 0. Example: The total liabilities of the business at the end of the year. Balance Sheet a. The amount of the owner's Capital balance at the end of the year. b. The amount of depreciation expense on equipment during the year. c. The amount of the company's net income for the year. d. The book value of the equipment. e. Total insurance expired during the year. f. Total accounts receivable at the end of the year. g. Total withdrawals by the owner. h. The cost of utilities used during the year. i. The amount of the owner's Capital balance at the beginning of the year.Both are sub parts of single question 1.1 Which of the following is an example of an accrued revenue?a. Interest on debt incurred during the year, to be paid in the first quarter of thesubsequent yearb. Rent paid at the beginning of the year and debited to an expense account.c. Depreciation expensed. Rent earned during the period, to be received at the begining of the next year 1.2 Which of the following statements is correct about closing entries?a. Must debit or credit one income statement account and one statement of financialposition accountb. Include closing the dividends account to income summaryc. All of these choices are correctd. Are posted to the appropriate general ledger accountsA company owns a number of properties which are rented to tenants. The following information is available for the year ended 30 June 2006: Rent Rent in advance in arrears $ $ 30 June 2005 134,600 4,800 30 June 2006 144,400 8,700 Cash received from tenants in the year ended 30 June 2006 was $834,600. All rent in arrears was subsequently received. What figure should appear in the company’s statement of profit or loss for rent receivable in the year ended 30 June 2006? A $840,500 B $1,100,100 C $569,100 D $828,700