TB 03-117 Picasso Art School's operating activities for thePicasso Art School's operating activities for the month of February are summarized in the following transactions:1. Provided $1,500 of instructional lessons.2. Received $2,100 cash from students-of which $1,200 is for lessons provided in February, and $900 is for lessons provided in January.3. Paid January's rental bill of $300. Received February's bill of $450 but did not pay.Determine Picasso Art School's Net Income for February using the accrual basis of accounting?Multiple Choice$1,050$900$750$1,800

Accrual basis of accounting: Accrual basis of accounting refers to recognizing the financial…

Answered: Determine Picasso Art School's Net…

Business

Accounting

Determine Picasso Art School's Net Income for February using the accrual basis of accounting?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter4: Internal Control And Cash

Section: Chapter Questions

Problem 54E: Exercise 4-54 Operating Cycle and Current Receivables a. Dither and Sly are attorneys-at-law who...

See similar textbooks

Similar questions

Answers are given. Only need solution for the answers. 16. Listed below are selected transactions of Lychee’s Department Store for the current year endingDecember 31.1. On December 5, the store received P4,500 from the Fruit Players as a deposit to be returnedafter certain furniture to be used in stage production was returned on January 15 the followingyear.2. During December, cash sales totaled P798,000, which includes the 12% VAT that must beremitted to the BIR by the 5th day of the following month.3. The store determined it will cost P100,000 to restore the area surrounding one of its buildingwhen the store is closed in 4 years. The present value of restoration is P64,000.4. As a result of uninsured accidents during the year, personal injury suits for P350,000 andP60,000 have been filed against the company. It is the judgment of Lychee’s legal counsel thatan unfavorable outcome is unlikely in the P60,000 case but that an unfavorable verdictapproximating P250,000 (reliably estimated)…
lorato’s trial balance as at 31st December 2020 Dr Cr Pula Pula Sales 800,000 Sales Returns 17,000 Purchases 400,000 Purchases Returns 21,000 Land and Buildings 320,000 Machinery 275,000 Motor vehicle 130,000 Furniture 65,000 Opening inventory 50,000 Accounts receivable 220,000 Accounts payable 276,000 Capital 650,000 Cash at Bank 30,000 DIPLOMA Sessional Structured Timed Assignment January - June BPA612 Principles of Accounting ©BOU 2023 Page 5 of 11 Cash in hand 3,000 Telephone 12,000 Electricity 15,000 Salaries and wages 170,000 Discounts receivable 3,500 Discounts Allowed 2,000 Interest receivable 9,000 Interest payable 12,000 General expenses 28,000 Insurance 6,000 Bad debts 1,000 Provision for bad and doubtful debts 4,500 Carriage outwards 3,000 Carriage inwards 5,000 1,764,000.0 1,764,000 Additional information a. Closing inventory P40,000 b. Motor vehicles purchased P10, 000 was included in Purchases by mistake. c. Electricity P1, 000 was owing at the end of the financial year.…
N7. Boilermaker House Painting Company incurs the following transactions for September. September 3 Paint houses in the current month for $20,000 on account. September 8 Purchase painting equipment for $21,000 cash. September 12 Purchase office supplies on account for $3,500. September 15 Pay employee salaries of $4,200 for the current month. September 19 Purchase advertising to appear in the current month for $1,000 cash. September 22 Pay office rent of $5,400 for the current month. September 26 Receive $15,000 from customers in (1) above. September 30 Receive cash of $6,000 in advance from a customer who plans to have his house painted in the following month. References Section BreakExercise 2-20 Record transactions, post to T-accounts, and prepare a trial balance (LO2-4, 2-5, 2-6)
Problem 1: On Febuary 14, 2018, Floating Restaurant Company established a sales agency in Loboc. Upon establishment of the sales agency, the home office sent samples costing ₱8,000 and a working fund of ₱8,000 to be maintained on the imprest baisis. During the six months period, the sales agency reported to the home office sales orders. These were billed at ₱70,000 of which of ₱40,000 was collected) the sales agency paid expenses of ₱5,800 but was reimbursed by the home office. On August 15, 2018, the sales agency samples was valued at ₱2,000. It was estimated that the gross profit on goods shipped to fill sales order averaged 40% of cost. Required: Show the solution. 1.) The cost of sales of the sales agency for the six months period is 2.) The net income of the sales agency for the six months period is Problem 2: JCO KREMES Company had an agency in SM Cebu and a working fund for ₱20,000 is established on the imprest basis. The first payment from the fund is ₱3,000 for rent. This…
ACCT20 - Assignment #1There were following activities occurred during the first month of Babara Schmidt's new hair cuttingbusiness called The Cutlery:1. On August1, Schmidt put $3,000 cash into a chequing account in the name of The Cutlery. She alsoinvested $15,000 of equipment that she already owned.2.On August1, Schmidt paid $600 cash for six months of insurance effective immediately.3.On August2, she paid $2,000 cash for furniture for the shop.4. On August3, she paid $3,200 cash to rent space in a strip mall for August.5.On August4, she furnished the shop by installing the old equipment and some new equipment thatshe bought on credit for $21,000. This amount is to be repaid in three equal payments at the end ofAugust, September, and October.6.On August15, Cash receipts from haircutting services provided in the first week and a half ofbusiness (ended August15) were $1,100.7. On August15, Schmidt provided haircutting services on account for $750.8.On August17, Schmidt received a $750…
Scenario 1: On December 1, the balance of supplies totals $400. On December 15, the company purchases an additional $200 of supplies with cash. By the end of December, only $100 of supplies remains. Scenario 2: On November 4, Company receives $6,000 cash from a local moving company in agreement to provide truck maintenance of $1,000 each month for the next six months beginning in December. Scenario 3: Employees have worked the final four days in December, earning $600, but have not yet been paid. Company plans to pay its employees on January 2 Scenario 4: Customers receiving $250 of maintenance services from Midas on December 29 have not been billed as of the end of the month. These customers will be billed on January 3 and are expected to pay the full amount owed on January 6. Scenario 5: At the beginning of the year, AdShop’s depreciable equipment has a cost of $28,0000, a four year life, and no salvage value. The equipment is depreciated $7,000 yearly over the four years service…
33 Daube Industries’ operations for the month of October are summarized as follows: Provided $2,500 of services in October on account. Received $2,000 cash from customers for services provided in October. Received $500 cash for services to be provided in November. Received $1,500 cash from customers on account for services provided in September. Paid September’s warehouse rental bill on account in the amount of $500. Received October’s warehouse rental bill of $750; set it aside to be paid at a later date. Required: Prepare journal entries to record the transactions identified among activities (A) through (F). Calculate the Net Income.
Exercise 4-54 Operating Cycle and Current Receivables a. Dither and Sly are attorneys-at-law who specialize in federal income tax law. The): complete their typical case in 6 months or less and collect from the typical client within 1 additional month. b. Johnstons Market specializes in fresh meat and fish. All merchandise must be sold within one week of purchase. Almost all sales are for cash and any receivables are generally paid by the end of the following month. c. Mortondos is a womens clothing store specializing in high-style merchandise. Merchandise spends an average of 7 months on the rack following purchase. Most sales are on credit and the typical customer pays within 1 month of sale. d. Trees Inc. grows Christmas trees and sells them to various Christmas tree lots. Most sales are for cash. It takes 6 years to grow a tree. Required: For each of the businesses described above, indicate the length of the operating cycle.
Searth Summer 19/201 Sport Direct, a sport stuff shop. At the beginning of the current season, the ledger of Sport Direct shop showed cash $2,200, Inventory $1,800, and Share capital - Ordinary $4,000. The following transactions were completed during April NOTE: Answer questions from 1 - 25 by using these information. April 1) Purchased Truck costing $9,600 by signing $9,600, 12%, 6-month notes payable. April 4) Purchased racquets and balls from Jay-Mac Co. for $760, FOB Shipping point, terms 2/10,n/30. April 5) Purchased Building for $48,000 cash, April 6) Paid Freight on purchase from Jay-Mac Co. for $40 cash. April 7) Purchased Supplies for $2,500 cash. April 8) Sold Merchandise to members for $1,150 on account terms n/30. The merchandise sold had a cost of $790 April 9) Paid office rent $1,500 cash. April 10) Returned merchandise for Jay-Mac Co. for $60, for a racquets that were defective, April 11) Purchased tennis shoes from u Sports for $420 cash. April 13) Paid Jay-Mac Co. in…
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
ACC 370 SPRING 2021 QUICKBOOKS HANDS ON CLASS EXERCISE SECTION NOW YOUR TURN March 2021 1 Mr. Jim Doha invested additional $75,000 cash in the real estate agency. Paid advertising bill for February $1,400 Sold house for $250,000 and collected commission of $15,000 4 Purchased office supplies for cash, $2450. 5 Purchased additional office supplies on account, $550 6 Sold a house and collected a $46,000 commission. 8 Paid gas bills, $240 15 Paid the salary of the office secretary, $850. 17 Sold a building lot and earned a commission, $16,500. 20 Mr Jim Doha withdrew $3,000 from the business to pay personal expenses 21 Sold a house and collected a $15,500 commission. 22 Paid gas bills, $220. 24 Paid $960 to repair automobile 28 Paid the salary of the office secretary, $1350 30 Paid the March telephone, $520.…
We prepared the statements for Quarter 1 (Q1) in class. Prepare the statements for Q2(April 1 –June30). Show your work on the next page. XYZ Company PRO FORMA Quarterly Income Statements Q1 Q2 Sales $165,000 Cost of goods sold 115,500 Gross profit 49,500 Operating expenses 138,000 Depreciation expense 131,250 Income before interest &taxes (219,750) Interest expense 25,000 Income before taxes (244,750) Income tax (expense)/recovery 122,375 Net Income $(122,375) PRO FORMA Quarterly Balance…