During 2018, the following events occurred for Clouseau Consultants Clouseau provided $45,045 of consulting services to its clients but no cash has been collected. Clouseau collected $24,934 cash from customers in partial settlement of its accounts receivable. Clouseau paid the instructor $11,516 cash for teaching training courses (salary expense). Clouseau paid $4,000 for supplies. Half of the supplies were used in 2018. Clouseau paid $3,079 in dividends. After recording all these transactions, Clouseau’s total change in stockholders' equity will be $

During 2018, the following events occurred for Clouseau Consultants Clouseau provided $45,045 of consulting services to its clients but no cash has been collected. Clouseau collected $24,934 cash from customers in partial settlement of its accounts receivable. Clouseau paid the instructor $11,516 cash for teaching training courses (salary expense). Clouseau paid $4,000 for supplies. Half of the supplies were used in 2018. Clouseau paid $3,079 in dividends. After recording all these transactions, Clouseau’s total change in stockholders' equity will be $

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 18EB: Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received...

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Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.
Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
On May 1, 2021, the Cash balance in X Company was $76,000. During May, the company rendered services for customers and collected $156,000 cash, paid expenses totaling $96,000. The owner withdrew $3,000 cash during that month. The cash balance at the end of May was: *
During 2018, the following events occurred for Parker Company Parker receives $31,200 cash in advance from Westberry Company for consulting services to be performed over a one-year period beginning March 1, 2018. Provided $53,900 of consulting services on account. Collected $10,400 cash from customers in partial settlement of its accounts receivable. Parker recognizes the portion of the unearned revenue it earned during the accounting period. After recording all these transactions, Parker’s balance in deferred revenue will be $______
Near the end of its first year of operations, December 31, 2021, Vaughn Designs Ltd. approached the local bank for a $ 19,400 loan and was asked to submit financial statements prepared on an accrual basis. Although the company kept no formal accounting records, it did maintain a record of cash receipts and payments. The following information is available for the year ended December 31: Additional information: 1. Fees from design work earned but not yet collected amounted to $ 2,430. 2. The equipment was purchased at the beginning of January and has an estimated six-year useful life. The company uses straight-line depreciation. 3. Supplies on hand on December 31 were $ 1,230. 4. Rent payments included a $ 1,350 per month rental fee and a $ 1,880 deposit that is refundable at the end of the two-year lease. (Hint: Use the Prepaid Rent account for the refundable deposit.) 5. The insurance was purchased on February 1 for a one-year period expiring on January 31, 2022.…
Rebel Technology maintains its records using cash-basis accounting. During the year, the company received cash from customers, $50,000, and paid cash for salaries, $21,900. At the beginning of the year, customers owe Rebel $1,100. By the end of the year, customers owe $8,000. At the beginning of the year, Rebel owes salaries of $7,000. At the end of the year, Rebel owes salaries of $4,000. Determine cash-basis net income and accrual-basis net income for the year.
Haskins and Jones, Attorneys-at-Law, maintains its books on a cash basis. During 2021, the law firm collected $640,000 for services rendered to its clients and paid out $431,000 in expenses. You are able to determine the following information about accounts receivable, prepaid expenses, deferred service revenue, and accrued liabilities: January 1, 2021 December 31, 2021 Accounts receivable $ 81,000 $ 76,000 Prepaid insurance 6,400 8,300 Prepaid rent 11,100 9,000 Deferred service revenue 11,100 13,400 Accrued liabilities (for various expenses) 14,100 18,900 In addition, 2021 depreciation expense on office equipment is $31,500. Required: Determine accrual basis net income for 2021.
Haskins and Jones, Attorneys-at-Law, maintain its books on a cash basis. During 2016, the company collected $545,000 in fees from its clients and paid out $412,000 in expenses. You are able to determine the following information about accounts receivable, prepaid expenses, deferred fee revenue, and accrued liabilities: Required: Determine accrual basis net income for 2016.
During 2021, Ocean Consulting had the following transactions with its clients (customers): On February 1, 2021, the company receieved cash of $10,000 from clients in payment of their account balances as of December 31, 2020. On November 1, 2021, the company receieved $4,000 cash as payments in advance for services to be performed in 2022. The company receieved a total of $26,000 in cash for services that were performed during 2021. The company sent bills totaling $8,000 to clients for services performed during 2021; this amount was unpaid as December 31, 2021 Which of the following statements about the activities for Ocean Consulting for 2021, is correct? A. if accounts receivable at December 31, 2020 totaled $50,000, the amount of accounts receivable to be reported on the balance sheet at December 31, 2021 will be $48,000 B. the $4,000 receieved from clients for services to be performed next year will be reported as revenue on the 2021 income statement C. the $8,000 owed by clients…
Cude Corp., a start‑up company, uses the accrual basis of accounting. In Year 1, Cude provided services that were acceptable to its customers and billed those customers for $620,000. However, Cude collected only $520,000 cash in Year 1, and the remaining $100,000 was collected in Year 2. Cude’s employees earned $300,000 in Year 1 wages that were not paid until the first week of Year 2. Based only on this information, how much net income does Cude report for Year 2?
uring 2018, the following events occurred for Parker Company Parker receives $36,000 cash in advance from Westberry Company for consulting services to be performed over a one-year period beginning October 1, 2018. Provided $48,500 of consulting services on account. Collected $15,900 cash from customers in partial settlement of its accounts receivable. Parker recognizes the portion of the unearned revenue it earned during the accounting period. After recording all these transactions, Parker’s total revenue will be $______
The following transactions occurred during the month of June 2021. 2-Jun Owner contributed $12,000 cash and $18,000 equipment to the business. 8-Jun Purchased motor vehicle for $40,000, paid 20% cash deposit and took out a bank loan for the remaining balance. 13-Jun Received $4,000 cash for service to be provided in July 2021. 17-Jun Provided service to a customer for $12,000, received 20% cash and the remaining balance is on credit. 22-Jun Received $2,000 interest from bank. 26-Jun Paid $4,000 cash for 1-year advertising. 30-Jun Paid $3,000 wages to staff.