Answered: Effects of Transaction

Business

Accounting

Effects of Transaction

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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at the end of the accounting period(sept 30th, T account after AJE), what is the balance of accumulated depreciation costumes? use accural accounting multiple choice: a) $25 Neutral Balance, b) $0, c) $25 debit balance, d) $25 credit balance, e) none of the other alternatives are correct
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) The following balances were taken from the books of Alonzo Corp. on December 31, 2025. Interest revenue $ 87,950 Accumulated depreciation—equipment $ 41,950 Cash 52950 Accumulated depreciation—buildings 29,950 Sales revenue 1,381,950 Notes receivable 156,950 Accounts receivable 151,950 Selling expenses 195,950 Prepaid insurance 21,950 Accounts payable 171,950 Sales returns and allowances 151,950 Bonds payable 101,950 Allowance for doubtful accounts 8950 Administrative and general expenses 98,950 Sales discounts 46,950 Accrued liabilities 33,950 Land 101,950 Interest expense 61,950 Equipment 201,950 Notes payable 101,950 Buildings 141,950 Loss from earthquake damage 151,950 Cost of goods…
Use the trial balance, adjustments and additional information to prepare the Statement ofComprehensive Income for the year ended 28 February 2022.Liat TradersPRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022Balance sheet accounts section Debit CreditR RCapital 550 854Drawings 75 150Land and buildings 477 164Vehicles at cost 91 000Equipment at cost 67 000Accumulated depreciation on vehicles 31000Accumulated depreciation onequipment 23800Trading inventory 68 800Debtors control 45 850Provision for bad debts 1900Bank 15 560Cash float 1 250Petty cash 250Creditors control 38 860Loan: MUFG Bank (15%) 21600Nominal accounts sectionSales 498 000Cost of sales 244 000Sales returns 8 000Wages 42 500Bank charges 2 300Rent income 26000Packing materials 12 000Advertising 8 500Rates 3 000Bad debts 900Discount allowed 750Discount received 980Stationery 8 500Interest on loan 2 970Water and electricity 5 550Insurance 5 000Telephone 7 0001 192 994 1 192 994Adjustments and additional information1. A…
You are presented with the following trial balance of Carl Ltd at 31 October 2018. DrCr R,000Building at costBuildings, accumulated depreciation, 1 November 2018 Plant at costPlant, accumulated depreciation, 1 November 2018 Land at costBank balanceRevenuePurchasesDiscounts receivedReturns inwardsWagesEnergy expensesTrade PayablesTrade ReceivablesInventory at 1 November 2018Allowance for debtors at 1 November 2018 Administrative expensesDirector's remunerationAccumulated profit at 1 November 201810% DebentureDividend paidR1 Ordinary sharesShare premium accountR,000 74060 220110 23550 1,8001,1059035 180 105250 3201601080 70306503,28080 3,280130 50Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost, allocated 30%…
create a balance sheet for the following: Adjusted Trial Balance Account Titles Dr Cr Cash 26,143 Equity securities portolio 47,521 Fair value adjustment 3,585 Accounts receivable 284,171 Allowance for doubtful accounts 14,209 Inventory 623,636 Prepaid insurance 11,080 Land 414,518 Buildings 1,455,667 Accumulated depreciation-bldg 490,534 Equipment 1,041,038 Accumulated depreciation-equip 337,259 Deferred tax asset 6,000 Patent 17,970 Accounts payable 205,799 Income taxes payable 108,659 Note payable 42,000 Bonds payable 300,000 Premium on bonds payable 16,038 Preferred stock (5%, $100 par) 200,000 Common stock ($10 par value) 400,000 Paid-In capital in excess of par 471,999 Retained earnings 934,729 Dividends 90,000 Sales revenue 4,634,536 Cost of goods sold 3,172,647 Salaries and wages expense 580,593 Advertising expense 65,641 Depreciation expense 161,167…
Put the correct word next to the answer that best describes the following : scheduling, cash, coding, accrual, FIFO, accounts payable, LIFO, point of service, book value, perpetual Often called trade credit. It assumes that payment is made when due. Answer 1 It is assumed that the last units acquired are the first ones used. Answer 2 An asset original cost less the amount of accumulated depreciation. Answer 3 This is the beginning of the revenue cycle Answer 4 The type of accounting used by health care facilities Answer 5 When the patient shows up for care. Answer 6 The organization always knows how much inventory it has on hand Answer 7 The translation of services provided into billable charges. Answer 8 It is assumed that the units required earlier are used before units acquires later Answer 9 The major source of financing for an organization Answer 10
Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account. Depreciation for the current year includes Equipment, $600. The Accumulated Depreciation - Equipment unadjusted balance as of December 31 is $6,300.
Determine the missing items. If required, use the minus sign to indicate a net or operating loss, unrealized losses, or a credit balance in the valuation allowance account. Highland Industries Inc. Selected Income Statement Items For the Years Ended December 31, Year 2 and Year 3 Year 2 Year 3 Operating Income (Loss) $fill in the blank 4a02a8fb0ff3010_1 $fill in the blank 4a02a8fb0ff3010_2 Gain (Loss) from Sale of Investments 5,890 (11,780) Net Income (Loss) $fill in the blank 4a02a8fb0ff3010_3 $(16,200) Highland Industries Inc. Selected Balance Sheet Items December 31, Year 1, Year 2, and Year 3 Dec. 31, Year 1 Dec. 31, Year 2 Dec. 31, Year 3 Assets Available-for-Sale Investments, at Cost $114,860 $100,130 $139,890 Valuation Allowance for Available-for-Sale Investments 7,360 (8,840) fill in the blank b142bc0b505c055_1 Available-for-Sale Investments, at Fair Value fill in the blank b142bc0b505c055_2 fill in the blank…
I need assistance in preparing a journal for transactions and adjustements. Provided is the trial balance sheet and the unrecorded entries. Debit Credit Cash $23,440.00 Accounts Receivable $43,880.00 Inventory $19,976.00 Land $57,200.00 Buildings $83,600.00 Equipment $35,200.00 Allowance for Doubtful Accounts $ 396.00 Accumulated Depreciation—Buildings $ 26,400.00 Accumulated Depreciation—Equipment $ 11,672.00 Accounts Payable $ 16,984.00 Interest Payable $ - Dividends Payable $ - Unearned Rent Revenue $ 8,040.00 Bonds Payable (10%) $ 44,000.00 Preferred Stock ($ 20 par) $ - Paid-in Capital in Excess of Par—Preferred Stock $ - Common Stock ($ 10 par) $ 26,400.00 Paid-in Capital in Excess of Par—Common Stock…
Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Understandability Relevance Faithful representation Comparability Depreciation Consistency Materiality Conservatism Operating cycle Current asset Current liability Liquidity Working capital Current ratio Single-step income statement Multiple-step income statement Gross profit Profit margin Auditors report An income statement in which all expenses are added together and subtracted from all revenues. The magnitude of an accounting information omission or misstatement that will affect the judgment of someone relying on the information. The capacity of information to make a difference in a decision. An income statement that shows classifications of revenues and expenses as well as important subtotals. The practice of using the least optimistic estimate when two estimates of amounts are about equally likely. The quality of accounting information that makes it comprehensible to those willing to spend the necessary time. Current assets divided by current liabilities. The quality of information that makes it complete, neutral, and free from error. An obligation that will be satisfied within the next operating cycle or within one year if the cycle is shorter than one year. Current assets minus current liabilities. Net income divided by sales. For accounting information, the quality that allows a user to analyze two or more companies and look for similarities and differences. An asset that is expected to be realized in cash or sold or consumed during the operating cycle or within one year if the cycle is shorter than one year. The ability of a company to pay its debts as they come due. For accounting information, the quality that allows a user to compare two or more accounting periods for a single company. The process of allocating the cost of a long-term tangible asset over its useful life. The period of time between the purchase of inventory and the collection of any receivable from the sale of the inventory. Sales less cost of goods sold. The opinion rendered by a public accounting firm concerning the fairness of the presentation of the financial statements.
Listed below are the current Accounting Assumptions and Principles Economic Entity Assumption Monetary Unit Assumption Historical Cost Principle Going Concern Assumption Revenue Recognition Principle Full Disclosure Principle Time Period Assumption Matching Principle Required: For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable. h. Nixon Corp records and maintains their books at cost and/or current value, not at a liquidated value. Violation: (Yes/No) Applicable Assumption/Principle: i. Wages of $4,000 related to the last two days of July, were recorded as expense in July even though they were paid in August. Violation: (Yes/No) Applicable…
Use the adjusted trial balance for Stockton Company to answer the question that follows. Stockton CompanyAdjusted Trial BalanceDecember 31 AccountNo. DebitBalances CreditBalances Cash 11 5,015 Accounts Receivable 12 2,673 Prepaid Expenses 13 699 Equipment 18 13,450 Accumulated Depreciation 19 1,295 Accounts Payable 21 1,482 Notes Payable 22 5,876 Bob Steely, Capital 31 9,051 Bob Steely, Drawing 32 898 Fees Earned 41 8,971 Wages Expense 51 2,454 Rent Expense 52 713 Utilities Expense 53 482 Depreciation Expense 54 191 Miscellaneous Expense 59 100 Totals 26,675 26,675 Use the adjusted trial balance for Stockton Company. Determine the net income (loss) for the period. a.Net income is $26,675. b.Net loss is $7,967. c.Net loss is $5,031. d.Net income is $5,031.