From the following information, prepare adjusting entries on December 31, 2019, the end of the accounting period: a.) Accrued interest on notes to suppliers, P 5,000. b.) Accrued interest on notes from customers, P2,000. c) Interest received and credited to Unearned Interest Revenue account is P 6,000 of which only P 2,500 was earned. d.) Equipment acquired on July 1, 2019 for P 60,000 is expected to last for five years. e.) Unrecorded or accrued salary, P 46,000. f) Use of the office supplies account of P 5,600 was P 2,500. g) Unexpired of the Prepaid Insurance account of P 40,000 was P 12,000. h.) The Prepaid Rent of P 50,000 was for a period of 10 months starting Sept 1, 2019. i.) The Notes Receivable of P 50,000 in a 12%, 90-day note dated November 1, 2019.

From the following information, prepare adjusting entries on December 31, 2019, the end of the accounting period: a.) Accrued interest on notes to suppliers, P 5,000. b.) Accrued interest on notes from customers, P2,000. c) Interest received and credited to Unearned Interest Revenue account is P 6,000 of which only P 2,500 was earned. d.) Equipment acquired on July 1, 2019 for P 60,000 is expected to last for five years. e.) Unrecorded or accrued salary, P 46,000. f) Use of the office supplies account of P 5,600 was P 2,500. g) Unexpired of the Prepaid Insurance account of P 40,000 was P 12,000. h.) The Prepaid Rent of P 50,000 was for a period of 10 months starting Sept 1, 2019. i.) The Notes Receivable of P 50,000 in a 12%, 90-day note dated November 1, 2019.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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Worksheet Victoria Company has the following account balances on December 31, 2019, prior to any adjustments: Additional adjustment information: (a) depreciation on buildings, 1,100; on equipment, 600; (b) bad debts expense, 240; (c) interest accumulated but not paid: on note payable, 50; on mortgage payable, 530 (this interest is due during the next accounting period); (d) insurance expired, 175; (e) salaries accrued but not paid 370; (f) rent was collected in advance and the performance obligation is now satisfied, 800; (g) office supplies cm hand at year-end, 230 (expensed when originally purchased earlier in the year); and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2020. Required: 1. Transfer the account balances to a 10-column worksheet and prepare a trial balance. 2. Prepare the adjusting entries in the general journal and complete the worksheet. 3. Prepare the companys income statement, retained earnings statement, and balance sheet. 4. Prepare closing entries in the general journal.
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.
In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of S4,500 for services to be performed in January 2020. Swanstrom also receives the December utility bill for S600 but does not pay this bill until 2020. For 2019, under the accrual basis of accounting, Swanstrom would recognize: a. $8,000 of revenue and $600 of expense. b. $8,000 of revenue and $0 of expense. c. $3,500 of revenue and $600 of expense. d. $3,500 Of revenue and $0 of expense.
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Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000
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Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended December 31, 2019 and 2020, contained the following errors: In addition, on December 31, 2020, fully depreciated machinery was sold for 10,800 cash, but the sale was not recorded until 2021. There were no other errors during 2019 or 2020, and no corrections have been made for any of the errors. Refer to the information for Shannon Corporation above. Ignoring income taxes, what is the total effect of the errors on the amount of working capital (current assets minus current liabilities) at December 31, 2020? a. working capital overstated by 4,200 b. working capital understated by 5,800 c. working capital understated by 6,000 d. working capital understated by 9,800
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