Hannibal Apartments Company credits Advances from Tenants whenever a payment is received from tenants. It prepares annual financial statements but no monthly reports. At the start of the year the Advances From Tenants account had a balance of $10,600. During the year rent payments of $52,000 were received from tenants. At the end of the year an analysis of individual tenant accounts shows that $11,540 of monies received during the year were appropriately to cover next year’s rent and should be set up as Advances from Tenants. What is the proper amount of rental revenue for Hannibal to show in its income statement this year?

Hannibal Apartments Company credits Advances from Tenants whenever a payment is received from tenants. It prepares annual financial statements but no monthly reports. At the start of the year the Advances From Tenants account had a balance of $10,600. During the year rent payments of $52,000 were received from tenants. At the end of the year an analysis of individual tenant accounts shows that $11,540 of monies received during the year were appropriately to cover next year’s rent and should be set up as Advances from Tenants. What is the proper amount of rental revenue for Hannibal to show in its income statement this year?

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 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

See similar textbooks

Similar questions

Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that it will owe 17,400 in property taxes for the year. On June 1, its property taxes are assessed at 17,000, which it pays immediately. Prepare the related journal entries for April 1, May 1, and June 1. Then compute the monthly property tax expense that Cee Co. would record during June through March.
Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1. Interest was paid quarterly, and the note was repaid one year from the time the money was borrowed. RequirementsCalculate the amount of cash payments Zetix was required to make in each of the two calendar years that were affected by the note payable assuming accounting period ends on Dec. 31 each year.
Jacobs Company borrowed $10,000 on a one-year, 8 percent note payable from the local bank on April 1. Interest was paid quarterly, and the note was repaid one year from the time the money was borrowed. Calculate the amount of cash payments Jacobs was required to make in each of the two calendar years that were affected by the note payable.
Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1. Interest was paid quarterly, and the note was repaid one year from the time the money was borrowed. RequirementsCalculate the amount of cash payments Zetix was required to make in each of the two calendar years that were affected by the note payable assuming accounting period ends on Dec. 31 each year. ii. Glen Pool Club, Inc., has a $300,000 mortgage liability. The mortgage is payable in monthly installments of $3000, which include interest computed at an annual rate of 12 percent.RequirementsPrepare a partial amortization table showing (1) the original balance of this loan, and (2) the allocation of the first two monthly payments between interest expense and the reduction in the mortgage’s unpaid balance. (Round to the nearest dollar.)
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
Barton Company has a line of credit with Sea View Bank. Barton can borrow up to $200,000 at any time over the course of Year 2. The following table shows the interest rate expressed as an annual percentage along with the amounts borrowed and repaid during the first three months of Year 2. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. Month January February March Multiple Choice $1,500. Borrowed/ (Repaid) $25,000 (5,000) 20,000 Based on this information, the amount of interest expense Barton would recognize in February is $1,800. $150. Amount $125. Annual Interest Rate 6% 9% 9%
McFriend Inc. records its liabilities for employees’ vacations at the end of each month. McFriend has 50 employees who are paid an average of $176 per day. The company allows 10 paid vacation days per year. For the August 31 payroll, McFriend pays its employees $160,000 for time worked and $10,000 for vacation taken. Required: Prepare the journal entry to record McFriend’s August 31 payroll.
At the beginning of April of the current year, Nickel Pork Corp. borrowed 1,000,000 for 1 yr from EastWest Beynk with an interest rate of 11.99%. As a security, the company hypothecated its accounts receivable amounting to 1,500,000. In advance, the EastWest deducted a year interest. Questions: 1. Journal entry on April 1, in relation to the hypothecation of the accounts receivable. 2. Assume that amortization of interest deducted in advance is to be made equally for the entire loan term. Prepare the journal entry on December 31 of the current year.
The accountant for Eastern Appliances manages the “no money down” arrangements offered to its customers. A customer purchased a refrigerator normally priced at $1,284.53 with all taxes included. Using a required rate of return of 9% compounded quarterly, the accountant determined that, after a deferral period, the customer should make 12 monthly payments of $119.16, with the first payment due on November 1, 2020. On what date was the refrigerator purchased?
On the first day of the fiscal year, Shiller Company borrowed $22,000 by giving a five-year, 12% installment note to Soros Bank. The note requires annual payments of $6,207, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $2,640 and principal repayment of $3,567. Journalize the entries to record the following:
Kevin Devlin's credit card company determines his minimum monthly payment by taking 1.25% of any outstanding principal and adding it to any interest charges then rounding up to the nearest dollar. The credit card company charges an interest rate of 0.089% per day on previous balances. On November 12, Kevin used his credit card to pay for the following business expenses: van repairs ($653), equipment maintenance ($275), office supplies ($164), and dinner with clients ($112). (1) Assuming Kevin had no previous balance, determine his minimum payment due on December 1, his billing date. (ii) On December 1, instead of making his minimum payment, found in part (i). Kevin makes a payment of $400. Assuming there are no additional charges, determine Kevin's minimum payment on January 1.
Cee & Co.’s fiscal year begins April 1. At the beginning of its fiscal year, Cee & Co. estimates that it will owe $17,400 in property taxes for the year. On June 1, its property taxes are assessed at $17,000, which it pays immediately. Required: 1. Prepare the related journal entries for April 1, May 1, and June 1. 2. Then compute the monthly property tax expense that Cee & Co. would record during July through March.