January 1, 2020, Zuhoor Muscat Company had supplies on hand of RO 250. During the year, Zuhoor Muscat Company purchased additional supplies for RO 2,000. A supplies count on December 31, 2020, showed RO 900 of unused supplies. The necessary adjusting :entry to be prepared will include A. None of the options are correct. b. Credit to Supplies RO 1,350. c. Debit to Supplies for RO 900. d. Credit to Supplies expense RO 1,350. e. Debit to Supplies expense RO 3,150.

January 1, 2020, Zuhoor Muscat Company had supplies on hand of RO 250. During the year, Zuhoor Muscat Company purchased additional supplies for RO 2,000. A supplies count on December 31, 2020, showed RO 900 of unused supplies. The necessary adjusting :entry to be prepared will include A. None of the options are correct. b. Credit to Supplies RO 1,350. c. Debit to Supplies for RO 900. d. Credit to Supplies expense RO 1,350. e. Debit to Supplies expense RO 3,150.

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 8RE: At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a...

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At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a tenant during 2020. The company erroneously recorded the transaction by debiting Cash and crediting Rent Revenue in 2019 instead of 2020. Upon discovery of this error in 2020, what correcting journal entry will Framber make? Ignore income taxes.
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 unadjusted trial balance of Recessive Interiors at January 31, 2019, the end of the year, follows: The data needed to determine year-end adjustments are as follows: a. Supplies on hand at January 31 are 2,850. b. Insurance premiums expired during the year are 3,150. c. Depreciation of equipment during the year is 5,250. d. Depreciation of trucks during the year is 4,000. e. Wages accrued but not paid at January 31 are 900. Instructions 1. For each account listed in the unadjusted trial balance, enter the balance in the appropriate Balance column of a four-column account and place a check mark () in the Posting Reference column. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (3) as needed. 3. Journalize and post the adjusting entries, inserting balances in the accounts affected. Record the adjusting entries on Page 26 of the journal. The following additional accounts from Recessive Interiors chart of accounts should be used: Wages Payable, 22; Depreciation ExpenseEquipment, 54; Supplies Expense, 55; Depreciation ExpenseTrucks, 56; Insurance Expense, 57. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of owners equity (no additional investments were made during the year), and a balance sheet. 6. Journalize and post the closing entries. Record the closing entries on Page 27 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 7. Prepare a post-closing trial balance.
Chandra's bakery business has the following account balances at 30 December 2019: Equipment OR 38000, inventories OR 4100, Account payables OR 2650, loan of OR 5000 bank of OR 1090, purchase return 2500, sale 23040 and capital 10000. The total amount of the trial balance is: Select one: a. OR 38660 b. OR 43190 c. OR 30190 d. Correct answer not available e. OR 35540
On June 1, 2022, Superior Insurance Company collected $420,000 for a 2-year insurance policy beginning on the same date. The company has a December 31 year end. What is the balance of the unearned revenue account after adjusting entries on December 31, 2023? (Do not round any intermediary calculations. Round your final answer to the nearest dollar.) Group of answer choices $87,500 $297,500 $210,000 $122,500
Prepare the adjusting entries needed as of December 2020. Write your solutions as description/explanation in each entry. The account names are given below. 1. The balance of the supplies account is a debit of P34,125. The inventory of supplies on December 31 amount s to P14,220. 2. The insurance expense account has a debit balance of P11,700 which represent a one-year premium paid in advance on August 1. 3. The balance of the prepaid rent account is a debit balance of P40,500 which represent 6-month rent received in advance on October 1. 4. Subscription income has a credit balance of P7,020 which represent a one-year subscription to a monthly magazine received in advance on May 31. 5. The advertising expense account includes a debit of P37,024 which represent the cost of advertising contract to publish the company ad in 52 consecutive issues of a weekly magazine. As of December 31, advertisements had appeared in 24 issues already. 6. The balance of the equipment account is a debit…
At January 1, 2020, Zuhoor Muscat Company had supplies on hand of RO 600. During the year, Zuhoor Muscat Company purchased supplies for RO 2,900. On December 31, 2020, the supplies account showed RO 2,000 of used supplies. What is the supplies balance on December 31, 2020, after adjustment?
On March 1, 2020 , Zuhoor Muscat Company received RO 24,000 for services to provided equally over 6 months period starting MarchThe necessary adjusting entry to be prepared on July 31, 2020, will include: O Debit to Cash RO 20,000 . O b of the options are correct . Debit to Unearned Revenue RO 20.000 Od Credit to Service Revenue RO 16,000 . Credit to Unearned revenue RO 24,000
The following pre‐adjustment trial balance appeared in the books of Central Perk Furniture Storeat the end of their financial year. IGNORE VAT.Pre‐adjustment trial balance of Central Perk Furniture Store for the year ended 31 March 2020.Fol. Debit (R) Credit (R)Statement of financial position sectionCapital B1 500 000.00Drawings B2 25 000.00Land and buildings B3 865 000.00Vehicles B4 220 987.00Equipment B5 156 760.00Accumulated depreciation: Equipment(1 April 2019)B6 54 320.00Accumulated Depreciation: Vehicles(1 April 2019)B7 22 580.00Bank B8 22 430.00Debtors Control B9 35 600.00Allowance for Credit Losses‐ 1 April 2019 B10 1 780.25Petty Cash B11 1 378.98Trading inventory (1 April 2019) B12 27 865.43Mortgage Loan B13 287 650.00Creditors Control B14 31 420.00SARS(UIF/SDL/PAYE) B15 23 290.6520 2020© The Independent Institute of Education (Pty) Ltd 2020Page 6 of 7Fol. Debit (R) Credit (R)Nominal accounts sectionSales N1 1 167 371.07Sales Returns N2 25 340.87Purchases N3 520…
On April 1, 2020, Zuhoor Muscat Company paid an insurance company RO 6,012 for an 18 months fire insurance. If the fiscal year of the company ends on July 31 each year. After the company record the required adjusting entry, then the amount to be included in the income statement is ____RO while RO_____ is the correct balance to be reported in the statement of Financial Position at July 31, 2020 respectively: a RO 1,336; RO 6,012 b. RO 1,336, RO 4,676 c. RO 1,000, RO 5,000 d. RO 6,012: RO 6,012
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The following additional information relates to the company’s 2020 financial affairs and was provided in the first week of 2021 and are to be record same as adjusting entries:( Key each transaction by its letter and narrations are not required): O. Accrued salary expense, $19,500. P. Depreciation expense, $6,500. Q. Prepaid insurance expired, $24,000. R. Supplies on hand, $2,500. S. Unearned service revenue earned during 2020, $7,000. 5. Use the transactions in requirement 4 to update the affected T accounts. hello I did this question and in the adjusted journal entries for part R i use the total 16,500 instead of 2500 showing the transaction as dr cr supplies expense 16,500 supplies 16,500 would this be correct and if so why?