Answered: Mr. Juma paid the rent three months in…

Name: 4. Mr. Juma paid the rent three months in advance for his shop. Write
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: 4. Mr. Juma paid the rent three months in advance for his shop. Write a short note on prepaid expenses with Literature Review and by providing examples?

Business

Accounting

Mr. Juma paid the rent three months in advance for his shop. Write a short note on prepaid expenses with Literature Review and by providing examples?

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 1SEQ: Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The...

See similar textbooks

Similar questions

Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees? A. June, $15,000; July, $0; and August, $0 B. June, $0; July, $6,500; and August, $8,500 C. June, $8,500; July, $6,500; and August, $0 D. June, $0; July, $8,500; and August, $6,500
In April, J. Rodriguez established an apartment rental service. The account headings are presented below. Transactions completed during the month of April follow. a. Rodriguez deposited 70,000 in a bank account in the name of the business. b. Paid the rent for the month, 2,000, Ck. No. 101 (Rent Expense). c. Bought supplies on account, 150. d. Bought a truck for 23,500, paying 2,500 in cash and placing the remainder on account. e. Bought insurance for the truck for the year, 2,400, Ck. No. 102. f. Sold services on account, 4,700 (Service Income). g. Bought office equipment on account from Stern Office Supply, 1,250. h. Sold services for cash for the first half of the month, 8,250 (Service Income). i. Received and paid the bill for utilities, 280, Ck. No. 103 (Utilities Expense). j. Received a bill for gas and oil for the truck, 130 (Gas and Oil Expense). k. Paid wages to the employees, 2,680, Ck. Nos. 104106 (Wages Expense). l. Sold services for cash for the remainder of the month, 3,500 (Service Income). m. Rodriguez withdrew cash for personal use, 4,000, Ck. No. 107. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
2. Consider the following: On May 5, My bookkeeper received a utility bill for the month of April of $523. She plans on paying the bill on June 5, to take advantage of the 30-day term. Describe the journal entry that will be recorded for April and June, in relation to this bill. Why is there no journal entry for May?
When opening a new business account on QuickBooks in July, but the business actually opened in January, the first statement is that the owner purchased property by signing a $40,000 mortgage note at a 5% interest...how would you post that entry?
As the owner of a hair salon business, you expect to recieve the utility bill on June 14 for the service provided in May. The average monthly bill is around $3,500. 1. When should the utility bill be recorded dated June 14? a) In June, because this is when you received the bill. b) In July, because this is when you will pay the bill. c) In May, because this is when the expense was incurred. Please explain for the answer.
. Assume that a lawyer bills her clients $15,000 on June 30, for services rendered during June. The lawyer collects $8,500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue? A. June, $15,000; July, $0; and August, $0 B. June, $0; July $6,500; and August, $8,500 C. June, $8,500; July $6,500; and August, $0 D. June, $0; July, $8,500; and August, $6,500
Paid $3,070 for the rent for the month. What would be the correct entry into the General Journal?
please quickly i just need answer thanks ! 1. The landlord lady received $8,000 from the tenant as the coming four months' rent. After one month, if the landlord lady doesn't adiust the unearned revenue, what is the influence on her financial statement? A, Liabilities will be understated. B, Owner's equity will be overstated. C. Assets will be overstated. D. Owner's equity will be understated.
How would i compute if she had a net income or net loss? Connie Young , an architect, opened a office on October 1, 2019. During the month, she completed the following transactions connected with her personal practice: a. Transferred cash from a personal bank account to an account to be used for the business, $36,000. b. Paid October rent for the office and workroom, $2,400. c. Purchased used automobile for $32,800 and, paying $7,800 cash and giving a note payable for the remainder. d. Purchased office and computer equipment on account, $9,000. e. Paid cash for supplies, $2,150. f. Paid cash for annual insurance policies, $4,000. g. Received cash from client for plans delivered, $12,200. h. Paid cash for miscellaneous expenses, $815. i. Paid cash to creditors on account, $4,500/ j. Paid $5,000 on note payable. k. Received invoice for blueprint services, due in Novembre, $2,890. l. Recorded fees earned on plans delivered, payment to be received in November, $18,300. m. Paid salary of…
XYZ Company usually purchases office supplies monthly as it needs them and pays for them the following month. Office Supplies would be considered A. an unearned revenue. B. a prepaid expense. C. an accrued revenue. D. an accrued expense.
Applying the matching principle Suppose on January 1, Andrew’s Tavern prepaid rent of $16,800 for the full year. On November 30, how much rent expense should be recorded for the period January 1 through November 30?
Suppose you have a business where you house-sit for people while they are away on vacation. Some of your customers pay you immediately after you finish a job. Some customers ask you to send them a bill. It is now 30th June and you have collected $900 from cash-paying customers. Your remaining customers owe you $1,300. How much service revenue would you have under accrual accounting?