On 1/4/2021, Europa Insurance Limited entered into an insurance contract with a customer who paid the annual premium of $300,000 on that date. State, to the nearest whole dollar, the amount Europa Insurance Ltd would report as a liability at 30 June 2021.
Q: On July 1, 2022, Sheridan Company pays $18,500 to Wildhorse Co. for a 2-year insurance contract.…
A: Journal Entry: Date General Journal Debit Credit Jul. 1 Cash $18,500…
Q: A service provider has a 12-month agreement to provide a customer with services for which the custom…
A: Ex post facto: It is a legal term that means that something is being made binding retroactively in a…
Q: Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent…
A: The accrued liability refers to an expense incurred by a business but not yet paid. These are costs…
Q: At December 31, 2020, Crane Corporation owes $ 514,900 on a note payable due February 15, 2021. (a)
A: A current liability is a debt that must be paid up either this year or next year, whichever comes…
Q: Prepaid Insurance amounting to P35,000 was recorded by FDNACCT Co. on April 1, 2021 for a year of…
A: Prepaid insurance is the amount of insurance that is paid by an entity in advance. In other words,…
Q: On January 2, 2020, Culver Company sells production equipment to Fargo Inc. for $ 48,000. Culver…
A: Equipment has a 2-year warranty assurance. So the estimated warranty for 2021 will also be recorded…
Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…
A: Journal: Recording of a business transactions in a chronological order.
Q: The following transaction relate to Tool Company’s contingencies. The financial statements are dated…
A: INTRODUCTION; Liabilities are the debts owed by your business to third parties. They represent the…
Q: On May 1, 2020, Marin Inc. entered into a contract to deliver one of its specialty mowers to…
A: DATE PARTICULARS DEBIT CREDIT a) May 1, 2020 No entry is required as a contract was…
Q: Nakasiguro Company insured its president for P 5,000,000 with an annual premium, paid initially at…
A: The insurance taken here is the key insurance by Nakasiguro company for its president P, to avoid…
Q: On January 1, 2021, Umbrella Insurance Company has collected $24,000 for multiple two-year insurance…
A: Insurance premium for a month = Total premium collected / Period of insurance = $24,000 / 24 months…
Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…
A: Note: Amount for warranty services is not given separatly in the question. So we are taking the…
Q: Indonesia Company had P2,000,000 note payable due on June 30, 2021. Under the existing loan facility…
A: Non-current liabilities are those which are due to be paid in not less than 1 year. Those loans or…
Q: Kohl Co. provides warranties for many of its products. The January 1, 2019, balance of the Estimated…
A: Warranty Expenses is computed by multiplying the Sales amount into the Warranty provision.
Q: On March 1, 2017, Fun Company borrowed 1, 000,000 and signed a 2-year note bearing interest at 12%…
A: Formula: Interest amount = Principal amount x Interest rate x Time period.
Q: Casual Company entered in a franchising contract with a franchisee on January 5, 2021. The contract…
A: Casual Company entered in a franchising contract with a franchisee on January 5, 2021. The contract…
Q: On May 1, 2020, Indigo Inc. entered into a contract to deliver one of its specialty mowers to…
A: Journal entry record the financial transactions. In case money is received in advance, it is…
Q: Bravo Company purchased a two-year insurance policy on August 1, 2021 for P28,800. Using an asset…
A: When insurance is purchased for future years then the expense shall be deferred to future years.
Q: Riviera Interior Design had the following transactions for the year ended 30 June 2020: This…
A: When an event occurs in the business and it can be measured and expressed in terms of money, it…
Q: On April 30, 2019 the Triple Safety Agency received an advance payment of P540,000 for a one-year…
A: Service income should be recognized as revenue when it is earned. Any advance received against which…
Q: 12) MNO Company operates a retail store and must determine the proper December 31, 2020, year-end…
A: Accrued liabilities refer to the amount which is payable to the outsiders within the next operating…
Q: For the year ended Dec. 31, 2020, The Company paid interest totaling P100,000. The prepaid interest…
A: Interest expense refers to the cost which is incurred through the entity for the borrowed funds. It…
Q: On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment for the…
A: Please find below all the journal entries -
Q: The following data relate to the accounts of Wildhorse Company. Unpaid salaries and wages at year…
A: Following Journal entries of the Wildhorse is given below in step 2:
Q: On October 1, 2021, Smash Company discounted its own note of $500,000 at 10% for 1 year. In its…
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…
Q: Shamy Ltd supplies services to Jordan Ltd on 1 July 2019 and sends the invoice on the same day with…
A: Tax is levied on the taxable revenue of the taxpayer.
Q: ABC Ltd pays its employees monthly in arrears. The monthly salaries are $236,820. At the end of the…
A: Journal entry for salary out standing Date Entry Debit Credit 31-12-2020 Salaries A/c…
Q: JLC Inc., franchisor, entered into a franchise agreement with BEA, franchisee, on July 1, 2020. The…
A:
Q: On December 30, 2006, Gannett purchases a general liability insurance agreement for the period of…
A: Prepaid expenses refer to those expenses which are paid in advance. It is recorded as an asset at…
Q: On May 1, 2020, Nash Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo…
A: Date Particulars Debit Credit May 1, 2020 No entry May 15, 2020 Cash $889 Unearned…
Q: Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the year…
A: Answer: C.1,000,000 Accrued liabilities are such liabilities which have not yet been paid during an…
Q: For each of the following situations, indicate the amount shown as current or long-term liability on…
A: The current liability is the liability which is to be paid off within one year.
Q: On January 1, 2020, an entity granted a franchise agreement to a franchisee. The contract provides…
A: On 01.01.2020, Entity granted a franchise agreement to a franchisee Franchise agreement = Franchise…
Q: On July 1, 2020 Walker Inc. signed a $600,000, 15 month, 10% note payable. At due date, the…
A: This is based on bill of exchange, in the given case since note is payable in 15 months and the same…
Q: The adjusted trial balance for Carla Vista Ltd. at October 31, 2021, contained the following:…
A: The financial position of the company can be arrived from the income statement prepared by the…
Q: In the prior year TBTI had paid the entire year’s insurance policy upfront which expired as of…
A: Journal Entry:- A Journal Entry is simply an outline of the debits and credits of the dealing entry…
Q: On October 1, 2021, Smash Company discounted its own note of P500,000 at 10% for 1 year. In its…
A: When a business makes discounting of its own note, then Notes payable will become a liability for…
Q: On July 1, 2021, Guarin Co. obtained fire insurance for a three-year period at an annual premium of…
A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…
Q: For each of the following situations, indicate the amount shown as current or long-term liability on…
A: a) Long-term notes payable are similar to short-term interest-bearing notes payable except the term…
Q: On June 1, 2021, Demer Consulting provides services to a customer for $150,000. To pay for the…
A: The journal entries are prepared to record the day to day transactions of the business during the…
Q: ncluded in Bonita Company’s December 31, 2020, trial balance are the following accounts: Accounts…
A: Liability refers to the amount which is owned by the company to the outsiders. On the basis of…
Q: On January 1, 2019, AAA insurance co. entered into reinsurance contract with CCC Co. for a premium…
A: Reinsurance is an arrangement between an insurance company (insurer) and other insurance company…
Q: Included in Adams Company’s December 31, 2020, trial balance are the following accounts: Accounts…
A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…
Q: On June 18, 2020, Woods Co. received from one of its customers, Webb Co., a 90 day, 11%, $6,000 note…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: AAA Insurance Company issues one year, motor/vehicle insurance for a total premium of P15,000. If it…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Ramos Inc. must determine on December 31, 2020, year-end accruals for advertising and rent expense.…
A: Accrued Liabilities is nothing but an expense incurred by the entity but still has not been paid…
Q: A Franchisor entered into a franchise agreement with B, franchisee, on March 31, 2021. The total…
A: A franchise is an agreement in which the owner of the asset (an asset can be the intangible asset or…
Q: On April 15, 2021, Sampson Consulting provides services to a customer for $110,000. To pay for the…
A: Journal Entry: Journal entry has two effects for every transaction. The journal entry is passed by…
Q: On September 12, 2021, an entity received a 120-day, 9% note for P50,000 for an overdue account from…
A: Total interest on the note = face value of the note x rate of interest x no. of days/360 =…
Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…
A: Note: Amount for warranty services is not given separatly in the question. So we are taking the…
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- 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.On October 1, 2019, Grahams WeedFeed Inc. signs a contract to maintain the grounds for BigData Corp. The contract ends on March 31, 2020, and has a monthly payment of 3,200. The contract does not include any stipulations for additional periods. On June 1, Grahams WeedFeed and BigData sign a new 12-month contract that is retroactive to April 1, 2020. The monthly fee for the new contract is 4,000 per month and is also retroactive to April 1, 2020. During April and May of 2020, while the new contract was being negotiated, Grahams Weed Feed continued to maintain the grounds, and BigData continued to pay 3,200 per month. BigData was satisfied with Grahams WeedFeeds performance, and the only issue during negotiations was the monthly fee. Required: Determine if a valid contract exists between Grahams WeedFeed and BigData during April and May 2020.On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial services. The contract sets the price at 12,000 per year, which is the normal standalone price that Mopps charges. On December 31, 2020, Mopps and Conklin agree to modify the contract. Mopps reduces the fee for the third year to 10,000, and Conklin agrees to a 4-year extension that will extend services through December 31, 2024, at a price of 15,000 per year. At the time that the contract is modified, Mopps is charging other customers 13,500 for the cleaning and janitorial service. Required: Should Mopps and Conklin treat the modification as a separate contract? If so how should Mopps account for the contract modification on December 31, 2020? Support your opinion by discussing the application to this case of the factors that need to be considered for determining the accounting for contract modifications.
- On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)