Ön June 1, Hunting Man Magazine collected cash of $63,000 on future annual subscrip- tions starting on July 1. Requirements 1. Journalize the transaction to record the collection of cash on June 1. 2. Journalize the transaction required at December 31, the magazine's year-end, assuming no revenue earned has been recorded. (Round adjustment to the nearest whole dollar.)
Q: On October 1, 2019, Muscat Company borrowed OMR 8,000 cash by signing a note payable due in one year…
A: Note payable is a promissory note which a company sign to borrow an amount of money. A fixed rate of…
Q: In its December 31, 2002 balance sheet, what amount should Kite report as the balance for magazine…
A: Subscription payments, or recurring payments, are frequently repeated tasks. Whenever a buyer has a…
Q: On February 1, Year 1, a company with an August 31 fiscal year-end takes out a five-year, $6,000,000…
A:
Q: On March 1, Happy Day Magazine collected cash of $66,000 on future annual subscriptions starting on…
A: Revenue earned on December 31 = Total annual subscription x no. of months /12 = $66000*10/12 =…
Q: Enter the December 1 balances in the ledger T-accounts and post the December transactions.
A: T accounts or ledger accounts refers to the accounts which were prepared using the journal entries…
Q: Required: 1. Record each of the transactions listed above. 2. Record adjusting entries on January…
A: 1. Date General Journal Debit Credit 2021 $ $ Jan 1 Equipment 19,500 Cash 19,500…
Q: Prepare the journal entry for collection of cash in May
A: Given information is: Get Away, a travel magazine, collected $500,000 in subscription revenue in…
Q: the publisher of Accounting View, a monthly magazine, received $9768 cash on January 1 for new…
A: solution given Cash received $9768 Date of receipt January 1 Period covered 24…
Q: On June 1, Madison Community Magazine receives $75,850 in cash for magazine subscriptions covering…
A:
Q: On April 1, a company provides services to one of its customers for $14,000. As payment for the…
A: The company would charge the 6 months interest on the payment
Q: An entity received cash of P24,000 on August 1 for one-year's rent in advance and recorded the…
A:
Q: A company receives a $50,000 cash deposit from a customer on October 15 but will not deliver the…
A: Solution:- Introduction:- The following basic information as follows:- company receives a $50,000,…
Q: Publishing completed the following transactions during 2018 Oct 1: Sold a six-month subscription…
A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…
Q: Scan House, Inc. prepares financial records during the year on a cash basis. As the newly appointed…
A:
Q: On January 1, 2022, the ledger of Sunland Company contained these liability accounts. Accounts…
A: When a liability has to be settled within one operating cycle or 1 year it is called current…
Q: Journalize the December transactions. (
A:
Q: The following transactions occurred during 2021 for the Beehive Honey Corporation: Feb. 1 Borrowed…
A: Interest = Amount Borrowed×9%×1112=$14,000×9%×1112=$1,155
Q: On November 1, Year 1, a company borrows $47,000 cash from Community Savings and Loan. The company…
A: Interest Notes Payable - Interest on Notes Payable is an expense for the company. If it says…
Q: Raylan received a $69,000 cash advance payment on June 1, Year 1, for consulting services to be…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: On September 30, the firm received its utilities bill for the month of September amo to P14,300.…
A: Income Statement The income statement is defined as the financial statement that explains the…
Q: On November 1, 2021, a company receives cash of $6,000 from a customer for services to be provided…
A: Given information is: On November 1, 2021, a company receives cash of $6,000 from a customer for…
Q: The following transactions occurred during December 31, 2021, for the Falwell Company. A…
A: Adjusting entry: At the end of the year if the any transaction is not recorded then it passed the…
Q: On September 1, Starr Guitar Corp, borrowed $24,000 from their bank, and signed a 8%, 3- month bank…
A: Formula used: Interest amount = Loan amount x Time period x Interest rate
Q: On January 1, 2022, the ledger of Sunland Company contained these liability accounts. Accounts…
A: Journal entry:-Way of recording any transaction of a company with debit and credit side. It works on…
Q: Kite Company sells magazine subscriptions of one to three-year periods. Cash receipts from…
A: The Magazine subscription revenue is calculated using the following formula:- Subcription Revenue…
Q: On April 1, 2021, the cash balance was $13,000. During April, the company collected $4,000 and made…
A: The cash account is a debit balance account, and it is an current asset for the company. The cash…
Q: At the beginning of the year, Choice Advertising owed customers $2,200 for uneamed revenue collected…
A:
Q: A business had a balance at the bank of $2,500 at the start of the month. During the following…
A: A settlement discount is used in business where a business offers another business a rebate when a…
Q: Using accrual accounting rules, ABC Co. receives a deposit of $2,000 on January 1, 2022, for…
A: There are two type of basis which are used in accounting. One is cash basis of accounting and other…
Q: Jazz company prepared their income statement using the cash basis for the month ending May 31. The…
A: Companies that adopt the cash basis of accounting only record revenues and expenses when cash is…
Q: year, a company provides sevices... During the current year, a company provides services on account…
A: Cash flows are the cash generated from the operation of the business organisation. In other words,…
Q: Jordan Company’s annual accounting year ends on December 31. It is now December 31, 2018, and all of…
A: Income tax expense=$30,000×30%=$9,000
Q: Limerick Company maintained the accounting records using the cash basis of accounting. During the…
A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…
Q: On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account…
A: Financial Statements - Financial Statements includes Income statement, Balance Sheet and Statement…
Q: On October 1, the company lent $50,000 to a customer. The customer signed a note that required…
A: Calculate the interest income during the year:
Q: On December 1, 2020, Sheridan Distributing Company had the following account balances. Debit…
A: Journal entry is a record of financial transaction in the books of accounts maintained by an…
Q: Jordan Company's annual accounting year ends on December 31. It is now December 31, 2018, and all of…
A: 1. Record adjusting entry for each transaction at December 31, 2018 as shown below:
Q: The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing…
A: Balance Sheet is a financial statement that generally reports the assets, liabilities and…
Q: (a) On September 30, the firm received its utilities bill for the month of September amounting to…
A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred…
Q: On September 1, Sky Mountain Co. borrowed $200,000 on a 6%, 9- month note payable to Coast National…
A: Adjusting entries are passed with a view to make the relevant changes in the entries that have…
Q: (a) On September 30, the firm received its utilities bill for the month of September amounting to…
A: A trial balance's main function is to confirm that the entries in a firm's accounting system are…
Q: Post into ledger accounts
A: T accounts or ledger accounts refers to the accounts which were prepared using the journal entries…
Q: ABD Company pays a weekly payroll of $285,000 that includes federal taxes withheld of $38,100, FICA…
A: Payroll Payable: It is the net amount of compensation paid to the employees on the agreed date.…
Q: Stephen's Ontime Delivery (SOD) is a delivery company. On January 1, 2019, one of its customers paid…
A: Income Received in advance is the amount that the company receives with out actually rendering…
Q: repare the journal entry for collection of cash in May
A: Given information is: Get Away, a travel magazine, collected $500,000 in subscription revenue in…
Q: On March 1, the Garner Corporation borrowed $75,000 from the First Bank of Midlothian on a 1-year,…
A: Calculate interest expense:Interest expense = Notes payable * Interest rate * Time periodInterest…
Q: On December 1, 2020, Sheridan Distributing Company had the following account balances. Debit…
A: Journal entries:
Q: For each of the transactions, if an expense is to be recognized in January, indicate the amount.…
A: Accrual basis implies that the expenses and revenues are recognized as and when it's due…
Q: Jordan Company’s annual accounting year ends on December 31. It is now December 31, 2018, and all of…
A: Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by…
Q: Below are transactions for Wolverine Company during 2021.1. On December 1, 2021, Wolverine receives…
A: The adjusting entries are prepared at the end of the year to show the correct amount of expenses and…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Reversing Entries Thomas Company entered into two transactions involving promissory notes and properly recorded each transaction. 1. On November 1, it purchased land at a cost of 8,000. It made a 2,000 down payment and signed a note payable agreeing to pay the 6,000 balance in 6 months plus interest at an annual rate of 10%. 2. On December 1, it accepted a 4,200, 3-month, 12% (annual interest rate) note receivable from a customer for the sale of merchandise. On December 31, Thomas made the following related adjustments: Required: 1. Assuming that Thomas uses reversing entries, prepare journal entries to record: a. the January 1, reversing entries b. the March 1, 4,326 collection of the note receivable c. the May 1, 6,300 payment of the note payable 2. Assuming instead that Thomas does not use reversing entries, prepare journal entries to record the collection of the note receivable and the payment of the note payable.Accrued Interest On May 1, the Garnett Corporation wanted to purchase a $200,000 piece of equipment, but Garnett was only able to furnish $75,000 of its own cash to purchase the equipment. Garnett borrowed the remainder of the $200,000 from the Peoples National Bank on a 3-year, 4% note. Required: If the company keeps its records on a calendar year, what adjusting entry should Garnett make on December 31?On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700
- Adjustment process and financial statements Adjustment data for Ms. Ellen’s Laundry Inc. for the year ended December 31, 20Y8, are as follows: a. Wages accrued but not paid at December 31. $2150 b. Depreciation of equipment during the year. $12500 c. Laundry supplies on hand at December 31. $1,500 d. Insurance premiums expired. $4600 Instructions Prepare a statement of cash flows for the year ended December 31. 20Y8.Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1, 2019, to provide plant watering services for Lola Inc.s office buildings. Jennifers received 4 months' service fees in advance on signing the contract. Required: 1. Prepare Jennifers journal entry to record the cash receipt for the first 4 months. 2. Prepare Jennifers adjusting entry at December 31, 2019. 3. CONCEPTUAL CONNECTION How would the advance payment (account(s) and amounts(s)] be reported in Jennifers December 31, 2019, balance sheet? How would the advance payment [account(s) and amount(s)] be reported in Lolas December 31, 2019, balance sheet?Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes Occurred during December: Dec. 2. Issued Check No. 410 for 3,400 to Jay Bank to invest in a retirement savings account for employees. 2. Issued Check No. 411 to Jay Bank for 27,046, in payment of 9,273 of social security tax, 2,318 of Medicare tax, and 15,455 of employees federal income tax due. 13. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Dec. 13. Issued Check No. 420 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 13. Journalized the entry to record payroll taxes on employees earnings of December13: social security tax, 4,632; Medicare tax, 1,158; state unemployment tax, 350; federal unemployment tax, 125. 16. Issued Check No. 424 to Jay Bank for 27,020, in payment of 9,264 of social security tax, 2,316 of Medicare tax, and 15,440 of employees federal income tax due. 19. Issued Check No. 429 to Sims-Walker Insurance Company for 31,500, in payment of the semiannual premium on the group medical insurance policy. 27. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: 27. Issued Check No. 541 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 27. Journalized the entry to record payroll taxes on employees earnings of December27: social security tax, 4,668; Medicare tax, 1,167; state unemployment tax, 225; federal unemployment tax, 75. 27. Issued Check No. 543 for 20,884 to State Department of Revenue in payment of employees state income tax due on December 31. 31. Issued Check No. 545 to Jay Bank for 3,400 to invest in a retirement savings account for employees. 31. Paid 45,000 to the employee pension plan. The annual pension cost is 60,000. (Record both the payment and unfunded pension liability.) Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: operations salaries, 8,560; officers salaries, 5,600; office salaries,1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 15,000.
- The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?Cash Receipts from Customers Singleton Inc. had accounts receivable of $22,150 at January 1, 2019, and $26,850 at December 31, 2019. Net income for 2019 was $125,300 and sales revenue was $1,240,000. Required: Compute the amount of cash collected from customers using the direct method.