On November 10 JT's Consulting Services purchased office equipment on ?account for $12,000. Which account is credited Capital O Accounts Payable Equipment O Investment O
Q: Compare and contrast horizontal and vertical analysis?
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: B Limited sells inventory to its parent, W Limited at cost price plus 125% mark-up. • Closing…
A: The term "parent company" indicates a corporation that has a significant ownership stake in another…
Q: Nakamura, CPA, has acceptedan engagment to audit financial statements of Grant Manufacturing…
A: Internal control relates to a system that includes a collection of rules and procedures that an…
Q: Discuss the main challenges in recognising and measuring intangible assets, such as brands, in an…
A: Intangible assets are those assets that lacks physical substance, for example - brand name,…
Q: Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Print Item Transactions and T Accounts The following selected transactions were completed during…
A: When transaction occurs then it is recorded as journal entry in book of accounts. After recording…
Q: Consider the following partially completed schedules of cost of goods manufactured. Compute the…
A: Total manufacturing cost incurred during the period = Direct material used + Direct labour+…
Q: • 4. If during the year total assets increase by Php75,000 and total liabilities decrease by Php…
A: Owner’s Equity :— It is the remaining value of total assets after paying all liabilities. It is the…
Q: Parker Corp. included the following items under its inventory account: Raw materials 1,400,000…
A: According to a trading company, inventory refers to items that are available for sale. In order to…
Q: Ayayal Corporation was organized on January 1, 2022. It is authorized to issue 10,000 shares of 8%,…
A: Stockholders equity is one of the important component of balance sheet of the company. It includes…
Q: A company has, by the end of its financial period, paid out more Tax than it has to ?pay. How would…
A: In this case, the company has paid out taxes more than what it was supposed to pay. So the company…
Q: 3. At the end of the first month of operations for Glenniel's Delivery Service, the business had the…
A: Liabilities are the obligations that an entity has to repay to its creditors or suppliers. These are…
Q: Explain why the value of the leased asset is not recorded at $5,176 ($1,294 x 4). The leased asset…
A: Leased assets refers to those assets which are leased through the owner to another party in return…
Q: Ratio of liabilities to stockholders' equity The following data were taken from Alvarado Company's…
A: Ratio of liabilities to stockholders equity :— It is calculated by dividing total liabilities by…
Q: Question Description Phelp Corporation acquired 80% of the voting stock of Sam Inc. at an…
A: Consolidation means that two or more entries are combined into one by combining their assets,…
Q: Problem 1-19 (AICPA Adapted) Cobb Company sells appliance service contracts ageeing to repair…
A: There are two contract in this question. Each contract has two year service age. Contract 1 has…
Q: Anita Hayes, who owns a travel agency, bought an old house to use as her business office. She found…
A: The fair value of the project or asset would be the present value of its future cash flows. This…
Q: At the beginning of the current year, Tesla Company's work in process inventory account had a…
A: Cost of Goods Manufactured :— The cost of goods manufactured is the calculation of a company's total…
Q: Cost of Goods Manufactured for a Manufacturing Company The following information is available for…
A: Cost of goods manufactured - Cost of Goods Manufactured is the total cost incurred for manufactured…
Q: (please answer a, b)
A: Introduction Master file: A group of documents relating to one of the primary topics of an…
Q: A company produces and sells a single product, the standard unit costs details of which are the…
A: Sales = 14000 (January) & 16000 (February) Production units = 16000 units January & 14500…
Q: Item Recognition of Liability? (Must type yes or no) Account Name (choose the correct answer) $…
A: Liability :— Liability is the future obligations for the Assessee. liability is something a person…
Q: Springwater Brewery has two main products: premium and regular ale. Its operating results and master…
A: Lets understand the basics. Sales mix variance is a variance between the percentage of particular…
Q: The management of K31Corporation has asked your help as an intern in preparing some key reports for…
A: Total Prime Cost :— It is the sum of all direct costs incurred in manufacturing of product.…
Q: You are the staff accountant working at a local tutoring center. The monthly financial statements…
A: Accounting equation represents that the total asset of the entity equal to its Liability and…
Q: Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Determine the dividend payout ratio for the common stock. Round the payout ratio to four decimal…
A: It has been given in the question that common shareholders have the right on the total income of…
Q: How much is the total cost of inventory to be presented in the financial position of XYZ?
A: Inventory valuation is done by the Business Entity as per the rules prescribed under the Relevant…
Q: How large a bonus should the CEO be paid for meeting estimates to encourage extraordinary effort?
A: It has been mentioned in the question that a bonus will be paid to the extraordinary efforts made by…
Q: Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following…
A: Lets understand the basics. High low method is a method using which variable costs and fixed costs…
Q: Delph Company uses a job-order costing system and has two manufacturing departments-Molding and…
A: Predetermined overhead rate is the estimated rate which is determined to compute the estimated…
Q: Marinara Sdn.Bhd. (MSB) makes marine equipment. MSB has been experiencing losses for one of its…
A: Variable costs are those costs and expenses which directly changes with change in activity level or…
Q: What is significant influence and what factors are considered to determine if you have significant…
A: Lets understand the basics. Business combination is made by entity by acquiring another entity. It…
Q: Prepare the balance sheet for 2019
A: The accounting cycle has eight steps starting from identification of transactions, recording them in…
Q: 1. Indicate whether each of the items listed below would be included (I) in or excluded (E) from…
A: The amount of money earned by an individual before any withholdings or taxes are deducted is known…
Q: * ?Paid $7,000 for salaries. Which account is debited Supplies O Salaries Expense O Equipment O Cash…
A: The journal entries are prepared to record the transactions on the regular basis. The different…
Q: Subtracting all expenses from revenues yields Net liabilities O Net profit/Loss O Long-term assets O…
A: Net Liabilities - It is a difference between total debt ( short term + long term ) and cash &…
Q: On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.625%.…
A: Bonds are a form of investment which is secured in terms of fixed coupon or interest payments and…
Q: You are assigned to the petty cash count for the KURDAPIA COMPANY at December 31, 2021. The contents…
A: Petty cash fund refers to the fund which is used for paying off the little or small expenses of the…
Q: Given the following account information for Crane Corporation. Equipment Interest Expense Interest…
A: The Balance sheet of the business organizations shows that the assets on the balance sheet are equal…
Q: For the following treasury bill bought in 2007, find (a) the price of the T-bill, and (b) the actual…
A: (a) Price of T-bill P = $21000 r = 3.04% = 0.0396 t = 9/12 = 0.75 Discount = P x r x t = 21000 x…
Q: 2.77) Which can be cons corporate tax ?-sales commissions property rate equipment depreciati
A: Product cost of manufacturing means the costs incurred to manufacture a product i.e., costs incurred…
Q: Xavier and Yolanda have original investments of $46,000 and $103,600, respectively, in a…
A: Interest on Xavier's original investment = $46,000 x 20% = $9,200 Interest on Yolanda's original…
Q: A 1 Chapter 1: Applying Excel 2 3 Data 4 Sales 5 Variable costs: 6 7 8 9 10 11 Cost of goods sold…
A: Gross Margin - Gross margin is referred to as the amount of profit before making a deduction of…
Q: Consider the concepts of sufficient and appropriate audit evidence. Assess how audit risk relates to…
A: It is responsibility of an auditor to express his opinion on Reliability of financial statements. An…
Q: The management of Vuti has supplied the following sales amounts for the next five months: January…
A: Debtors collection schedule :— It is the schedule that shows the cash collection from debtors of the…
Q: Operation Margin, Current Ration, Mark-up Ratio Part 1: Explain the meaning and the purpose of each…
A: An accounting technique called ratio analysis uses financial data like income and balance sheets to…
Q: On December 31, 2020, a company invested $2,150,000 in an asset. The company estimates that…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: You manage the international business for a manufacturing company. You are responsible for the…
A: Foreign currency refers to the currency which is used through the foreign country as it is…
Q: Capital structure refers to a measure of how long it takes to convert inventory into cash. O True…
A: Cpaital Structure :— Capital Structure is refers to the specific Mix of Debt and Equity used to…
Step by step
Solved in 2 steps with 1 images
- Journal entries and trial balance On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month: a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 17,500. b. Purchased supplies on account, 2,300. c. Earned sales commissions, receiving cash, 13,300. d. Paid rent on office and equipment for the month, 3,000. e. Paid creditor on account, 1,150. f. Paid dividends, 1,800. g. Paid automobile expenses (including rental charge) for month, 1,500, and miscellaneous expenses, 400. h. Paid office salaries, 2,800. i. Determined that the cost of supplies used was 1,050. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Journal entry explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of August 31, 20Y7. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for August. 5. Determine the increase or decrease in retained earnings for August.Journal entries and trial balance On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month: a. Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 40,000. b. Paid rent on office and equipment for the month, 4,800. c. Purchased supplies on account, 2,150. d. Paid creditor on account, 1,100. e. Earned sales commissions, receiving cash, 18,750. f. Paid automobile expenses (including rental charge) for month, 1,580, and miscellaneous expenses, 800. g. Paid office salaries, 3,500. h. Determined that the cost of supplies used was 1,300. i. Paid dividends, 1,500. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of October 31, 20Y6. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for October. 5. Determine the increase or decrease in retained earnings for October.Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
- Valley Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on July 31, 2019, follows: The following business transactions were completed by Valley Realty during August 2019: Aug. 1. Purchased office supplies on account, 3,150. 2.Paid rent on office for month, 7,200. 3.Received cash from clients on account, 83,900. 5.Paid insurance premiums, 12,000. 9.Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, 400. Analyzing Transactions Aug. 17. Paid advertising expense, 8,000. 23.Paid creditors on account, 13,750. Enter the following transactions on Page 19 of the two-column journal: 29.Paid miscellaneous expenses, 1,700. 30.Paid automobile expense (including rental charges for an automobile), 2,500. 31.Discovered an error in computing a commission during July; received cash from the salesperson for the overpayment, 2,000. 31.Paid salaries and commissions for the month, 53,000. 31.Recorded revenue earned and billed to clients during the month, 183,500. 31.Purchased land for a future building site for 75,000, paying 7,500 in cash and giving a note payable for the remainder. 31.Withdrew cash for personal use, 1,000. 31.Rented land purchased on August 31 to a local university for use as a parking lot during football season (September, October, and November); received advance payment of 5,000. Instructions 1. Record the August 1 balance of each account in the appropriate balance column of a four-column account, write Balance in the item section, and place a check mark () in the Posting Reference column. 2. Journalize the transactions for August in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance of the ledger as of August 31, 2019. 5. Assume that the August 31 transaction for Cindy Getmans cash withdrawal should have been 10,000. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry. (c) Is this error a transposition or slide?On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501 (Rent Expense). e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012 (Catering Income). g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307 (Catering Income). i. Received and paid the heating bill, 248, Ck. No. 504 (Utilities Expense). j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128 (Gas and Oil Expense). k. Sold catering services for cash for the remainder of the month, 2,649 (Catering Income). l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506 (Salary Expense). 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.Determining an Ending Account Balance Jessies Accounting Services was organized on June 1. The company received a contribution of $1,000 from each of the two principal owners. During the month, Jessies Accounting Services provided services for cash of $1,400 and services on account for $450, received $250 from customers in payment of their accounts, purchased supplies on account for $600 and equipment on account for $1,350, received a utility bill for $250 that will not be paid until July, and paid the full amount due on the equipment. Use a T account to determine the companys Cash balance on June 30.
- In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001 (Rent Expense). e. Sold services for cash for the first half of the month, 6,927 (Service Income). f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004 (Utilities Expense). i. Received a bill for gas and oil for the truck, 218 (Gas and Oil Expense). j. Sold services on account, 3,603 (Service Income). k. Sold services for cash for the remainder of the month, 4,612 (Service Income). l. Paid wages to the employees, 3,958, Ck. Nos. 30053007 (Wages Expense). m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. 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.EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first month (March 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets= Liabilities + Owners Equity. After each transaction, show the new account totals. (a) Invested cash in the business, 30,000. (b) Bought office equipment on account, 4,500. (c) Bought office equipment for cash, 1,600. (d) Paid cash on account to supplier in transaction (b), 2,000. EFFECTS OF TRANSACTIONS (REVENUE, EXPENSE, WITHDRAWALS) This exercise is an extension of Exercise 2-3B. Lets assume Jon Wallace completed the following additional transactions during March. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owners Equity (Capital Drawing + Revenues Expenses). After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance. (e) Performed services and received cash, 3,000. (f) Paid rent for March, 1,000. (g) Paid March phone bill, 68. (h) Jon Wallace withdrew cash for personal use, 800. (i) Performed services for clients on account, 900. (j) Paid wages to part-time employee, 500. (k) Received cash for services performed on account in transaction (i), 500.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
- On July 1, a client paid an advance payment (retainer) of $10,000, to cover future legal services. During the period, the company completed $6,200 of the agreed-on services for the client. There was no beginning balance in the Unearned Revenue account for the period. Based on the information provided, make the journal entries needed to bring the balances to correct for: A. original transaction B. December 31 adjustmentKelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, 4,500. 5. Received cash from clients on account, 2,450. 9. Paid cash for a newspaper advertisement, 225. 13. Paid Office Station Co. for part of the debt incurred on April 5, 640. 15. Recorded services provided on account for the period May 115, 9,180. 16. Paid part-time receptionist for two weeks salary including the amount owed on April 30, 750. 17. Recorded cash from cash clients for fees earned during the period May 1-16, 8,360. Record the following transactions on Page 6 of the journal: 20. Purchased supplies on account, 735. 21. Recorded services provided on account for the period May 16-20,4,820. 25. Recorded cash from cash clients for fees earned for the period May 17- 23, 7,900. 27. Received cash from clients on account, 9,520. 28. Paid part-time receptionist for two weeks salary, 750. 30. Paid telephone bill for May, 260. 31. Paid electricity bill for May, 810. 31. Recorded cash from cash clients for fees earned for the period May 26-31, 3,300. 31. Recorded services provided on account for the remainder of May, 2,650. 31. Paid dividends, 10,500. Instructions 1. The cl1art of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2018, is shown in Exhibit 17. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1, 2018, and place a check mark () in the Posting Reference column. Journalize each of the May transactions in a two-column journal starting on Page 5 of the journal and using Kelly Consultings chart of accounts. (Do not insert the account numbers in the journal at this time.) 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). (A) Insurance expired during May is 275. (B) Supplies on hand on May 31 are 715. (C) Depreciation of office equipment for May is 330. (D) Accrued receptionist salary on May 31 is 325. (E) Rent expired during May is 1,600. (F) Unearned fees on May 31 are 3,210. 5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of d1e journal. (Income Summary is account #34 in d1e chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance.A business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?