Prepare journal entries for each of the following transactions for a company that has a fiscal year-end of December 31: (1) on October 1, $12,000 was paid for a one-year fire insurance policy; (2) on June 30 the company advanced its chief financial officer $10,000; principal and interest at 6% on the note are due in one year; and (3) equipment costing $60,000 was purchased at the beginning of the year for cash.

Q: The year-end adjusted trial balance of the Timmons Tool and Die Corporation included the following…

A: Closing Entries:Closing entries are those journal entries which are passed to transfer the balances…

Q: The prepaid insurance account shows a debit of $5,280, representing thecost of a 2-year fire…

A: Since nothing is mentioned, it is assumed that the requirement of the question is to prepare the…

Q: Fifteen transactions or events affecting Drillmasters, Inc., are as follows:   Made a year-end…

A: The expenses from revenues are deducted to calculate the net income or loss. The net income or loss…

Q: On July first frilei company purchased a one year insurance policy by paying 4200 dollars prepare…

A: Prepaid expenses: A prepaid expense is a type of asset on the balance sheet that results from a…

Q: On April 1, Otisco, Inc. paid Garcia Publishing Company $2,268 for 36-month subscriptions to several…

A: Given,  Subscriptions paid in advance on April = $2,268 April to December = 9 months

Q: On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month…

A: Given: Total subscription =$1548Total Period =36 months Total months in 2 year=12 months (from April…

Q: The following information relates to the Blossom Magazine Company at the end of 2020. The accounting…

A: 1. Adjusting Entries - Adjusting Entries are made at the end of the year. It helps to distinguish…

Q: The following information is available for ABC Inc. on April 30 for the year just ended. a. Unpaid…

A: Adjusting journal entries are those journal entries which are passed at the end of the period for…

Q: On July 1 of the current calendar year, Olive Co. paid $8,700 cash for management services to be…

A: Increase in assets should be debited and decrease in assets should be credited. Increase in expenses…

Q: Buster Industries pays weekly salaries of $30,000 on Friday for a five-day week ending on that day.…

A: Accrued expense: This is the expense incurred but not yet paid. It is treated as liability until the…

Q: Shown below are three independent situations: a.The Prepaid Insurance account had a debit balance…

A: The journal entries are prepared to keep the record of day to day transactions of the business.  The…

Q: On January 1, a company with a December 31 fiscal year-end purchases some equipment for $1 million.…

A: Purchase price of equipment = $1million As per Real account rule, we DEBIT what comes in and CREDIT…

Q: what amount of tuition revenue should the college recognize on february 28

A: MEANING OF UNEARNED REVENUE Unearned revenue is the amount received by the company for the services…

Q: Adjusting and Closing Entries and Post-Closing Trial Balance Accounts of Pioneer Heating Corporation…

A: Adjusting entries: Adjusting entries are those entries that are recorded at the end of the year, to…

Q: On June 1, Madison Community Magazine receives $75,850 in cash for magazine subscriptions covering…

A:

Q: On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month…

A: Revenues are the items which generates cash inflow to the company by selling of the products.…

Q: For each scenario, write ALL of the general journal entries necessary for the 2013 fiscal year using…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On May 1, a two-year insurance policy was purchased for $9,600 with coverage to begin immediately.…

A: Insurance expense is the amount of insurance premium which is expired in the given time period. It…

Q: d adjusting entry to accrue interest on a note payable that has the interest rate stated separately…

A: Every transaction affects two accounts from among revenue, expense, assets, liabilities or capital.

Q: St Thomas Yacht Services, Inc. had the following transactions during its first month of operations:…

A: Journal Entries - Every transaction entered into by the business are recorded in the form of journal…

Q: Mobo, a wireless phone carrier, completed its first year of operations on October 31. All of…

A: Accrual adjusting entries or just accruals are one of three kinds of altering passages which are set…

Q: On July 1, Mitchell Company receives 20 months of rent in advance, $41,360. Mitchell Company's…

A: July 1 to December 31 = 6 months Total rent paid in advance = $41,360

Q: Ouellette & Associates began operations on January 1, 2021. Its fiscal year-end is December 31 and…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: Fifteen transactions or events affecting Westmar, Inc., are as follows:a. Made a year-end adjusting…

A: Income Statement: is a reflection of how the business has performed in the current year and how much…

Q: n its first year of operations, Crane Company recognized $22,400 in service revenue, $4,800 of which…

A: In the above question we have asked to calculated net income under cash & accrual accounting…

Q: On April 1, a publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to…

A: Whenever the revenues are earned it needs to be recorded at the given time of sales for the period.

Q: On May 1 of Year 1 Mills Enterprises paid $3,780 cash for an insurance policy that would provide…

A: May 1 Year 1 to Dec. 31 Year 1 = 8 months Insurance expired = $3,780*8/12 Insurance expired = $2,520…

Q: On September 1, Year 1, Zelda Company collected $120,000 cash for services to be provided for one…

A: Given, Cash collected for the services to be provided in one year = $120,000 The fiscal year of the…

Q: Fifteen transactions or events affecting Drillmasters, Inc., are as follows: 1. Made a year-end…

A: Net income refers to the income earned after deduction of the company’s expenditures from the…

Q: On May 1, a company with a July 31 fiscal year-end receives an advance payment of $24,000 from a…

A: Revenue earned on July 31 = Total amount received x no. of months / 12 = $24,000 x 3 months / 12…

Q: insurance expense

A: Number of months expired from the date of payment of premium (July 1) till the date of income…

Q: Carmel of Fargo, North Dakota, publishes a monthly magazine featuring local restaurant reviews and…

A: Unearned Subscription Revenue: Unearned Subscription Revenue means money received from the customer…

Q: Bailey Corporation, prepares the following adjustments required at the end of the month on July 31:…

A: Solution: Utilities expense = $568 Salaries expense due = 4*4*103 = $1648 Interest revenue accrued…

Q: The year-end adjusted trial balance of the Tydne Tool and Die Corporation included the following…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: X Company prepares monthly financial statements. The following transactions occurred on October 1:…

A: Adjusting entries are those journal entries which are passed at the end of the period for the…

Q: Required Information [The following information applies to the questions displayed below.] During…

A: Accrued liabilities: An accrued liability is an expense that a business has incurred but has not yet…

Q: Indicate the effects of each of these transactions upon the following elements of the company’s…

A:

Q: Allen Company received $12,000 cash from Gerry Corporation for cleaning services that Allen agrees…

A: Date Particulars Debit Amount Credit Amount June 1, Year 1 Bank A/c ......................Dr…

Q: All revenue and expense accounts have been closed at the end of the calendar year for ABC Company.…

A: Drawings accounts are closed to Owner's capital and decreases Owner's capital. Income summary (Net…

Q: In its first year of operations, Pharoah Company recognized $31,800 in service revenue, $6,400 of…

A: Cash basis is a major accounting method that recognizes revenues and expenses at the time cash is…

Q: Issued $14,000 of QCI stock for cash. Incurred $650 of utilities costs this month and will pay them…

A: Journal entries ais a process of recording and classifying business transactions into books of…

Q: The year-end adjusted trial balance of Hilltoppers Corporation included the following account…

A: Trial Balance: Trial balance is a statement of all the general ledger accounts of a business. This…

Q: At 31 December 20X5 the following require inclusion in a company's financial statements: On 1…

A: Interest on loan=Loan amount×Rate=$12,000×2%=$240

Q: At the end of the year, the company records an adjusting entry to accrue $125,000 of wages owed to…

A: Under accrual basis of accounting transactions are recorded and when they occur irrespective of cash…

Q: For each of the following separate situations, determine the amount of expense each company should…

A: In case of accrual basis of accounting, Income is recognised as and when earned and expense is…

Q: A company has a fiscal year-end of December 31: (1) on October 1, $13,000 was paid for a one-year…

A: The financial transactions are initially recorded in the form of journal entry and posted to the…

Q: In its first year of operations, Crane Company recognized $22,400 in service revenue, $4,800 of…

A: Under cash basis accounting, the revenue and expenses are recognised when cash transactions are…