Produce a solution for the following 88 SOLID FOOTINGProblem 7-4 Paying Rent in Advance and theMonthly Prepaid Rent Adjusting EntryChapter 7 - Adjusting EntriesOn June 20, 2023, Amy Smith, owner of Amy's Floral Shop, Inc., signed a contract to rent a retailstore. As part of the contract, Amy paid four months of rent in advance. The rental rate is $3,000per month, thus she paid $12,000 cash in advance when she signed the contract on June 20. Amywill move into the retail store on July 1, 2023, which is the start of her rental period.The company has the accounting policy that all prepaid assets are initially recorded in assetaccounts.The following is a partial list of the accounts in Amy's General Ledger. These are the onlyaccounts you need for this problem.▷ Cash▷ Prepaid Rent (asset account)▷ Rent ExpenseUse the forms on Tabs 7-4 A and 7-4 B in the Excel workbook Chapter 07 c - Problem 7-1 to7-8 Forms to complete this problem.Requirement 1Prepare the General Journal entry to record the $12,000 payment made when the rentalcontract was signed on June 20, 2023.Requirement 2Fill-in the amounts on the Prepaid Rent timeline. The boxes above the timeline show theamount of Prepaid Rent still remaining at various dates during the four month period. Theboxes below the timeline show the amount of Prepaid Rent that expires (is used-up) duringeach of the four months. Hint: The amount that expires will be the same each month.Requirement 3Prepare a "T" account analysis to determine the required July 31 adjustment to the PrepaidRent account.Requirement 4Prepare the July 31 General Journal adjusting entry for Prepaid Rent.Requirement 5Assuming that all monthly General Journal adjusting entries were correctly made:▷ What would be the amount of Prepaid Rent shown on Amy's Floral Shop, Inc.'s BalanceSheet as of August 31, 2023?▷ What would be the amount of Rent Expense on the Income Statement for the periodAugust 1 to August 31, 2023?

Prepaid Rent Another typical illustration of planned spending is prepaid rent, which is a lease…

Answered: Produce a solution for the following

Business

Accounting

Produce a solution for the following

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 40E: Exercise 3-40 Revenue and Expense Recognition Electronic Repair Company repaired a high-definition...

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Exercise 3-40 Revenue and Expense Recognition Electronic Repair Company repaired a high-definition television for Sarah Merrifield in December 2019. Sarah paid $80 at the time of the repair and agreed to pay Electronic Repair $80 each month for 5 months beginning on January 15, 2020. Electronic Repair used $120 of supplies, which were purchased in November 2020, to repair the television. Assume that Electronic Repair uses accrual-basis accounting. Required: In what month or months should revenue from this service be recorded by Electronic Repaid? In what month or months should the expense related to the repair of the television be recorded by Electronic Repair? CONCEPTUAL CONNECTION Describe the accounting principles used to answer the above questions.
Exercise 4-54 Operating Cycle and Current Receivables a. Dither and Sly are attorneys-at-law who specialize in federal income tax law. The): complete their typical case in 6 months or less and collect from the typical client within 1 additional month. b. Johnstons Market specializes in fresh meat and fish. All merchandise must be sold within one week of purchase. Almost all sales are for cash and any receivables are generally paid by the end of the following month. c. Mortondos is a womens clothing store specializing in high-style merchandise. Merchandise spends an average of 7 months on the rack following purchase. Most sales are on credit and the typical customer pays within 1 month of sale. d. Trees Inc. grows Christmas trees and sells them to various Christmas tree lots. Most sales are for cash. It takes 6 years to grow a tree. Required: For each of the businesses described above, indicate the length of the operating cycle.
Exercise 4-6 Prepaid Rent—Quarterly Adjustments On September 1, Northhampton Industries signed a six-month lease for office space, which is effective September 1. Northhampton agreed to prepay the rent and mailed a check for $12,000 to the landlord on September 1. Assume that Northhampton prepares adjusting entries only four times a year: on March 31, June 30, September 30, and December 31. Required 1. Compute the rental cost for each full month. 2. Prepare the journal entry to record the payment of rent on September 1. 3. Prepare the adjusting entry on September 30. 4. Assume that the accountant prepares the adjusting entry on September 30 but forgets to record an adjusting entry on December 31. Will net income for the year be understated or overstated? by what amount? Porter, Gary A.. Financial Accounting: The Impact on Decision Makers (p. 185). Cengage Learning. Kindle Edition.
Required information Exercise 5-19 (Algo) Prepaid expenses—insurance LO 10 Skip to question [The following information applies to the questions displayed below.] A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2019. Exercise 5-19 (Algo) Part d d. If the premium had been $8,880 for a two-year period, how should the prepaid amount at December 31, 2019, be reported on the balance sheet?
Exercise 5-11 (Algo) Bad debts analysis—Allowance account LO 5 On January 1, 2019, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,090. During the first 11 months of the year, bad debts expense of $21,062 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2019, was $9,927. Required: a. What was the total of accounts written off during the first 11 months? (Hint: Make a T-account for the Allowance for Bad Debts account.) b. As the result of a comprehensive analysis, it is determined that the December 31, 2019, balance of the Allowance for Bad Debts account should be $9,341. Show the adjustment required in the journal entry format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) c. During a conversation with the credit manager, one of Tabor's sales representatives learns that a $1,272 receivable from a bankrupt customer has not been written off but was…
34. Unearned rent: Balance beginning of the year P11,000 Balance end of year 15,000Warehouse quarterly rent received in advance is P18,000. During the year, equipment was rented to another company at an annual rent of P9,000. The quarterly rent payments were credited to Rent Income; the annual equipment rental was credited to Unearned Rent. What is the appropriate adjusting entry? a. Debit Rent Income and credit Unearned Rent, P4,000 b. Debit Unearned Rent and credit Rent Income P4,000 c. Debit Rent Income and credit Unearned Rent, P5,000 d. Debit Unearned Rent and credit Rent Income P5,000
Exercise 5-19 (Algo) Prepaid expenses—insurance LO 10 Skip to question [The following information applies to the questions displayed below.]   A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2019. Exercise 5-19 (Algo) Part a (1) a-1. Use the horizontal model to record the above transaction. (Use amounts with + for increases and amounts with – for decreases.)
Required information Exercise 5-19 (Algo) Prepaid expenses—insurance LO 10 Skip to question [The following information applies to the questions displayed below.]   A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2019. Exercise 5-19 (Algo) Part b (2) b-2. Prepare the adjusting entry that will be made at the end of every month to show the amount of insurance premium "used" that month. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Required information Exercise 5-19 (Algo) Prepaid expenses—insurance LO 10 Skip to question [The following information applies to the questions displayed below.]   A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2019. Exercise 5-19 (Algo) Part b (1) b-1. Use the horizontal model to show the amount of insurance premium "used" that month. (Use amounts with + for increases and amounts with – for decreases.)
P8 Prepare the adjusting entry for each of the following situations. The last day of the accounting period is December 31. a. The payment of the P19,000 insurance premium for two years in advance was originally recorded as Prepaid Insurance. One year of the policy has now expired. b. All employees earn a total of P10,000 per day for a five-day week beginning on Monday and ending Friday. They were paid for the workweek ending December 26. They worked on Monday, Dec. 29, Tuesday, Dec. 30 and Wednesday, Dec. 31. c. The Supplies account had a balance of P4,480 on January 1. During the year, P11,000 of supplies were bought. A year-end inventory showed that P6,400 worth of supplies are still on hand. d. Equipment costing P588,000 has a useful life of 5 years with an P80,000 salvage value at the end of its life. Record the depreciation for the year.
SP 11 Review the February 26 and March 25 transactions for Business Solutions (SP 5) from Chapter 5. Feb. 26 The company paid cash to Lyn Addie for eight days’ work at $125 per day. Mar. 25 The company sold merchandise with a $2,002 cost for $2,800 on credit to Wildcat Services, invoice dated March 25. Required 1. Assume that Lyn Addie is an unmarried employee. Her $1,000 of wages have deductions for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $159. Compute her net pay for the eight days’ work paid on February 26. Round amounts to the nearest cent. 2. Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part 1. 3. Record the journal entry to reflect the (employer) payroll tax expenses for the February 26 payroll payment. Assume Lyn Addie has not met earnings limits for FUTA and SUTA (the FUTA rate is 0.6% and the SUTA rate is 5.4% for the company). Round…
Required information Exercise 5-19 (Algo) Prepaid expenses—insurance LO 10 Skip to question [The following information applies to the questions displayed below.] A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2019. Exercise 5-19 (Algo) Part c c. Calculate the amount of prepaid insurance that should be reported on the December 31, 2019, balance sheet with respect to this policy.