Salaries and wages expense 51,800 Cash 13,400 Utilities expense 22,500 Accounts receivable 9,500 Equipment 29,100 Accumulated depreciation-equipment 6,300 Accounts payable 4,500 Owner's drawings 3,800 Service revenue 61,100 Depreciation expense 4,500 Rent revenue 8,700 Owner's Capital (beginning of the year) 50,600 Income statement

Salaries and wages expense 51,800 Cash 13,400 Utilities expense 22,500 Accounts receivable 9,500 Equipment 29,100 Accumulated depreciation-equipment 6,300 Accounts payable 4,500 Owner's drawings 3,800 Service revenue 61,100 Depreciation expense 4,500 Rent revenue 8,700 Owner's Capital (beginning of the year) 50,600 Income statement

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2MC: Vorst depreciates Asset A on the double-declining-balance method. How much depreciation expense...

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Classification of Assets and Liabilities Indicate the appropriate classification of each of the following as a current asset (CA), noncurrent asset (NCA), current liability (CL), or long-term liability (LTL). ______ 1. Inventory ______ 2. Accounts payable ______ 3. Cash ______ 4. Patents ______ 5. Notes payable, due in six months ______ 6. Taxes payable ______ 7. Prepaid rent (for the next nine months) ______ 8. Bonds payable, due in ten years ______ 9. Machinery
Adjustment for depreciation The estimated amount of depredation on equipment for the current year is $133,000. a. How is the adjustment recorded? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. b. If the adjustment in (a) was omitted, which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as of December 31?
Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense at December 31, 2020, if the double-declining-balance method were used? a. $187,200 b. $192,000 c. $195,200 d. $312, 000
Vorst depreciates Asset A on the double-declining-balance method. How much depreciation expense should Vorst record in 2020 for Asset A? a. 32,000 b. 25,600 c. 14,400 d. 6,400
A property company received cash for rent totalling $838,600 in the year ended 31 December 20X6.Figures for rent in advance and in arrears at the beginning and end of the year were:31 December 20X5 31 December 20X6$ $Rent received in advance 102,600 88,700Rent in arrears (all subsequently received) 42,300 48,400What amount should appear in the company's statement of profit or loss for the year ended 31December 20X6 for rental income?
TV 10, a service business had the following information for the year 2018: Service Revenue – accruing for current year P 1,000,000 Collections during the year: For service income – last year 300,000 For service income – current year 800,000 For service income – next year 100,000 Expenses actually incurred during the year 500,000 Expenses paid during the year 600,000 How much is the taxable income?
A Company reported the following balances on its unadjusted trial balance as of December 31, 2021:Assets P870,000Liabilities 250,000Equity 110,000Revenues 630,000Expenses 120,000 The following adjustments were noted: a. The total premium paid on March 31, 2020, was P40,000 for a four-year fire insurance policy. This was initially recorded as an asset.b. Depreciation of office equipment purchased on October 1, 2021 with a depreciable amount of 50,000, useful life of 5 years based on straight line method and a residual value of P5,000.c. The Company issued a note for P30,000 for its September 1 purchase of merchandise. The note is dated on the same date, matures in 6 months and bears 5% interest. d. Rent income received from tenant on November 1, 2021 representing four months’ rent amounted to P20,000. This was recorded as a credit to a real account.e. An allowance for doubtful accounts of 1% of the accounts receivable is to be established. Accounts receivable amounted to…
A property company received cash for rent totalling $838,600 in the year ended 31 December 20X6. Figures for rent in advance and in arrears at the beginning and end of the year were: 31 December 20X5 31 December 20X6 $ $ Rent received in advance 102,600 88,700 Rent in arrears (all subsequently received) 42,300 48,400 What amount should appear in the company's statement of profit or loss for the year ended 31 December 20X6 for rental income? A $818,600 B $738,000 C $939,200 D $858,600
PROVIDE COMPUTATION! 5. Cumulative compensation expense at the end of year 1a. P407,000 c. P430,000b. P645,000 d. P82,500 6. Cumulative compensation expense at the end of year 2a. P1,290,000 c. P810,000b. P330,000 d. P822,000 7. Cumulative compensation expense at the end of year 3a. P1,221,000 c. P1,215,000b. P1,290,000 d. P1,500,000
3. Identify the following transactions as either Capital Expenditure or Revenue Expenditure.i). Depreciation expense for financial year ended 2019 amounting to $25,000.ii). Buy vehicle for business use amounting to $45,000.iii). Pay salary and wages for November 2019 amounting to $4,200.iv). Buy File for office use amounting to $750.v). Acquire a building amounting to $100,000.vi). Repair office Window amounting to $700.
A company has depreciation of $250,000 for the year. Interest is $75,000 on an outstanding loan of $1,000,000. Employee pay, outside services, repairs, utilities, transportation, legal fees, and similar expenses are $2,150,000. Taxable income is $225,000. What is the gross income for the year? a. $3,700,000 b. $2,700,000 c. $2,625,000 d. $1,700,000.
The amount to be reported as expenses (excluding depreciation) in Seri’s income statement is A. P60,000 B. P100,000 C. P65,000 D. P67,000