TB Problem 3-215 (Algo) Daube Industries' operations for... Daube Industries' operations for the month of July are summarized as follows: Provided $7,600 of services in July on account. Received $3,500 cash from customers for services provided in July. Received $1,300 cash for services to be provided in August. Received $3,200 cash from customers on account for services provided in June. Paid June's warehouse rental bill on account in the amount of $1,200. Received July's warehouse rental bill of $1,300; set it aside to be paid at a later date. Required: Determine the net income for July using the cash basis of accounting. Determine the net income for July using the accrual basis of accounting

TB Problem 3-215 (Algo) Daube Industries' operations for... Daube Industries' operations for the month of July are summarized as follows: Provided $7,600 of services in July on account. Received $3,500 cash from customers for services provided in July. Received $1,300 cash for services to be provided in August. Received $3,200 cash from customers on account for services provided in June. Paid June's warehouse rental bill on account in the amount of $1,200. Received July's warehouse rental bill of $1,300; set it aside to be paid at a later date. Required: Determine the net income for July using the cash basis of accounting. Determine the net income for July using the accrual basis of accounting

Name: TB Problem 3-215 (Algo) DaubeIndustries' operations for...Daube Indus
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Description: TB Problem 3-215 (Algo) DaubeIndustries' operations for...Daube Industries' operations for themonth of July are summarized asfollows:Provided $7,600 of services in July onaccount.Received $3,500 cash from customersfor services provided in July.Recei

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 42E: Exercise 3-42 Revenue and Expense Recognition Omega Transportation Inc., headquartered in Atlanta,...

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Financial statements Outlaw Realty, organized August 1. 20Y7, is owned and operated by Julie Baxter. How many errors can you find in the following financial statements for Outlaw Realty, prepared after its first month of operations? Assume that the cash balance on August 31, 20Y7, is $51,600 and that cash flows from operating activities is reported correctly.
Exercise 3-42 Revenue and Expense Recognition Omega Transportation Inc., headquartered in Atlanta, Georgia, uses accrual-basis accounting and engaged in the following transactions: â€¢ billed customers $3,580,000 for transportation services â€¢ collected cash from customers in the amount of $2,479,000 â€¢ purchased fuel supplies for $1,655.000 cash â€¢ used fuel supplies that cost $1,598,240 â€¢ employees earned salaries of $425,160 â€¢ paid employees $413,380 cash for salaries Required: Determine the amount of sales revenue and total expenses for Omegas income statement.
Brief Exercise 2-30 Transaction Analysis Galle Inc. entered into the following transactions during January. Borrowed $50,000 from First Street Bank by signing a new payable. Purchased $25,000 of equipment for cash. (Continued) Paid $500 to landlord for rent for January. Performed services for customers on account, $10,000. Collected $31000 from customers for services performed in Transaction d. Paid salaries of $2,500 for the current month. Required: Show the effect of each transaction using the following model.
Brief Exercise 2-32 Journalize Transactions Galle Inc. entered into the following transactions during January. January, 1: Borrowed $50,000 from First Street Bank by signing a note payable. January, 4: Purchased $25,000 of equipment for cash. January, 6: Paid $500 to landlord for rent for January. January, 15: Performed services for customers on account. $10,000. January, 25: Collected $3,000 from customers for services performed in Transaction d. January, 30: Paid salaries of $2,500 for the current month. Required: Prepare journal entries for the transactions.
Exercise 2-43 Transaction Analysis Goal Systems, a business consulting firm, engaged in the following transactions: Issued common stock for $75,000 cash. Borrowed $35,000 from a bank. Purchased equipment for $12,000 cash. Prepaid rent on office space for 6 months in the amount of $7.800. Performed consulting services in exchange for $6,300 cash. Perfumed consulting services on credit in the amount of $18,750. Incurred and paid wage expense of $9,500. Collected $10,200 of the receivable arising from Transaction f. Purchased supplies for $1,800 on credit. Used $1,200 of the supplies purchased in Transaction i. Paid for all of the supplies purchased in Transaction i. Required: For each transaction described above. indicate the effects on assets, liabilities, and stockholders equity using the format below.
T ACCOUNTS AND TRIAL BALANCE Sue Jantz started a business in August 20-- called Jantz Plumbing Service. Jantz hired a part-time college student as an administrative assistant. Jantz has decided to use the following accounts: The following transacrions occurred during August: (a) Invested cash in the business, 30,000. (b) Purchased a used van for cash, 8,000. (c) Purchased plumbing equipment on account, 4,000. (d) Received cash for services rendered, 3,000. (e) Paid cash on account owed from transaction (c), 1,000. (f) Paid rent for the month, 700. (g) Paid phone bill, 100. (h) Earned revenue on account, 4,000. (i) Purchased office supplies for cash, 300. (j) Paid wages to student, 500. (k) Purchased a one-year insurance policy, 800. (l) Received cash from services performed in transaction (h), 3,000. (m) Paid cash for advertising expense, 2,000. (n) Purchased additional plumbing equipment for 2,000, paying 500 cash and spreading the remaining payments over the next six months. (o) Earned revenue from services for the remainder of the month of 2,800: 1,100 in cash and 1,700 on account. (p) Withdrew cash at the end of the month, 3,000. REQUIRED 1. Enter the transactions in T accounts, identifying each transaction with its responding letter. 2. Foot and balance the accounts where necessary. 3. Prepare a trial balance as of August 31, 20--.
Comprehensive problem 1 Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. 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 1-15; 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 chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2016, 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, 2016, 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 the journal. (Income Summary is account 34 in the 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.
Exercise 3-44 Revenue Expense and Recognition Carrico Advertising Inc. performs advertising services for several Fortune 500 companies. The following information describes Carricos activities during 2019. At the beginning of 2019, customers owed Carrico $45,800 for advertising services formed during 2018. During 2019, Carrico performed an additional $695,100 of advertising services on account. Carrico collected $708,700 cash from customers during 2019. At the beginning of 2019, Carrico had $13,350 of supplies on hand for which it owed suppliers SS, 150. During 2019, Carrico purchased an additional $14,600 of supplies on account. Carrico also paid $19,300 cash owed to suppliers for goods previously purchased on credit. Carrico had of supplies on hand at the end of 2019. Carricos 2019 operating and interest were $437 and $133,400, respectively. Required: Calculate Carricos 2019 income before taxes. Calculate the ending balance of receivable, the supplies used, and the ending balance of accounts payable. CONCEPTUAL CONNECTION Explain the underlying principles behind why the three accounts computed in Requirement 2 exist.
II. Computational. Look for the balances of the different accounts using the following transactions: A) Invested P50,000 in the business. B) Bought supplies on account amounting to P9,850. C) Received 7,500 cash from clients on account. D) Billed a client for the service rendered P6,000. E) Hired an assistant at a salary of P7,000 per month. Look for the ending of cash. Look for the ending balanceofcash.
6. Listed below are several transactions that took place during the second and third years of operations for the RPG Company. Year 2 Year 3 Amounts billed to customers for services rendered $ 270,000 $ 370,000 Cash collected from credit customers 180,000 320,000 Cash disbursements: Payment of rent 72,000 0 Salaries paid to employees for services rendered during the year 132,000 152,000 Utilities 22,000 32,000 Advertising 11,000 27,000 In addition, you learn that the company incurred advertising costs of $17,000 in year 2, owed the advertising agency $4,200 at the end of year 1, and there were no liabilities at the end of year 3. Also, there were no anticipated bad debts on receivables, and the rent payment was for a two-year period, year 2 and year 3. Required:1. Calculate accrual net income for both years.2. Determine the amount due the advertising agency that would be shown as a liability on RPG’s…
Problem 2: Cash Flow activitiesThe following business activities are available for the month ofAugust.1. Borrowed money from a bank, P120,000.2. Bought supplies on open account, P5,000.3. Received cash from customers in payment of account, P10,000.4. Purchased equipment issuing 30-day promissory note, P30,000.5. Paid Meralco for the electric 9bill for the month, P5,000.6. The owner withdrew P10,000 for his personal use.7. Bought furniture on credit, P6,000.8. Paid P20,000 as partial payment of account with a bank.9. Paid P15,000 as rental for the office space.10. A customer was billed P8,500, and he issued 30-day promissorynote.11. Collected in full the note issued by a customer, P15,000.12. Recorded the office supplies consumed during the month,P1,500.13. Recorded salaries for the month, P50,000.14. The owner withdrew P20,000 in payment of his son’s tuition fee.15. Rendered services to a client, receiving cash for the 50% and a30-day not for the balance, P30,000.16. Issued a 30-day…
Activity 3. Instruction: Compute for the missing amount of the account titles taken from the SPF of independent company. 3. At the end of the first month of operations for Mary Anne's, the business t had the following accounts: Accounts Receivable, Php4,800; Prepaid Insurance, Php15,000; Equipment, Php68,200 andC ash, Php40,650. On the same date, Juana owed the following creditors: Bonny Supply Company, Php42,000 (due in 6 months); Maria's Equipment, Php90,500 (due after 2 years). Current liability is