Transaction 6 is a monthly fee paid to Shopify. If instead of monthly payments, Just for Kicks had to pay $4,800 in February for a year’s service, what would have been the impact on the February financial statements?
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- Transaction 6 is a monthly fee paid to Shopify. If instead of monthly payments, Just for Kicks had to pay $4,800 in February for a year’s service, what would have been the impact on the February financial statements?
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- Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees? A. June, $15,000; July, $0; and August, $0 B. June, $0; July, $6,500; and August, $8,500 C. June, $8,500; July, $6,500; and August, $0 D. June, $0; July, $8,500; and August, $6,500Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
- If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium, which was paid on July 1, what entry would be needed to adjust the Prepaid Insurance account at the end of December, before preparing the financial statements?If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customer’s ending balance for the month would show a (debit or credit) of how much?During the month of March, Harley's Computer Services made purchases on account totaling $46,100. Also, during the month of March, Harley was paid $11,900 by a customer for services to be provided in the future and paid $38,200 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $78,600, what is the balance in accounts payable at the end of March? Mutiple Choice 86,500 98,400 7,900 74,600 6,200
- XYZ Company usually purchases office supplies monthly as it needs them and pays for them the following month. Office Supplies would be considered A. an unearned revenue. B. a prepaid expense. C. an accrued revenue. D. an accrued expense.Below are transactions for Lobos, Inc., during the month of December. Calculate the amount of revenue to recognize in December. If the transaction does not require the company to recognize a revenue, indicate how it would report the transaction. a. Receive $1,200 cash from customers for services to be provided next month. b. Perform $900 of services during the month and bill customers. Customers are expected to pay next month. c. Perform $2,300 of services during the month and receive full cash payment from customers at the time of service.At the end of April, Hernandez Company had a balance of $37,910 in the vacation benefits payable account. During May, employees earned an additional $2,950 in vacation benefits, but some employees used vacation days that amounted to $2,060 of the vacation benefits. The $2,060 was charged to Wages Expense when it was paid in May. What adjusting entry would Hernandez Company make at the end of May to bring the vacation benefits payable account up to date? If an amount box does not require an entry, leave it blank or enter "0". Account Debit Credit Vacation Benefits Expense Vacation Benefits Payable
- As the owner of a hair salon business, you expect to recieve the utility bill on June 14 for the service provided in May. The average monthly bill is around $3,500. 1. When should the utility bill be recorded dated June 14? a) In June, because this is when you received the bill. b) In July, because this is when you will pay the bill. c) In May, because this is when the expense was incurred. Please explain for the answer.On July 1 Fisher Shoe Store paid $24,000 to Acme Realty for 6 months’ rent beginning July 1 and recorded the full amount of this payment as Prepaid Rent. If financial statements are prepared each month, Fisher Shoe Store’s financial statements for the month ending August 31 will report: Select one: a. Rent Expense, $4,000; Prepaid Rent, $16,000 b. None of the other choices is correct c. Rent Expense, $8,000; Prepaid Rent, $16,000 d. Rent Expense, $0; Prepaid Rent, $0 e. Rent Expense, $4,000; Prepaid Rent, $20,000Shel Katz bought a $6,000 desk at Furniture.com. Based on her income, Shel could only afford to pay back $600 per month. The charge on the unpaid balance is 2% each month. The U.S. Rule is used in the calculation. Calculate the balance outstanding at the end of month 2.
