USE THE FOLLOWING DATA FOR QUESTIONS 24& 25The Duke of Earl operates a catering enterprise. His accounting records at the end of2008 included the following data:ITEMSEXPENSESa. Office expenses :b. Wages & SalariesREVENUEc. Commission Incomed. Rent IncomeSTART OF THEYEARa. $35,000b. $45,000c. $55,000d. $65,000Prepaid 5,000Owed 10,000a. $20,000b. $24,000c. $26,000d. $30,000Owed 3,000Prepaid 7,000DURING THEYEARPaid 15,000Paid 50,000END OF THEYEAROwed 2,500Prepaid 5,000Received 25,000Received 12,000 Owed 1,000Prepaid 2,00024. The amount that must be shown in the income statementas Wages & Salaries expense forthe year is25. The amount that must be shown in the income statement asCommission Income for theyear is

The deferred and accruals are adjusted at the year end to get the actual expenses and revenues for…

USE THE FOLLOWING DATA FOR QUESTIONS 24 & 25 The Duke of Earl operates a catering enterprise. His accounting records at the end of 2008 included the following data : ITEMS EXPENSES a. Office expenses : b. Wages & Salaries START OF THE YEAR REVENUE c. Commission Income d. Rent Income Prepaid 5,000 Owed 10,000 Owed 3,000 Prepaid 7,000 DURING THE YEAR Paid 15,000 Paid 50,000 Prepaid 5,000 Received 25,000 END OF THE YEAR Received 12,000 Owed 2,500 Prepaid 2,000 Owed 1,000

USE THE FOLLOWING DATA FOR QUESTIONS 24 & 25 The Duke of Earl operates a catering enterprise. His accounting records at the end of 2008 included the following data : ITEMS EXPENSES a. Office expenses : b. Wages & Salaries START OF THE YEAR REVENUE c. Commission Income d. Rent Income Prepaid 5,000 Owed 10,000 Owed 3,000 Prepaid 7,000 DURING THE YEAR Paid 15,000 Paid 50,000 Prepaid 5,000 Received 25,000 END OF THE YEAR Received 12,000 Owed 2,500 Prepaid 2,000 Owed 1,000

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter3: Processing Accounting Information

Section: Chapter Questions

Problem 3.1DC

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Carla Vista Co. was organized on April 1, 2021, by Margaret Moore. Margaret is a good manager but a poor accountant. Margaret used information from the unadjusted tabular summary to prepare the following income statement for the quarter that ended March 31, 2022. Carla Vista Co.Income StatementFor the Quarter Ended March 31, 2022 Revenues Rent revenue $79,680 Operating expenses Advertising expense $4,032 Salaries and wages expense 26,496 Utilities expense 1,440 Depreciation expense 768 Maintenance and repairs expense 2,688 Total operating expenses 35,424 Net income $44,256 Margaret knew that something was wrong with the statement because net income had never exceeded $20,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the income statement and other data.You first look at the accounting…
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Required information Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September a. $ 6,400 $ 1,700 b. 2,700 2,800 c. 133,300 9,900 Exercise 11-8 (Algo) Payroll-related journal entries LO P2 Assuming situation (a), prepare the employer’s September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee’s federal income taxes withheld by the employer are $60 for this pay period.
A vertical analysis of two income statements for Danielle's Design Services is shown below: Danielle's Design Services Income Statements For Years 1 and 2 Ending December 31 Year 2 Year 1 Amount Percent Amount Percent Fees earned $765,340 100.0% $696,520 100.0% Operating expenses: Wages expense $254,000 33.2% $214,600 30.8% Rent expense 120,000 15.7% 108,000 15.5% Supplies expense 76,500 10.0% 98,715 14.2% Miscellaneous expense 11,680 1.5% 16,420 2.4% Total operating expenses $462,180 60.4% $437,735 62.9%* Net income $303,160 39.6% $258,785 37.1%* *Differences due to rounding Which of the following analyses reflect the data given? a.Wages expense and miscellaneous expense show an unfavorable trend, and rent and supplies expenses show an unfavorable trend. b.Wages expense and rent expense show a favorable trend, while supplies and miscellaneous expenses show an unfavorable trend. c.Wages expense and rent expense show an unfavorable trend, while…