what amount should Thrift report as prepaid expenses?
Q: On October 1, 2021, FDN Company paid an insurance premium covering the period from October 1, 2021…
A: Adjusting entries are prepared at the end of the accounting year to ensure the accrual base…
Q: On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account…
A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…
Q: On October 1, 2019, Muscat Company borrowed OMR 8,000 cash by signing a note payable due in one year…
A: Note payable is a promissory note which a company sign to borrow an amount of money. A fixed rate of…
Q: For each of the following items, write first the journal entry and then, the adjusting entry if any,…
A: Theory introduction: All the business transactions are shown in Journal books. Journals also called…
Q: Consider the following information from the record of Ornamental Green Garden at the end of the…
A: Total liabilities = account payable + interest payable + accrued interest + notes payable = 600000 +…
Q: An analysis of Thrift Corp.'s unadjusted prepald expense account at December 31, 2010, revealed the…
A: The question is based on the concept of Financial Accounting.
Q: On November 1, 2021, JP Designs signed a $300,000, 6%, six-month note payable with the amount…
A: Adjusting entries are those entries which are passed at the end of the period in order to accurately…
Q: n October 1, 2021, FDN Company paid an insurance premium covering the period from October 1, 2021 to…
A: Solution Given insurance premium paid on October 1, 2021 Period covering October 1,…
Q: Shown below are three independent situations: a.The Prepaid Insurance account had a debit balance…
A: The journal entries are prepared to keep the record of day to day transactions of the business. The…
Q: 1 January 2019 the company made a loan of £12,000 to an employee, charging 2% interest per year. On…
A: On 1st January, 2019, a loan of £12,000 given to an employee, which earns an interest of 2% p.a.…
Q: The ledger of XYZ Ltd, on December 31, 2019, includes the below information before applying the…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: On January 17th 2021, Muscat Company Paid OMR .5,000 for a one-year insurance policy :The Journal…
A: Prepaid expenses represent expenditure that have not yet been recorded by a company as an expense,…
Q: Prepare the adjusting entries for the following independent cases on December 31, 2021, unless the…
A: Normally for all the businesses, accounting period ends either on Dec 31 or Mar 31. At the end of…
Q: On January 1, 2019, Adams Company had a balance in prepaid insurance of $8,000. On December 31, 2019…
A: Formula: Ending balance of prepaid insurance = Beginning balance of prepaid insurance + Cash paid…
Q: llowing transactions occurred for the Microchip Company. October 1, 2021, Microchip lent $98,000 to…
A: The procedure of entering commercial transactions for the first time in the books of accounts is…
Q: On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment for the…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On 1 January 2019, the company paid OMR 4500 cash as rent expenses for two months. Select one:…
A: Prepaid expenses are the expenses that must be accounted for over multiple reporting periods.…
Q: If a company makes a journal entry that records a debit to "Rent Expense," that journal entry also…
A: Rent expense refers to the rent for any building space or space taken by the company. Journal entry…
Q: The following data are taken from an unadjusted trial balance at December 31, 2019: Prepaid rent $…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: Swerte Co. received P45,600 on May 1, 2020 for one year’s rent in advance and recorded the…
A: Advance rent for one year = P 45600 Date of advance received = May 1 , 2020
Q: On October 1, 2019, a company paid $9,000 rent in advance. The rent per month is $1,000. Assuming…
A: Given, Prepaid rent = $9,000 Rent per month = $1,000
Q: On June 1, 2020, Jayhawk Company paid $9,600 for a two-year insurance policy on its building.…
A: Introduction: Prepaid insurance: Prepaid insurance is a current Asset. Amount paid in advance called…
Q: On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment for the…
A: Please find below all the journal entries -
Q: An analysis of Earth Company's unadjusted prepaid expense account on Dec. 31, 2020 revealed the…
A: Formula: Prepaid insurance balance = Beginning balance + Expense paid during the year + Advance…
Q: A one year insurance premium of $4,400 was paid on October 1, 2021 by the Cool Company, for coverage…
A: Insurance expense for the 2021 = total insurance premium paid x no. of month for 2021 / total…
Q: In the income statement what will the figure for rent be? a) £4,200 b) £4,500 c) £5,300 d) £5,000
A: Rent Accrued refers to the outstanding/unpaid rent as on date, which is payable in the future. It is…
Q: Mavis Enterprises received $28,000 from a customer on October 31, 2020 for work beginning…
A: Unearned revenue is a liabilities and while providing goods and services, we need to recognized the…
Q: For each of the following items, write the journal entry first (if one is needed) to record the…
A: Adjusting entries are those entries which are passed at the end of accounting period to accurately…
Q: On December 1, 2018, Davenport Company sold merchandise to a customer for $20,000. In payment for…
A: Compute the interest income for 2018.
Q: Diego Corp paid its annual corporate insurance on July 1, 2020 for the upcoming 12 month period of…
A: Adjusting entries are prepared by the management at the end of the accounting period, in order to…
Q: Swerte Co. received P45,600 on May 1, 2020 for one year’s rent in advance and recorded the…
A: Advance rent is a liability for the company, for which revenue is to be recorded in later period.…
Q: On October 1, 2021, FDN Company paid an insurance premium covering the period from October 1, 2021…
A: Prepaid insurance : In some cases, the benefit of amount already spent and also paid relates to next…
Q: report as accounts payable
A: 1. Advance to supplier has to be removed from Accounts Payable and should be shown separately. 2.…
Q: On November 1, 2019, Gordon Co. collected $7,980 in cash from its tenant as an advance rent payment…
A: Unearned rent is that portion of advance income for which cash has been collected but the income has…
Q: Below are transactions for Hurricane Company during 2021. On October 1, 2021, Hurricane lends…
A: Adjusting entries are made at the end of each year to reflect the true position and performance of…
Q: a customer for services to be rendered during the months of November, December, January, and…
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: On October 1, 2019, Muscat Company borrowed OMR 8,000 cash by signing a note payable due in one year…
A: We have the following information: Borrowed OMR 8,000 on October 1, 2019 Note payable is signed…
Q: OJO Company obtained a loan from a Rural Bank for P420,000 on November 16, 2020. On the same date,…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: On January 1, 2020, the ledger of Chuan-Kwang contains the following liability accounts (amounts in…
A: Adjusting journal entries are those entries passed at end of an accounting period to book expenses…
Q: At 30 September 2020, Wall had an allowance for doubtful account of P37,000. During the year ended…
A: The numerical has covered the concept of Accounts Receivable. An allowance for doubtful debt…
Q: Under Fierce Company’s accounting system, all insurance premiums paid are charged to insurance…
A: Journal: It is the first step of recording financial transactions. It is used to prepare the…
Q: On January 1, 2019, Jasmin Company had a credit balance of P260,000 in the allowance or…
A: Uncollectible accounts expense = Credit sales x 2%
Q: During the course of your examination of the financial statements of Trojan Corporation for the year…
A: Step 1 Statement showing adjusting entries treatment A Insurance accountable= $ 24000 ×3/12 = $6000…
Q: On December 1, 2019, an advance rent payment of $14,400, representing a three-month prepayment for…
A: Explanation of Concept Rent received in advance is treated as current liabilities and shall be…
Q: Stephen's Ontime Delivery (SOD) is a delivery company. On January 1, 2019, one of its customers paid…
A: Income Received in advance is the amount that the company receives with out actually rendering…
Q: The following transactions occurred during December 31, 2021, for the Microchip Company. On…
A: Interest=$90,000×8%×312=$1,800
Q: Mission Corp. borrowed $50,000 cash on April 1, 2019, and signed a one-year 12%, interest-bearing…
A: Interest expense recorded on March 31, 2020 = Amount borrowed x rate of interest x no. of months/12
Q: On December 1, 2021, Davenport Company sold merchandise to a customer for $20,000. In payment for…
A: Sometimes at the time of making sales on credit, the customer offer credit period more than normal…
Q: On 1 January 2019, the company paid OMR 4500 cash as rent expenses for two months. Select one: a.…
A: Prepaid rent is a rent which is paid in advance before the expiry of utilisation of asset for the…
An analysis of Thrift Corp.’s unadjusted prepaid expense account at December 31, 2020, revealed the following: An opening balance of ₱1,500 for Thrift’s comprehensive insurance policy. Thrift had paid an annual premium of ₱3,000 on July 1, 2019. A ₱3,200 annual insurance premium payment made July 1, 2020. A ₱2,000 advance rental payment for a warehouse Thrift leased for one year beginning January 1, 2021. In its December 31, 2020 balance sheet, what amount should Thrift report as prepaid expenses?
a. P5,200
b. P3,600
c. P2,000
d. P1,600
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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?The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a tenant during 2020. The company erroneously recorded the transaction by debiting Cash and crediting Rent Revenue in 2019 instead of 2020. Upon discovery of this error in 2020, what correcting journal entry will Framber make? Ignore income taxes.
- Each of the following independent situations relates to the recognition of revenue: a. On June 2, 2019, a customer books travel on an airline, paying 500 for a round-trip ticket that departs July 15, 2019, and returns July 20, 2019. In addition, once the round-trip ticket is used, the airline credits the passengers frequent-flier account for 500 miles. The airline determines that each frequent-flier point has a value of 0.01. b. On May 1, 2019, a retailer enters into a contract with a construction company. The construction company will build a new warehouse for the retailer at a price of 2 million. The retailer will make four equal payments to the construction company over the 1-year construction period, starting on May 1, 2019, and then every 4 months. The retailer can cancel construction at any time and will own any construction to date; however, it must pay the construction company for work done up to the cancellation date. The building is completed on April 30,2019. c. Morning Donut agrees to supply donuts and coffee on a daily basis to a local business. The contract starts on January 1, 2019, and runs for 1 year. Morning Donut charges 400 per week for the donuts and coffee. d. The Raleigh Knights sell four season tickets to a customer. The Knights play 10 regular season games, and the cost of one season ticket is 250. Required: For each situation, use the 5-step process to determine when revenue can be recognized. Determine (1) if a contract exists, (2) the performance obligations in the contract, (3) the transaction price in the contract, (4) how the transaction price is allocated to the performance obligations, and (5) when revenue is recognized.The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.Worksheet Victoria Company has the following account balances on December 31, 2019, prior to any adjustments: Additional adjustment information: (a) depreciation on buildings, 1,100; on equipment, 600; (b) bad debts expense, 240; (c) interest accumulated but not paid: on note payable, 50; on mortgage payable, 530 (this interest is due during the next accounting period); (d) insurance expired, 175; (e) salaries accrued but not paid 370; (f) rent was collected in advance and the performance obligation is now satisfied, 800; (g) office supplies cm hand at year-end, 230 (expensed when originally purchased earlier in the year); and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2020. Required: 1. Transfer the account balances to a 10-column worksheet and prepare a trial balance. 2. Prepare the adjusting entries in the general journal and complete the worksheet. 3. Prepare the companys income statement, retained earnings statement, and balance sheet. 4. Prepare closing entries in the general journal.
- Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1, 2019, to provide plant watering services for Lola Inc.s office buildings. Jennifers received 4 months' service fees in advance on signing the contract. Required: 1. Prepare Jennifers journal entry to record the cash receipt for the first 4 months. 2. Prepare Jennifers adjusting entry at December 31, 2019. 3. CONCEPTUAL CONNECTION How would the advance payment (account(s) and amounts(s)] be reported in Jennifers December 31, 2019, balance sheet? How would the advance payment [account(s) and amount(s)] be reported in Lolas December 31, 2019, balance sheet?Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.