Which of the following would be recorded as an identifiable accounting transaction? Group of answer choices A. Providing services to customers on account. B. Hiring a new employee. C. Signing a contract to lease office space next year. D. Ordering a new vehicle, which will be received and paid for next month
Q: Assuming the entity already render its services after 6 months from collecting the advance payment…
A: Journal entry when advance payment received: DATE ACCOUNTS DEBIT CREDIT Cash xxxx…
Q: ou are an accounting intern working for SpringFit Corporation. You have recently been assigned to…
A: The bonds are issued at discount , if market rate is higher than the stated rate of interest. The…
Q: Identifying accounts included on a post-closing trial balance For each account listed, identify…
A: Post-closing trial balance: The post-closing trial balance is a summary of all ledger accounts, and…
Q: Why do you think the A/P clerk needs the New Expenses account? * Who needs to know this information…
A: The accounts payable clerk is the personnel who is responsible for maintaining the accounts related…
Q: (For items 1 and 2). Read and analyze the following transactions taken from the book of XYZ Services…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: Below is a list of activities for Purple Cow Incorporated. Required: For each activity, indicate the…
A: Assets = Liabilities + Stockholders' Equity
Q: ABC consulting service provides legal consulting services to client. ABC received total $16,000 of…
A: Accrual concept implies that recognition of revenues and expenses should be made as and when it is…
Q: As the bookkeeper of a new start-up company, you are responsible for keeping the chart of accounts…
A: Accounts Payable is an obligation of the company to the supplier or contractors who sell their goods…
Q: When a company receives a prepayment from a customer and provides services to the customer 4 months…
A: Accounting equation is a equation showing the relation between the assets and liabilities of a…
Q: Ameena Enterprise is a business management service founded by Madam Ameena in 2019. Mr. Ali is an…
A: Since you have posted a question with multiple sub-parts , we will do the first three sub-parts for…
Q: For each account, identify whether it is included in a post- closing trial balance. Included in…
A: All the temporary accounts like expenses, revenus and dividends are closed and are not shown in the…
Q: Ameena Enterprise is a business management service founded by Madam Ameena in 2019. Mr. Ali is an…
A: Net profit = Revenue - Expense
Q: USE THE NUMBERS 1-10 TO PLACE THE FOLLOWING STEPS OF THE ACCOUNTING CYCLE IN THEIR PROPER ORDER, 1…
A: Accounting cycle includes the step by step procedure of recording and finalizing the business…
Q: Why do you think the A/P clerk needs the New Expenses account? Who needs to know this information…
A: Accounts payable clerk is the individual personnel, appointed in the business entity who is…
Q: Which of the following is done last in the fiscal year end accounting process? Group of answer…
A: Accounting process refers to recording, posting and classification of financial transaction in an…
Q: Determine what Accounting principle is applied 1. The business continues to render serviced to his…
A: Accounting principles are those rules, regulations and guidelines that helps the accountants all…
Q: Create your own company describing the nature of the company and what it provides (should be…
A: Journal Entry The purpose of providing the journal entry to enter the required transaction into…
Q: A few years ago, Miguel Thorpe founded Mig T Accounting Services. Mig T is aware that you and your…
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…
Q: When the management accountsants prepare the reports in an entity ? a . Every month b . Once a year…
A: Management Accountant prepares various report from time to time throughout the period on consistent…
Q: The revenue recognition principle dictates that revenue should be recognized in the accounting…
A: Under accrual-basis accounting, events that change a company's financial statements are recognized…
Q: Ameena Enterprise is a business management service founded by Madam Ameena in 2019. Mr. Ali is an…
A: (A) We need to make the journal entry using the account name mention inTrial Balance prepare by Mr.…
Q: Although Sahra now pays Stone & Co Accounting Specialists Pty Ltd to manage the accounting function…
A: Financial Accounting It is that branch of accounting which is associated with recording,…
Q: All of the following about revenue recognition principle are true, except: O a Business agrees to…
A: The requirement is to solve an MCQ. All of the following about revenue recognition principle are…
Q: How does receiving a bill to be paid next month for services received affect the accounting…
A: Accounting equation: Owner's equity + Liabilities = Assets
Q: On October 1, 2019 Santana Rey launched a computer services company, business solutions that is…
A: The accounting equation is as follows:
Q: Ameena Enterprise is a business management service founded by Madam Ameena in 2019. Mr. Ali is an…
A:
Q: Identify the letter for the principle or assumption from A through F in the blank space next to each…
A:
Q: You have recently been hired by Trinity College as an accounting assistant. Trinity College is a…
A: Income statements show the net income or the loss achieved by the organization in the given period.…
Q: Which of the following steps in the accounting cycle listed below occurs last? Group of answer…
A: The accounting process helps to analyze the transactions of the business and record them in journal,…
Q: From the list that follows, identify the accounts that should be closed to the owner’s capital…
A: The revenue, expense and drawings account are temporary account and the balance from these account…
Q: Reineman Supply Company uses a periodic inventory system. During September, the following…
A: Hi student Since there are multiple questions, we will answer only one question. For first question,…
Q: Ameena Enterprise is a business management service founded by Madam Ameena in 2019. Mr. Ali is an…
A: In the books of Ameena Enterprises DATE PARTICULARS DEBIT CREDIT 1 April Office Equipment A/c…
Q: A few years ago, Sam Gig founded Gig n Spin Consultancy Services. Sam is aware that you and your…
A: Adjusted Trial Balance - Adjusted Trial Balance includes ledgers after providing adjusting entries…
Q: Identify the letter for the principle or assumption from A through F in the blank space next to…
A: Given situation is: In December of this year, Chavez Landscaping received a customer’s order and…
Q: Question 4 : Assume that Swann Company uses a periodic inventory system and has these account…
A: Hi student Since there are multiple questions, we will answer only one question. For first question,…
Q: For the past several years, Angela Smith operated a part-time consulting business from her home. As…
A:
Q: A start-up company often engages in the following activities during its first year of operations.…
A: Cash Flow Statement (CFS): CFS is a financial statement in which the inflow and outflow of cash…
Q: 4/3 Paid the Gazette $200 to place an employment advertisement for an accounting clerk. how…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: Please prepare journal entries for the following statements. You will also need to prepare the…
A: Journal Entries: Adjusting Journal Entries:
Q: Proper Both General Journal and General Ledger from the Transaction Given 1- Accounting period: are…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: You are an accounting intern working for SpringFit Corporation. You have recently been assigned to…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: The transactions completed by PS Music during June 2019 were described at the end ofChapter 1. The…
A: Bookkeeping refers to the process of recording the financial transactions in the books of account on…
Q: ate Particulars Debit ($) Credit ($) 09-Jan Cash $7,050 Supplies $1,250 Office…
A:
Q: If additional investments were made during the year, what information in addition to the work sheet…
A: Hello, I am only answering first question as per the policy and if you want others to be answered…
Q: For each of the following independent transactions, indicate whether there was an Increase, a…
A: Transaction Assets Liabilities Owners' Equity Issued shares to Stockholders Cash will Increase…
Q: 1Q Ameena Enterprise is a business management service founded by Madam Ameena in 2019. Mr. Ali is…
A: Since you have posted a question with multiple sub-parts , we will do the first three sub-parts for…
Q: The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What Do You Think? You work as an accounting clerk. You have received the following information supplied by a client, S. Winston, from the clients bank statement, the clients tax returns, and a variety of other July documents. The client wants you to prepare an income statement, a statement of owners equity, and a balance sheet for the month of July for Winston Company.For each of the following accounts, identify whether it would be closed at year-end (yes or no) and on which financial statement the account would be reported (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Retained Earnings B. Prepaid Rent C. Rent Expense D. Rent Revenue E. Salaries Expense F. Salaries Payable G. Supplies Expense H. Unearned Rent RevenueConsidering the following events, determine which month the revenue or expenses would be recorded using the accounting method specified. a. Gerber Company uses the cash basis of accounting. Gerber prepays cash in May for insurance that only covers the following month, (June). b. Matthews and Dudley Attorneys uses the accrual basis of accounting. Matthews and Dudley Attorneys receives cash from customers in June for services to be performed in July. c. Eckstein Company uses the accrual basis of accounting. Eckstein prepays cash in October for rent that covers the following month, (October). d. Gerbino Company uses the cash basis of accounting. Gerbino makes a sale to a customer in February but does not expect payment until March.
- Identify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither. A. provided legal services to client, who paid at the time of service B. received cash for legal services performed last month C. received cash from clients for future services to be provided D. provided legal services to client, to be collected next monthFor each of the following accounts, identify whether it would be closed at year-end (yes or no) and on which financial statement the account would be reported (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Accounts Payable B. Accounts Receivable C. Cash D. Dividends E. Fees Earned Revenue F. Insurance Expense G. Prepaid Insurance H. SuppliesIdentify which of the following accounts would be listed on the companys Post-Closing Trial Balance. A. Accounts Receivable B. Accumulated Depreciation C. Cash D. Office Expense E. Note Payable F. Rent Revenue G. Retained Earnings H. Unearned Rent Revenue
- Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. 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: Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closingtrial balance as of April 30, 2019, 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, 2019, and place a check mark () in the Posting Reference column. Journalize each of the May transactions in a twocolumn 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 statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance.PURPOSE OF ACCOUNTING Match the following users with the information needed. 1. Ownersa. Whether the firm can pay its bills on time 2. Managersb. Detailed, up-to-date information to measure business performance (and plan for future operations) 3. Creditorsc. To determine taxes to be paid and whether other regulations are met 4. Government agenciesd. The firms current financial conditionValley Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on July 31, 2019, follows: The following business transactions were completed by Valley Realty during August 2019: Aug. 1. Purchased office supplies on account, 3,150. 2.Paid rent on office for month, 7,200. 3.Received cash from clients on account, 83,900. 5.Paid insurance premiums, 12,000. 9.Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, 400. Analyzing Transactions Aug. 17. Paid advertising expense, 8,000. 23.Paid creditors on account, 13,750. Enter the following transactions on Page 19 of the two-column journal: 29.Paid miscellaneous expenses, 1,700. 30.Paid automobile expense (including rental charges for an automobile), 2,500. 31.Discovered an error in computing a commission during July; received cash from the salesperson for the overpayment, 2,000. 31.Paid salaries and commissions for the month, 53,000. 31.Recorded revenue earned and billed to clients during the month, 183,500. 31.Purchased land for a future building site for 75,000, paying 7,500 in cash and giving a note payable for the remainder. 31.Withdrew cash for personal use, 1,000. 31.Rented land purchased on August 31 to a local university for use as a parking lot during football season (September, October, and November); received advance payment of 5,000. Instructions 1. Record the August 1 balance of each account in the appropriate balance column of a four-column account, write Balance in the item section, and place a check mark () in the Posting Reference column. 2. Journalize the transactions for August in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance of the ledger as of August 31, 2019. 5. Assume that the August 31 transaction for Cindy Getmans cash withdrawal should have been 10,000. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry. (c) Is this error a transposition or slide?
- Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. 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 115, 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 cl1art of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2018, 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, 2018, 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 d1e journal. (Income Summary is account #34 in d1e 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.The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1.Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Musics checking account. 1.Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1.Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2.Received 1,000 cash from customers on account. 3.On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3.Paid 250 to creditors on account. 4.Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5.Purchased office equipment on account from Office Mart, 7,500. 8.Paid for a newspaper advertisement, 200. 11.Received 1,000 for serving as a disc jockey for a party. 13.Paid 700 to a local audio electronics store for rental of digital recording equipment. 14.Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16.Received 2,000 for serving as a disc jockey for a wedding reception. 18.Purchased supplies on account, 850. July 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22.Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23.Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2019. 27.Paid electric bill, 915. 28.Paid wages of 1,200 to receptionist and part-time assistant. 29.Paid miscellaneous expenses, 540. 30.Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2019. 31.Received 3,000 for serving as a disc jockey for a party. 31.Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31.Withdrew 1,250 cash from PS Music for personal use. PS Musics chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: Instructions 1. Enter the July 1, 2019, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 2019.The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business's operations: July 1. Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Music's checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music: store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 cash from customers on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for SO hours per month for a monthly fee of 3,600. Any additional hours beyond SO will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 to creditors on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 11. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. July 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2019. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2019. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July. 31. Withdrew l,250 cash from PS Music for personal use. PS Music's chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: 11 Cash 3,920 12 Accounts receivable 1,000 14 Supplies 170 15 Prepaid insurance 17 Office Equipment 21 Accounts payable 250 23 Unearned Revenue 31 Peyton smith, Drawing 4,000 32 Fees Earned 500 41 Wages Expense 6,200 50 Office Rent Expense 400 51 Equipment Rent Expense 800 52 Utilities Expense 675 53 Supplies Expense 300 54 music Expense 1,590 55 Advertising Expense 500 56 Supplies Expense 180 59 Miscellaneous Expense 415 Instructions 1.Enter the July 1, 2019, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2.Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3.Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4.Prepare an unadjusted trial balance as of July 31, 2019.