y 1: Prepaid rent for three months, $1,500 May 5: Received and paid electricity bill, $100 May 9: Received cash for meals served to customers, $2,700 May 14: Paid cash for kitchen equipment, $3,000 May 23: Served a banquet on account, $1,600 May 31: Made the adjusting entry for rent (from May 1). May 31: Accrued salary expense, $1,800 May 31: Recorded depreciation for May on kitchen equipment, $740 What is the cash basis for the month?
Q: Prepaid Rent
A: It is pertinent to note that as per accrual concept of accounting business transactions are recorded…
Q: The ledger of Muscat Company on January 31, 2017, includes the following selected accounts before…
A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…
Q: $12,000 and credit the Prepaid rent account for $12,000. c. Debit Prepaid rent account for $6,000…
A: Adjusting entry refers to those journal entries which are passed in order to record any sort of…
Q: Mr. ABC has the following transactions in the month of January. Write the Journal Entries for the…
A: In accounting, recording in journal is the first and foremost aspect followed by classifying them…
Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent…
A: Under the Accrual method, revenues and expenses are recognized when they are accrued whether the…
Q: In addition to the above accounts, VGC’s chart of accounts includes the following: Service Revenue,…
A: Date Account titles and explanation Debit ($) Credit ($) 1-Jan Cash $50,000 Accounts…
Q: On January 1 of its first month of business, Bags Bunny, Inc., paid S500,000 for four months of rent…
A: Solution As per the accrual basis of accounting the expenses that have been incurred in the current…
Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent…
A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…
Q: weet Catering completed the following selected transactions during May 2016: May 5: Received…
A: 1) Cash Method: Cash Basis Accounting is a method where Revenue recorded only when cash is received…
Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent…
A: Under cash method, only cash transactions are recorded while under accrual method, transactions…
Q: If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss)…
A: The journals are: In the books of Sweet Catering Journals Date Particulars LF Amt(Dr.)($)…
Q: On July 1 of the current calendar year, Olive Co. paid $7,700 cash for management services to be…
A: The accounts may not be visible if you use accounting software or outsource your accounting, but…
Q: Garcia Realty Co. pays weekly salaries of $12,250 on Friday for a five-day workweek ending on that…
A: Adjusting journal entry: At year end when company finalise its accounts then any unrecognized income…
Q: The ledger of Sage Hill Inc. on March 31, 2017, includes the following selected accounts before…
A: >Accounting cycle is the flow or steps carried out to complete the accounting process. These are…
Q: On July 1 Fisher Shoe Store paid $24,000 to Acme Realty for 6 months’ rent beginning July 1 and…
A: Rent Expense per month = Total amount paid for rent / Total period = $24,000 / 6 months = $4,000 per…
Q: weet Catering completed the following selected transactions during May 2016: • May 1: Prepaid rent…
A: There are two type of bases that are used in accounting. One is accrual basis and other is cash…
Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent…
A: The income statement is prepared to record the revenues and expenses and find the net income or loss…
Q: A company rented a premise for a year and paid a rent of $24,000 on October 01, 2018. Prepare the…
A: Prepaid rent means rent is paid in advance before using the rental services. The company have taken…
Q: Sweet Catering completed the following selected transactions during May 2016: • May 1: Prepaid rent…
A: Under cash basis of accounting, income is recorded when cash received and expense is recorded when…
Q: .. June 15, 2017 - NoDirt performed Ş3,000 of cleaning services for a customer. The customer paid…
A: Lets understand the basics. Journal entry is made to record financial event and transaction occur…
Q: King Dairy Treats opened for business on May 1, 2018. Its trial balance before adjustments on July…
A: Adjusting entries are journal entries used to rectify the mistakes in account balances of ledger…
Q: If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss)…
A: Income Statement Particulars Amount Revenues: Received cash for meals served to customers…
Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent…
A: Cash method of recording transactions says that only cash payments and receipts are recorded in…
Q: Fedora’s Vases experienced all of the following events during the month of September 2020. For each…
A: The revenue and expenses are recognised as and when they are incurred.
Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent…
A: Under the cash method of accounting, cash receipts are treated as revenue and cash payments are…
Q: Sweet Catering completed the following selected transactions during May 2016: • May 1: Prepaid rent…
A: Hi Student Since there are multiple sub parts, we will answer only first three sub parts. If you…
Q: The unadjusted trial balance of Lakbay Tours as of December 31, 2018 is shown below: Ted Solomon,…
A: T accounts are the general ledger accounts that are being prepared by the business after recording…
Q: Grey Co paid $2,415 cash on September 30 to rent an arena for the months of October, November and…
A: The question is based on the concept of Financial Accounting.
Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid…
A: Calculate the net income (loss) during the month of May using cash method.
Q: Delicious Catering completed the following selected transactions during May 2016: May 1: Prepaid…
A: Total revenue for may month Accrual basis Cash basis May 9: Received cash for meals served to…
Q: Assume it is now December 31, 2015, and Nicole has just completed her first year of operationsat…
A: Accrual adjustments are made before the cash payment or cash receipt. It means those are incurred in…
Q: Sweet Catering completed the following selected transactions during May 2016:
A: Cash Method: The cash method is an accounting system that records revenue when actual cash is…
Q: On December 1, Orenthal Marketing Company received $7,500 from a customer for a 2-month marketing…
A: Lets understand the meaning of unearned revenue. When receipt is received in prior to service or…
Q: On August 30, JumpStart incurred the following expenses: Payment to the landlord for August rent,…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: On May 1, Boyz Security Services rented office space and paid two month's rent in advance in the…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Sweet Catering completed the following selected transactions during May 2016: • May 5: Received and…
A: Introduction: Cash Method: Income is not recorded until payment has been made, and costs are not…
Q: For each of the following independent situations, prepare journal entries to record the initial…
A: Step 1 Journal is the part of the book keeping.
Q: Compute Net Income for Redford Inc. for the month of September 2018. Rent Expense…
A: Net income is another term of net profit, it conveys the correlation between total revenue and total…
Q: The ledger of Windsor, Inc. on March 31, 2017, includes the following selected accounts before…
A: S.no Particulars Debit ($) Credit ($) 1 Prepaid Insurance Expense A/c 330 To Prepaid…
Q: Consider the following situations for Shocker: a. On November 28, 2018, Shocker receives a $4,350…
A: Assets: Assets are the resources that are owned, and controlled by the company to generate a…
Q: Sweet Catering completed the following selected transactions during May 2016: • May 1: Prepaid rent…
A: Under the accrual basis of accounting revenues and expenses are recorded as and when they are due…
Q: Billed
A: Journal entries in the books of Laurente Services DATE Account Titles and Explanations…
Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent…
A: Accrual concept acts as the basis of accounting which states that transactions are recorded in the…
Q: et Catering completed the following selected transactions during May 2016: May 1: Prepaid rent for…
A: Cash Basis: Cash basis accounting is an accounting method that recognizes revenue when monies are…
Q: Summarized transactions for January 2016 were as follows Repair services performed during January:…
A: Definition: Journal entry: Journal entry is a set of economic events that can be measured in…
Q: On July 1, Dexter Store paid $8,000 to ACE Company for 4 months rent beginning July 1. Prepaid Rent…
A: The adjustment entries are made to record the revenue and expenses of the current period only.
Q: On May 1, Carter Advertising Company received $3,600 from Kaitlyn Breanna for advertising services…
A: Cash was received on May 1, Year 1. So the revenue is related for 8 months of Year 1 and 4 months of…
Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid…
A: Cash basis of accounting:Cash basis of accounting refers to the recognition of financial…
Delicious Catering completed the following selected transactions during May 2016:
- May 1: Prepaid rent for three months, $1,500
- May 5: Received and paid electricity bill, $100
- May 9: Received cash for meals served to customers, $2,700
- May 14: Paid cash for kitchen equipment, $3,000
- May 23: Served a banquet on account, $1,600
- May 31: Made the
adjusting entry for rent (from May 1). - May 31: Accrued salary expense, $1,800
- May 31: Recorded
depreciation for May on kitchen equipment, $740
What is the cash basis for the month?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- In October, A. Nguyen established an apartment rental service. The account headings are presented below. Transactions completed during the month of October follow. a. Nguyen deposited 25,000 in a bank account in the name of the business. b. Paid the rent for the month, 1,200, Ck. No. 2015. c. Bought supplies on account, 225. d. Bought a truck for 18,000, paying 1,000 in cash and placing the remainder on account e. Bought Insurance for the truck for the yean 1,400, Ck. No. 2016. f. Sold services on account 5,000. g. Bought office equipment on account from Henry Office Supply, 2,300. h. Sold services for cash for the first half of the month, 6,050. i. Received and paid the bill for utilities, 150, Ck. No. 2017. j. Received a bill for gas and oil for the truck. 80. k. Paid wages to the employees, 1,400, Ck Nos. 20182020. l. Sold services for cash for the remainder of the month, 4,200. m. Nguyen withdrew cash for personal use, 2,000, Ck. No. 2021. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, reanalyze each transaction.In October, A. Nguyen established an apartment rental service. The account headings are presented below. Transactions completed during the month of October follow. a. Nguyen deposited 25,000 in a bank account in the name of the business. b. Paid the rent for the month, 1,200, Ck. No. 2015 (Rent Expense). c. Bought supplies on account, 225. d. Bought a truck for 18,000, paying 1,000 in cash and placing the remainder on account. e. Bought insurance for the truck for the year, 1,400, Ck. No. 2016. f. Sold services on account, 5,000 (Service Income). g. Bought office equipment on account from Henry Office Supply, 2,300. h. Sold services for cash for the first half of the month, 6,050 (Service Income). i. Received and paid the bill for utilities, 150, Ck. No. 2017 (Utilities Expense). j. Received a bill for gas and oil for the truck, 80 (Gas and Oil Expense). k. Paid wages to the employees, 1,400, Ck. Nos. 20182020 (Wages Expense). l. Sold services for cash for the remainder of the month, 4,200 (Service Income). m. Nguyen withdrew cash for personal use, 2,000, Ck. No. 2021. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.Considering 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.
- In April, J. Rodriguez established an apartment rental service. The account headings are presented below. Transactions completed during the month of April follow. a. Rodriguez deposited 70,000 in a bank account in the name of the business. b. Paid the rent for the month, 2,000, Ck. No. 101 (Rent Expense). c. Bought supplies on account, 150. d. Bought a truck for 23,500, paying 2,500 in cash and placing the remainder on account. e. Bought insurance for the truck for the year, 2,400, Ck. No. 102. f. Sold services on account, 4,700. g. Bought office equipment on account from Stern Office Supply, 1,250. h. Sold services for cash for the first half of the month, 8,250. i. Received and paid the bill for utilities, 280, Ck. No. 103. j. Received a bill for gas and oil for the truck, 130. k. Paid wages to the employees, 2,680, Ck. Nos. 104106. l. Sold services for cash for the remainder of the month, 3,500. m. Rodriguez withdrew cash for personal use, 4,000, Ck. No. 107. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.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.Prepare journal entries to record the following transactions that occurred in March: A. on first day of the month, purchased building for cash, $75,000 B. on fourth day of month, purchased inventory, on account, $6,875 C. on eleventh day of month, billed customer for services provided, $8,390 D. on nineteenth day of month, paid current month utility bill, $2,000 E. on last day of month, paid suppliers for previous purchases, $2,850
- Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5. B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18. C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%. D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business, 18,000. 4.Paid rent for period of October 4 to end of month, 3,000. 10.Purchased a used truck for 23,750, paying 3,750 cash and giving a note payable for the remainder. 13.Purchased equipment on account, 10,500. 14.Purchased supplies for cash, 2,100. 15.Paid annual premiums on property and casualty insurance, 3,600. 15.Received cash for job completed, 8,950. Enter the following transactions on Page 2 of the two-column journal: 21.Paid creditor a portion of the amount owed for equipment purchased on October 13, 2,000. 24.Recorded jobs completed on account and sent invoices to customers, 14,150. 26.Received an invoice for truck expenses, to be paid in November, 700. 27.Paid utilities expense, 2,240. 27.Paid miscellaneous expenses, 1,100. Oct. 29. Received cash from customers on account, 7,600. 30.Paid wages of employees, 4,800. 31.Withdrew cash for personal use, 3,500. Instructions 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Journal entry explanations may be omitted. 2. Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 2019. 4. Determine the excess of revenues over expenses for October. 5. Can you think of any reason why the amount determined in (4) might not be the net income for October?The unadjusted trial balance of La Mesa Laundry at August 31, 2016, the end of the fiscal year, follows: The data needed to determine year-end adjustments are as follows: a. Wages accrued but not paid at August 31 are 2,200. b. Depreciation of equipment during the year is 8,150. c. Laundry supplies on hand at August 31 are 2,000. d. Insurance premiums expired during the year are 5,300. Instructions 1. For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as Aug. 31 Bal. In addition, add T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, Insurance Expense, and Income Summary. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (1) as needed. 3. Journalize and post the adjusting entries. Identify the adjustments by Adj. and the new balances as Adj. Bal. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of owners equity (no additional investments were made during the year), and a balance sheet. 6. Journalize and post the closing entries. Identify the closing entries by Clos. 7. Prepare a post-closing trial balance.
- Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services Co.s accounting clerk prepared the following unadjusted trial balance at July 31, 2016: The data needed to determine year-end adjustments are as follows: a. Depreciation of building for the year, 6,400. b. Depreciation of equipment for the year, 2,800. c. Accrued salaries and wages at July 31, 900. d. Unexpired insurance at July 31, 1,500. e. Fees earned but unbilled on July 31, 10,200. f. Supplies on hand at July 31, 615. g. Rent unearned at July 31, 300. Instructions 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation ExpenseBuilding; Depreciation ExpenseEquipment; and Supplies Expense. 2. Determine the balances of the accounts affected by the adjusting entries and preparean adjusted trial balance.For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2016, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond Consulting entered into the following transactions during July: Instructions 1.Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (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 July, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during July is 375. b. Supplies on hand on July 31 are 1,525. c. Depreciation of office equipment for July is 750. d. Accrued receptionist salary on July 31 is 175. e. Rent expired during July is 2,400. f. Unearned fees on July 31 are 2,750. 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 3 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. (Income Summary is account #33 in the chart of accounts.) Record the closing entries on Page 4 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10.Prepare a post-closing trial balance.On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501. e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012. g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307. i. Received and paid the heating bill, 248, Ck. No. 504. j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128. k. Sold catering services for cash for the remainder of the month, 2,649. l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
