Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 2, Problem 22E
a)
To determine
Identify the accounts that are classified as permanent and temporary accounts’.
b)
To determine
Ascertain the
c)
To determine
Ascertain the amount of net income that would be reported on the Income statement of Company W for the year ended 2018.
d)
To determine
Explain the reasons for the difference of the net income from the ending balance of retained earnings.
e)
To determine
Report the balances in the revenue, expense, and dividend accounts on January 1, 2019.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Chapter 2 Solutions
Survey Of Accounting
Ch. 2 - 1. What does accrual accounting attempt to...Ch. 2 - 2. Define recognition. How is it independent of...Ch. 2 - 3. What does the term deferral mean?Ch. 2 - 4. If cash is collected in advance of performing...Ch. 2 - Prob. 5QCh. 2 - 6. What effect does the issue of common stock have...Ch. 2 - 7. How does the recognition of revenue on account...Ch. 2 - 8. Give an example of an asset source transaction....Ch. 2 - 9. When is revenue recognized under accrual...Ch. 2 - 10. Give an example of an asset exchange...
Ch. 2 - 11. What is the effect on the right side of the...Ch. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14QCh. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - 17. Why may net cash flow from operating...Ch. 2 - Prob. 18QCh. 2 - Prob. 19QCh. 2 - 20. What is the difference between a cost and an...Ch. 2 - Prob. 21QCh. 2 - Prob. 22QCh. 2 - 23. What does the term expense mean?Ch. 2 - Prob. 24QCh. 2 - 25. What is the purpose of the statement of...Ch. 2 - Prob. 26QCh. 2 - 27. Why is the balance sheet dated as of a...Ch. 2 - 28. In what order are assets listed on the balance...Ch. 2 - Prob. 29QCh. 2 - Prob. 30QCh. 2 - 31. What types of accounts are closed at the end...Ch. 2 - 32. Give several examples of period costs.Ch. 2 - 33. Give an example of a cost that can be directly...Ch. 2 - Prob. 34QCh. 2 - Prob. 1ECh. 2 - Exercise 2-2 Effect of accrued expenses on the...Ch. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Exercise 2-9 Supplies on financial statements Yard...Ch. 2 - Prob. 10ECh. 2 - Exercise 2-11 Prepaid items on financial...Ch. 2 - Exercise 2-12 Effect of an error on financial...Ch. 2 - Exercise 2-13 Unearned items on financial...Ch. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Exercise 2-21 Adjusting the accounts Norell Inc....Ch. 2 - Prob. 22ECh. 2 - Prob. 23ECh. 2 - Prob. 24ECh. 2 - Prob. 25ECh. 2 - Prob. 26ECh. 2 - Exercise 2-27 Identifying transaction type and...Ch. 2 - Exercise 2-27A Effect of accounting events on the...Ch. 2 - Prob. 29ECh. 2 - Exercise 2-29A Identifying source, use, and...Ch. 2 - Prob. 31ECh. 2 - Problem 2-32 Recording events in a horizontal...Ch. 2 - Problem 2-37A Effect of adjusting entries on the...Ch. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Problem 2-36 Identifying and arranging elements on...Ch. 2 - Problem 2-37 Missing information in financial...Ch. 2 - Problem 2-38 Events for two complete accounting...Ch. 2 - Prob. 1ATCCh. 2 - ATC 2-3 Research Assignment Identifying accruals...Ch. 2 - ATC 2-4 Writing Assignment Revenue Recognition and...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Problem 2-593 Journalizing Transactions Monilast Chemicals engaged in the following transactions during December 2019: Dec 2 Paid rent on office furniture, $1,200. 3 Borrowed $25,030 on a 9-month, 3% note. 7 Provided services on credit. $42,600. 10 Purchased supplies on credit, $2,850. 13 Collected accounts receivable, $20,150. 19 Issued common stock, $50000. 22 Paid employee wages for December. $13,825. 23 Paid accounts payable, $1,280. 25 Provided services for cash, $13,500. 30 Paid utility bills for December, $1,975. Required: Prepare a journal entry for each transaction.arrow_forwardExercise 2-52 Accounting Cycle Rosenthal Decorating Inc. is a commercial painting and decorating contractor that began operations in January 2019. The following transactions occurred during the year: On January 15, Rosenthal sold shares Of its common stock to William Hensley for $10,000 On January 24, Rosenthal purchased S720 of painting supplies from Westwood Builders' Supply Company on account. On February 20, Rosenthal paid S720 cash to Westwood Builders' Supply Company for the painting supplies purchased on January 24. On April 25, Rosenthal billed Bultman Condominiums $12,500 for painting and decorating services performed in April. On May 12, Rosenthal received $12,500 from Bultman Condominiums for the painting and decorating work billed in April. On June 5, Rosenthal sent Arlington Builders a $9,500 bill for a painting job completed on that day. On June 24, Rosenthal paid wages for work performed during the preceding week in the amount of $6,700. Required: Prepare a journal entry for each of the transactions. Post the transactions to T-accounts. Prepare a trial balance at June 30, 2019.arrow_forwardProblem 3-71B Preparing a Worksheet (Appendix 3A) Flint Inc. operates a cable television System. At December 31, 2019, the following unadjusted account balances were available: The following data are available for adjusting entries: At year end, $1,500 Of office supplies remain unused. Annual depreciation on the building is $20,000. Annual depreciation on the equipment is $150,000 The interest rate on the note is 8%. Four months' interest is unpaid and unrecorded at December 31, 2019. At December 31, 2019, services of $94,000 have performed but are unbilled and unrecorded. Utility bills of $2,800 are unpaid and unrecorded at December 31, 2019. Income taxes of $49,633 were unpaid and unrecorded at year end. Â Required: Prepare a worksheet for Flint. Prepare an income statement, a retained earnings statement, and a classified balance sheet for Flint. Prepare the closing entries.arrow_forward
- Transactions; financial statements On August 1, 2018, Brooke Kline established Western Realty. Brooke completed the following transactions during the month of August: A. Opened a business bank account with a deposit of 35,000 in exchange for common stock. B. Purchased supplies on account, 2,750. C. Paid creditor on account, 1,800. D. Earned sales commissions, receiving cash, 52,800. E. Paid rent on office and equipment for the month, 4,500. F. Paid dividends, 3,000. G. Paid automobile expenses for month, 1,100, and miscellaneous expenses, 1,200. H. Paid office salaries, 5,250. I. Determined that the cost of supplies on hand was 1,750; therefore, the cost of supplies used was 1,000. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:arrow_forwardBrief Exercise 2-32 Journalize Transactions Galle Inc. entered into the following transactions during January. January, 1: Borrowed $50,000 from First Street Bank by signing a note payable. January, 4: Purchased $25,000 of equipment for cash. January, 6: Paid $500 to landlord for rent for January. January, 15: Performed services for customers on account. $10,000. January, 25: Collected $3,000 from customers for services performed in Transaction d. January, 30: Paid salaries of $2,500 for the current month. Required: Prepare journal entries for the transactions.arrow_forwardEntries into T accounts and trial balance Ken Jones, an architect, organized Jones Architects on April 1, 2018. During the month, Jones Architects completed the following transactions: A. Transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 18,000. B. Purchased used automobile for 19,500, paying 2,500 cash and giving a note payable for the remainder. C. Paid April rent for office and workroom, 3,150. D. Paid cash for supplies, 1,450. E. Purchased office and computer equipment on account 6,500. F. Paid cash for annual insurance policies on automobile and equipment, 2,400. G. Received cash from a client for plans delivered, 12,000. H. Paid cash to creditors on account, 1,800. I. Paid cash for miscellaneous expenses, 375. J. Received invoice for blueprint service, due in May, 2,500. K. Recorded fees earned on plans delivered, payment to be received in May. 15,650. L. Paid salary of assistant. 2,800. M. Paid cash for miscellaneous expenses. 200. N. Paid installment due on note payable, 300. O. Paid gas, oil, and repairs on automobile for April, 550. Instructions 1. Record these transactions directly in the following T accounts, without journalizing: Cash. Accounts Receivable, Supplies. Prepaid Insurance, Automobiles, Equipment, Notes Payable, Accounts Payable, Common Stock, Professional Fees, Rent Expense, Salary Expense, Blueprint Expense, Automobile Expense, Miscellaneous Expense. To the left of each amount entered in the accounts, place the appropriate letter to identify the transaction. 2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. 3. Prepare an unadjusted trial balance for Jones Architects as of April 50, 2018. 4. Determine the net income or net loss for April.arrow_forward
- Post-closing trial balance An accountant prepared the following post-closing trial balance: La Casa Services Co. Post-Closing Trial Balance March 31, 2016 Debit Balances Credit Balances Cash 46,540 Accounts Receivable............................................. 122,260 Supplies........................................................ 4,000 Equipment...................................................... 127,200 Accumulated Depreciation Equipment........................... 33,600 Accounts Payable................................................ 52,100 Salaries Payable................................................. 6,400 Unearned Rent.................................................. 9,000 Common Stock.................................................. 40,000 Retained Earnings............................................... 158,900 462,400 137,600 Prepare a corrected post-closing trial balance Assume that all accounts have normal balances and that the amounts shown are correct.arrow_forwardCorrected trial balance Tech Support Services has the following unadjusted trial balance as of January 31, 2018: Tech Support Services Unadjusted Trial Balance January 31, 2018 Debit Balances Credit Balances Cash 25,550 Accounts Receivable 44,050 Supplies 6,660 Prepaid Insurance 3,600 Equipment 162,000 Notes Payable 75,000 Accounts Payable 13,200 Common Stock 18,000 Retained Earnings 83,850 Dividends 33,000 Fees Earned 534,000 Wages Expense 306,000 Rent Expense 62,550 Advertising Expense 23,850 Gas, Electricity, and Water Expense 17,000 684,260 724,050 The debit and credit totals are not equal as a result of the following errors: A. The cash entered on the trial balance was overstated by 8,000. B. A cash receipt of 4,100 was posted as a debit to Cash of 1,400. C. A debit of 12,350 to Accounts Receivable was not posted. D. A return of 235 of defective supplies was erroneously posted as a 325 credit to Supplies. E. An insurance poky acquired at a cost of 3,000 was posted as a credit to Prepaid Insurance. F. The balance of Notes Payable was overstated by 21,000. G. A credit of 3,450 in Accounts Payable was overlooked when the balance of the account was determined. H. A debit of 6,000 for dividends was posted as a debit to Retained Earnings. I. The balance of 28,350 in Advertising Expense was entered as 23,850 in the trial balance. J. Miscellaneous Expense, with a balance of 4,600, was omitted from the trial balance. Instructions 1. Prepare a corrected unadjusted trial balance as of January 31, 2018. 2. Does the fact that the unadjusted (trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.arrow_forwardTransactions; financial statements DLite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, and common stock of the business on July 1, 2018, are as follows: Cash, 45,000; Accounts Receivable, 93,000; Supplies, 7,000; Land, 75,000; Accounts Payable, 40,000; Common Stock, 60,000. Business transactions during July are summarized as follows: A. Joel Palk invested additional cash in exchange for common stock with a deposit of 35,000 in the business bank account. B. Paid 50,000 for the purchase of land adjacent to land currently owned by D'Lite Dry Cleaners as a future building site. C. Received cash from customers for dry cleaning revenue, 32,125. D. Paid rent for the month, 6,000. E. Purchased supplies on account, 2,500. F. Paid creditors on account, 22,800. G. Charged customers for dry cleaning revenue on account, 84,750. H. Received monthly invoice for dry cleaning expense for July (to be paid on August 10), 29,500. I. Paid the following: wages expense, 7,500; truck expense, 2,500; utilities expense, 1,300; miscellaneous expense, 2,700. J. Received cash from customers on account 88,000. K. Determined that the cost of supplies on hand was 5,900; therefore, the cost of supplies used during the month was 3,600. L. Paid dividends, 12,000. Instructions 1.Determine the amount of retained earnings as of July 1, 2018. 2.State the assets, liabilities, and stockholders equity as of July 1 in equation form similar to that shown in this chapter. In tabular form below the equation, indicate increases and decreases resulting from each transaction and the new balances after each transaction. 3.Prepare an income statement for July, a retained earnings statement for July, and a balance sheet as of July 31. 4.(Optional) Prepare a statement of cash flows for July.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Corporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial & Managerial AccountingAccountingISBN:9781285866307Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY