COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 3, Problem 1.4SRE
To determine
The company R purchased equipment for $40,400 from office supplies which is to be paid within a month. Provide with correct entry.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
during the first year, Smith and associates bought 16,000 worth of supplies for the CPA firm when purchased the supplies account was increased in accounts payable increased make the 4000 worth of supplies are on the hand at year end
during the first year, Smith bought $16,000 worth of supplies for their CPA firm purchased. The supplies account was increasing accounts payable increased. What adjustments with Smith and associates make it $4000 worth of supplies were on hand at the end of the year?
Abbott Corporation had a balance of $1,800 in Prepaid Supplies at the beginning of the year. The company purchased $1,200 of supplies during the year. At year end, Prepaid Supplies had a balance of $2,100. What is the amount of Supplies Expense that Abbott Corporation will recognize for the year?
A. $2,100
B. $1,200
C. $900
D. $1,500
Maya Co. had $12,000 of supplies at the end of October. During November, the company bought $4,000 of supplies. At the end of November, the company had $2,000 of supplies remaining. Which of the following statements is not correct?
A. During November, the company used $14,000 of supplies.
B. Supplies should be reported at $2,000 on the balance sheet.
C. An expense should be debited for $14,000 in November.
D. An asset should be debited for $2,000 in November.
Chapter 3 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 3 - Increases are recorded on which side of asset,...Ch. 3 - What is a footing?Ch. 3 - Prob. 1.3SRQCh. 3 - Prob. 1.4SRECh. 3 - Prob. 1.5SRECh. 3 - Prob. 1.6SRACh. 3 - Prob. 2.1SRQCh. 3 - Prob. 2.2SRQCh. 3 - What is a trial balance and what is its purpose?Ch. 3 - Prob. 2.4SRE
Ch. 3 - Prob. 2.5SRECh. 3 - Prob. 2.6SRACh. 3 - Prob. 1CSRCh. 3 - Prob. 2CSRCh. 3 - Prob. 3CSRCh. 3 - On which side of asset, liability, and owners...Ch. 3 - Prob. 5CSRCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Indicate whether each of the following types of...Ch. 3 - The terms debit and credit are often used in...Ch. 3 - Why is Prepaid Rent considered an asset account?Ch. 3 - Why is the modern system of accounting usually...Ch. 3 - Prob. 11DQCh. 3 - Prob. 1ECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Preparing a chart of accounts. The accounts that...Ch. 3 - Prob. 1PACh. 3 - Prob. 2PACh. 3 - Prob. 3PACh. 3 - Prob. 4PACh. 3 - The accountant for the firm owned by Randy Guttery...Ch. 3 - Prob. 1PBCh. 3 - Prob. 2PBCh. 3 - The following transactions took place at...Ch. 3 - Prob. 4PBCh. 3 - Prob. 5PBCh. 3 - Prob. 1CTPCh. 3 - Prob. 2CTPCh. 3 - In discussing a firms latest financial statements,...Ch. 3 - Prob. 2MFCh. 3 - Prob. 3MFCh. 3 - Prob. 4MFCh. 3 - Prob. 1EDCh. 3 - Prob. 1FSA
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
- For each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A. A landscaper received a customers order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year. B. A company divides its income statements into four quarters for the year. C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000. D. Brandys Flower Shop is forecasting its balance sheet for the next five years. E. When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns. F. A company records the expenses incurred to generate the revenues reported.arrow_forwardAt the beginning of May, The GAP's total assets totaled $400,000 . At the end of May, what is The GAP's new asset balance assuming the following transactions occurred in May? Paid S20,000 cash to to purchase new equipment for its stores. Prepaid rent for June for S6, 000. Sold $70,000 of clothes to customers who paid with cash. The inventory cost of the clothes sold was S20, 000.arrow_forward8 On January 1, Kirk Corporation had total assets of $856,000. During the month, the following activities occurred: Kirk Corporation acquired equipment costing $6,600, promising to pay cash for it in 60 days. Kirk Corporation purchased $3,560 of supplies for cash. Kirk Corporation sold land, which it had acquired 2 years ago. The land had cost $15,600 and it was sold for $15,600 cash. Kirk Corporation signed an agreement to rent additional storage space next month at a charge of $1,060 per month. What is the amount of total assets of Kirk Corporation at the end of the month? Multiple Choice $811,400 $862,600 $866,160 $827,000arrow_forward
- 1. Barack Company reported operating expenses in two categories namely distribution and general administrative expenses. The adjusted trial balance at year-end included the following expense and loss accounts for the current year: Accounting and legal fees P1,200,000, Advertising P1,500,000, Freight out P800,000, Interest P700,000, Loss on sale of long term investment P300,000, Officer's salaries P2,250,000, Rent for office space P2,200,000, Sales salaries and commissions P1,400,000. Additional information: One-half of the rented premises is occupied by the sales department. What amount should be reported as Total Distribution costs?arrow_forwardOn December 31, Hughes Company has the following list of account balances. Additional Resources Accounts Payable $42,600 Equipment $30,500 Accounts Receivable 49,100 Service Revenue 41,800 Accumulated Depreciation, Equipment 19,600 Legal Expense 7,800 Accumulated Depreciation, Buildings 62,100 Note Payable, due in two years. 20,000 Advertising Expense 5,000 Prepaid Rent 20,500 Beginning Retained Earnings 97,000 Rent Expense 8,500 Buildings 119,000 Salaries Expense 3,400 Capital Stock 53,900 Salaries Payable 10,700 Cash 65,600 Supplies 24,500 Dividends 12,200 Supplies Expense 1,600 Required: Compute the dollar amount of the…arrow_forwardConsider the following information:1. Service Revenue for the year = $80,000. Of this amount, $70,000 is collected during the year and $10,000 is expected to be collected next year.2. Salaries Expense for the year = $40,000. Of this amount, $35,000 is paid during the year and $5,000 is expected to be paid next year.3. Advertising Expense for the year = $10,000. All of this amount is paid during the year.4. Supplies Expense for the year = $4,000. No supplies were purchased during the year.5. Utilities Expense for the year = $12,000. Of this amount, $11,000 is paid during the year and $1,000 is expected to be paid next year.6. Cash collected in advance from customers for services to be provided next year (Unearned Revenue) = $2,000.Required:1. Calculate operating cash flows.2. Calculate net income.3. Explain why these two amounts differ.arrow_forward
- Alomar Corporation had a balance of $1,000 in Prepaid Supplies at the beginning ofthe year. The company purchased $700 of supplies during the year. At year end, PrepaidSupplies had a balance of $1,100. What is the amount of Supplies Expense that AlomarCorporation will recognize for the year?a. $600b. $700c. $800d. $1,100arrow_forwardA company started the year with $3,750 of supplies on hand. During the year the company purchased additional supplies of $2,000 and recorded them as an increase to the Supplies asset. At the end of the year the company determined that only $750 of supplies are still on hand. What is the adjusting journal entry to be made at the end of the period? Multiple Choice Debit Supplies Expense and credit Supplies for $5,000 Debit Supplies Expense and credit Supplies for $3,000 Debit Supplies and credit Supplies Expense for $2,500 Debit Supplies and credit Supplies Expense for $750arrow_forwardDepreciation on the company’s equipment for the year is computed to be $18,000. The Prepaid Insurance account had a $6,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $1,100 of unexpired insurance coverage remains. The Office Supplies account had a $700 debit balance at the beginning of the year; and $3,480 of office supplies were purchased during the year. The December 31 physical count showed $300 of supplies available. Two-thirds of the work related to $15,000 of cash received in advance was performed this period. The Prepaid Rent account had a $6,800 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $5,800 of prepaid rent had expired. Wage expenses of $3,200 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended (date of) December 31 for each of…arrow_forward
- During the first month of operations, the following transactions occur for Orison Supply Store. The owner invested $105,000 into the Business. Equipment worth $84,000 was purchased in part by a $63,000 bank loan. Supplies totalling $10,500 were purchased by cash. Inventory of $42,000 was purchased on credit. Rent for the following three months of $31,500 was paid. What are the total assets after these transactions? (Ignore GST for this question)arrow_forwardOn December 31, Collins Company has the following list of account balances. Additional Resources Accounts Payable $65,100 Equipment $32,100 Accounts Receivable 27,200 Service Revenue 46,200 Accumulated Depreciation, Equipment 12,400 Legal Expense 6,800 Accumulated Depreciation, Buildings 66,000 Note Payable, due in two years. 13,000 Advertising Expense 8,100 Prepaid Rent 21,800 Beginning Retained Earnings 96,000 Rent Expense 4,300 Buildings 112,000 Salaries Expense 5,400 Capital Stock 51,000 Salaries Payable 14,300 Cash 97,600 Supplies 21,600 Dividends 19,700 Supplies Expense 7,400 Required: Compute the dollar amount of…arrow_forwardDepreciation on the company's equipment for the year is computed to be $16,000. The Prepaid Insurance account had a $9,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $1,730 of unexpired insurance coverage remains. The Office Supplies account had a $350 debit balance at the beginning of December; and $2,680 of office supplies were purchased in December. The December 31 physical count showed $413 of supplies available. One-fourth of the work related to $11,000 of cash received in advance was performed this period. The Prepaid Rent account had a $5,500 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of rental policies showed that $3,770 of rental coverage had expired. Wage expenses of $1,000 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended (date of) December 31 for each of these…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License