Chapter 3, Problem 9BE

The adjusted trial balance of Cullumber Company at December 31, 2020, includes the following accounts: Owner's Capital $ 17,000, Owner's Drawings $ 7,900, Service Revenue $ 38,600, Salaries and Wages Expense $ 16,000, Insurance Expense $ 2,700, Rent Expense $ 3,900, Supplies Expense $ 2,500, and Depreciation Expense $ 1,100. The balance in Owner's Capital is the balance as of January 1. Prepare an owner's equity statement for the year assuming net income is $ 12,400 for the year. (List items that increase owner's equity first.) CULLUMBER COMPANY Owner's Equity Statement

The rent expense account in 2020 has debit balance of P74,400 composed of the following: (1) January 1, 2020 balance of P16,800 representing rent for January through April 2020; and (2) a debit of P57,600 representing a payment for one-year rent beginning May 1, 2020. Compute for the total rent expense at the end of the 2020.

Planning Wizards, LLC is an event-planning company. Which of the following would be included in the current asset section of a classified balance sheet dated December 31, 2019? a. 15-month certificate of deposit b. Customer advances on New Year's parties c. Last month rent payment (lease expires in 2021) d. Investment in stocks, to be sold in 2020 e. Income tax refund receivable f. Inventory Select one: d, e, and f e and f a, b, c, e, and f a, b, c, d, e, and f b, e, f

Comprehensive On November 30, 2019. Davis Company had the following account balance.     During the month of December, Davis entered into the following transactions:       Required:   a.Prepare generaljournal entries to record the preceding transactions. b.Post to general ledger T accoun c.Prepare a year-end trial balance on a worksheet and complete theworksheet using the following information: (a) accrued salaries at year-end total s1,200; (b) for simplicity, the building and equipment are being depreciated using the straight-line method over an estimated life of 20 yean with no residual value;(c) supplies on hand at the end of the year total $630; (d) bad debts expense for the year totals $830; and (e)the income tax rate is 30%; income taxes are payable in the first quarter of d.Prepare the companis financial statements for 2019. e.Prepare the 2019 (a) adjusting and (b) closing entries in the general journal.

The owner's capital account has a credit balance of P624,000 on January 1, 2019. The owner's withdrawal account has a debit balance of P360,000 on December 31, 2019. The income summary account contains debit posting of P830,500 and a credit posting of P1,210,500. What would be the balance of the owner's capital account on December 31, 2019.

From the following trial balance of Faris Ali Qureshi & Bros. and additional information, prepare Trading and Profit & Loss account and Balance sheet for the year ended June 30th, 2020. Additional Information:- a) Depreciation furniture by 10% by written down method (WDM).b) A provision for doubtful debts is to be created to the extent of 5% on sundry debtors.c) Salaries for the month of June, 2019 amounting to Rs. 3,000 were unpaid which must be provided for. However, salaries included Rs. 2,000 paid in advance. Office expenses outstanding Rs. 8,000.d) Insurance amounting to Rs. 2,000 is prepaid.e)Stock use for private purpose Rs. 6,000 and closing stock Rs. 60,000.

On December 1, 2019, an advance rent payment of $25,800, representing a three-month prepayment for the months of December, January, and February, was received in cash from the company’s tenant. Required: Use the horizontal model (or write the journal entries) to record the effects of the following items: a. The three months of rent collected in advance on December 1, 2019. b. The adjustment that will be made at the end of each month to show the amount of rent “earned” during the month.

The following is the alphabetical adusted trial balance of Meadows Company on December 31, 2019:  1. Prepare Meadows’s December 31, 2019, balance sheet.                               2. Next Level Compute the debt-to-assets ratio. what does it indicate about Meadows at the end of 2019?

Demello & Associates records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended December 31, 2021: 1. Demello has a $15,600, 8% note receivable with a customer. The customer pays the interest on a monthly basis on the first of the month. Assume the customer pays the correct amount each month. 2. Demello pays its employees a total of $6,500 every second Wednesday. Employees work a five-day week, Monday to Friday, and are paid for all statutory holidays. December 31, 2021, is a Friday. Employees were paid on Wednesday, December 29, 2021, up to the Friday of the prior week. Demello has a contract with a customer where it provides services prior to billing the customer. On December 31, 2021, this customer owed Demello $3,400. Demello billed the customer on January 7, 2022, and collected the full amount on 3. January 18, 2022. 4. Demello received the $480 December utility bill on January 10, 2022.…