Chapter 4, Problem 3.2C

Purchased stationery on credit from P.Radebe for R100.What effect will it have on the accounting equation.

1. An insurance policy, good for one year, was purchased on April 1, 2020 and has a valueof $25,000.a) Write the journal entry to record the original purchase of the insurance policy onApril 1.b) Write the adjusting journal entry required on April 31, 2020 to reflect the use of onemonth of the insurance service. What, concerning Insurance, would appear on theBalance Sheet? What would appear on the Income Statement?c) Write the adjusting journal entry required on May 31, 2020 to reflect the use of onemore month of the insurance service. What, concerning Insurance, would appear onthe Balance Sheet? What would appear on the Income Statement?

8) What source document is used to record the purchase of prepaid rent?   1.  GM   2.  CL.M   3.  AM   4.  CH

1. Landscape, Inc. includes an estimate of warranty expense in the year in which it sells its lawn mowers, which carry a two year warranty 2. Lower of cost or market is used to value inventories. Choices: a. Full disclosure principle b. Time period assumption c. Materiality constraint d. Cost Principle e. Revenue recognition principle f. Conservatism Constraint g. Matching principle h. Economic entity assumption i. Monetary unit j. Going concern k. Some other answers

Adjustment Amount $5766.67, Net Income $49,408.33 Record the following transactions to the journal and post it to the T-accounts. Make a footing and get the ending balance of each account. Prepare your trial balance in the worksheet template. December 2021 2   Paid wages from last month $1,500. 4    additional investment of $5,000 from S. Joe’s savings account. 10  Collected $1,500 from fees earned previously. 15  Billed client for services rendered, $1,500 20  Paid wages expense $ 1,800. 23  Received telephone bill to be paid later, $150 25  Provided cleaning services in cash $1,000. 26  Purchase cleaning supplies on account $ 1,200. 27  Payment of accounts payable $1,000. 28  Paid gasoline $500. Record the following in the adjustment journal template then post it to the T-accounts. additional information for adjustments for December 31, 2021. Unexpired prepaid rent is $750. The annual prepaid insurance was paid Nov. 1 $2,500. Record the expired portion. Cleaning supplies on…

Solution needed using myob  Enter the following adjusting entries into the general journal.30th Sep30th Sep 30th SepPrepaid expenses is the capitalisation of insurance paid for the year. Insurance was bought and paid for on 1st July 2020. Insurance is expensed monthly. Initial cost of the insurance was $1,200 for the year.Shops and fixtures are depreciated on a straight-line basis over five years and adjusted monthly.As you only have one staff, you have decided to not use the payroll function. Instead adjustments are made into the general journal and payments using the bank function. Fortnightly salaries is $2,115 and tax on that amount is $406. As the new staff has only started and have accrued 8 days of the 10 for the fortnight, fortnight salaries will need to be adjusted on a pro-rata basis. All accrued salaries to go into a new accrues salaries account and PAYG tax withholding to go into the PAYG tax withholding account.

Accruals and Deferrals For the following situations, indicate whether each involves a deferred expense (DE), a deferred revenue (DR), an accrued liability (AL), or an accrued asset (AA). Example: DE Office supplies purchased in advance of their use __________ 1. Wages earned by employees but not yet paid __________ 2. Cash collected from subscriptions in advance of publishing a magazine __________ 3. Interest on a customer loan for which principal and interest have not yet been collected __________ 4. One years premium on life insurance policy paid in advance __________ 5. Office building purchased for cash __________ 6. Rent collected in advance from a tenant __________ 7. State income taxes owed at the end of the year __________ 8. Rent owed by a tenant but not yet collected

1. Deferred revenues occur when:  A. Goods or services are available B. Cash already received but not yet earned C. Expense has been incurred D. You paid it already   2. Accruals occur when: A. Goods or services are available B. Cash already received but not yet earned C. Expense has been incurred but not yet paid D. You paid it already   3. When a lessor paid an advance payment to a lessee for two years rent and records this using the expense method, what should be the credited account at year end (first year)?  A. Debit cash B. Debit an expense account C. Debit a liability account D. Credit an expense account   4. When a business makes an adjusting entry at year-end with a debit to supplies, the usual credit entry is made to:  A. Accounts receivable B. Cash C. Supplies expense D. Income summary   5. The adjusting entry required to record accrued liability includes:…

Required information Skip to question [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September a. $ 6,400 $ 1,700 b. 2,700 2,800 c. 133,300 9,900 Compute BMX’s amounts for each of these four taxes as applied to the employee’s gross earnings for September under each of three separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places.