COLLEGE ACCOUNTING ETEXT+CONNECT ACCESS
16th Edition
ISBN: 9781264624256
Author: Haddock
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 2E
1.
To determine
Calculate the adjustment amount of insurance expense for July 31, 2019.
2.
To determine
Calculate the adjustment amount of advertising expense for December 31, 2019.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On June 7,2019, Dilby Mechanical Corp completed $50,00 of servicing work for a client and billed them for that amount plus a GST of $2,500 and PST of $3,50; terms are N20.
Required:
a. Prepare the journal entry as it would appear in Dilby's accounting records.
b. Assume the receivable established on June 7 was collected on June 27. Record the entry.
On June 30, 2020, Rentank received P750,000 advance payment from clients. The contract covers 3 years
rent for the oil tanks.
18. Prepare the initial entries to record the given loan.
19. What are the accounts involved in the adjusting entries?
20. Prepare the adjusting entries.
On April 30, 2019 the Triple Safety Agency received an advance payment of
P540,000 for a one-year security contract covering the period June 01 to May 31,
2020. The Company is using the calendar year reporting period.
How much is the service income to be reported on December 31, 2019?
Chapter 5 Solutions
COLLEGE ACCOUNTING ETEXT+CONNECT ACCESS
Ch. 5 - What are adjustments?Ch. 5 - Prob. 1.2SRQCh. 5 - Prob. 1.3SRQCh. 5 - Prob. 1.4SRECh. 5 - Prob. 1.5SRECh. 5 - Prob. 1.6SRACh. 5 - Prob. 2.1SRQCh. 5 - Prob. 2.2SRQCh. 5 - Prob. 2.3SRQCh. 5 - Prob. 2.4SRE
Ch. 5 - On a worksheet, the adjusted balance of the...Ch. 5 - Prob. 2.6SRACh. 5 - Prob. 1CSRCh. 5 - Prob. 2CSRCh. 5 - Prob. 3CSRCh. 5 - Prob. 4CSRCh. 5 - The Supplies account has a debit balance of 9,000...Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - What effect does each item in Question 8 have on...Ch. 5 - Why is it necessary to journalize and post...Ch. 5 - Prob. 11DQCh. 5 - Prob. 12DQCh. 5 - How does a contra asset account differ from a...Ch. 5 - Prob. 14DQCh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - Journalizing and posting adjustments. Desoto...Ch. 5 - Prob. 1PACh. 5 - Prob. 2PACh. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 1PBCh. 5 - Prob. 2PBCh. 5 - Prob. 3PBCh. 5 - Sam Nix owns Nix Estate Planning and Investments....Ch. 5 - The Effect of Adjustments Assume you are the...Ch. 5 - The account balances for the Patterson...Ch. 5 - Prob. 1MFCh. 5 - Prob. 2MFCh. 5 - Prob. 3MFCh. 5 - Prob. 4MFCh. 5 - Prob. 1ED
Knowledge Booster
Similar questions
- Carla Vista Inc., a registered broker, enters into a finder's fee agreement with Wildhorse Homes Ltd. on June 15, 2023. Carla Vista will find leads in the form of buyers potentially interested in purchasing Wildhorse's real estate holdings. Along with finding potential buyers, Carla Vista helps negotiate the selling price and provides advice on contract details. If and when Wildhorse closes a sale, Carla Vista will be paid within 30 days of the closing date, based on the following formula: 5% of any transaction value up to and including $1 million, plus 4% of any transaction value greater than $1 million and less than and including $2 million, plus 3% of any transaction value greater than $2 million and less than and including $3 million, plus 2% of any transaction value greater than $3 million and less than and including $4 million, plus 1% of any transaction value in excess of $4 million. If Carla Vista uses another broker and this information is not shared with Wildhorse, the fee is…arrow_forwardOn May 1, 2025, Sandhill Company enters into a contract to transfer a product to Anthony Company on September 30, 2025. It is agreed that Anthony will pay the full price of $24,560 in advance on June 15, 2025. Anthony pays on June 15, 2025, and Sandhill delivers the product on September 30, 2025. Prepare the journal entries required for Sandhill in 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date 11 Account Titles and Explanation Debit Creditarrow_forwardOn May 1, 2025, Sunland Company enters into a contract to transfer a product to Charlie Company on September 30, 2025. It is agreed that Charlie will pay the full price of $26,420 in advance on June 15, 2025. Charlie pays on June 15, 2025, and Sunland delivers the product on September 30, 2025, Prepare the journal entries required for Sunland in 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem) Date May 1,2025 June 15, 2025 Sep 30, 2025 Account Titles and Explanation No Entry No Entry Cath Debit 0 26420 26420 Credit 26420 26420arrow_forward
- ABC Inc. purchased a 12-month insurance policy on January 1, 2019 for OMR 2400. At June 30, 2019, The Adjusting Entry should be: Select one: Oa. Debit to Insurance Expense, OMR 1200; Credit to Prepaid Insurance for OMR1200 O b.None of the answers are correct Oc Debit to Insurance Expense. OMR 2400; Credit to Prepaid Insurance for OMR 2400 O d. Debit to Prepaid Insurance, OMR 1400; Credit to Insurance Expense for OMR 1400 Oe. Debit to Prepaid Insurance, OMR 2400: Credit to Cash for OMR 2400 Clear my choicearrow_forwardTexans Corp. uses the assurance-type (a.k.a. expense) approach to account for warranties. They sell a used car for $ 30,000 on October 25, 2020, with a one-year warranty covering parts and labour. Warranty expense is estimated at 2% of the selling price, and the appropriate adjusting entry is recorded at December 31, 2020. On March 12, 2021, the car is returned for warranty repairs. This cost Texans the sum of $ 200 in parts and $ 120 in labour. Instructions Provide appropriate adjusting entries on December 31, 2020. Briefly explain the assurance type approach to account for warranties. Provide the entries required on March 12, 2021. With proper title and classification, present the amount of the warranty liability that would be shown on Texans’ balance sheet on December 31, 2021arrow_forwardUnder M. Sabio Company’s accounting system, all insurance premiums paid are debited to prepaid insurance. For interim financial reports, M Sabio makes monthly estimated charges to insurance expenses with credits to prepaid insurance. Additional information for the year ended December 31, 2019 are as follows: Prepaid Insurance at December 31, 2018 P120,500 Charges to insurance expense during 2019( including a year- End adjustment of P10,500) 437,500 Prepaid Insurance at December 31, 2019 110,000 What was the total amount of insurance premiums paid by M. Sabio during 2019? P448,000 P427,000 P327,500 P437,500arrow_forward
- To attract retailers to its shopping center, the Marketplace Mall will lend money to tenants under formal contracts, provided that they use it to renovate their store space. On November 1, 2020, the company loaned $105,000 to new tenants on one-year notes with stated annual interest rates of 10 percent. Interest is to be received by Marketplace Mall on April 30, 2021, and at maturity on October 31, 2021. Required: Prepare journal entries that Marketplace Mall would record related to these notes on the following dates: (a) November 1, 2020; (b) December 31, 2020 (Marketplace Mall’s fiscal year-end); (c) April 30, 2021; and (d) October 31, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)arrow_forwardOn May 1, 2025, Hall Inc. entered into a contract to deliver one of its specialty mowers to Sandhill Landscaping Co. The contract requires Sandhill to pay the contract price of $965 in advance on May 15, 2025. Sandhill pays Hall on May 15, 2025, and Hall delivers the mower (with cost of $651) on May 31, 2025. (a) Your answer is correct. Prepare the journal entry on May 1, 2025, for Hall. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) (b) Date May 1, 2025 Account Titles and Explanation No Entry eTextbook and Media Date No Entry List of Accounts May 15, 2025 Account Titles and Explanation Debit | Prepare the journal entry on May 15, 2025, for Hall. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the…arrow_forwardOn January 1, 2019, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson pays $100,000 at the time the contract is signed, at which time the goods are transferred and Fulton’s performance obligation is complete. In addition, Gibson agrees to pay Fulton $100,000 on December 31, 2019, and December 31, 2020. If Fulton entered into a financing arrangement with Gibson it would charge an interest rate of 9%. Please assist with the journal entries. Thank you! There are 8 journal entries in all.arrow_forward
- On October 5, 2020, a company enters into a contract to transfer a product to the customer. It is agreed that the customer will pay the full price of $50,000 in advance on October 10, 2020. The customer pays on October 10, 2020, and company delivers the product on October 26, 2020. When will the (seller) company make its first journal entry related to the above? Choose from 5, 10, and 26, and enter the date only.arrow_forwardA company makes the payment of a one-year insurance premium of $4,584 on March 1, 2019. c. Calculate the amount of prepaid insurance that should be reported on the December 31, 2019, balance sheet with respect to this policy.arrow_forwardOn January 1, 2019, AAA insurance co. entered into reinsurance contract with CCC Co. for a premium of P2,000. Commission expense incurred on the reinsurance contract issued is 10%. How much is the amount due from ceding company (book of reinsurer)? How much is the amount of commission income recognized by cedant?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning