COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Chapter 6, Problem 3CSR
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XYZ Company performed $3,000 of delivery services for a customer who agreed to pay the firm next month. How does this transaction affect the accounting equation?
Bava Consulting has the following account balances at December 31, the end of its fiscal year.
Service Fees Earned $85,000Rent Expense $22,000Salaries Expense 50,000Supplies Expense 4,000Depreciation Expense 18,000Retained Earnings 70,000
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Below are transactions for Lobos, Inc., during the month of December. Calculate the amount of revenue to recognize in December. If the transaction does not require the company to recognize a revenue, indicate how it would report the transaction. a. Receive $1,200 cash from customers for services to be provided next month. b. Perform $900 of services during the month and bill customers. Customers are expected to pay next month. c. Perform $2,300 of services during the month and receive full cash payment from customers at the time of service.
Chapter 6 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 6 - What is the journal entry to close the drawing...Ch. 6 - How is the Income Summary account classified?Ch. 6 - Prob. 1.3SRQCh. 6 - Prob. 1.4SRECh. 6 - Prob. 1.5SRECh. 6 - Prob. 1.6SRACh. 6 - Prob. 2.1SRQCh. 6 - Prob. 2.2SRQCh. 6 - What accounts appear on the post-closing trial...Ch. 6 - Prob. 2.4SRE
Ch. 6 - Prob. 2.5SRECh. 6 - On which financial statement would you find the...Ch. 6 - Prob. 1CSRCh. 6 - A firm has the following expenses: Rent Expense,...Ch. 6 - Prob. 3CSRCh. 6 - What is the last step in the accounting cycle?Ch. 6 - Is the following statement true or false? Why? All...Ch. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - What accounts appear on a postclosing trial...Ch. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - How is the Income Summary account used in the...Ch. 6 - Briefly describe the flow of data through a simple...Ch. 6 - Prob. 10DQCh. 6 - Prob. 1ECh. 6 - Accounting cycle. Following are the steps in the...Ch. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 1PACh. 6 - Prob. 2PACh. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 1PBCh. 6 - Prob. 2PBCh. 6 - Prob. 3PBCh. 6 - Prob. 4PBCh. 6 - The Trial Balance section of the worksheet for...Ch. 6 - Demetria Davis, the bookkeeper for Home Interiors...Ch. 6 - Prob. 1MFCh. 6 - Prob. 2MFCh. 6 - Why is it important that a firms financial records...Ch. 6 - Prob. 4MFCh. 6 - Prob. 1EDCh. 6 - Prob. 1ICCh. 6 - Prob. 1MPS
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- If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?arrow_forwardA business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?arrow_forwardFor each transaction below, calculate the amount of revenue to be recognized in the current period using accrual-basis accounting: a. Performed $24,000 of services during the month and received full cash payment from customers at the time of service. b. Performed $6,500 of services during the month and billed customers. Customers are expected to pay next month. c. Received $15,000 cash from customers for services to be provided next month.arrow_forward
- In its first month of business, Brewed Awakenings, Inc., collected $34,000 from customers in advance during May. During May, it performed $6,000 of services. What is the balance of the Deferred Revenue account at the end of the month?arrow_forward• Prepare and complete the worksheet using the following information: a. Supplies on hand at Dec. 31 amounted to P4,700. b. Salaries of P1,800 have accrued at month-end. c. Depreciation is P800 for December. d. Detoya has spent 20 hours on a tax fraud case during December. When completed in January, his work will be billed at P500 per hour. Note: The firm uses the account Fees Receivable to reflect the amounts earned but not yet billed. • Prepare an income statement, a statement of changes in equity; a balance sheet and a statement of cash flows.arrow_forwardPrepare and Complete the Worksheet using the Following Information: a. Supplies on hand at December amounted to 7,400 b. Salaries of 1,800 have accrued at month end c. Depreciation is 800 for December d. Detoya has spent 20 hours on a tax fraud case during December. When completed in January, his work will be billed at 500 per hour. Note: the firm uses the account Fees Receivable to reflect the amounts earned but not yet billed.arrow_forward
- A business pays weekly salaries of 20,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Thursday is debit Salaries Payable, 16,000; credit Cash, 16,000 debit Salary Expense, 16,000; credit Salaries Payable, 16,000 debit Drawing, 16,000; credit Cash, 16,000 debit Salary Expense, 16,000; credit Drawing, 16,000arrow_forwardYou run a consulting firm. During Year 1, your firm collected $200,000 from clients (all of these payments were for work previously done). On January 1, Year 1, the Accounts Receivable account had a balance of $40,000. On December 31, Year 1, the Accounts Receivable account had a balance of $60,000. Based on this information, what amount should your firm recognize as revenue for Year 1?arrow_forwardFor each of the following transactions for New Idea Corporation, give the accounting equationeffects of the adjustments required at the end of the month on July 31:a. Received a $600 utility bill for electricity usage in July to be paid in August.b. Owed wages to 10 employees who worked three days at $100 each per day at the end of July.The company will pay employees at the end of the first week of August.c. On July 1, loaned money to an employee who agreed to repay the loan in one year along with$1,200 for one full year of interest. No interest has been recorded yet.arrow_forward
- A business began the year with rent prepaid of £300.During the year the business paid £3,200 in rent and, at the end of the year, the business had paid £500 rent in advance. What was the rent payable expense for the month?arrow_forwardOn January 1 of its first month of business, Bags Bunny, Inc., paid $500,000 for four months of rent in advance beginning in January of Year 1. How much will be reported as Rent Expense on its income statement for the month ended January 31, Year 1?arrow_forwardAt December 31, Rolison Consulting’s financial records show the following selected account information. Service revenue..................... $90,000Rent expense......................... $25,000Salaries expense.................... $54,000Supplies expense..................... $3,000Depreciation expense............... $6,000Retained earnings.................. $52,000  (credit balance)Contributed Capital................. $10,000  (credit balance) After all closing entries are recorded and posted, what is the balance of the contributed capital account?arrow_forward
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