As journal entries Accounting 20 I: Journal Entries ·Environmental Services, Inc. performs various tests on wells and septic systems. A few of the company'sbusiness transactions occurring during August are described below:On August 1, the company billed customers $2,500 on account for services renc ered. Customersare required to make full payment within 30 days.Aug 1hot asa2. On August 3, purchased testing supplies costing $3,800 paying $800 cash and charging theremainder on the company's 30 day account at Penn Chemicals. The testing supplies areexpected to last several months -AugOn August 5, returned to Penn Chemicals $100 of testing supplies that were not needed. Thereturm of these supplies reduced by $100 the amount owed to Penn Chemicals.3.Aug54. On August 17, the company issued an additional 2,500 shares of capital stock at $8 per share.The cash raised will be used to purchase new testing equipment in September.5. On August 22, the company received $600 cash from customers it had billed on August 1.odn6. On August 29, the company paid its outstanding account payable to Penn Chemical.7. On August 30, a cash dividend totaling $6,800 was declared and paid to the company'sstockholders.me

The journal entries are prepared to record day to day transactions of the business on regular basis.…

1. On August 1, the company billed customers $2,500 on account for services renc ered. Customers are required to make full payment within 30 days. Aug 1 2. On August 3, purchased testing supplies costing $3,800 paying $800 cash and charging the remainder on the company's 30 day account at Penn Chemicals. The testing supplies are expected to last several months . Aug 3 3. On August 5, returned to Penn Chemicals $100 of testing supplies that were not needed. The return of these supplies reduced by $100 the amount owed to Penn Chemicals. Ava 5

1. On August 1, the company billed customers $2,500 on account for services renc ered. Customers are required to make full payment within 30 days. Aug 1 2. On August 3, purchased testing supplies costing $3,800 paying $800 cash and charging the remainder on the company's 30 day account at Penn Chemicals. The testing supplies are expected to last several months . Aug 3 3. On August 5, returned to Penn Chemicals $100 of testing supplies that were not needed. The return of these supplies reduced by $100 the amount owed to Penn Chemicals. Ava 5

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.12AMCP

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Journal Entries Overnight Delivery Inc. is incorporated on February 1 and enters into the following transactions during its first month of operations: February 15: Received $8,000 cash from customer accounts. February 26: Provided $16,800 of services on account during the month. February 27: Received a $3,400 bill from the local service station for gas and oil used during February. February 28: Paid $400 for wages earned by employees for the month. February 28: Paid $3,230 for February advertising. February 28: Declared and paid $2,000 cash dividends to stockholders. Required Prepare journal entries on the books of Overnight to record the transactions entered into during February. Explain why you agree or disagree with the following: The transactions on February 28 all represent expenses for the month of February because cash was paid. The transaction on February 27 does not represent an expense in February because cash has not yet been paid.
Comprehensive Problem 1, Period 2: The Accounting Cycle During the month of May 20--, The Generals Favorite Fishing Hole engaged in the following transactions. These transactions required an expansion of the chart of accounts as shown below. May 1In order to provide snacks for guests on a 24-hour basis, Night signed a contract with Snack Attack. Snack Attack will install vending machines with food and drinks and pay a 10% commission on all sales. Estimated payments are made at the beginning of each month. Night received a check for 200, the estimated commission on sales for May. 2Night purchased a surround sound system and big screen TV with a digital satellite system for the guest lounge. The surround sound system cost 3,600 and has an estimated useful life of five years and no salvage value. The TV cost 8,000, has an estimated useful life of eight years, and has a salvage value of 800. Night paid cash for both items. 2Paid for Mays programming on the new digital satellite system, 125. 3Nights office manager returned 100 worth of office supplies to Gordon Office Supply. Night received a 100 reduction on the account. 3Deposited registration fees, 52,700. May 3Paid rent for lodge and campgrounds for the month of May, 40,000. 3In preparation for the purchase of a nearby campground, Night invested an additional 600,000. 4Paid Gordon Office Supply on account, 400. 4Purchased the assets of a competing business and paid cash for the following: land, 100,000; lodge, 530,000; and fishing boats, 9,000. The lodge has a remaining useful life of 50 years and a 50,000 salvage value. The boats have remaining lives of five years and no salvage value. 5Paid Mays insurance premium for the new camp, 1,000. (See above transaction.) 5Purchased food supplies from Acme Super Market on account, 22,950. 5Purchased office supplies from Gordon Office Supplies on account, 1,200. 7Night paid 40 each for one-year subscriptions to Fishing Illustrated, Fishing Unlimited, and Fish Master. The magazines are published monthly. 10Deposited registration fees, 62,750. 13Paid wages to fishing guides, 30,000. (Dont forget wages payable.) 14A guest became ill and was unable to stay for the entire week. A refund was issued in the amount of 1,000. 17Deposited registration fees, 63,000. 19Purchased food supplies from Acme Super Market on account, 18,400. 21Deposited registration fees, 63,400. 23Paid 2,500 for advertising spots on National Sports Talk Radio. 25Paid repair fee for damaged boat, 850. 27Paid wages to fishing guides, 30,000. 28Paid 1,800 for advertising spots on billboards. 29Purchased food supplies from Acme Super Market on account, 14,325. 30Paid utilities bill, 3,300. 30Paid phone bill, 1,800. 30Paid Acme Super Market on account, 47,350. 31Bob Night withdrew cash for personal use, 7,500. Adjustment information at the end of May is provided below. (a) Total vending machine sales were 2,300 for the month of May. A 10% commission is earned on these sales. (b) Straight-line depreciation is used for the 10 boats purchased on April 2 for 60,000. The useful life for these assets is five years and there is no salvage value. A full months depreciation was taken in April on these boats. Straight-line depreciation is also used for the two boats purchased in May. Make one adjusting entry for all depreciation on the boats. (c) Straight-line depreciation is used to depreciate the surround sound system. (d) Straight-line depreciation is used to depreciate the big screen TV. (e) Straight-line depreciation is used for the building purchased in May. (f) On April 2, Night paid 9,000 for insurance during the six-month camping season. Mays portion of this premium was used up during this month. (g) Night received his May issues of Fishing Illustrated, Fishing Unlimited, and Fish Master. (h) Office supplies remaining on hand, 150. (i) Food supplies remaining on hand, 5,925. (j) Wages earned, but not yet paid at the end of May, 6,000. REQUIRED 1. Enter the transactions in a general journal. Enter transactions from May 14 on page 5, May 528 on page 6, and the remaining entries on page 7. To save time and space, dont enter descriptions for the journal entries. 2. Post the entries to the general ledger. (If you are not using the working papers that accompany this text, you will need to enter the account titles, account numbers, and balances from April 30 in the general ledger accounts.) 3. Prepare a trial balance on a work sheet. 4. Complete the work sheet. 5. Journalize the adjusting entries on page 8 of the general journal. 6. Post the adjusting entries to the general ledger. 7. Prepare the income statement. 8. Prepare the statement of owners equity. 9. Prepare the balance sheet. 10. Journalize the closing entries on page 9 of the general journal. 11. Post the closing entries to the general ledger. 12. Prepare a post-closing trial balance.
Exercise 4-54 Operating Cycle and Current Receivables a. Dither and Sly are attorneys-at-law who specialize in federal income tax law. The): complete their typical case in 6 months or less and collect from the typical client within 1 additional month. b. Johnstons Market specializes in fresh meat and fish. All merchandise must be sold within one week of purchase. Almost all sales are for cash and any receivables are generally paid by the end of the following month. c. Mortondos is a womens clothing store specializing in high-style merchandise. Merchandise spends an average of 7 months on the rack following purchase. Most sales are on credit and the typical customer pays within 1 month of sale. d. Trees Inc. grows Christmas trees and sells them to various Christmas tree lots. Most sales are for cash. It takes 6 years to grow a tree. Required: For each of the businesses described above, indicate the length of the operating cycle.
ACCT20 - Assignment #1There were following activities occurred during the first month of Babara Schmidt's new hair cuttingbusiness called The Cutlery:1. On August1, Schmidt put $3,000 cash into a chequing account in the name of The Cutlery. She alsoinvested $15,000 of equipment that she already owned.2.On August1, Schmidt paid $600 cash for six months of insurance effective immediately.3.On August2, she paid $2,000 cash for furniture for the shop.4. On August3, she paid $3,200 cash to rent space in a strip mall for August.5.On August4, she furnished the shop by installing the old equipment and some new equipment thatshe bought on credit for $21,000. This amount is to be repaid in three equal payments at the end ofAugust, September, and October.6.On August15, Cash receipts from haircutting services provided in the first week and a half ofbusiness (ended August15) were $1,100.7. On August15, Schmidt provided haircutting services on account for $750.8.On August17, Schmidt received a $750…
FE16 From the following transactions as well as additional data, please complete the entire accountingcycle (including of preparing a post-closing trial balance) for Carryon’s Plumbing201X Jan1 Carryon invested $104,900 cash and $82,000 worth of plumbing equipment into the plumbingcompany.1 Paid rent for eight months in advance for garage space. Rent per month is $3,250.4 Purchased office equipment on account from Daisy Corp., $42,610.
FE16 From the following transactions as well as additional data, please complete the entire accountingcycle (including of preparing a post-closing trial balance) for Carryon’s Plumbing201X Jan1 Carryon invested $104,900 cash and $82,000 worth of plumbing equipment into the plumbingcompany.1 Paid rent for eight months in advance for garage space. Rent per month is $3,250.4 Purchased office equipment on account from Daisy Corp., $42,610. 6 Purchased supplies for $12,455 cash.8 Collected $39,000 from plumbing local shopping centers.12 Chris withdrew $23,050 from the business for his own personal use.20 Repaired Alton Co. parking lots, payment not to be received until March, $9,200.26 Paid salaries to employees, $10,285.28 Paid Daisy Corp. one-half amount owed for office equipment.29 Advertising bill received from bigtime Co. but will not be paid until May, $3,740.30 Paid telephone bill, $1,030Adjustment Dataa. Supplies on hand, $1,310.b. Rent expired, $3,250.c. Depreciation on office…
Question 12 A roofing company collects payment when jobs are complete. The work for one customer whose job was bid at $3,000, has been completed as of December 31, but the customer has not yet been billed. Assuming adjustments are only made at year-end what is the adjusting entry the company would need to make on December 31, the end? O Debit Cash, $3,000 credit Roofing Revenue, $3,000 O Debit Roofing Revenue, $3.000 credit Accounts Receivable tood O Debit Accounts Receivable $3.000 credit Roofing Revenue 3000 O Debit Cash, $3,000 credit Accounts Receivable, $3.000 O No adjustment is required Previous
Problem 1: On Febuary 14, 2018, Floating Restaurant Company established a sales agency in Loboc. Upon establishment of the sales agency, the home office sent samples costing ₱8,000 and a working fund of ₱8,000 to be maintained on the imprest baisis. During the six months period, the sales agency reported to the home office sales orders. These were billed at ₱70,000 of which of ₱40,000 was collected) the sales agency paid expenses of ₱5,800 but was reimbursed by the home office. On August 15, 2018, the sales agency samples was valued at ₱2,000. It was estimated that the gross profit on goods shipped to fill sales order averaged 40% of cost. Required: Show the solution. 1.) The cost of sales of the sales agency for the six months period is 2.) The net income of the sales agency for the six months period is Problem 2: JCO KREMES Company had an agency in SM Cebu and a working fund for ₱20,000 is established on the imprest basis. The first payment from the fund is ₱3,000 for rent. This…
24)Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services $60,000 for 6-months services in advance. Management Services' general journal entry to record this transaction will include a: (Hint: What is the journal entry if Management Service Inc. receives early cash payment from its client before providing management service?) Group of answer choices Credit to Management Fees Earned for $60,000. Credit to Cash for $60,000. Debit to Unearned Management Fees for $60,000. Credit to Unearned Management Fees for $60,000.
23. A law firm began November with office supplies of P1,600. During the month, the firm purchased supplies of P2,900. At November 30 supplies on hand total P2,100. Supplies expense for the period is?
33 Daube Industries’ operations for the month of October are summarized as follows: Provided $2,500 of services in October on account. Received $2,000 cash from customers for services provided in October. Received $500 cash for services to be provided in November. Received $1,500 cash from customers on account for services provided in September. Paid September’s warehouse rental bill on account in the amount of $500. Received October’s warehouse rental bill of $750; set it aside to be paid at a later date. Required: Prepare journal entries to record the transactions identified among activities (A) through (F). Calculate the Net Income.
Scenario 1: On December 1, the balance of supplies totals $400. On December 15, the company purchases an additional $200 of supplies with cash. By the end of December, only $100 of supplies remains. Scenario 2: On November 4, Company receives $6,000 cash from a local moving company in agreement to provide truck maintenance of $1,000 each month for the next six months beginning in December. Scenario 3: Employees have worked the final four days in December, earning $600, but have not yet been paid. Company plans to pay its employees on January 2 Scenario 4: Customers receiving $250 of maintenance services from Midas on December 29 have not been billed as of the end of the month. These customers will be billed on January 3 and are expected to pay the full amount owed on January 6. Scenario 5: At the beginning of the year, AdShop’s depreciable equipment has a cost of $28,0000, a four year life, and no salvage value. The equipment is depreciated $7,000 yearly over the four years service…