Prepare T accounts, enter any opening balances, post the general journal entries and calculate end balances Cash accounts receivable Prepaid advertising Supplies Prepaid rent Note receivable Interest receivable Equipment Accumulated Depreciation-Equipment Accounts payable Salaries payable Deferred revenue Common shares Retained earnings Dividends declared Service revenue Salaries expense
Q: When originally purchased, a vehicle costing $25,380 had an estimated useful life of 8 years and an…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Question: Obtaining an understanding of an entity's internal control is more likely to be performed…
A: Introduction: Internal controls are a system of preventative measures set up to make sure that no…
Q: Question: What is the Federal Reserve Board's most popular strategy for trying to impact the economy…
A: INTRODUCTION: The Federal Reserve has recently changed its monetary policy approach to account for…
Q: QUESTION 29 Pasta Disasta, Inc. is preparing its master budget for its first quarter of business. It…
A: Budgets are the estimates or forecasts that are made for future period of time. Budgeted sales means…
Q: Title VI of the Civil Rights Act of 1964 applies only to employers with fewer than 15 workers. ( a)…
A: The Civil Rights Act of 1964 contains a section known as Title VII that forbids discrimination on…
Q: Question: A company uses a perpetual system to record inventory transactions. The company purchases…
A: Introduction: In accounting, journalizing is the process of recording all business transactions for…
Q: Sheldon Company manufactures only one product and uses a standard cost system. During the past…
A: Formula Direct labor flexible budget variance = Direct labor rate variance + Direct labor…
Q: Tommy's homeowners policy had an $50,000 deductible clause for thefts. How much is Tommy's theft…
A: The homeowner's policy is also known as the homeowners' insurance. The homeowner's insurance is…
Q: During the current year X Ltd has acquired the following investments in the shares issued by Y Ltd…
A: Introduction: IFRS (International Financial Reporting Standards) A group of accounting rules called…
Q: Interest expense, net of tax consequence, from beginning of the year up to date of conversion if…
A: 1)Basic earnings per share for the period = Earnings available for Common shareholders ÷ Weighted…
Q: You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500…
A: Computation of Budgeted Sales Revenue:- Particulars Amount($) (a)Number…
Q: Anika wants to invest $200 a month at 4.25%/a compounded monthly for 10 years. a) b) c) What will be…
A: Future Value of Annuity = Annuity Amount x Future Value Annuity Factor Amount of Interest = Future…
Q: QUESTION 32 Pasta Disasta, Inc. is preparing its master budget for its first quarter of business. It…
A: A cash budget is prepared to estimate the total cash received and total cash disbursement. It is…
Q: 1. A company is in dire need of a fund and is planning to invest by issuing new ordinary stocks…
A: CAPM refers to the capital asset pricing model which is used to calculate the cost of equity. Here…
Q: If the actual fixed costs total $ 167000 with the actual number of units produced equal to 120 , and…
A: The fixed overhead cost variance indicates the extra Fixed OH actually incurred over and above the…
Q: Question 2. Using terms of 2/10 and n/30, Granite Company spent $133,000 on a machine. The equipment…
A: INTRODUCTION:
Q: Exercise 8-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $373,815 for real…
A: Lets understand the basics. When land and building is purchased for lumpsum consideration then…
Q: What is an enterprise system?
A: Introduction:- An enterprise system, also known as an enterprise resource planning. It handles…
Q: Identify each of the following transactions as an operating activity (O), an investing activity (I),…
A: Cash Flow Statement :— It is a Financial Statement that provides information regarding change in…
Q: Exercise 2-7 (Algo) Job-Order Costing; Working Backwards [LO2-1, LO2-2, LO2-3] Hahn Company uses a…
A: A job post is a method of ascertaining the total cost of a specific job. It can be calculated on the…
Q: Calculate the incremental savings (or loss) per pound if the company outsources the product. If the…
A: In the given question, we have to take decision whether to internally produce the product or…
Q: benefits of flexible budgeting on sustainability.
A: Flexible budget refers to the budget which adjusts to the activity levels of the business and this…
Q: 4 12 22 opening inventory balance. Enter the fansactions Cost of goods sold Unit Cost Purchases Unit…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: DuRoss Company produces coats. The company uses a standard costing system and has set the following…
A: Answer - Part 1 - Computation of cost of leather and direct labor that should be incurred for the…
Q: Isabela Africa opened a resort called Isabelo's in Marikina investing cash of P 100,000 and…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: The following data are taken from or calculated from the financial statements: Average accounts…
A: Introduction: The percentage of a period's average accounts receivable divided by the period's net…
Q: How tools are used in insurance risk management
A: Risk Management Techniques Techniques for coping with dangers are known as risk management…
Q: Problem 1: On January 1, 2011, an entity issues bonds with face amount of P5,000,00 for P5,733,129.…
A: Here asked for multi question we will solve for first question as per guidelines. If you need…
Q: what is variable cost per unit?
A: Variable Cost = Cost which changes with change in units. Variable Cost Per unit = It is Variable…
Q: Draaksh Corporation sells premium quality wine for $70 per bottle. Its direct materials and direct…
A: Introduction: The break-even point is the moment at which the total cost of the firm equals total…
Q: Question. A schedule of machinery owned by Micco Co. is presented below: Total cost Salvage value…
A: Introduction: Depreciation is an accounting technique that assigns the cost of a measurable or…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: Introduction: Overhead is computed by dividing overall indirect expenses (also known as overhead)…
Q: Oriental Furnitures makes three types of quality wooden furniture. Information for these three…
A: In order to obtain Margin of Safety, first we need to calculate Total Sales and Break even sales of…
Q: Question 15 of 34 During 2014, Gambler Company discovered that the ending inventories on its…
A: Introduction: Goods acquired first are sold first under the FIFO approach. The term FIFO means for…
Q: On January 1, 2011, an entity issues bonds with face amount of P5,000,00 for P5,733,129. The bonds…
A: Issue of Bond : When the company acquired loan from the public at a specified interest rate then…
Q: The following information is for employee Ella Dodd for the week ended March 15. Total hours worked:…
A: Payroll taxes are the taxes levied on the employers by the internal revenue services over their…
Q: An audit of business's financial reports, preformed by a third party to validate that it is an…
A: External audit reports that whether the Financial statements of an organisation shows true and fair…
Q: An employee earned $60,700 during the year working for an employer. The Federal Insurance…
A: Given that, Earning of employee = $60,700 FICA tax rate for medicare = 1.45% SUTA tax rate = 5.4%…
Q: An audit of business's financial reports, preformed by a third party to validate that it is an…
A: Answer:- Audit meaning:- An audit can be defined as the examination of the various books of account…
Q: PRACTICE PROBLEM Listed below are selected transactions of Scultz Department Store for the current…
A: A balance sheet is a representation of an individual's personal or corporation's financial balances…
Q: In computing book value per share, which of these directly affect the excess over par column?
A: Introduction: Book Value The net worth of a business's assets as shown on its income statement is…
Q: Take into account the possibility of raising the cost of a good with an 8% profit margin. Calculate…
A: Suppose Sale price of the product is 100 and variable cost of product is 92 and the profit is 8. the…
Q: What does it indicate when there are outstanding units of stock
A: Share of a Stock are outstanding implies that the specified number of share of the stock have been…
Q: 1. A company is evaluating two projects, A and B. The company's cost of capital has been determined…
A: Note: The options given in first question is not correct. Answer is different from the given…
Q: What amount should be added to the account to achieve the correct year-end balance in the Allowance…
A: Allowance For Uncollectible Accounts :— It is basically Provision for bad Debt. The balancing Figure…
Q: Juan borrows a total of $125,000 to pay for medical school. He borrows part of the money from the…
A: Working notes Total interest for 3 years = $17673 So interest for one year is $17673/3= $5891 Let's…
Q: The following transactions occured during 2014 for Northstar Corp which uses a perpetual inventory…
A: Cost of goods sold can be calculated by two methods the first is the direct method under which the…
Q: The ABC Company’s profit for the year ended December 31 was P 2,883,400. During the year, ABC…
A: Earnings per share on common stock: It is a financial ratio. It is calculating by divides net…
Q: Prepare a statement of cash flows in good form assuming that Avatar Company uses the indirect…
A: Operating activities in statement of cash flow under indirect method is prepared by making…
Q: ners A, B and C decided to liquidate their partnership. A summ nership's statement of financial…
A: Cash Priority Program Under Cash priority program decide which partner shall be paid first and…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001 (Rent Expense). e. Sold services for cash for the first half of the month, 6,927 (Service Income). f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004 (Utilities Expense). i. Received a bill for gas and oil for the truck, 218 (Gas and Oil Expense). j. Sold services on account, 3,603 (Service Income). k. Sold services for cash for the remainder of the month, 4,612 (Service Income). l. Paid wages to the employees, 3,958, Ck. Nos. 30053007 (Wages Expense). m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5. B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18. C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%. D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $8,500 from their personal account to the business account. B. Paid rent $650 with check #101. C. Initiated a petty cash fund $550 check #102. D. Received $750 cash for services rendered. E. Purchased office supplies for $180 with check #103. F. Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days. G. Received $1,200 cash for services rendered. H. Paid wages $560, check #105. I. Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106. J. Increased Petty Cash by $100, check #107.
- Lavender Company started its business on April 1, 2019. The following are the transactions that happened during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $7,500 from their personal account to the business account. B. Paid rent $600 with check #101. C. Initiated a petty cash fund $250 check #102. D. Received $350 cash for services rendered. E. Purchased office supplies for $125 with check #103. F. Purchased computer equipment $1,500, paid $500 with check #104, and will pay the remainder in 30 days. G. Received $750 cash for services rendered. H. Paid wages $375, check #105. I. Petty cash reimbursement Office Supplies $50, Maintenance Expense $80, Miscellaneous Expense $60. Cash on hand $8. Check #106. J. Increased Petty Cash by $70, check #107.On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalHajun Company started its business on May 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1. A. The owners invested $5,000 from their personal account to the business account. B. Paid rent $400 with check #101. C. Initiated a petty cash fund $200 check #102. D. Received $400 cash for services rendered E. Purchased office supplies for $90 with check #103. F. Purchased computer equipment $1,000, paid $350 with check #104 and will pay the remainder in 30 days. G. Received $500 cash for services rendered. H. Paid wages $250, check #105. I. Petty cash reimbursement office supplies $25, Maintenance Expense $125, Miscellaneous Expense $35. Cash on hand $18. Check #106. J. Increased Petty Cash by $50, check #107.
- The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?Review the following transactions, and prepare any necessary journal entries. A. On July 16, Arrow Corp. purchases 200 computers (Equipment) at $500 per computer from a supplier, on credit. Terms of the purchase are 4/10, n/50 from the invoice date of July 16. B. On August 10, Hondo Inc. receives advance cash payment from a client for legal services in the amount of $9,000. Hondo had yet to provide legal services as of August 10. C. On September 22, Jack Pies sells thirty pies for $25 cash per pie. The sales tax rate is 8%. D. On November 8, More Supplies paid a portion of their noncurrent note in the amount of $3,250 cash.
- Domingo Company started its business on January 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1. A. The owners invested $10,000 from their personal account to the business account. B. Paid rent $500 with check #101. C. Initiated a petty cash fund $500 with check #102. D. Received $1,000 cash for services rendered. E. Purchased office supplies for $158 with check #103. F. Purchased computer equipment $2,500, paid $1,350 with check #104, and will pay the remainder in 30 days. G. Received $800 cash for services rendered. H. Paid wages $600, check #105. I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77, miscellaneous expense $55. Cash on hand $11. Check #106. J. Increased petty cash by $30, check #107.On July 1, K. Resser opened Ressers Business Services. Ressers accountant listed the following chart of accounts: The following transactions were completed during July: a. Resser deposited 25,000 in a bank account in the name of the business. b. Bought tables and chairs for cash, 725, Ck. No. 1200. c. Paid the rent for the current month, 1,750, Ck. No. 1201. d. Bought computers and copy machines from Ferber Equipment, 15,700, paying 4,000 in cash and placing the balance on account, Ck. No. 1202. e. Bought supplies on account from Wigginss Distributors, 535. f. Sold services for cash, 1,742. g. Bought insurance for one year, 1,375, Ck. No. 1203. h. Paid on account to Ferber Equipment, 700, Ck. No. 1204. i. Received and paid the electric bill, 438, Ck. No. 1205. j. Paid on account to Wigginss Distributors, 315, Ck. No. 1206. k. Sold services to customers for cash for the second half of the month, 820. l. Received and paid the bill for the business license, 75, Ck. No. 1207. m. Paid wages to an employee, 1,200, Ck. No. 1208. n. Resser withdrew cash for personal use, 700, Ck. No. 1209. Required 1. Record the owners name in the Capital and Drawing T accounts. 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts. 3. Record the transactions in the T accounts. Write the letter of each entry to identify the transaction. 4. Foot the T accounts and show the balances. 5. Prepare a trial balance as of July 31, 20--. 6. Prepare an income statement for July 31, 20--. 7. Prepare a statement of owners equity for July 31, 20--. 8. Prepare a balance sheet as of July 31, 20--. LO 1, 2, 3, 4, 5, 6Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.