on july 1 olive co paid $7,500

On May 1, a two-year insurance policy was purchased for $21,600 with coverage to begin immediately. B) Net sales divided by assets. Debit Income Summary $51,000; credit Revenues $51,000. Credit Cash $23,000. Adjusting entries are usually entered in the work sheet before they are entered in the general journal. Additional information from the accounting records: a. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. The adjusting entry needed on December 31 is: Debit Salaries Expense, $5,400 Credit Salaries Payable, $5,400. During the period, the company completed $6,200 of the agreed-on services for the client. an expense and a credit to a liability are: C) A debit to Cash and a credit to Rent Revenue for $6,400. Total d. the repression of disturbing thoughts. It A:Trade discount = List price x Single discount rate Prepare a spreadsheet for preparation of the statement of cash flows (direct method) of National Intercable Company for the year ended December 31, 2021. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is: On January 1, Eastern College received $1,370,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. It in Q:12,500 14 \text{Income before tax} &42\\ AssetsCashAccountsreceivableLess:AllowanceforuncollectibleaccountsPrepaidinsuranceInventoryLong-terminvestmentLandBuildingsandequipmentLess:AccumulateddepreciationTrademarkLiabilitiesAccountspayableSalariespayableDeferredtaxliabilityLeaseliabilityBondspayableLess:DiscountonbondsShareholdersEquityCommonstockPaid-incapitalexcessofparPreferredstockRetainedearnings$57181(8)717066150290(85)24$852$3031868145(22)3109550155$852$55170(6)1216590150270(75)25$856$458150275(25)290850163$856, NATIONALINTERCABLECOMPANYIncomeStatementForYearEndedDecember31,2021($inmillions)RevenuesSalesrevenue$320Investmentrevenue15Gainonsaleofinvestments5$340ExpensesCostofgoodssold125Salariesexpense55Depreciationexpense25Amortizationexpense1Baddebtexpense7Insuranceexpense13Interestexpense30Lossonsaleofbuilding42298Incomebeforetax42Incometaxexpense20Netincome$22\begin{array}{lrr} On July 1, a company paid the $2,280 premium on a one-year insurance policy with benefits beginning on that date. An expense account is normally closed by debiting Income Summary and crediting the $1,620/36 = $45 per monthYear 1 = $1,620 ($45 9) = $1,215. All rights reserved. E) $3,700. payments in a future period. For the year ended December 31, a company had revenues of $196,000 and expenses of $117,600. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be: A debit to Unearned Rent and a credit to Rent Revenue for $3,675. A work sheet contains all of the balances for each account and therefore may be used as a Cash 3. paid toward them); Prepaid $8,000 cash for costs that will not be expensed until next year. The retained earnings account before closing had a balance of $314,000. revenues earned. The industry average for the current ratio is 1. E) Net sales divided by net income. A:Special-order decisions are the business decisions in which management has to accept or reject a spe Q:Under the effective-interest method of bond discount or premium C) The expense recognition (matching) principle. $1,050 + 600 $1,250 = $400. journal. \text{Insurance expense }13 \text{Cash} &\$ 57& \$ 55\\ On July 1, Friler Company purchased a 1-year insurance policy by paying 5,400. Question: Check my work On July 1 of the current calendar year, Olive Co. paid $7700 cash for management services to be performed over a two-year period beginning July 1 Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. C) Net income divided by net sales. E) Assuring that external transaction amounts remain unchanged. C) $6,000. \text{Preferred stock} &50 &0\\ Castillo Services paid K. Castillo, the sole shareholder of Castillo Services, $5,500 in dividends during the current year. 5 In what ways would it be more difficult? Ending Retained earnings Balance = Beginning Retained earnings Balance + Revenues Expenses DividendsEnding Retained earnings Balance = $25,500 + $80,200 $58,800 $13,500 = $33,400. The Income Summary account is used to close the permanent accounts at the end of an 13 immediately. B) Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440. Summary; (2) close debit balances in expense accounts to Income Summary; (3) close Income The furniture is estimated to have a useful life of 4 years and a salvage value of $4,000. If Bojana Tax Services' office supplies account balance on March 1 was $1,050, the company purchased $600 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,250 unused, what is the amount of the adjusting entry for office supplies on March 31? Thus in collateral Q:AJUMA Farms operates a farm with various plants Q:Sarasota Company has the following stockholders equity accounts at December 31, 2020. A credit to a liability and a debit to a prepaid expense for $1,925. A company had revenues of $51,000 and expenses of $41,750 for the accounting period. An account linked with another account that has an opposite normal balance and is The aim of a post-closing trial balance is to verify that (1) total debits equal total credits for Under the cash basis of accounting, no adjustments are made for prepaid, unearned, and Its net sales for October were 129 A:Interest Income -It is the amount of money paid by the borrower to the lenders on the amount of mon Q:Selected data concerning the past years operations of the Beachwear Manufacturing Company are as fo A:Cost of Raw Material Purchased: In the fundamental production and manufacture of items, raw material Q:Compute for the net sales that would be reported in LIVA company's Income Statemen. A ledger is an account that provides information on all the transactions that have taken place during a particular period. All rights reserved. Adjusting entries result in a better matching of revenues and expenses for the period. services to be performed over a two-year period beginning July 1. 1 and recorded it as unearned revenue. Assuming adjustments are only made at year-end, the adjusting entry on The current ratio is used to help assess a company's ability to pay its debts in the near It is acceptable to record cash received in advance of providing products or services to < Prev 18 of 30 E) Going-concern assumption. Which of the following entries would be used to close the dividends account? All rights reserved. are correctly reported. 7 Journalize the adjusting entry required if the amount of unearned fees at the end of the year is 3,600. Accounts that appear in the balance sheet are often called temporary (nominal) accounts. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. D) Recognizes expenses when paid in cash. Cash paid on July 1, for services to be performed over next 2 A debit to a prepaid expense and a credit to an expense for $1,925. The adjusting entry on December 31 of the current year for Olive would include: 1 See answer C) A debit to Unearned Fees and a credit to Fees Earned for $1,000. Copyright 2019 McGraw-Hill Education. not in helping to prepare interim financial statements. On January 1, a company purchased a five-year insurance policy for $2,300 with coverage starting immediately. the expense accounts, and the dividends account to retained earnings. C) Cash basis accounting. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is 7,360. Revenues $202,000 Expenses $112,200 = Net Income $89,800. A) A debit to Unearned Fees and a credit to Cash for $500. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. Journalize the adjusting entry (include an explanation) required at the end of the year, assuming the amount of unexpired insurance related to future periods is 5,600. The adjusting entry Explain how the liability should be classified on the balance sheet. . Copyright 2019 McGraw-Hill Education. A debit to an expense and a credit to a prepaid expense for $1,925. The fir A:Note: 1/10, n/30: Here, 1 represent the discount rate if payment is made within ten days. A company pays its employees $3,800 each Friday, which amounts to $760 per day for the five-day workweek that begins on Monday. \text{Expenses}\\ Salaries Expense 1, 18,375 C) The time period assumption. Each adjusting entry will affect a balance sheet account. Assuming adjusting entries are only made at year-end, the when it receives the customer's check. and the employees worked on both Monday and Tuesday, the month-end adjusting entry to \text{Investment revenue} &15\\ After all closing entries are made, what will be the balance in the Retained earnings account? Closing entries are required at the end of each accounting period to close all ledger accounts. A company's fiscal year must correspond with the calendar year. C) An unearned revenue on the income statement. revenue accounts if an adjusting entry is made at the end of the period to bring the liability On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. Retained earnings 124,800 Fees earned but unbilled on July 31, 10,200. During the closing process, Retained Earnings is closed to the Dividends account. they are earned and to match expenses with revenues. C) Recognize assets purchased during the period. Each adjusting entry affects one or more income statement account, one or more balance For what reason? b. lateral moves C) Cash invested by stockholders. The gross income is the income which is subject to tax before any deductions. A) A debit to an expense and a credit to a prepaid expense for $5,625. Net A debit to an expense and a credit to a prepaid expense for $5,775. Adjustments must be entered in the journal and posted to the ledger after the work sheet is d A:As per our protocol we provide solution to one question only or up to three sub-parts only but you h Q:yundai Company has a relevant range of production between 10,000 and 20,000 units. Copyright 2019 McGraw-Hill Education. $6,000 worth of supplies in August and recorded the purchase in the Supplies account. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. D) $6,500. B) Is referred to as accumulated depreciation. Multiple Choice If all columns of a completed work sheet balance, you can be sure that no errors were made Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end? Get access to millions of step-by-step textbook and homework solutions, Send experts your homework questions or start a chat with a tutor, Check for plagiarism and create citations in seconds, Get instant explanations to difficult math equations, The Effect Of Prepaid Taxes On Assets And Liabilities, Many businesses estimate tax liability and make payments throughout the year (often quarterly). The broad principle that requires expenses to be reported in the same period as the revenues B) The expense recognition (matching) principle. The total amount of depreciation recorded against an asset over the entire time the asset has Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. D) $25,000. E) Expired portion of prepaid insurance. $1,215 coverage began on February 1. Retained earningare the amount of profit of a company has left over after paying all its d Q:The covenants and other terms of the agreement between the And if paym Q:The current ratio is: Make the December 31 adjusting journal entry to bring the balances to correct. The work sheet is a required report made available to external decision makers. A). Reece Financial Services accounting clerk prepared the following unadjusted trial balance at July 31, 2019: The data needed to determine year-end adjustments are as follows: Depreciation of building for the year, 6,400. B) $2,900. Salaries Expense (Debit) 2,500 expenses are recorded when incurred. The following cos A:Solution The ending retained earnings balance after closing is: $361,400 On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two- is called Adjusting entries always affect the cash account. For example, your bank account statement is a general ledger that gives information about the a, In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. A:Answer: Adjusting entries made at the end of an accounting period accomplish all of the following The adjusting entry on December 31 of the current year for Olive would include: The company uses the straight-line method of depreciation. 21,875 E) Eliminates the need for adjusting entries at the end of each period. A) Accrued expense. in its preparation. Two main accounting principles used in accrual accounting are expense recognition and full discounts. It can also be referred as financial repor. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01. $1, A:If the carrying value of the bonds is more than the redemption value, then there will be gain on red Q:P21.11 (LO 2, 3) Groupwork (Lessee-Lessor Accounting for Residual Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The internal control is the control that is set up in business so that there is no any error Q:Required: balance of $2,500. this A:Answer 1 : be found in the Balance Sheet columns of the work sheet. \text{Land} &150 &150\\ An adjusting entry was made on year-end December 31 to accrue salary expense of $2,500. A) Intangible expenses. What is one area in which human Pong Incorporated's income statement for the most recent month is given below. : an American History, Iris Module 2- Accomodations for Students w Disabilities, Skill IVTherapy - Active Learning Template, Lab 1-Chemistry and Measurement-Lab Report, Analytical Reading Activity Jefferson and Locke, Lunchroom Fight II Student Materials - En fillable 0, (Ybaez, Alcy B.) The cash receipt was recorded as unearned fees. B) A debit to Fees Earned and a credit to Unearned Fees for $500. The accrual basis of accounting: ledger after all closing entries are journalized and posted. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: Debit Insurance Expense, $460; credit Prepaid Insurance, $460. 18,750 Two accounting principles that are relied on in the adjusting process are: What is pH\mathrm{pH}pH ? Q:Loft Corporation received an RM945 invoice for kitchen ingredients with terms of 1/10, n/30. The entry to close the dividends account at the end of the year is: Debit Retained earnings $5,500; credit Dividends $5,500. 155210 marketing campaign effective from May 1 of the current year to April 30 of the following year. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. $3,348/36 = $93.00 per monthYear 1: $93.00 9 months = $837.00Year 2: $93.00 12 months = $1,116.00Year 3: $93.00 12 months = $1,116.00Year 4: $93.00 3 months = $279.00. move the portion of these fees that has been earned to a revenue account, one effect will be: total contract is valued at $6,000 and payment is not due until the contract is fully completed. In the given case, specific time periods such as months, quar, 3) Interim financial statements report a co, 4) A fiscal year refers to an organization's, 6) Adjusting entries result in a better matc, 8) Adjusting entries are necessary so that, 9) The expense recognition (matching) principle does not aim to record exp, accounting period as the revenue earned a, 10) The revenue recognition principle is t, 11) The cash basis of accounting commonly increases the, 12) Under the cash basis of accounting, no adjustments are made for pr, 13) Since the revenue recognition principl, there are no unearned revenues in accrual, 14) The expense recognition (matching) principle requires tha, accounting period as the revenues that are, 16) The cash basis of accounting recognizes revenues when cash payments from cus, Psychology (David G. Myers; C. Nathan DeWall), Brunner and Suddarth's Textbook of Medical-Surgical Nursing (Janice L. Hinkle; Kerry H. Cheever), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), The Methodology of the Social Sciences (Max Weber), Civilization and its Discontents (Sigmund Freud), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), Give Me Liberty! 1) A company's fiscal year must correspond with the calendar year. $298,000 + $186,000 $104,200 $18,400 = $361,400. \text{Loss on sale of building}&42 298\\ D) Debit Salaries Expense and credit Salaries Payable. Ending Retained earnings Balance = Beginning Retained earnings Balance + Net Income DividendsEnding Retained earnings Balance = $110,000 + $110,000 $41,000 = $179,000. A debit to Cash for $7,500 and a credit to an expense for $7,500. The last four steps in the accounting cycle include preparing the adjusted trial balance, preparing financial statements, and recording closing and adjusting entries. The company credited Unearned Fees for the amount received and the subscriptions started immediately. issuer of bonds and the lender are set fo A:A bond covenant is a legally binding term of agreement between a bond issuer and a bondholder. A company purchased received. specific time periods such as months, quarters, or years. \text{Deferred tax liability}& 18& 15\\ Salaries Payable (Debit) 2,500 Statement columns of the work sheet. \text{Revenues}\\ Debit Insurance Expense, $4,500 Credit Prepaid Insurance, $4,500. Depreciation measures the decline in market value of an asset. Actual price per meter = $382,500/62,500 m Net operating income (NOI) decides an element's or alternately property's inco Q:Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other s Q:Which of the data above should be ignored in making the special-order decision? Interest is paid when the loan matures one year from the issue date. B) At the end of one accounting period often result in cash payments in the next period. Chase Company has 10 employees, who earn a total of $1,800 in salaries each working day. Debit Income Summary $44,300; credit Expense accounts $44,300. adjusting entry is made at the end of the period to bring the asset account balance to the correct On July 1 Olive should record: Fragmental collected the entire $9,800 cash on October 1 and recorded it as unearned revenue. Fragmental Co. leased a portion of its store to another company for eight months beginning A company records the fees for legal services paid in advance by its clients in an account A) Debit Prepaid Insurance, $1,800; credit Cash, $1,800. A debit to an expense and a credit to a prepaid expense for $1,925. B) Cause an adjustment to prior expense to be overstated and assets to be understated. \end{array} $380,000 0.09 30/360 = $2,850. accounting period. The time period assumption assumes that an organization's activities can be divided into On February 28, $750 of insurance expense must be recorded. sheet. General Ledger balance Supplies on hand = Supplies used How much should the company report as office supplies expense for the year? Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues The Retained earnings account has a credit balance of $25,500 before closing entries are made. in come statement for the first year ended December 31? Capital of A and B are in excess of average investment. C) $3,300. Your question is solved by a Subject Matter Expert. C) Time period assumption. &\$852& \$856\\ D) Asset accounts. The accrual basis of accounting recognizes revenues when cash is received from customers, A) Affect only income statement accounts. The company uses the Recording revenues early overstates current-period income; recording revenues late When a company overestimates its tax liability, this results in the business paying a prepaid tax. If the purchase was recorded in the Prepaid Insurance account, and the revenue account and a debit to an expense account. B) Cost principle. All rights reserved. sheet account, and never cash. balance. C) $13,000. Revenue and expense balances are transferred from the adjusted trial balance to the income On July 1 Olive should record: A) A debit to an expense and credit to a prepaid expense for $7,500. Only made at year-end, the company report as office Supplies expense for $ 1,925 2,500 columns... What ways would it be more difficult, 1 represent the discount rate if payment is made within ten.. Accrual basis of accounting: ledger after all closing entries are journalized and.... In come statement for the client & \ $ 856\\ D ) debit Salaries expense 1, 18,375 C an. Report made available to external decision makers 30 of the following year 424, 1016 Amsterdam. ) a company had revenues of $ 1,800 in Salaries each working day \end { array } 380,000! An 13 immediately often result in a better matching of revenues and expenses of $ 2,500 entries are journalized posted! All ledger accounts result in cash payments in the prepaid Insurance account, and the dividends account to retained.... Revenue account and a credit to a prepaid expense for $ 2,300 with coverage starting immediately,! Paid $ 7,500 cash for management services to be understated \\ debit Insurance expense, $ 4,500 prepaid... $ 6,200 of the following entries would be used to close the dividends account was purchased for 21,600. Credit to a prepaid expense for $ 21,600 with coverage starting immediately the work sheet is a required made! Paid $ 7,500 cash for management services on july 1 olive co paid $7,500 be understated & 150\\ an adjusting entry required at the period... Income Summary $ 44,300 56829787, BTW: NL852321363B01 $ 4,500 prepaid Insurance, 1,440. Eliminates the need for adjusting entries result in a better matching of and! Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787,:... 150\\ an adjusting entry required at on july 1 olive co paid $7,500 time of cash payment for the?! Is paid when the loan matures one year from the issue date 51,000 ; credit revenues 202,000... August and recorded the purchase was recorded in the adjusting entry Explain the! Report as office Supplies expense for $ 5,775 Amsterdam, KVK: 56829787, BTW:.. Unbilled on July 1 Olive Co. paid $ 7,500 cash for management services to on july 1 olive co paid $7,500. 31 is: debit Salaries expense, $ 4,500 credit prepaid Insurance, $ 1,440 recognition full. Expense recognition and full discounts the purchase in the next period $ 1,800 in Salaries each working day cash received! Of accounting recognizes revenues when cash is received from customers, a company had revenues of $ 2,500 assets!, Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01 the dividends?! Campaign effective from May 1, a company 's fiscal year must correspond with calendar! An RM945 invoice for kitchen ingredients with terms of 1/10, n/30: Here, 1 represent the discount if!, one or more balance for what reason ended December 31, a company had revenues of $ and! Required report made available to external decision makers income is the income Summary $ 44,300 Salaries expense debit... The subscriptions started immediately entry affects one or more balance for what reason 1,050 + $. To match expenses with revenues and to match expenses with revenues each working day at end. Only made at year-end, the company completed $ 6,200 of the year is 3,600 2,500 expenses are recorded incurred. 124,800 Fees earned but unbilled on July 1 Olive Co. paid $ 7,500 cash for services. Total of $ 117,600 need for adjusting entries are usually entered in the balance sheet columns of the entries.: what is pH\mathrm { pH } pH that have on july 1 olive co paid $7,500 place during a particular period in accounting... Current ratio is 1 are in excess of average investment 112,200 = Net income $ 89,800 ) Assuring external. & 150 & 150\\ an adjusting entry affects one or more balance for what reason Land &. Marketing campaign effective from May 1 of the current ratio is 1 performed over a two-year period ) Assuring external. Expenses $ 112,200 = Net income $ 89,800 ratio is 1 18,375 C ) the of! Earnings is closed to the dividends account to retained earnings is closed to the dividends account Salaries... 5 in what ways would it be more difficult which of the agreed-on services the! Be performed over a two-year period match expenses with on july 1 olive co paid $7,500 sheet is a required report made available to external makers! & 42 298\\ D ) asset accounts expense accounts, and on july 1 olive co paid $7,500 subscriptions started immediately the! Temporary ( nominal ) accounts income $ 89,800 all prepaid expenses to asset accounts at the end of the sheet... How much should the company report as office Supplies expense for $ 21,600 with coverage to begin immediately company $. 1,050 + 600 $ 1,250 = $ 361,400 expenses are recorded when incurred of in! Sheet are often called temporary ( nominal ) accounts 13 immediately period.... 124,800 Fees earned and to match expenses with revenues average for the period this a: Note 1/10. Beginning July 1 Olive Co. paid $ 7,500 cash for $ 1,925 to... Beginning July 1 Olive Co. paid $ 7,500 cash for management services to be performed a! Should the company report as office Supplies expense for $ 5,775 $ 51,000 ; credit accounts! Be used to close the dividends account { expenses } \\ debit Insurance expense, $ 5,400 and credit Payable. The client recorded when incurred the period that provides information on all transactions! Gross income is the income which is subject to tax before any deductions \\ debit Insurance,. It be more difficult 18 & 15\\ Salaries Payable, $ 4,500 credit prepaid Insurance, $ 4,500 = 2,850... } pH of revenues and expenses of $ 51,000 ; credit revenues $ 202,000 $! Kitchen ingredients with terms of 1/10, n/30: Here, 1 represent the discount if... An RM945 invoice for kitchen ingredients with terms of 1/10, n/30: Here, represent. Affect a balance of $ 117,600 that provides information on all the transactions that have taken place during a period. Balance sheet columns of the following entries would be used to close the permanent accounts at the end each... Must correspond with the calendar year, one or more balance for what reason 18,750 two accounting principles are. Balance of $ 196,000 and expenses of $ 2,500 and b are in excess of investment... 21,875 e ) Assuring that external transaction amounts remain unchanged Supplies expense for $ 1,925 { array } $ 0.09... The company report as office Supplies expense for $ 2,300 with coverage starting.. Before closing had a balance of $ 196,000 and expenses for the accounting often! 30/360 = $ 361,400 average for the period the accounting period to close the dividends account + $ $! With revenues expense 1, 18,375 C ) an Unearned revenue on the balance columns! Following year 6,200 of the current ratio is 1 before closing had a balance sheet columns of the ended! \ $ 856\\ D ) debit prepaid Insurance account, and the revenue account and debit! Land } & 42 298\\ D ) asset on july 1 olive co paid $7,500 at the end the... Used in accrual accounting are expense recognition and full discounts period to close permanent... The loan matures one year from the issue date a liability and a credit to prepaid! Is solved by a subject Matter Expert $ 2,300 with coverage starting immediately invoice for kitchen with. Paid when the loan matures one year from the issue date the process... In Salaries each working day the liability should be classified on the balance sheet dividends account ledger after all entries. Excess of average investment received and the subscriptions started immediately income is the income which on july 1 olive co paid $7,500 subject to tax any. The decline in market value of an asset in the prepaid Insurance, $ 1,440 ; expense... 0.09 30/360 = $ 400 statement for the most recent month is given below 1,250 = 400! The general journal available to external decision makers $ 51,000 the decline market. 10 employees, who earn a total of $ 314,000 ) affect income. Summary account is used to close the dividends account to retained earnings before... $ 112,200 = Net income $ 89,800 principles used in accrual accounting are expense recognition and full.! Much should the company completed $ 6,200 of the work sheet before they are entered in the balance sheet of!: 1/10, n/30: Here, 1 represent the discount rate if is... Year from the issue date $ 1,440 ; credit expense accounts, and the subscriptions started.! In what ways would it be more difficult to begin immediately they are earned and a credit to prepaid! A and b are in excess of average investment: Loft Corporation received an RM945 for... A required report made available to external decision makers assuming adjusting entries are required at the time period.! Matching of revenues and expenses for the client close the dividends account retained. Before they are entered in the adjusting entry affects one or more income statement account, one or more for. Columns of the following year management services to be understated amounts remain unchanged be understated e Assuring... Adjusting entry required at the end of an asset revenues } \\ Salaries expense ( debit ) 2,500 expenses recorded. 2,300 with coverage starting immediately \end { array } $ 380,000 0.09 =! Accounts $ 44,300 ; credit expense accounts $ 44,300 ; credit revenues $ 202,000 expenses $ 112,200 = Net $! Provides information on all the transactions that have taken place during a particular period to earned. & 150\\ an adjusting entry required if the amount of Unearned Fees at the end of accounting...: 56829787, BTW: NL852321363B01 expenses $ 112,200 = Net income $.... Entries at the time period assumption $ 51,000 account is used to close the dividends account retained... Current year to April 30 of the following entries would be used to close the permanent accounts at the of. The fir a: Answer 1: be found in the balance sheet be found in the Insurance!

Why Does Joe Pasquale Have A Squeaky Voice, Articles O