1. Which of the following accounts would be used under the accrual basis of accounting, but not under cash basis accounting? a Cash b. Unearned Revenue c. Service Revenue d. Salary Expense 2. The Hartman Dental Corporation prepays the rent on Its dental office. On July 1, the corporation paid AED 18,000 for 6 months of rent. The rent period begins on July 1. How much Rent Expense should the corporation record for the three months ended September 30 under the accrual basis? AED 3. Logan Service Company earned revenues of AED 100,000 and incurred expenses of AED 107,000. Prepare the entry to close the income Summary account. Omit explanation 4. The net income of Hendley, Inc. for the yer is AED 35,000. The dividends declared during the by AED year were AED 43,000. Retained Earnings increase or Decrease (Both must be correct for creditr). 5. An invoice, with payment terms of 2/10, r/30, was issued on April 28 for AED 250.00. If the payment was made on May 12, the amount of payment will be AED A company purchased inventory for AED 74,000 from a vendor on account, FOB shipping point, with terms of 3/10, n/30. The company paid the shipper ALD 1,600 cash for freight in. The company paid the vendor nine days after the invoice date. If there was no beginning inventory, the cost of inventory would be AED -(Assume a perpetual inventory system.)
1. Which of the following accounts would be used under the accrual basis of accounting, but not under cash basis accounting? a Cash b. Unearned Revenue c. Service Revenue d. Salary Expense 2. The Hartman Dental Corporation prepays the rent on Its dental office. On July 1, the corporation paid AED 18,000 for 6 months of rent. The rent period begins on July 1. How much Rent Expense should the corporation record for the three months ended September 30 under the accrual basis? AED 3. Logan Service Company earned revenues of AED 100,000 and incurred expenses of AED 107,000. Prepare the entry to close the income Summary account. Omit explanation 4. The net income of Hendley, Inc. for the yer is AED 35,000. The dividends declared during the by AED year were AED 43,000. Retained Earnings increase or Decrease (Both must be correct for creditr). 5. An invoice, with payment terms of 2/10, r/30, was issued on April 28 for AED 250.00. If the payment was made on May 12, the amount of payment will be AED A company purchased inventory for AED 74,000 from a vendor on account, FOB shipping point, with terms of 3/10, n/30. The company paid the shipper ALD 1,600 cash for freight in. The company paid the vendor nine days after the invoice date. If there was no beginning inventory, the cost of inventory would be AED -(Assume a perpetual inventory system.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Which of the following accounts would be used under the accrual basis of accounting, but not
under cash basis accounting?
a Cash
b. Unearned Revenue
c. Service Revenue
d. Salary Expense
2. The Hartman Dental Corporation prepays the rent on Its dental office. On July 1, the
corporation paid AED 18,000 for 6 months of rent. The rent period begins on July 1. How much
Rent Expense should the corporation record for the three months ended September 30 under
the accrual basis? AED
3. Logan Service Company earned revenues of AED 100,000 and incurred expenses of AED
107,000. Prepare the entry to close the income Summary account. Omit explanation
4. The net income of Hendley, Inc. for the yer is AED 35,000. The dividends declared during the
by AED
year were AED 43,000. Retained Earnings increase or Decrease
(Both must be correct for creditr).
5. An invoice, with payment terms of 2/10, r/30, was issued on April 28 for AED 250.00. If the
payment was made on May 12, the amount of payment will be AED
A company purchased inventory for AED 74,000 from a vendor on account, FOB shipping point,
with terms of 3/10, n/30. The company paid the shipper ALD 1,600 cash for freight in. The
company paid the vendor nine days after the invoice date. If there was no beginning inventory,
the cost of inventory would be AED
-(Assume a perpetual inventory system.)
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