10. Entity A's profit for 20x1 was P360,000 before possible adjustment for the following: i. Entity A issued a 16%, P300,000 note payable on July 31. 20x1. The principal and interest on the note are due after one year. ii. The general ledger includes a "Rent income" account with a balance of 90,000. One-third of this amount is earned during the period. iii. The general ledger includes a "Supplies expense" account with a balance of P60,000. The year-end physical count revealed that one-fourth is unused. iv. Entity A collected advanced retainer fees of 40,000 on December 1, 20x1. The amount collected covers the months of December 20x1 and January 20x2. Entity A uses the income method. How much is the adjusted profit (loss)? a. 315,000 b. 275,000 ed c. 245,000 d. 435,000 eb ba

10. Entity A's profit for 20x1 was P360,000 before possible adjustment for the following: i. Entity A issued a 16%, P300,000 note payable on July 31. 20x1. The principal and interest on the note are due after one year. ii. The general ledger includes a "Rent income" account with a balance of 90,000. One-third of this amount is earned during the period. iii. The general ledger includes a "Supplies expense" account with a balance of P60,000. The year-end physical count revealed that one-fourth is unused. iv. Entity A collected advanced retainer fees of 40,000 on December 1, 20x1. The amount collected covers the months of December 20x1 and January 20x2. Entity A uses the income method. How much is the adjusted profit (loss)? a. 315,000 b. 275,000 ed c. 245,000 d. 435,000 eb ba

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On July 8, Jones Inc. issued an $69,300, 6%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends July 31. Using a 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year? When required, round your answer to the nearest dollar. )a. $798 b. $266 Oc. $4,158 Od. $532
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On September 1, Year 1, West Company borrowed $34,000 from Valley Bank. West agreed to pay interest annually at the rate of 9% per year. The note issued by West carried an 18-month term. West Company has a calendar year-end. What is the amount of interest expense that will be reported on West's income statement for Year 1? Multiple Choice O O $-0- $1,020 $306 $765
On July 8, Jones Inc. issued an $67,200, 9%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends July 31. Using a 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year? When required, round your answer to the nearest dollar. a. $6,048 b. $1,158 c. $386 d. $772
Al Reem Co. signed an $18,000 six-month note payable on September 1 that bears intérest at a rate of 5%. How much is the total interest to be accrued on this note at December 31? O a. $300. O b. $900. O c. $75. O d. $450.
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Company I had the following balances at the end of the year: Accounts receivable: $50,000 Allowance for doubtful accounts: $2,000 (credit balance) The company estimates that 2% of accounts receivable will be uncollectible. Record the journal entry to adjust the allowance for doubtful accounts.
On July 8, Jones Inc. issued an $76,900, 10%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends on July 31. Using the 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year? Round your answer to the nearest whole dollar. a.$1,068 b.$1,282 c.$491 d.$641
On January 1, year 8 Harper Co. finances the purchase of equipment by issuing a $15,000 non-interest-bearing note payable. The note will be paid off in 10 equal annual installments beginning on December 31, year 8. The market rate of interest for notes of this type is 5%. Considering the information below, at what amount should Harper Co. report the equipment on its balance sheet dated December 31, year 8? The present value of $1 at 5% for 10 periods 0.61391 The present value of an ordinary annuity of $1 at 5% for 10 periods 7.72173 The present value of an annuity due of $1 at 5% for 10 periods is 8.10782 8.10782