4. Answer the questions about accounting treatment. 1. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the concept using the revenue recognition and illustrate with numbers each accounting treatment): Mary serviced the event and received 1/3 of the payment $2,000 in cash and client promised to pay the remaining $4,000 next month. In addition, May received $1,000 deposit for servicing birthday party next month. 2. Explain what are the differences if accrual or cash accounting is used to account for the following situation (explain the concept using the matching principle and illustrate with numbers each accounting treatment): Marie paid $70 for a phone bill she received last month, and Marie also paid $80 for current month's phone bill. 截图(Alt + A)

4. Answer the questions about accounting treatment. 1. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the concept using the revenue recognition and illustrate with numbers each accounting treatment): Mary serviced the event and received 1/3 of the payment $2,000 in cash and client promised to pay the remaining $4,000 next month. In addition, May received $1,000 deposit for servicing birthday party next month. 2. Explain what are the differences if accrual or cash accounting is used to account for the following situation (explain the concept using the matching principle and illustrate with numbers each accounting treatment): Marie paid $70 for a phone bill she received last month, and Marie also paid $80 for current month's phone bill. 截图(Alt + A)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

As part of the review of her business Rita has been looking into what she is owed by various customers and how many debts are outstanding. Rita has been able to gather the following information about her customers and credit sales. Rita has reached out to an old University friend to get some advice about the likelihood of the amounts owed to her being uncollectible. Age of Customer Debt Amounts owed Estimate of % that (including GST) will not be collected. 1-30 days overdue 14,107.50 5% 31– 180 days overdue 6,204.00 16 % 181 – 365 days overdue 2,458.50 25 % 1 year + overdue 517.00 100 % 23,287.00 Perfect Cover Insurance Brokers sales data for the past year is Credit Sales and Commissions $42,900 $11,600 $ 2,400 (returns are only available on credit sales) Cash Sales and Commissions Sales Returns Industry data shows that 5% of credit transactions are likely to go bad. Rita has also informed you that the current balance in her allowance for doubtful debts account is 500 Dr after a recent…
Having an issue with this problem. Thank you
Identify the following questions as most likely to be asked by an internal (I) or an external (E) userof accounting information. Should we make a five-year loan to that business?
gujhj
So I was given an unadjusted trial balance (attached picture) And this is the adjustment I have to make: "The bank account was changed to an interest bearing account in December. The amount of interest earned in December was $54. This amount was reported on the december bank statement which was received early in January and has not been recorded on the books" Can you tell me what accounts I would debit and credit? and how I would solve this step by step if need be.
Archie makes plumbing fittings. He is currently preparing accounts for the year ended 31 December 2021, but his sales book was destroyed in a flood. He has a separate list of the moneys owing by customers at 31 December 2021, which amounted to £41,000 in total. Generally, Archie allows his customers 30 days credit. Archie estimated his sales for the year ended 31 December 2021 at:a) £14,235,000b) £1,170,000c) £488,500d) None of the above
2. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the concept using the matching principle and illustrate with numbers each accounting treatment): At Pepsi Marie ordered on account a total of 100 cases of soft drinks, to be delivered half on Thursday and the other half on Saturday, for a $7.99 a case plus a $2.40 per case deposit.
Which of the following taxpayers is required to use the accrual method of accounting? a. An attorney with average annual gross receipts of $2 million. Ob. An insurance agency with average annual gross receipts of $5 million. Oc. A retail business with average annual gross receipts of $8,000,000. Od. None of these choices are required to use the accrual method.
Safe Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. On December 31, Safe Home has collected $800 from cash-paying customers. Safe Home's remaining customers owe the business $1,800. Cash received Revenue Recorded Total Revenue Recorded December 31 December 31 Cash Basis 800 800 800 December 31 December 31 Accrual Basis 800 1800 2600
K Bryson Inc. collects cash from customers two ways: 1. Accrued Revenue. Some customers pay Bryson after Bryson has performed service for the customer. During 2020, Bryson made sales of $53,000 on account and later received cash of $45,000 on account from these customers. 2. Unearned Revenue. A few customers pay Bryson in advance, and Bryson later performs service for the customer. During 2020, Bryson collected $6,500 cash in advance and later earned $5,000 of this amount. Journalize the following for Bryson: a. Earning service revenue of $53,000 on account and then collecting $45,000 on account b. Receiving $6,500 in advance and then earning $5,000 as service revenue a. Journalize Bryson earning service revenue of $53,000 on account and then collecting $45,000 on account. Start by recording earning service revenue on account. (Record debits first, then credits. Explanations are not required.) Date 2020 Accounts Debit Credit
(b) An accountant needs to allocate the principal and simple interest on a loan payment into the appropriate ledgers. If the amount received was $10,267.21 for a loan that spanned April 14 to July 31 at 9.1%, how much was the principal and how much was the interest?