amount. a. Paid $2,300 cash on October 1 to purchase a one-year insurance policy. b. Purchased $1,500 of supplies on account. Paid $850 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $250. c. Provided services for $7,400 cash. d. Collected $10,300 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year. e. Accrued salaries amounting to $4,700. f. Sold land that cost $18,400 for $18,400 cash. g. Acquired $54,500 cash from the issue of common stock. h. Earned $12,500 of revenue on account. Collected $11,250 cash from accounts receivable. i. Paid cash operating expenses of $1,850. Net Income Event/ Adjustment Direction of Amount of Change Change a. Adjustment Decrease b. Adjustment C. Adjustment d. Adjustment e. Adjustment f. Adjustment 9 Adjustment $ 575 Cash Flows from Operating Activities Direction of Change Decrease Decrease Amount of Change $2,300 850

amount. a. Paid $2,300 cash on October 1 to purchase a one-year insurance policy. b. Purchased $1,500 of supplies on account. Paid $850 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $250. c. Provided services for $7,400 cash. d. Collected $10,300 in advance for services to be performed in the future. The contract called for services to start on May 1 and to continue for one year. e. Accrued salaries amounting to $4,700. f. Sold land that cost $18,400 for $18,400 cash. g. Acquired $54,500 cash from the issue of common stock. h. Earned $12,500 of revenue on account. Collected $11,250 cash from accounts receivable. i. Paid cash operating expenses of $1,850. Net Income Event/ Adjustment Direction of Amount of Change Change a. Adjustment Decrease b. Adjustment C. Adjustment d. Adjustment e. Adjustment f. Adjustment 9 Adjustment $ 575 Cash Flows from Operating Activities Direction of Change Decrease Decrease Amount of Change $2,300 850

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

On April 1, Year 1, TFC Inc. accepted a $12,000 advance payment for maintaining a customer's fleet of sailboats. The contract is for 12 months. What is the remaining liability that will appear on the company's statement of financial position (balance sheet) at the end of May, Year 1? O $3,000 O $12,000 O $11,000 O $10,000
Lion Company accepted a $15,000, 30-day, 6% note on December 16 from Diaz Co, granting a time extension on his past-due account receivable. The adjusting entry on December 31 for Lion Company would include a credit to: Interest Receivable for $37.50. Interest Receivable for $37.50. Interest Revenue for $37.50. Interest Receivable for $75.
On January 15, Ross Furniture, Inc., accepts a $5,000, 180-day, 10 percent note from a customer at the time of a product sale. Prepare the Journal entry?
The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 Dec. 16 Accepted a $10,700, 60-day, 8% note in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 Feb. 14 Received Todd’s payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) $6,600, 8%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a(n) $3,300, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable. Apr. 16 Privet dishonored her note. May 31 Midnight Co. dishonored its note. Aug. 7 Accepted a(n) $7,900, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Co. Sep. 3 Accepted a(n) $3,210, 60-day, 11% note in granting Noah Carson a time extension on his past-due account…
99) On November 1, Casey's Snowboards signed a $12,000, 90-day, 5% note payable to cover a past due account payable. a. What amount of interest expense on this note should Casey's Snowboards report on year-end December 31? b. Prepare Casey's journal entry to record the issuance of the note payable. c. Prepare Casey's adjusting journal entry at the end of the year December 31. d. Prepare Casey's journal entry to record the payment of the note on January 30 of the following year.
Suppose a customer rents a vehicle for three months from Franklin Rental on November 1, paying $3,750 ($1,250/month). Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the year-end adjusted balances of Deferred Revenue and Service Revenue (assuming the balance of Deferred Revenue at the beginning of the year is $0).
Lachgar Industries warrants its products for one year. The estimated product warranty is 4% of sales. Assume that sales were $210,000 for June. In July, a customer received warranty repairs requiring $140 of parts and $95 of labor. a. Journalize the adjusting entry required at June 30, the end of the first month of the current fiscal year, to record the accrued product warranty. b. Journalize the entry to record the warranty work provided in July.
Johnson Inc. has the following information available: On November 1, 20X1, Johnson lent $15,000 cash to one of its employees. The employee signed a one-year, 12%, promissory note. The note's principal plus interest is repaid to Johnson on November 1, 20X2. Interest calculations are rounded to the nearest whole month. Prepare journal entries to record the November 1, 20X1 transaction, the adjusting entry on 12/31/X1, and the November 1, 20X2 transaction.
On 1/4/2021, Europa Insurance Limited entered into an insurance contract with a customer who paid the annual premium of $300,000 on that date. State, to the nearest whole dollar, the amount Europa Insurance Ltd would report as a liability at 30 June 2021.
Emperor Pool Services provides pool cleaning and maintenance services to residential clients. It offers a one-year warranty on all services. Review each of the transactions: A. March 31: Emperor provides cleaning services for 25 pools during the month of March at a sales price per pool of $610 cash. Emperor records warranty estimates when sales are recognized and bases warranty estimates on 1 percent of sales. B. April 5: A customer files a warranty claim that Emperor honors in the amount of $130 cash. C. April 13: Another customer, J. Jones, files a warranty claim that Emperor does not honor due to customer negligence. D. June 8: J. Jones files a lawsuit requesting damages related to the dishonored warranty in the amount of $2,100. Emperor determines that the lawsuit is likely to end in the plaintiff's favor and the $2,100 is a reasonable estimate for damages. Prepare any necessary journal entries for each situation. If an amount box does not require an entry, leave it blank. If no…
On December 1 Simpson marketing company received $6900 from a customer for a two month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned fees the adjustment entry for the year and then December 31 would include: