hnolog XO Assignments 21FA ACCT2010-8 XQuestion 7 - Chapter 3 Part 1 - Conn XC Solved: Eli owns an insurance of XO 8 e https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mh3 Part 1SavedConsider the following situations for Shocker:1. On November 28, 2021, Shocker receives a $2,400 payment from a customer for services to be rendered evenly over the nextthree months. Deferred Revenue is credited.2. On December 1, 2021, the company pays a local radio station $2,280 for 30 radio ads that were to be aired, 10 per month,throughout December, January, and February. Prepaid Advertising is debited.3. Employee salaries for the month of Decembér totaling $6,600 will be påid on January 7, 2022.4. On August 31, 2021, Shocker borrows $56,000 from a local bank. A note is signed with principal and 6% interest to be paid onAugust 31, 2022.acesRequired:Indicate by how much the assets, liabilities, and stockholders' equity in the December 31, 2021, balance sheet is higher or lower if th-adjustment is not recorded. (If none of the categories apply for a particular item, leave the cell blank.)AssetsLiabilitiesStockholders' Equity1.2.3.4.Total< Prev7 of 8Next >ere to searchFSF9F10F11F12PriSc PauseS SysRgBre

1. $2,400 is received for 3 months, from Nov. 28 to Dec. 31, 1 month has finished. 2. $2,280 is…

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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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Ashavinbhai
Splish Brothers Inc. began operations in July 2020. At the end of the month, the company prepares monthly financial statements. It has the following information for the month. 1. At July 31, the company owed employees $1,600 in salaries that the company will pay in August. 2. On July 1, the company borrowed $26,000 from a local bank on a 10-year note. The annual interest rate is 15%. 3. Service revenue unrecorded in July totaled $2,600. Prepare the adjusting entries needed at July 31, 2020.
For the following indenendent cases, in the space provided, calculate the amount of revenue that should be recordeu in 2019 under the revenue recognition principle (point of sale). 1. Company A rents office space to tenants. On October 1, 2019 they collected $18,000 from a tenant which represents 12 month's rent paid in advance. 2. Company B sells heavy equipment. On December 1, 2019 a customer paid a $10,000 deposit towards the purchase of a $50,000 piece of equipment. The equipment was delivered on January 16, 2020 and the balance was paid that date. 3. On December 29, 2019 Company C ships $15,000 worth of goods to a customer, F. O. B. destination. The goods arrive on January 3, 2020at the customer's office. The customer pays for the goods On February 1, 2020. 4. Company D provides legal services for clients. On December 2, 2019 a client hires the firm and pays a $10,000 advance payment. The firm did $4,ĝ00 of service in 2019.
4
The following transaction occurred during Dec 31, 2021, for the Microchip Company. On August 1, 2021, collected 120000 in advance on rent from another company that is renting a portion of Microchip's factory. THe $12,000 represents one year's rent and the entire amount was credited to deferred rent revenue.
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?
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).
On September 1, Wright Magazine Company receives annual subscriptions totaling $601,500. The first issue will be received by the subscriber one month after the money is received. Wright Magazine Company's fiscal year ends December 31. Required: How much revenue would Wright recognize from this amount for the current year?
According to your studying of the Conceptual Framework, Discuss the following: 1. Selane Eatery operates a catering service specializing in business luncheons for large companies. Selane requires customers to place their orders 2 weeks in advance of the scheduled events. Selane bills its customers on the tenth day of the month following the date of service and requires that payment be made within 30 days of the billing date. Conceptually, when should Selane recognize revenue related to its catering service? 2. Mogilny Company paid $135,000 for a machine. The Accumulated Depreciation account has a balance of $46,500 at the present time. The company could sell the machine today for $150,000. The company president believes that the company has a “right to this gain.” What does the president mean by this statement? Do you agree? 3. Three expense recognition methods (associating cause and effect, systematic and rational allocation, and immediate recognition) were discussed in the chapter…
The following terms appeared on an invoice dated May 20, sent by a manufacturer to a retail store: 2/10, net 30. The amount of the invoice was $2,000. Assuming the retailer paid the invoice on May 30 (10 days after the products were delivered), how much should he have paid?
Caritas Publishing issues the Weekly Welder. The company's primary sources of revenue are sales of subscriptions to customers and sales of advertising in the Weekly Welder. Caritas owns its building and has excess office space that it leases to others. The following transactions involved the receipt of advance payments. Prepare the indicated journal entries for each set of transactions. 1) On September 1, 20X7, the company received a $48,000 payment from an advertising client for a 6-month advertising campaign. The campaign was to run from November, 20x7, through the end of April, 20X8. Prepare the journal entry on September 1, and the December 31 end-of-year adjusting entry. 2) The company began 20X7 with S360,000 in unearned revenue relating to sales of subscriptions for future issues. During 20X7, additional subscriptions were sold for $3,490,000. Magazines delivered during 20X7 under outstanding subscriptions totaled $3,060,000. Prepare a summary journal entry to reflect the sales…
On June 1, one company collected total subscriptions of $22,800 in which they promise to deliver of their products to his customers. They would earn the sales revenue equally for each month. As of December 31, what would be the balance of Unearned Revenue for one company?

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