Need Answer During October, a firm had the followingtransactions involving revenue and expenses.1. Paid $1,075 for rent for October.2. Provided services for $2,500 in cash.3. Paid $200 for the October telephone service.4. Provided services for $1,650 on credit.5. Paid salaries of $1,550 to employees.6. Paid $300 for the monthly office cleaning service.Calculate the net income or net loss for the period.

Step 1: Definition of Net Income/Loss:Net income or loss is an important line item on the income…

Answered: During October, a firm had the…

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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Wall Design Services billed its customers a total of $490,200 for the month of August, including 9 percent federal excise tax and 5 percent sales tax. 1. Determine the proper amount of service revenue to report for the month.2. Prepare a journal entry to record the revenue and related liabilities for the month
Determine the amount of employees net, wages?
For the month of September, Statewide Sales Inc. recorded gross pay of $59,750. The net pay for the month amounted to $57,000. The company decided to pay the salaries on October 5. What are the journal entries for the payment of salaries?
The following information is taken from the accrual accounting records of Kroger Sales Company:a. During January, Kroger paid $9,150 for supplies to be used in sales to customers during the next2 months (February andMarch). The supplies will be used evenly over the next 2 months.b. Kroger pays its employees at the end of each month for salaries earned during that month.Salaries paid at the end of February and March amounted to $4,925 and $5,100, respectively.c. Kroger placed an advertisement in the local newspaper during March at a cost of $850. Thead promoted the pre-spring sale during the last week in March. Kroger did not pay for thenewspaper ad until mid-April.Required:1. Under cash-basis accounting, how much expense shouldKroger report for February andMarch?2. Under accrual-basis accounting, how much expense should Kroger report for February andMarch?3. CONCEPTUAL CONNECTION Which basis of accounting provides the most useful informationfor decision-makers? Why?
The company receives rent revenue from a client for July and next 3 months on July 31 for 18.000 TL. Which of the following journal entries would be recorded on July 31? a.18.000 TL debit to 100-Cash and 18.000 TL debit to 380-Unearned Revenue b.18.000 TL debit to 100-Cash; 4.500 TL credit to 649-Other revenue (Rent) and 13.500 TL credit to 381-Accrued Expense c.4.500 TL debit to 770-GAE(Rent) and 13.500 TL debit to 180 Prepaid Expense (Rent); 18.000 credit to 100-cash d.18.000 TL debit to 100-Cash; 4.500 TL credit to 649-Other revenue (Rent) and 13.500 TL credit to 380-Unearned Revenue
Prepare journal entries for each transaction listed.a. At the end of June, bad debt expense is estimated to be $14,000.b. In July, customer balances are written off in the amount of $7,000.
Bank 'n' Roll, Inc. pays its employees once a month and records the expense at the time of payment. On May 31, Bank 'n' Roll, Inc. paid its employees $10,000 for work performed in May. The entry to record the payment includes a (Check all that apply.) Check all that apply. debit to Cash for $10,000 credit to Wages Expense for $10,000 credit to Wages Payable for $10,000 debit to Wages Expense for $10,000 credit to Cash for $10,000
Dorman Company had the following items to report on its balance sheet: Employee advances $ 1,580 Amounts owed by customers for the sale of services (due in 30 days) 3,050 Refundable income taxes 1,120 Interest receivable 950 Accepted a formal instrument of credit for services (due in 18 months) 2,220 A loan to company president 10,000 Based on this information, what amount should appear in the "Other Receivables" category?
Emma Company sells services for $888 cash and $1,384 on account this month. Emma Company also pays $783 in salaries and wages, which includes $169 that was payable at the end of the previous month the rest was for salaries and wages of this month. What is the amount that would be included in net income?
Wildhorse's gross earnings for the week were $1,800, his federal income tax with-holding was $332, and his FICA total was $138. a.) What was Wildhorse’s net pay for the week? b.) Journalize the entry for the recording of his pay in the general journal. (Note: Use Salaries and Wages Payable: not Cash.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount c.) Record the issuing of the check for Wildhorse’s pay in the general journal. Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount
On December 1, the Accounts Receivable account had a $22.000 debit balance. During December the business eamed $10.500 in revenue on account and collected $13.200 from its-charge-account customers. After posting these transaction, the balance in the Accounts Receivable account on December 31 is
The Krug Company collected $13,800 rent in advance on November 1, debiting Cash and crediting Unearned Rent Revenue. The tenant was paying 12 months' rent in advance and occupancy began November 1.

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