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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Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations: Events Affecting Year 1: Provided $84,000 of cleaning services on account. Collected $76,000 cash from accounts receivable. Paid salaries of $28,500 for the year. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,650. The expense was determined using the percent of revenue method. Required a. Organize the transaction data in accounts under on accounting equation. b. Prepare an income statement, a balance sheet, and a statement of cash flows for Year 1.
Holloway Company earned $4,300 of service revenue on account during Year 1. The company collected $3,655 cash from accounts receivable during Year 1. Based on this information alone, determine the following for Holloway Company. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet. The amount of net income that would be reported on the Year 1 income statement.
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
am. 295.
Gibson Company engaged in the following transactions for Year 1. The beginning cash balance was $28,100 and the ending cash balance was $74,991. 1. Sales on account were $283,100. The beginning receivables balance was $94,700 and the ending balance was $77,000. 2. Salaries expense for the period was $55,460. The beginning salaries payable balance was $3,815 and the ending balance was $2,180. 3. Other operating expenses for the period were $120,170. The beginning other operating expenses payable balance was $4,860 and the ending balance was $9,181. 4. Recorded $19,330 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $14,340 and $33,670, respectively. 5. The Equipment account had beginning and ending balances of $211,970 and $238,570, respectively. There were no sales of equipment during the period. 6. The beginning and ending balances in the Notes Payable account were $48,500 and $150,500, respectively. There were no payoffs of…
Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation: Events Affecting Year 1 Provided $32, 680 of cleaning services on account. Collected $26, 144 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Events Affecting Year 2 Wrote off a $245 account receivable that was determined to be uncollectible. Provided $38, 138 of cleaning services on account. Collected $33, 752 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Required: Organize the transaction data in accounts under an accounting equation for each year. Determine the following amounts: (1) Net income for Year 1. (2) Net cash flow from operating activities for Year 1. (3) Balance of accounts receivable at…
Prepare and Complete the Worksheet using the Following Information: a. Supplies on hand at December amounted to 7,400 b. Salaries of 1,800 have accrued at month end c. Depreciation is 800 for December d. Detoya has spent 20 hours on a tax fraud case during December. When completed in January, his work will be billed at 500 per hour. Note: the firm uses the account Fees Receivable to reflect the amounts earned but not yet billed.
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?
Consider the following independent situations at December 31: 1. On July 1, a business collected $6,610 rent in advance, debiting Cash and crediting Unearned Revenue. 2. Salaries expense is $1,240 per day-Monday through Friday-and the business pays employees each Friday. This year, December 31 falls on a Thursday. 3. The unadjusted balance of the Office Supplies account is $2,460 Office supplies on hand total $1,770. 4. Equipment depreciation was $190. 5. On October 1, when the business prepaid $6,040 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. Journalize the adjusting entry needed on December 31 for each situation. Date December 31 a. The tenant was paying one year's rent in advance. On December 31, the business must account for the amount of rent it has earned. December 31 December 31 December 31 December 31 Description Uneanred Revenue Rent Revenue JIJU Debit Credit
Daube Industries' operations for the month of October are summarized as follows: A. Provided $9,000 of services in October on account. B. Received $3,800 cash from customers for services provided in October. C. Received $1,900 cash for services to be provided in November. D. Received $3,300 cash from customers on account for services provided in September. E. Paid September's warehouse rental bill on account in the amount of $1,400. F. Received October's warehouse rental bill of $1,000; set it aside to be paid at a later date. Required: a. Prepare journal entries to record the transactions identified among activities (A) through (F). Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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.
Yates Company's records provide the following information concerning certain account balances and changes in these account balances during the current year. Accounts Receivable: Jan. 1, balance $41,000, Dec. 31, balance $55,000, uncollectible accounts written off during the year, $6,000; accounts receivable collected during the year, $159,000. Compute Sales revenue for the year.

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