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
Suppose your company sells services for $325 cash this month. Your company also pays $100 in salaries and wages, which includes $15 that was payable at the end of the previous month and $85 for salaries and wages of this month. prepare journal entries a) Record the service revenue of $325 for cash. b) Record the salaries and wages paid of $100.
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?
In providing accounting services to small businesses, you encounter the following situations. 1. Grainger Corporation rings up cash sales and sales taxes separately on its cash register. On April 10, the register totals are pre-tax sales of sales $5,200 plus GST of $300 and PST of $400. 2. Darby Corporation receives its annual property tax bill in the amount of $8,100 on May 31. 3. (i) During the month of March, Neufeld Corporation’s employees earned gross salaries of $60,400. Withholdings deducted from employee earnings related to these salaries were $2,950 for CPP, $1,068 for EI, $7,780 for income taxes, and $370 for union dues. (ii) Neufeld’s payroll costs for the week were $2,950 for CPP and $1,495 for EI. Prepare the journal entries to record the above transactions. (Round answers to 0 decimal places, e.g. 5,275.) Sr no. Account Titles and Explanation Debit Credit 1. 2. 3…
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.
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.
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
In providing accounting services to small businesses, you encounter the following situations. Sunland Corporation rings up cash sales and sales taxes separately on its cash register. On April 10, the register totals are pre-tax sales of sales $6,100 plus GST of $305 and PST of $488. 2. Jennifer Corporation receives its annual property tax bill in the amount of $8,400 on May 31. (i) During the month of March, Ayayai Corporation's employees earned gross salaries of $60,000. Withholdings deducted from employee earnings related to these salaries were $3,254 for CPP, $948 for El, $7,820 for income taxes. (ii) Ayayai's employer portions were $3,254 for CPP and $1,327 for El for the month. 1. 3. Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit…
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
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?

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