F5&UDellroy Rentals Company faced the following situations(Click the icon to view the situations )Requirement1.a. The business has interest expense of $3,500 that it must pay early in January 2024ab.Journalize the adjusting entry needed at December 31, 2023, for each situation. Consider each fact separately (Record debits first, then credits Exclude explanations from any journal entries)b. Interest revenue of $4,800 has been eamed but not yet receivedAccountsDebitC.✔d.AccountsF6c. On July 1, 2023, when the business collected $12,300 rent in advance, it debited Cash and credited Unearned Rent Revenue. The tenant was paying for two years' rent.CreditKF7Accounts911d. Salary expense is $6,000 per day-Monday through Friday-and the business pays employees each Friday. This year, December 31 falls on a Thursday.AccountsDebitCreditYF8ODebitPF9DebitCreditF10MCreditSHIFTF11ENTERF12324INSDELCITSHMENDPUPDeans lockfus

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Answered: F5 & U Dellroy Rentals Company faced…

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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1. An insurance policy, good for one year, was purchased on April 1, 2020 and has a valueof $25,000.a) Write the journal entry to record the original purchase of the insurance policy onApril 1.b) Write the adjusting journal entry required on April 31, 2020 to reflect the use of onemonth of the insurance service. What, concerning Insurance, would appear on theBalance Sheet? What would appear on the Income Statement?c) Write the adjusting journal entry required on May 31, 2020 to reflect the use of onemore month of the insurance service. What, concerning Insurance, would appear onthe Balance Sheet? What would appear on the Income Statement?
Answer the two parts
Answer all questions. Ch.8-3
PROBLEM 1: The transactions of Dragon Company for December 2020 are shown below. Requirements: (a) Journalize each transaction and prepare the necessary adjusting entries; and (b) Prepare the current liabilities section of the balance sheet for the month ended December 31, 2020. Dec 1 Purchased P1,250,000 inventory on account. Received P200,000 from a lessee as an advance payment for rent over five months starting December 2020. Billed a customer who bought 400 units at P4,500 each. It is expected that 6% of the units will be defective and that repair costs will average P1,350 per unit Dec 3 Dec 9 Dec 15 Borrowed P900,000 from a bank by signing a 9-month, 10%, interest-bearing note. Dec 21 Paid P820,000 on account for inventory purchased on December 1. Dec 27 Sued by a disgruntied employee. Legal counsel believes that it is possible that the company will have to pay P80,000 in damages next year. Dec 30 Purchased new equipment for P650,000, paying P200,000 cash and signing a 3-year, 7%…
On July 1, 2022, Blossom Company pays $18,000 to Sunland Company for a 2-year insurance contract. Both companies have fiscal years ending December 31. (a1) For Blossom Company, journalize the entry on July 1 and the annual adjusting entry on December 31. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit choose a transaction date July 1Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date July 1Dec. 31 enter an account title enter a…
During the year ended December 31, 2021 the following transactions occurred: The table is in the pictures Prepare all the journal entries necessary to record the above transactions and any necessary December 31 year end adjusting entries. No need to provide closing entries. Ignore income and sales taxes . Clearly label of the number is credited or debited
Crane Company has the following year-end account balances on November 30, 2024: Service Revenue $37,000; Insurance Expense $2,700; Rent Expense $6,000; Supplies Expense $1,350; L. Johnson, Capital $42,000; and L. Johnson, Drawings $28,000. (a) Prepare the closing entries. (Credit account titles are automatically indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. List all debit entries before credit entries.) Date Account Titles Nov. 30 Nov. 30 Nov. 30 Nov. 30 To close revenue account) < To close expense accounts) To close income summary) To close drawings account) Debit Credit | |||| |||||
On July 1, 2022, Blossom Company pays $18,000 to Sunland Company for a 2-year insurance contract. Both companies have fiscal years ending December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Sunland Company. Sunland uses the accounts Unearned Service Revenue and Service Revenue. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Charles Whyte commenced business on May 1 2019, making up his accounts to September 30 annually. The statement of the Profit or Loss Account for the first 17 months ended September 30,2020 is as follows: Gross Profit Less: Repairs and maintenance. Local transport and travelling Salaries and wages Provision for bad debts Preliminary expenses Depreciation Bank interest and charges Legal and professional charges General expenses (Allowable) Clearing expense on motor vehicle Bad debt Amounts written off Loan to absconded employee (ii) (iii) (iv) (1) You are also given the following additional information. Bad debt £ (v) £'000 30/10/2018 1/1/2019 1/5/2019 1,500 2,450 6,500 1,350 960 1,630 1,520 1,380 1,870 685 2,800 Building Motor Vehicle Furniture and fittings Legal and professional charges were: Salaries and wages: The following qualifying capital expenditures were acquired on: Fines for contravention of the law Legal expenses for tax appeal Audit and accountancy charges £'000 19,300…
On 1 January 2019, the company paid OMR 4500 cash as rent expenses for two months. Select one: a. Date Particulars Debit Credit (OMR) (OMR) 1 Jan Prepaid Rent 4500 Cash 4500 O b. Date Particulars Debit Credit (OMR) (OMR) 1 Jan Cash Prepaid rent 43500 4500 c. None of these O d. Date Particulars Debit Credit (OMR) (OMR) 1 Jan Rent 4500 Cash 4500

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