Hall Ltd is preparing accounts for the year ended 30 September 2020. The licences subscription expenditure expense in the trial balance at 30 September 2020 amounted to £60,000. This included an annual payment for fuel of £27,000 for the year ended 31 January 2021. The final adjustment for accrued expenses or prepaid expenses in the accounts for the year ended 30 September 2020 will be:

Hall Ltd is preparing accounts for the year ended 30 September 2020. The licences subscription expenditure expense in the trial balance at 30 September 2020 amounted to £60,000. This included an annual payment for fuel of £27,000 for the year ended 31 January 2021. The final adjustment for accrued expenses or prepaid expenses in the accounts for the year ended 30 September 2020 will be:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

UA Company must determine the December 31, 2019 year-end accruals for advertising and rent expenses. A P2,000advertising bill was received January 6, 2020. It related to costs of P1,500 for advertisements in December 2019 issues andP500 for advertisements in January 2, 2020 issues of the newspaper. A store lease, effective December 15, 2018, calls for fixedrent of P4,800 per month payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of netsales over P1,200,000 per calendar year is payable on January 31 of the following year. Net sales for 2019 were P2,200,000.In its December 31, 2019 statement of financial position, UA should report accrued liabilities of:a. P51,500 c. P53,900b. P56,800 d. P56,300
The accounting cycle for Project Paris Limited is from July 1 to June 30. On January 1 2021 Project Paris Limited rented out its old warehouse to Lost and Lost Limited by signing a 12-month agreement worth $2,000,000. The rentee paid the rentor for 12-months agreement in cash. At the start of October 2020, the company signed an agreement to purchase a new factory for $30,000,000. The company paid 80% in cash and the remainder by taking out a 10-year loan. Annual interest expense on the loan is $500,000. Interest will be paid in cash on July 31 each year of the loan period. Annual depreciation on the new factory is $600,000. At the end of the accounting cycle the CFO of Project Paris Limited estimated that the new factory would have increased electricity and water usage from last year by 30%. Utility expenses (that comprised electricity and water) totaled $1,500,000 for the last full year. Required: At the end of the accounting cycle (June 30, 2021) Project Paris Limited would have made…
On January 1, 2018, DMCI Company started the construction of a building at a fixed contract price ofP1,000,000. On the same date, the customer paid a mobilization fee equal to 5% of contract price that will be deductible from the first billing. The outcome of construction contract cannot be estimated reliably During 2018, the entity billed the customer equivalent to 30% of the contract price. During 2019, the entity billed again the customer amounting to 20% of the contract price. During 2020, the entity billed again the customer amounting to 40% of the contract price. The remaining billing was made at the year of completion of the project. The entity made collection from the customer at the end of 2018, 2019 and 2020, in the amount of P120,000, P450,000 and P180,000, respectively. The entity provided the following data concerning the direct costs related to the said project: 2018 2019 2020 Cumulative costs incurred at year-end 360,000 800,000 870,000 Remaining estimated costs to…
On May 10, 2020, Cullumber Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $1,980 on July 15, 2020. The cost of the goods is $1,280. Cullumber delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Cullumber related to this contract. Either party may terminate the contract without compensation until one of the parties performs.
Ramos Inc. must determine on December 31, 2020, year-end accruals for advertising and rent expense. A P50,000 advertising bill was received January 7, 2021, comprising cost of P35,000 for advertisement in December 2020 issues and P15,000 for advertisements in January 2021 issues of the newspaper. A store lease, effective December 16, 2019, calls for fixed rent of P120,000 per month, payable one month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P6,000,000 per calendar year is payable on January 31 of the following year. Net sales for 2020 were P9,000,000. Question: How much are the accrued liabilities in the December 31, 2020 statement of financial position?
On January 15, 2023, Caramel Company enters into a contract to build custom equipment for Candy Company. The contract specified a delivery date of of March 1. The equipment was not delivered until March 31. the contract required full payment of $75,000 30 days after delivery. the revenue for this contract should be
ABC SAOG has entered a contract to supply a machinery on 1st December 2019 for OMR 1000,000 along with maintenance service for a period of 2 years with no additional charge. The payment terms were as follows: OMR 1000,000 if paid by 31st December 2019; OMR 1020,000 if paid by 31st January 2020; OMR 1040,000 if paid by 29th February 2020. It is highly probable that the customer will make payment in the month of January 2020. The stand-alone selling price for machinery was OMR 900,000 and the consideration for two years maintenance service is expected to be RO 300,000. What is the amount of obligation for maintenance service for two years? O a. OMR 250,000. Ob.OMR 100,000. Oc. OMR 750,000. O d. OMR 255,000.
On May 1, 2020, Culver Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $942 in advance on May 15, 2020. Kickapoo pays Culver on May 15, 2020, and Culver delivers the mower (with cost of $585) on May 31, 2020.(a) Prepare the journal entry on May 1, 2020, for Culver. (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.) Date Account Titles and Explanation Debit Credit May 1, 2020 enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount (b) Prepare the journal entry on May 15, 2020, for Culver. (Credit account titles are automatically indented when the…
On 1/4/2021, Europa Insurance Limited entered into an insurance contract with a customer who paid the annual premium of $300,000 on that date. State, to the nearest whole dollar, the amount Europa Insurance Ltd would report as a liability at 30 June 2021.
Yaso plc is a manufacture company and its financial year ended at 31 st December 2019. Total assets are £40m and net profit before tax is £12m. Yaso plc's trade receivables ledger includes a large number of customers. The year-end trade receivables balance is £4m (comparable to £2m in 2018) and the allowance for trade receivables is £400,000 (comparable to £600,000 in 2018). A. Requirement: • Describe substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to Yaso plc's trade receivables.