If Carol Company use the asset method in payment of insurance, What would be the adjusting entry on December 31, 2017?
Q: i) Determine the minimum transfer price that the Components Division would accept. Determine the…
A: Component Division Good Division Product Division Component Division…
Q: 1. (For items 1 and 2). Read and analyze the following transactions taken from the book of XYZ…
A: Journal entries: Journal entries are recorded for showing the monetary transactions initiated by a…
Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000…
A: 1. The margin related to this investment opportunity Particulars Amount Sales $ 420000…
Q: andra, d Sing axpayer, was $78,195. Deternmine Sandra's tax llability
A: Working notes :- The standard…
Q: a. Long put option with a strike price of €30 and short put option with a strike price of €50 O…
A: Derivative Market -Option Instrument Needs to judge which strategies is been implement which show…
Q: a. Sampson Co. sold merchandise to Batson Co. on account, $20,100, terms 2/15, net 45. b. The cost…
A: 1)Journal entries in the books of Sampson co. : Sl. No General journal L.F Debit Credit a)…
Q: arise by ratificatio
A: Agency by Ratification is defined as where someone approves or accepts of some one else's deeds on…
Q: PROBLEM 6-20 Variable and Absorption Costing Unit Product Costs and Income Statements; Explana- tion…
A: 1. Variable Costing - In this costing method, variable costs are considered while preparing the cost…
Q: 7YReferring to the following table, what is Net sales revenue? Sales revenue $460,000| Cost of goods…
A: Formula: Net sales revenue = Sales revenue - Sales discounts - Sales returns and allowances
Q: Apex Chemicals Ltd acquires a delivery truck at a cost of $36,500 on 1 January 2016. The truck is…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: QUESTION 1: ORION LTD The following information has been taken from the budget for the forthcoming…
A: While calculating cost of a product direct material, direct labor and overheads are considered. For…
Q: Nevens Company uses a periodic inventory system. During November, the following transactions…
A: The cost of things on board at the end of a reporting period is referred to as ending inventory. The…
Q: IBe the relevant costs in evaluating whether to accept an order at a special price. Provide an…
A: Managers must often evaluate whether a special order should be accepted, and if the order is…
Q: What are the advantages of the scattergraph method over the high-low method? Thehigh-low method over…
A: Introduction: Cost accounting is beneficial since it can demonstrate where a corporation spends…
Q: Apex Chemicals Ltd acquires a delivery truck at a cost of $36,500 on 1 January 2016. The truck is…
A: Fixed assets are those assets which are held by the business for longer period of time for use in…
Q: fiscal year end is November 30. Accounts Payable-$3,500, Accounts Receivable-$2,300, Cash-$5000,…
A: Balance sheet is considered to be important part of financial statement which shows the entities…
Q: Identify the most important reasons for performing analytical procedures. b) Describe the broad…
A: Analytical procedure is the procedure which is carried out by the auditors at the preliminary stage…
Q: Festus, capital
A: The available cash is given as,
Q: On July 1, Runner's Sports Store paid $9,000 to Acme Realty for 6 months' rent beginning July 1 and…
A: Rent expense for the period = Total amount of rent paid x no. of months expired / Total period for…
Q: Using the Cost of Goods Manufactured calculated in your sch cgm worksheet and adding data needed…
A: Cost of goods sold include the cost of goods that are sold during the period. Cost of goods sold =…
Q: ear for es 5-8
A: The average annual growth =annual growth in the period'A-2000' total number of periods
Q: Refer to the information for Roberts Company above and on the previous page.Required:Prepare a…
A: The cash flow statement is a statement that shows the flow of cash and cash equivalents during the…
Q: 5. On October 1, 2017, Marc Enterprises bought a brand new computer on account in an invoice amount…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Apex Chemicals Ltd acquires a delivery truck at a cost of $36,500 on 1 January 2016. The truck is…
A: Depreciation is systematic allocation of the cost of an asset throughout it's useful life.
Q: Journalize the entry to record the purchase of materials in April. If an amount box does not require…
A: The question is based on the concept of Financial Accounting.
Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000…
A: Solution... (1). Last year's margin = Net income ÷ sales = $375,000 ÷ $1,500,000 = 0.25 =…
Q: If 7,400 units were in beginning inventory, 32,000 units were started, and 8,000 units were in the…
A: Units transferred out is the number of units which are completed and transferred out from the…
Q: Tristar Production Company began operations on September 1, 2021. Listed below are a number of…
A: Date (2021) Account Titles Debit ($) Credit ($) 01 Sep Land 300000×195200195200+124800 183,000…
Q: Pardo Company produces a single product and has capacity to produce 105,000 units per month. Costs…
A: SPECIAL OFFER ANALYSIS Per Unit Total Sales $ 63.00 $ 1,323,000 Less: Variable Costs:…
Q: Before applying substantive procedures to the details of asset and liability accounts at an interim…
A: The answer for the multiple choice question and relevant explanation are presented hereunder :…
Q: explain the difference between the net income and net income available for common shareholders.
A: Introduction:- i)Net income means as follows under:- Net income means deduction of all expenses…
Q: 30. T/F. GAO stands for Government Accounting Office
A: The question is related to true or false.
Q: Smart Gear Ltd has been in business for many years supplying Tablet screens to wholesalers. The…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Use the following to answer questions 20 – 24 On January 1, year 1, JT borrows $41,000 to purchase a…
A: Working Sheets Loan 41000.00 rate 0.03 P.A tenure 72.00…
Q: Databases maximize : this means independence; applications cannot access data associated with other…
A: Ans. Independence; applications and data are not linked to each other, so all application are able…
Q: Companies keep a permanent record of transactions, and every transaction is documented. If you are…
A: Accounting Accounting means recording, summarizing, and analyzing the business transactions so that…
Q: SALLAT Household Furnishings & Appliances is a family-owned business. You are the management…
A: The question is related to Cash Budget. Cash Budget is summary of cash receipts and cash payments…
Q: a company has 600 units on hand and the annual usage is 7200 units. considering 240 working days in…
A: The number of days of supply indicates how long the current stock price will persist. For example if…
Q: 33. T/F. Like the private sector, the external audit report is add sector addresses the audit report…
A: The auditor of the public sector is appointed by the respective Controller and Auditor general and…
Q: Overhead Assignment: Actual and Normal Activity ComparedReynolds Printing Company specializes in…
A: Overhead costs, also known as waste or operational expenses, are corporate expenses that are not…
Q: Industry A consists of four firms, each of which has an equal share of the market. a. Compute the…
A: Herfindahl Hirschman Index (HHI)is a market concentration measure that is helpful in analyzing the…
Q: 38. Disclosure requirements for lease by lessee include: a. General Information about the lease b. A…
A: Disclosure requirement for lease by lessee includes : a. General information about the lease. b. a…
Q: Calculating the Average Common Stockholders’ Equity andthe Return on Stockholders’ EquityRefer to…
A: Calculation of Average Common Stockholders' Equity 20X1 20X2 Common Stock $ 337,500…
Q: Comfort Shoes Manufacturing Company began business on January 1, 2016. During its first year of…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: On January 1, 2021, Heritage 'Company had a note payable to bank in the amount P2,800,000.…
A: Journal entries Total current liabilities Interest expense for 2021
Q: 1. A company, extends credit to its customers. Total Sales is 2 Million, credit Sales is 850,000,…
A: Journal Entry Account Titles and Explanation Debit Credit Bad Debts Expense 21,800…
Q: How much is the primary balance?
A: Primary balance to the government is the balance which the government is having when all the…
Q: Is it really vital for a manufacturing company to prepare a budgeted income statement and balance…
A: A budgeted income statements statement that forecasts earnings, revenue, and expenses for the coming…
Q: rporation Modern Stores, Inc. 1. Total assets. . . . . . . . . . . . . . . . . . . . . . . . . .…
A: ratio analysis is considered to be important part for in decision making decision making as it…
Q: The auditor is not expected to, and cannot, reduce audit risk to zero and cannot therefore obtain…
A: Auditing: In accounting, auditing is the process of an auditor conducting an examination or…
Step by step
Solved in 2 steps
- Requlred Information [The following Information applies to the questions displayed below.] A company makes the payment of a one-year Insurance premlum of $4,248 on March 1, 2019. d. If the premlum had been $8,496 for a two-year perlod, how should the prepald amount at December 31, 2019, be reported on the balance sheet? Non-current asset Current assetA. The company bought a 3-year insurance policy from Philamlife dated January 1, 2021 amounting to P 45,000. I. Provide a.) Initial Entry at Jan 1, 2021 and b.)) Adjusting Entry at Dec 31, 2021 if the company uses ASSET METHOD II. Provide a.) Initial Entry at Jan 1, 2021 and b.) Adjusting Entry at Dec 31, 2021 if the company uses EXPENSE METHOD B. On August 1, 2021, Kim, a painter, engaged in painting services for 5 classrooms. He received P 20,000 as early payment. By the year end, 1/4 of the work worth P 5,000 is not yet finished. 1. Provide a.) Initial Entry at Aug. 1, 2021 and b.) Adjusting Entry at Dec 31, 2021 if the company uses INCOME METHOD IL. Provide a.) Initial Entry at Aug. 1, 2021 and b.) Adjusting Entry at Dec 31, 2021 if the company uses LIABILITY METHOD C. Interest from Notes Receivable. On September 31, 2021, Mr. Dela Cerna, engaged in. warehouse spaces, received a P 250,000, 6%, 2-year note from a customer. L. By the year end Dec. 31, 2021, provide Adjusting Entry to…An examination of Insurance Policies of Standard Company is presented below: Policy Date of Purchase Life of Policy Cost September 1, 2019 4years P25,920 May 1, 2020 2years 18,960 July 31, 2020 1year 9,720 Prepaid Insurance was debited for the cost of each policy at the time of its purchase. Expired insurance was correctly recorded at the end of 2019. What is the balance of Prepaid Insurance at the end of 2020?
- Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the equipment from Doane Machines at a cost of $252,000, its fair value. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly lease payments Economic life of asset Interest rate charged by the lessor 2 years (8 quarterly periods) $17,000 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter 5 years 12% Required: Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2021. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter. X Answer is not complete. Complete this question by entering your answers in the tabs below.Complete the Form 4562 using the following information provided. Himple RetailFixed Asset Rollforward12/31/2019(book basis) DEPR COST 2017 2018 2019 ACCUM NET BOOK ASSET IN SERVICE METHOD LIFE BASIS DEPR DEPR DEPR DEPR VALUE CASH REGISTER 2/15/2017 SL 5 9,900.00 1,815.00 1,980.00 1,980.00 5,775.00 4,125.00 2017 TOTAL ADDITIONS 9,900.00 1,815.00 1,980.00 1,980.00 5,775.00 4,125.00 RETAIL FIXTURES 10/12/2018 SL 7 4,750.00 169.64 678.57 848.21 3,901.79 FURNITURE 10/12/2018 SL 7 3,900.00 139.29 557.14 696.43 3,203.57 2018 TOTAL ADDITIONS 8,650.00 - 308.93 1,235.71 1,544.64 7,105.36 TOTAL 18,550.00 1,815.00 2,288.93 3,215.71 7,319.64 11,230.36 DELIVERY TRUCK 6/1/2019 SL 5 37,500.00 4,375.00 4,375.00 33,125.00 DESK AND CABINETRY 6/1/2019 SL 7 11,900.00 991.67 991.67 10,908.33 COMPUTER 6/1/2019 SL 5 2,800.00 326.67 326.67 2,473.33 2019 TOTAL ADDITIONS 52,200.00 - - 5,693.34 5,693.34 46,506.66 TOTAL…1. Prepare a table of amortization of the lease liability and interest expense. 2. Prepare journal entries for 2021 and 2022. 3. Prepare journal entry on January 1, 2026 to record the return of the machinery to the lessor. Assume thefair value of the asset is P450,000.
- The premium on a two-year insurance policy expiring on June 30, 2015, was paid in total on July 1, 2013. The original payment was debited to the insurance expense account. The appropiate journal entry has been recorded on December 31, 2013. The balance in the prepaid asset account on December 31, 2013, should be Group of answer choices 1.lower than if the original payment had been initially debited to an asset account 2.higher than if the original payment had been initially debited to an asset account 3.the same as it would have been if the original payment had been initially debited to an asset account. 4.the same as the original paymentInstruction: Using the asset method, prepare the original entry of the transaction and the necessary adjusting entry at the end of the accounting period. Dec. 31, 2019 1. Jan. 3- Paid P30,000 for a 1 ½ year rental. Original entry Adjusting entry 2. Insurance premium paid on Jan. 4, 2019 amounting to P24,000 covers 2 years. Original entry Adjusting entry 3. Office supplies of P6,000 were bought on Feb. 1, 2019. At the end of the year, office supplies worth P2,000 were on hand. Original entry Adjusting entry 4. Advertisement in the Manila Bulletin was paid in the amount of P9,000 which covers 3-month contract starting December 1, 2019 Original entry Adjusting entry 5. The company discounted its P10,000, 90 day, 6% note on November 15, 2019. Original entry Adjusting entry1. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as (DR) Insurance Expense, P21,000 and (CR) Cash, P21,000.00. a. Transposition b. Transplacement c. No error d. Error of Omission e. Error of account titles2. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as (DR) Prepaid Insurance, P21,000 and (CR) Cash, P21,000.00. a. Transposition b. Transplacement c. No error d. Error of Omission e. Error of account titles3. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as (DR) Prepaid Insurance, P120,000.00 and (CR) Cash, P120,000.00 a. Transposition b.…
- 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?Balance Sheet December 31, 2016 Cash 15,000 Inventory 15,375 Prepaid Insurance 2,800 Equipment 19,000 52,175 Total Assets Accounts payable Interest payable Bonds payable 6,875 1,250 25,000 Common stock 12,500 Retained earnings 6,550 Total Liabilities 52,175 During 2017, the following transactions occurred. Aimes uses a perpetual inventory system. 1.) Patriots paid $1,250 interest on the bonds on January 1, 2017 2.) Patriots purchased 120,550 of inventory on account 3.) Patriots sold for $240,000 cash inventory which cost $265,000. Aimes also collected $28,800 sales tax |4.) Patriots paid $115,000 on accounts payable. 5.) Patriots paid $1,250 interest on the bonds on July 1, 2017. 6.) The prepaid insurance ($2,800) expired on July 31. 7.) On August 1, Aimes paid $5,100 for insurance coverage from August 1, 2017, through July 31, 2018. 8.) Patriots paid $8,500 sales taxes to the state. 9.) Paid other operating expenses, $45,500. 10.) Redeemed the bonds on December 31, 2017, by paying…Prepare the adjusting journal entries as of Dec 31, 2019 for the following information gathered from the ledger of Flag Company : a.) Unexpired of the Prepaid Insurance account balance of P 42,500 was P 24,500. b.) Accrued Interest on Notes issued P 1,270. c.) Equipment acquired on March 31, 2019 at P 120,000, has a scrap value of P4,000 with estimated life of 10 years. d) Unrecorded unpaid taxes P 18,500. e.) Unpaid salaries P22,500. £.) Interest received and credited to Unearned Interest Income account was P 14,000 of which only P 12,000 was eamed. g.) Office supplies has a balance of P 8,000, Consumed as of Dec 31, 2019 was P 6,800. h.) Unearned Rent Income account has a balance of P 24,000 of which P 20,000 was rent earned. i.) Office Supplies balance was P5,600 of which P1,600 was consumed. Account Title Debit Credit a.) b.) e.) (P) e.) f.) g.) h.) i)