Lyon County Bank agrees to lend the Grimwood Brick Company $100,000on January 1. Grimwood Brick Company signs a $100,000, 8%, 9 month33. The entry made by Grimwood Brick Company on January 1 to record thermation below for questions 33 and 34flower shop follows GAAP and applies the revenue recognition principle. When isb. when the performance obligation is satisfied.A flower shop makes a large sale for $1,000 on November 30. The customer isthe $1.000 considered to be recognized?d. in the period that income taxes are paidsent a statement on December 5 and a check is received on December 10. Thenote.onproceeds and issuance of the note isa. Interest Expense.Cash6,00094,000Notes Payableb. Cash100,000100,000Notes Payablec. CashInterest ExpenseNotes Payabled. Cash.Interest ExpenseNotes PayableInterest Payable34. What is the adjusting entry required if Grimwood Brick Companyprepares financial statements on June 30?a. Interest Expense.Interest Payableb. Interest Expensewww*.100,000100,0006,000106,000100,0006,000100,0006,0004,0004,0004,000Cashc Interest PayableCashd. Interest PayableInter ecognition principle dictates that revenue should be recognized in4,0004,0004,0004,000354,000the accounting records:a. when cash is received.C at the end of the month.36a. December 5b. December 10C November 30d December 1O LIVE

It is given that : Lyon Bank has lended Grimwood Co. a note, Value of notes payable - $100,000…

Lyon County Bank agrees to lend the Grimwood Brick $100,000 on January 1. Grimwood Brick Company signs a $100,00O, 8%, 9 month 33. The entry made by Grimwood Brick Company on January 1 to record the lion below for questions 33 and 34 note. proceeds and issuance of the note is a. Interest Expense Cash 6,000 94,000 Notes Payable. b. Cash Notes Payable e. Cash Interest Expene Notes Payable d. Cash Interest Expense Notes Payable Interest Payable 34. What is the adjusting entry required if Grimwood Brick Company prepares financial statements on June 30? a. Interest Expense Interest Payable Interest Expense Cash e Intert Payable Cash 4. Interst Payable Interest Expense The revenue recogn 100,000 100,000 100,000 100,000 6,000 106,000 100,000 6,000 100,000 6,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 35

Lyon County Bank agrees to lend the Grimwood Brick $100,000 on January 1. Grimwood Brick Company signs a $100,00O, 8%, 9 month 33. The entry made by Grimwood Brick Company on January 1 to record the lion below for questions 33 and 34 note. proceeds and issuance of the note is a. Interest Expense Cash 6,000 94,000 Notes Payable. b. Cash Notes Payable e. Cash Interest Expene Notes Payable d. Cash Interest Expense Notes Payable Interest Payable 34. What is the adjusting entry required if Grimwood Brick Company prepares financial statements on June 30? a. Interest Expense Interest Payable Interest Expense Cash e Intert Payable Cash 4. Interst Payable Interest Expense The revenue recogn 100,000 100,000 100,000 100,000 6,000 106,000 100,000 6,000 100,000 6,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 35

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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