QUESTION 4 2 points Save Answer On April 1, 2015, ABC Inc. received an advance payment from a tenant in the amount of $408,000 that represented five years of rent. When ABC received the cash payment, the entry was recorded with a credit to a nominal account. ABC's year end is December 31. Sadly, ABC was understaffed at the time and no adjusting entries were made in 2015, 2016, or 2017. How did this error affect 2016 and 2017 financial statements? Answer Format: Use O for overstated, U for Understated, and NE for no effect. Do not space between the O/U/NE and the dollar amount of the error. (Example: If Assets are Over by $2,000, record your answer as 02000) Assets 12/31/16 $ Liabilities 12/31/16 $ Equity 12/31/16 Net Income 12/31/16 $ Assets Liabilities Equity 12/31/17 12/31/17 12/31/17 Net Income 12/31/17 $ $ $ $

QUESTION 4 2 points Save Answer On April 1, 2015, ABC Inc. received an advance payment from a tenant in the amount of $408,000 that represented five years of rent. When ABC received the cash payment, the entry was recorded with a credit to a nominal account. ABC's year end is December 31. Sadly, ABC was understaffed at the time and no adjusting entries were made in 2015, 2016, or 2017. How did this error affect 2016 and 2017 financial statements? Answer Format: Use O for overstated, U for Understated, and NE for no effect. Do not space between the O/U/NE and the dollar amount of the error. (Example: If Assets are Over by $2,000, record your answer as 02000) Assets 12/31/16 $ Liabilities 12/31/16 $ Equity 12/31/16 Net Income 12/31/16 $ Assets Liabilities Equity 12/31/17 12/31/17 12/31/17 Net Income 12/31/17 $ $ $ $

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.18E: Interest Payableâ€”Quarterly Adjustments Glendive takes out a 12%, 90-day, $100,000 loan with Second...

See similar textbooks

Similar questions

None
Please answer question correctly
9
Current Attempt in Progress Splish Family Importers sold goods to Tung Decorators for $44,400 on November 1, 2025, accepting Tung's $44.400, 6-month, 6% note. Prepare Splish's November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest. (f 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. List all debit entries before credit entries. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit 1000 1000 Ps
my worK Number of Days Unpaid Not yet due 1-30 days past due 31-60 days past due Over 60 days past due Receivable Uncollectible $128,400 91,100 55,500 33,700 5% 10% 16% 33% Required: a. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $29,517 on July 31, 2019. Prepare the required adjusting entry to record Bad Debt Expense for the year. b. Johnston Supplies, Inc. writes off $3,271 of uncollectible accounts on August 15, 2019. Prepare the required adjusting entry to record the write-off. c. Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15, 2019. Complete this question by entering your answers in the tabs below. Required A Required B Required C The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $29,517 on July 31, 2019. Prepare the required adjusting entry to record Bad Debt Expense for…
Allowance Method of Accounting for Bad Debtsâ€”Comparison of the Two Approaches Kandel Company had the following data available for 2016 (before making any adjustments): Required Prepare the journal entry to recognize bad debts under the following assumptions: (a) bad debts expense is expected to be 2% of net credit sales for the year and (b) Kandel expects it will not be able to collect 6% of the balance in accounts receivable at year-end. Assume instead that the balance in the allowance account is a $2,600 debit. How will this affect your answers to part (1)?
Question 2 At December 31, 2023, Credit Ltd. had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2024, Credit wrote off accounts totaling $14,100. One of those accounts ($1,800) was later collected. At December 31, 2024, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $17,800. Instructions Prepare journal entries to record the 2024 transactions and the adjusting entry for bad debt on 31 December 2024. Question 3 The equity accounts of Medium Ltd. on January 1, 2023, were as follows. Share Capital Preference (9%, $50 par, cumulative, 10,000 shares authorized, 8,000 shares issued) Share Capital Ordinary ($1 par value, 2,000,000 shares authorized, 1,000,000 shares issued) Share Premium-Preference Share Premium-Ordinary Retained Earnings Treasury Shares-Ordinary (20,000 shares) $ 400,000 1,000,000 100,000 1,450,000 1,816,000 50,000 During 2023, the corporation had the following transactions and events pertaining to its…
Question Part A Albert Trading Limited used the statement of financial position approach to estimate the impairment loss of receivable. An aging of account receivable at 31 December 2019 revealed that S68,000 of the S835,000 outstanding accounts receivable will prove uncollectible. The Allowance for Impairment has a debit balance of $6,200 prior to adjustment. Required: (Explanation of the Journal Entry is not required) Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable. Part B On 12 January 2020, Peter Lee, a major customer, declared bankruptey, and Albert Trading, determined that a receivable from Peter Lee in the amount of $3,400 was worthless. Required: (Explanation of the Journal Entry is not required) Prepare the joumal entry required by Albert Trading in this situation.
View Policies Current Attempt in Progress Pina Colada Corp. purchased a 12-month insurance policy on March 1, 2017 for $5880. At March 31, 2017, the adjusting journal entry to record expiration of this asset will include: O a debit to Prepaid Insurance and a credit to Insurance Expense for $588. O a debit to Insurance Expense and a credit to Prepaid Insurance for $490. O a debit to Prepaid Insurance and a credit to Cash for $5880. O a debit to Insurance Expense and a credit to Cash for $490. Submit Answer Attempts: 0 of 1 used Save for Later
A3
Question 12 June 1, 2017 – NoDirt paid $6,000 to Ace Machine Company for a commercial floor buffing machine. The buffing machine will be depreciated over a 5 year life. . Using the information given in 12. above – select the adjusting entry Green should make prior to preparing financial statements on May 31, 2017. Prior to this May 31, 2017 adjusting entry, Green has made only two entries in their accounting system related to this advance payment – the April 1, 2017 entry to record the receipt of the $60,000 cash and the April 30, 2017 adjusting entry. account details debit credit A. Unearned Service Revenue 36,000 Service Revenue 36,000 B. Service Revenue 36,000 Unearned Service Revenue 36,000 C. Service Revenue 12,000 Unearned Service Revenue 12,000 D. Unearned Service Revenue 12,000 Service Revenue 12,000 E. None of the above .…
None