Raylan recieved a $51,500 cash advance payment on June 1, Year 1, for consulting services to be performed in the future. Services were to be provided for a one-year term beginning June 1, Year 1 1. Record the June 1 cash reciept in T-accounts and the adjustment required as of December 31, Year 1. 2. Show the preceding transaction and related adjustment in a horizontal statements model 3. Determine the amount of net income on the year 1 income statement

Raylan recieved a $51,500 cash advance payment on June 1, Year 1, for consulting services to be performed in the future. Services were to be provided for a one-year term beginning June 1, Year 1 1. Record the June 1 cash reciept in T-accounts and the adjustment required as of December 31, Year 1. 2. Show the preceding transaction and related adjustment in a horizontal statements model 3. Determine the amount of net income on the year 1 income statement

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

Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 5% View transaction list Additional information: a. $11,800 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $136,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $150,000 given similar cases in the industry. c. During December, Mackenzie had sales of $720,000. 5% of sales typically require warranty work equal to 25% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $112,500 of the Unearned Revenues remain unearned at December 31, 2023. f. The 120-day note payable was dated November 15, 2023. No 1 $ 6,560…
On October 1, 2019, Muscat Company borrowed OMR 8,000 cash by signing a note payable due in one year at 8% interest. Interest is due when the principal is paid. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: Select one: O a. Interest Expense 160 Interest Payable 160 O b. Interest Expense . 8,000 Interest Payable 8,000 O c. Interest Expense. .640 Interest Payable 640 O d. None of the answers are correct O e. Cash 8,000 Notes Payable 8,000
On January 1, MM Company borrows $360,000 cash from a bank and in return signs an 8% installment note for five annual payments of $90, 164 each. Analyze transactions involving issuance of the note and its first annual payment, by showing their effects on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction.
On October 1, the company lent $50,000 to a customer. The customer signed a note that required principle and interest at 8% to be paid in full on September 30 the following year. What is the adjusted journal entry?
On September 1, Year 1, Laredo Company purchased equipment making a down payment of $15,500 cash and signing a one- year note payable on the $22,500 balance. The note carried an interest rate of 6%, and all interest was to be paid on the maturity date. Which of the following correctly shows the combined effect of the purchase as well as the accrual of interest on December 31, Year 1? Net Income (450) ΝΑ (450) (450) None of the above Operating (450) (450) ΝΑ ΝΑ Cash Flows Investing (15,500) ΝΑ (15,500) (15,500) Financing ΝΑ 22,500 22,500 ΝΑ
The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 Dec. 16 Accepted a $10,700, 60-day, 8% note in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 Feb. 14 Received Todd’s payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) $6,600, 8%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a(n) $3,300, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable. Apr. 16 Privet dishonored her note. May 31 Midnight Co. dishonored its note. Aug. 7 Accepted a(n) $7,900, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Co. Sep. 3 Accepted a(n) $3,210, 60-day, 11% note in granting Noah Carson a time extension on his past-due account…
Following are transactions of The Barnett Company: 2023 Dec. 16 Accepted a $22,900, 60-day, 5% note dated this day in granting Carmel Karuthers a time extension on her past-due account. Made an adjusting entry to record the accrued interest on the Karuthers note. Closed the Interest income account. Dec. 31 Dec. 31 2024 Feb. 14 Mar. 2 Mar. 17 May 31 Received Karuthers' payment for the principal and interest on the note dated December 16. Accepted an $8,800, 4%, 90-day note dated this day in granting a time extension on the past-due account of ATW Company. Accepted a $4,000, 30-day, 4.5% note dated this day in granting Leroy Johnson a time extension on past-due account. Received ATW's payment for the principal and interest on the note dated March 2. Prepare journal entries to record The Barnett Company's transactions. (Assume 365 days in a year. Round your answers to 2 decimal places.) View transaction list
E4-29 Mattson Loan Company completed these transactions: 2019 Apr. Dec. 2020 Apr. 1 Loaned $20,000 to Charlene Baker on a one-year, 5% note. 31 Accrued interest revenue on the Baker note. 1 Collected the maturity value of the note from Baker (principal plus interest). Show what Mattson would report for these transactions on its 2019 and 2020 balance sheets and income statements. Mattson's accounting year ends on December 31.
On December 1, Daw Co. accepts a $28,000, 45-day, 6% note from a customer. (1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. (2) Prepare the entry required on the note's maturity date assuming it is honored. (Use 360 days a year.) View transaction list Journal entry worksheet 1 2 Record the year-end adjustment related to this note, if any. Note: Enter debits before credits. Date Dec 31 Record entry General Journal Clear entry Debit Credit View general journal
Prepare the journal entries, with appropriate journal entry descriptions, for 2020, including any required year-end adjusting entries.The company prepares annual adjusting entries.
Record the Year 1 transactions in general journal form.
On January 1, Luther Co. issued a $1,000,000, 5 year, 8% installment note payable with payments of $200,000 principal plus interest due on January 1 of each year for the next 5 years. Prepare the adjusting journal entry at December 31 to accrue interest for the year (you can attach Excel or Word rather than typing in answer box).