Required Information [The following information applies to the questions displayed below.] Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $45 in advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 180 one-year subscriptions and received payments in advance from all new subscribers. Only 72 of the new subscribers paid their fees in time to receive the August newsletter, the other subscriptions began with the September newsletter. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) a-3. Record the journal entry to show the effect of subscription fees received in advance and Subscription revenue earned during August 2019. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet 1 2 Record the cash collection of subscription fees received in advance. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal

Required Information [The following information applies to the questions displayed below.] Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $45 in advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 180 one-year subscriptions and received payments in advance from all new subscribers. Only 72 of the new subscribers paid their fees in time to receive the August newsletter, the other subscriptions began with the September newsletter. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) a-3. Record the journal entry to show the effect of subscription fees received in advance and Subscription revenue earned during August 2019. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet 1 2 Record the cash collection of subscription fees received in advance. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Prepare the entry in November for the receipt of the subscriptions.

A: Whenever the Amount is Received for Subscriptions , it is treated as liability as its advance…

Q: Dimples Company sells subscriptions to a specialized directory, which is issued semi-annually and…

A: The unearned subscription refers to the amount that is received from the customer for which services…

Q: On July 10, 2020, Amodt Music sold CDs to retailers on account and recorded sales revenue of…

A: Prepare Amodt's journal entries to record (a) the sale on July 10, 2020,

Q: Waterway Magazine sold 11, 760 annual subscriptions on August 1, 2025, for $21 each. Prepare…

A: Unearned revenue is revenue for which payment has already been made but revenue has not yet been…

Q: 2018 Apr. 1 Oct. 1 Dec. 1 Dec. 31 2019 May 30 Loaned $8,000 to Bland, Co. Received a six-month, 10%…

A: Journal entries in accounting are a fundamental part of the double-entry bookkeeping system. They…

Q: Agrico Inc. accepted a 10-month, 14% (annual rate), $5,550 note from one of its customers on May 15,…

A: Given information, Principal =$5,550 Rate of interest = 14% Time =may 15 to december 31 =7.5 months…

Q: 2018 Mar. 2 Nov. 1 Dec. 31 2019 Nov. 1 Recorded credit sales of $100,000. Ignore Cost of Goods Sold.…

A: The journal entry can be defined as the very first step in accounting because the business…

Q: Required information [The following information applies to the questions displayed below) On October…

A: The estimated amount that a business anticipates having to pay for product replacement or refunds…

Q: During the fourth quarter of 2019, there were seven biweekly paydays on Friday (October 4, 18;…

A: There are mainly four type of returns or reports submitted by employer to State Income Tax.…

Q: Required information [The following information applies to the questions displayed below.] On…

A: INTRODUCTION: Liability is a wide phrase that encompasses nearly any type of obligation,…

Q: Current Attempt in Progress Presented below are selected transactions of Swifty Restaurant for the…

A: Revenue recognition is defined as the accounting principle that describes the process and time to…

Q: Clarity Co. has a year-end of December 31. The company estimates its annual warranty expense to be…

A: A warranty is a promise to the customer that the company would provide free service for the product…

Q: 2. What journal entry must Lowe’s make when a customer purchases and pays for, but does not yet use,…

A: The gift card is one of the incentives to customer for boosting the sales of the…

Q: Agrico Inc. accepted a 10-month, 13% (annual rate), $5,350 note from one of its customers on May 15,…

A: Face value of note = $5,350 Interest Rate = 13% Period (May 15, 2019 to December 31, 2019) = 7.5…

Q: Prepare journal entries to record the following transaction: On January 1, 2020, Shoppers Inc.…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On November 1, 2024, Survival Training Corporation borrows $51,000 cash from Community Savings and…

A: Journal entry refers to the initial record of a financial transaction. Journal entry is recorded in…

Q: On November 1, 2024, Survival Training Corporation borrows $49,000 cash from Community Savings and…

A: Notes: Accrued Interest = $49000 x 6% x 2/12 = $490 Interest expense = $49000 x 6% x 1/12 = $245

Q: Marigold Factory provides a 2-year warranty with one of its products which was first sold in 2025.…

A: The business entities enter the commercial transactions into the journal to keep track of them. To…

Q: tecord journal entries for the following transactions of Piano Wholesalers. an. 1, 2018 Dec. 31,…

A: Journal entries A journal entry is the recording of a transactions into a journal like the general…

Q: On November 1, 2024, Dual Systems borrows $140,000 to expand operations. Dual Systems signs a…

A: Step 1: The journal entries for issuance and payment of notes payable are passed as follows:-…

Q: Swifty Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine…

A: From November 30 to December 31 = 1 month Subscription has been earned for 1 month = $600000 x 1/12…

Q: Instructions * General Journal X Balance Sheet On August 1, 2019, Pereira Corporation has sold 1,500…

A: Journal entries are the primary reporting of the events happening in the business, in the books of…

Q: Vaughn Company borrowed $31,200 on November 1, 2025, by signing a $31,200, 9%, 3-month note. Prepare…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: Kohl Co. provides warranties for many of its products. The January 1, 2019, balance of the Estimated…

A: Warranty Expenses is computed by multiplying the Sales amount into the Warranty provision.

Q: Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of…

A: A note receivable is a promissory note form in which one person promises to pay the money to another…

Q: Required information [The following information applies to the questions displayed below] Hitzu…

A: Three important elements of accounting equation are Assets, Liabilities & Equity. The accounting…

Q: On 10 July 2021, Pop Music sold CDs to retailers on account and recorded sales revenue of $700,000…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: 1) An electronic gadgets selling store has an annual turnover of $1,600,000 in sales in the year…

A: For the sales Bank A/C debit. $1600,000 To Revenue A/C. $1600,000 For sale of…

Q: horizontal model to record collection of the note and interes

A: Interest income on note receivable = Value of note * Annual interest rate * Number of months until…

Q: C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis…

A: Journal: Recording of a business transactions in a chronological order.

Q: During 2021, LeBron Corporation accepts the following notes receivable. 1. On April 1, LeBron…

A: Meaning of Notes Receivable: It is an asset of company that includes a promissory note from another…

Q: Marin Family Importerssold goods to Tung Decorators for $ 31,800 on November 1, 2022, accepting…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Cassini Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: On November 1, 2021, Aviation Training Corp. borrows $52,000 cash from Community Savings and Loan.…

A: Notes payable refers to a liability that represents a written promise to pay a specific sum of money…

Q: Riviera Interior Design had the following transactions for the year ended 30 June 2020: This…

A: When an event occurs in the business and it can be measured and expressed in terms of money, it…

Q: 1. Joy’s Bar and Grill completed the following note-payable transactions: 2020 Aug. 1 Purchased…

A: Under accrual basis of accounting transactions are recorded as and when they occur irrespective of…

Q: Required Information Use the following information for the Exercises below. (Algo) [The following…

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.…

Q: The following selected transactions relate to contingencies of Classical Tool Makers, Ic., which…

A: Note: 4. no entry would be made for this as this is not arising any liability.

Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Journal entry

VIEW

Step 3: Horizontal table

VIEW

Step 4: Horizontal table

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

the journal entry is not correct there is no Unearned revenue on my side i also add the whole question

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Belarmino COMPANY sells its products in expensive, reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Belarmino accounts for the containers not returned within the time limit as being sold at the deposit amount. Information for 2019 is as follows: Containers held by customers at December 31, 2018, from deliveries in: 2017 85,000 2018 240,000 325,000 Containers delivered in 2019 430,000 Containers returned in 2019 from deliveries in: 2017 57,500 2018 140,000 2019. 157,000 354,500 How much…
On January 1, Year 1, Wedekind Company issued a $213,000, five-year, 4% installment note to Shannon Bank. The note requires annual payments of $47,846, beginning on December 31, Year 1. Required: Journalize the entries to record the following transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Year 1 Jan. Dec Year 4 Dec. 1 31 31 Issued the note for cash at its face amount Paid the annual payment on the note, which consisted of interest of $8,520 and principal of $39,326 Paid the annual payment on the note, including $3,610 of interest. The remainder of the payment reduced the principal balance on the note.
The following are selected 2019 transactions of Kelly Company a. October 1: Purchased inventory from Sid Corporation on account $100,000. Kelly records purchases gross and uses a periodic system. b. November 1: Issued a $60,000 6-month 10% note to Sid in payment of account. c. November 1: Borrowed $80,000 from FB Bank by signing a 15 month, zero interest bearing $110,000 note. Required: 1. Prepare the journal entries for the transactions above. 2. Prepare the adjusting entries as at December 2019
please dont provide answer in image format thank you [The following information applies to the questions displayed below.] On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $14 and its retail selling price is $70. The company expects warranty costs to equal 5% of dollar sales. The following transactions occurred. November 11 Sold 60 razors for $4,200 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 12 razors that were returned under the warranty. December 16 Sold 180 razors for $12,600 cash. December 29 Replaced 24 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 120 razors for $8,400 cash.…
Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2024, the following transactions related to receivables occurred: Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold. February 28 Sold merchandise to Lennox, Incorporated, for $30,000 and accepted a 6%, 7-month note. 6% is an appropriate rate for this type of note. March 31 Sold merchandise to Maddox Company that had a fair value of $23,500, and accepted a noninterest-bearing note for which $25,000 payment is due on March 31, 2025. April 3 Sold merchandise to Carr Company for $22,000 with terms 3/10, n/30. Evergreen uses the gross method to account for cash discounts. April 11 Collected the entire amount due from Carr Company April 17 A customer returned merchandise costing $4,200. Evergreen reduced the customer’s receivable balance…
Olaf Inc. sells home improvement magazine subscriptions to customers. On September 30, 2020, the company sold 13,500 annual subscriptions for $16 each. Assume that the home improvement magazines are published and delivered on a monthly basis. Determine the entry on December 31, 2020.
Resin Milling issued a $420,000 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $181,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 7% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity If an amount box does not require an entry, leave it blank. Jan. 1, 2018 Notes Receivable Notes Receivable Sales Revenue Sales Revenue To record sale in exchange for notes receivable,24-month maturity, 7% interest rate Jan. 1, 2018 Cost of Goods Sold Cost of Goods Sold Merchandise Inventory Merchandise Inventory To record the cost of sale Jan. 1, 2020 - Select - - Select - - Select - - Select…
Required information Skip to question [The following information applies to the questions displayed below.] On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $15 and its retail selling price is $80. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred. Nov. 11 Sold 80 razors for $6,400 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 16 razors that were returned under the warranty. 16 Sold 240 razors for $19,200 cash. 29 Replaced 32 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. Jan. 5 Sold 160 razors for $12,800 cash. 17 Replaced 37 razors…
On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $19.0 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. Trico’s year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below for Trico Technologies. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)
Required information [The following information applies to the questions displayed below.] On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $16 and its retail selling price is $60. The company expects warranty costs to equal 6% of dollar sales. The following transactions occurred. November 11 Sold 50 razors for $3,000 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 10 razors that were returned under the warranty. December 16 Sold 150 razors for $9,000 cash. December 29 Replaced 20 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. Sold 100 razors for $6,000 cash. January 5 January 17 January 31 Replaced 25 razors that were…
Sales revenue for Booker Company for 2023 amounted to $800,000. The products sold carry a six-month warranty. Management estimates the cost of the warranty to be 3% of sales revenue. Booker should record journal entries: DR. (Enter two words only) CR. (Enter two words only)
! Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Hitzu Company sold a copier (that costs $5,500) for $11,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $102 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier. Exercise 9-12 (Algo) Warranty expense and liability computations and entries LO P4 1. How much warranty expense does the company report for this copier in Year 1? 2. How much is the estimated warranty liability for this copier as of December 31 of Year 1? 3. How much is the estimated warranty liability for this copier as of December 31 of Year 2? 4. Prepare…