Required information(The following information applies to the guestions displayed below.]Eli owns an insurance office, while Olivia operates a maintenance service that provides basic custodial duties. For themonth of May, the following transactions occurred.Olivia decides that she will need insurance for a one-day special event at the end of the month andМaypays Eli $150 in advance.May 5 olivia provides maintenance services to Eli's insurance offices on account, $350.7 Eli borrows $350 from Olivia by 'signing a note.MayMay 14 Olivia purchases maintenance supplies from Spot Corporation, paying cash of $125.May 19 Eli pays $350 to olivia for maintenance services provided on May 5.May, 25 Eli pays the utility bill for the month of May, $120.Olivia receives insurance services from Eli equaling the amount paid on May 2..МayMay 31 Eli pays $350 to Olivia for money borrowed on May 7.2. Using the format shown below, enter the impact of each transaction on the accounting equation for each company. (Decreases toaccount classifications should be entered as a negative.) 2. Using the format shown below, enter the impact of each transaction on the accounting equation for each compaaccount classifications should be entered as a negative.)ELI'S INSURANCE SERVICESOLIVIA'S MAINTENANCE SERVICESAssetsLiabilitiesStockholders' EquityAssets= LiabilitiesStockholders' EquityMay 224150$4150$4$41502$2$$(150)1419252831

Accounting equation of the business says that total assets in the business should always be equal to…

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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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Kemiah has the following insurance information from her employer: Premium: $200/month Deductible: $150 Tier 1: $10 Tier 2: $20 Tier 3: $40 She has never filled a prescription before, and brought her script for phentermine 37.5 mg to the pharmacy for processing. The pharmacy technician at the window informs Kemiah that this drug is not covered, and has a cash price of $37.22. Assuming she has paid the premium for her insurance to be active, what will she have ended up paying for the drug that month, all costs included? O a. $37.22 Ob. $200 O c. $150 O d. $237.22
SCENARIO: Doris maintained an IRA account at the brokerage firm ABC. On February 11 of the current year, she requested a check for the balance of her account. She received the check made out in her name and deposited it the same day in a new IRA account at the brokerage firm XYZ. Doris then requested a check on May 8 from XYZ, which was deposited in another new IRA account 35 days later. Is the May 8 distribution taxable to Doris?
During the current year, Paul, the vice president of a bank, made gifts in the following amounts. To Sarah (Paul's personal assistant) at Christmas $39 To Darryl (a key client)-$3 was for gift wrapping 42 To Darryl's wife (a homemaker) on her birthday 14 To Veronica (Paul's boss) at Christmas 75 In addition, on professional assistants' day, Paul takes Sarah to lunch at a cost of $50. Presuming that Paul has adequate substantiation and is not reimbursed, how much can he deduct? Do not round intermediate computations. If required, round your final answer to the nearest cent.
Brad operates a storage business on the accrual method. On July 1, Brad paid $48,000 for rent on his storage warehouse and $18,000 for Insurance on the contents of the warehouse. The rent and Insurance cover the next 12 months. What Is Brad's deduction for the rent and Insurance? Multiple Choice O O O O O $48,000 for the rent and $18,000 for the Insurance $24,000 for the rent and $18,000 for the Insurance $24,000 for the rent and $9,000 for the insurance $48,000 for the rent and $9,000 for the insurance None of the choices are correct.
Nancy Houser has a $1,500 overdue debt for medical books and supplies at Ken's Bookstore. She has only $500 in her checking account and doesn't want her parents to know about this debt. Ken's tells her that she may settle the account in one of two ways since she can't pay it all now: 1. Pay $500 now and $1,200 when she completes her residency, two years from today. 2. Pay $2,000 one year after completion of residency, three years from today. Assuming that the cost of money is the only factor in Nancy's decision and that the cost of money to her is 8%, which alternative should she choose?
48. PR.03-19 Problem 3-19 Bad Debts (LO 3.10) Sharon is an orthopedic surgeon. She performed a surgery 2 years ago and billed $10,000 to her patient. After 2 years of attempting to collect the money, it is clear that Sharon will not be able to collect anything. Sharon reports income on her tax return on the cash basis, so she only reports the income she actually receives in cash each year. Can she claim a bad debt deduction for the $10,000? because a deduction is allowed to the extent that income arising from the services
Hugo Garcia is preparing his balance sheet and income and expense statement for the year ending December 31, 2020. He is having difficulty classifying a few items and asks for your help. Which of the transactions are assets, liabilities, income, or expense items? a. Hugo rents a house for $1,350 a month. b. Hugo bought diamond earrings for his wife and charged them using his Visa card. The earrings cost $900, but he hasn’t yet received the bill. c. Hugo borrowed $3,500 from his parents last fall, but so far, he has made no payments to them. d. Hugo makes monthly payments of $225 on an installment loan; about half of it is interest, and the balance is repayment of principal. He has 20 payments left, totaling $4,500. e. Hugo paid $3,800 in taxes during the year and is due a tax refund of $650, which he hasn’t yet received. f. Hugo invested $2,300 in a mutual fund. g. Hugo’s Aunt Lydia gave him a birthday gift of $300.
Ashley is a self-employed artist. She pays $650 a month for health insurance coverage through her business. From August 1 through October 31, Ashley worked 30 hours a week for an ad agency. During that period, she was eligible for her employer's health insurance but opted not to enroll in it. How much of the $7,800 in health insurance premiums can Ashley deduct? I

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