6) The balance of revenue and expenses of Tasty Beverages Inc before the month-end adjustments are $27,300 and $17, 340 respectively.The following adjustments relate to Tasty Beverages Inc:The portion of prepaid insurance applicable to February is $2,700, depreciation for the month is $1,440, Portion of fees collected in advance earned in February, is $3,300.Fees earned in February, not yet billed to customers, $1900.Net income for February is:$11,67011.020$10.56097,700

Step 1: The net income for Tasty Beverage Company for February can be calculated by adjusting the…

Answered: The balance of revenue and expenses of…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 7PEA: Assume the following data for Lusk Inc. before its year-end adjustments: Journalize the adjusting...

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Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: a. Journalize the write-offs under the direct write-off method. b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. c. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
Assume the following data for Lusk Inc. before its year-end adjustments: Journalize the adjusting entries for the following: a. Estimated customer allowances b. Estimated customer returns
Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that it will owe 17,400 in property taxes for the year. On June 1, its property taxes are assessed at 17,000, which it pays immediately. Prepare the related journal entries for April 1, May 1, and June 1. Then compute the monthly property tax expense that Cee Co. would record during June through March.
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $850. Fragmental collected the entire $6,800 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be: Multiple Choice A debit to Unearned Rent and a credit to Rent Revenue for $4,250. A debit to Rent Revenue and a credit to Cash for $2.550. A debit to Rent Revenue and a credit to Unearned Rent for $2,550. A debit to Unearned Rent and a credit to Rent Revenue for $2,550. A debit to Cash and a credit to Rent Revenue for $6,800. < Prey 17 of 30 Next MacBook Air
INSTRUCTIONS: (1) Complete the adjustments section of the worksheet [WS]. Use the following information regarding unadjusted items. (a) On September 30, the firm received its utilities bill for the month of September amounting to P14,300. This remains to be unpaid at month-end. Record an adjustment for the utilities for the month of September. Accrued Expense (b) On September 21, the firm received a 6% 90-day note for money lent to Ling Ying Wei amounting to P400,000. The remainder of the amount pertains to a 12-month 9% promissory note received on May 1, 2021. Record an adjustment for the accrued interest from both notes for the month of September. Accrued Income (c) On September 30, an inventory of Warehouse Supplies and Office Supplies showed that items costing P127,000 and P12,000 were on hand respectively. Record an adjustment for the supplies used in September. Prepaid Expense (d) On July 1, 2021, the firm purchased a six-month insurance policy for P232,000. Record an…
Instructions Mar. Purchased merchandise on account from Kirkwood Co., $372,000, terms n/30. 1 31 Issued a 30-day, 4% note for $372,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. Borrowed $150,000 from Triple Creek Bank, issuing a 45-day, 8% note. 1 Jul. 1. Purchased tools by issuing a $276,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%. 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $150,000. (Journalize both the debit and credit to the notes payable account.) Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16. 30 Paid Poulin Co. the amount due on the note of July 1. Dec. Purchased equipment from Greenwood Co. for $540,000, paying $108,000 cash and issuing a series of ten 4% notes for $43,200 each, coming due at 30-day intervals. 22 Settled a product liability lawsuit with a customer for $309,500, payable…
At the end of April, Hernandez Company had a balance of $37,910 in the vacation benefits payable account. During May, employees earned an additional $2,950 in vacation benefits, but some employees used vacation days that amounted to $2,060 of the vacation benefits. The $2,060 was charged to Wages Expense when it was paid in May. What adjusting entry would Hernandez Company make at the end of May to bring the vacation benefits payable account up to date? If an amount box does not require an entry, leave it blank or enter "0". Account Debit Credit Vacation Benefits Expense Vacation Benefits Payable
At the end of April, Hernandez Company had a balance of $35,070 in the vacation benefits payable account. During May, employees earned an additional $2,730 in vacation benefits, but some employees used vacation days that amounted to $1,920 of the vacation benefits. The $1,920 was charged to Wages Expense when it was paid in May. What adjusting entry would Hernandez Company make at the end of May to bring the vacation benefits payable account up to date? If an amount box does not require an entry, leave it blank. Account Debit Credit Vacation Benefits Expense Vacation Benefits Payable Feedback Additional Vacation benefits earned less benefits paid; balance should be debited to Vacation Benefits Expense and credited to Vacation Benefits Payable.
At the end of October, the ABC Company needed to make accrual adjustments to the accounts, using the following information: Depreciation for the month is £50 An inventory count on October 31 revealed that 125units were in the company’s warehouse. The cost flow assumption followed for the preparation of statements is FIFO. On September 1, ABC Company issued a 3-month, annual rate 6%, $1,000 Note Payable to Credit Bank. Capital and interest are to be paid at the end of November. Prepare a worksheet showing the October transactions and the October accrual adjustments for the ABC Company. The work sheet is attached below, which is solvevd. But I wonder how to get the lastest amount of inventory, which is 125? Can you please show me the calculation process?
Eagle, Inc. is preparing its financial statements for the year ended December 31, Year 1. Accounts payable amounted to P200,000 before any necessary year-end adjustment related to the following: At December 31, Year 1, Eagle has a P50,000 debit balance in its accounts payable to Twist, a supplier, resulting from a P50,000 advance payment for goods to be manufactured to Eagle's specifications. Checks in the amount of P25,000 were written to vendors and recorded on December 29, Year 1. The checks were mailed on January 5, Year 2. What amount should Eagle report as accounts payable in its December 31, Year 1 balance sheet?
Month-end adjusting entries: Of the remaining accounts receivable, the company estimates that 10% will not be collected. Accrued interest revenue on notes receivable for January. Accrued interest expense on notes payable for January. Accrued income taxes at the end of January for $5,000. Depreciation on the building, $2,000. Please Fill out the following journal entrys: 1. Of the remaining accounts receivable, the company estimates that 10% will not be collected. Record the adjusting entry for bad debts 2. Record the closing entry for temporary credit accounts 3. Record the closing entry for temporary debit accounts
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,025. Fragmental collected the entire $8,200 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be: Multiple Choice A debit to Cash and a credit to Rent Revenue for $8.200. A debit to Unearned Rent and a credit to Rent Revenue for $5,125. A debit to Rent Revenue and a credit to Unearned Rent for $3,075. m 8:05 PM 1009% e here to search 2/21/2022

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