The current pay period ends on Friday, January 2, yet the company’s fiscal year-end is onWednesday, December 31. If the company does not make the proper adjusting entry toaccrue payroll expenses at year-end, what would be the impact?a. Assets will be understated.b. Operating income will be overstated.c. Stockholders’ equity will be understated.d. Liabilities will be overstated.

Q: McKensie Company’s Accounts Receivable balance at December 31 was $100,000, and there was a negative…

A: Adjusted balance of allowance for uncollectibles accounts = $100,000*3% Adjusted balance of…

Q: At December 31, the end of the reporting period, the analysis of a loss contingency indicates that…

A: Contingent Liability  Contingent liability is one form of liability that arises based on a…

Q: in december 2022, the fixed monthly insurance debit order was not processed due to an oversight by…

A: As per Accrual concept every income and expense should be recognise in the books of accounts as and…

Q: Calculate the allowance for uncollectible accounts for East Bay, Inc., the total balance in accounts…

A: As per ageing of accounts receivables, allowance for doubtful accounts is calculated by multipying…

Q: At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of…

A: Bad debt means where the amount receivable from debtor is not expected to realize and hence it…

Q: Which of the following does not affect the current liabilities section of the balance sheet? Select…

A: Current liabilities mean the obligation amount that is not paid to the creditors and suppliers yet…

Q: he Allowance for Doubtful Accounts has a debit balance of $3,000 at the end of the year (before…

A: Lets understand the basics.There are two methods are used to record bad debt allowance account which…

Q: How should seasonal revenues be reported in an interim report? Multiple Choice Disclose the seasonal…

A: Seasonal revenue refers to the change in a company's income throughout the time due to seasonal…

Q: Teal Corporation's year-end is December 31. Assuming that no adjusting entries relative to the…

A: Adjustment entries are the entries made at the end of accounting period. These entries are made to…

Q: 12/31/2019: At the end of the first year of operations, Yolandi Company had $900,000 in sales and…

A: The doubtful accounts are the accounts which company finds that they would not be collected in the…

Q: Due to payroll cut-off, the services of the employees from December 21 to 31, 2012 amounting to Php…

A: Accrual system of accounting says that every thing which is accrued has to be provided in books of…

Q: Which of the following does not affect the current liabilities section of the balance sheet?   a.…

A: Current  liabilities  are liabilities  payable with  in 12 months  or normal operating  cycle…

Q: At the end of the year, Mercy Cosmetics’ balance of Allowance for Uncollectible Accounts is $420…

A: Journal entry is the first stage of accounting process. Journal entry used to record business…

Q: On December 31, 2020, Mickelson, Inc. fails to properly accrue incurred but unpaid year-end wages.…

A: As wages has not been paid and it is related to 2020 year. Hence following accrual entry should be…

Q: ''liabilities, current'' and ''account payable'

A: Liabilities, current: Current liabilities represent the obligation of the company that is required…

Q: On December 31, 2021, when its Allowance for Doubtful Accounts had a zero balance, Pina Co.…

A: Solution:  journal entries on December 31, 2021, May 11, 2022, and June 12, 2022 are as under:

Q: The company had sales of $100,000 for the calendrer period 2021. The allowance for doubtful accounts…

A: Allowance for doubtful accounts - Allowance for doubtful accounts is the provision made by the…

Q: he time period assumption is often referred to as the expense recognition principle. a. True b.…

A: As we answer only one question, we will answer the first question. Please resubmit the question. The…

Q: If Oxbow Corporation does not record a sale made on account in December until a monthlater when the…

A: Balance Sheet: Balance Sheet summarizes the assets, the liabilities, and the Shareholder's equity…

Q: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of…

A: Bad debt expense is an expense which is created as a percentage on uncollectible accounts…

Q: What is the effect on the financial statements when a company fails to adjust the prepaid insurance…

A: Financial statements are those statements which are prepared at the end of accounting period. Main…

Q: On December 31 of the current year, a company's unadjusted trial balance included the following:…

A: Bad debts expense: Bad debt expense is recognized in the books of the company when a debtor is…

Q: An aging of a company's accounts receivable indicates that $9700 is estimated to be uncollectible.…

A: Bad debts for the period = Estimated uncollectible amount - Allowance for Doubtful Accounts

Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…

A: Since it lowers the value of an asset—in this case, the accounts receivable—the allowance for…

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.