Chapter 2, Problem 2.6P

You were able to gather the following from your first-time audit client, WXY Corporation, as of and for the period ended December 31, 2021: Supplies bought last October 20, 2020; 10% used during 2020; 20% remaining as of December 31, 2021; entry made in 2020 includes a debit to expense for the whole amount 50,000 Advance rental payment for 3 months paid to lessor on November 30, 2021; amount charged to rent expense; no adjusting entry made 30,000 Sales recorded on January 2, 2022, pertaining to a merchandise shipped to a customer last December 28, 2021; FOB Shipping point 120,000 Purchases recorded last December 30, 2021; merchandise was shipped last December 29, 2021, received January 3, 2022; FOB Destination 45,000 Interest on an amount lent to a borrower, note was received last December 1, 2021, term is 6 months face value is 100,000; interest income recorded interest rate per annum is 9% A minor repair on an equipment on January 2, 2021, was…

Required 1. Prepare and complete a 10-column work sheet for fiscal year 2019, starting with the unadjusted trial balance and including adjustments based on these additional facts. a. The supplies available at the end of fiscal year 2019 had a cost of $7,900. b. The cost of expired insurance for the fiscal year is $10,600. c. Annual depreciation on equipment is $7,000. d. The April utilities expense of $800 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded. e. The company’s employees have earned $2,000 of accrued and unpaid wages at fiscal year-end. f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $3,000. g. Additional property taxes of $550 have been assessed for this fiscal year but have not been paid or recorded in the accounts. h. The $300 accrued interest for April on the long-term notes payable has not yet been paid or recorded. 2. Using information…

Planning Wizards, LLC is an event-planning company. Which of the following would be included in the current asset section of a classified balance sheet dated December 31, 2019? a. 15-month certificate of deposit b. Customer advances on New Year's parties c. Last month rent payment (lease expires in 2021) d. Investment in stocks, to be sold in 2020 e. Income tax refund receivable f. Inventory Select one: d, e, and f e and f a, b, c, e, and f a, b, c, d, e, and f b, e, f

Please write the journal entries for the following facts in both the modified accrual basis of accounting and accrual basis of accounting

Agency A receives a Notice of Cash Allocation from the DBM of 10,000,000.00 for the second quarter of 2021. What is the accounting entry to be recorded in Journal Entry Voucher. Answer in this format. Account Title Dr. Cr.

Prepare all of the journal entries for the lessor for 2020 and 2021 to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor's annual accounting period ends on December 31, and it does not use reversing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Account Titles and Explanation Date 1/1/20 /1/20 2/31/20 /1/21 2/31/21 Lease Receivable Cost of Goods Sold Sales Revenue (To record the lease) Cash Lease Receivable (To record the receipt of lease payment) Lease Receivable Interest Revenue Cash Lease Receivable Lease Receivable Interest Revenue Debit 451,000.00 I Credit 451,000.00

During the year ended 30 September 20X9, H recorded the following cash transactions: (1) A payment of an annual insurance premium of $6,000. This covered the period to 31 December 20X9. (2) Receipt of $3,000 in respect of rent from a tenant covering the three-month period to 30 November 20X9. What is the impact on profit and net assets of making the year-end adjustments for deferred income and prepayments at 30 September 20X9?         Profit                                                       Net assets   A. Decrease of $500                                  Increase of $500 B. Decrease of $1,000                               Increase of $1,000 C. Decrease of $500                                 Decrease of $500 D. Increase of $1,000                                 Increase of $1,000

Your new audit client, Guimba Company prepared the trial balance below as of December 31, 2021. The company started its operations on January 1, 2020. Your examination resulted in the necessity of applying the adjusting entries indicated in the additional data below. Guimba Company Trial Balance December 31, 2021 Cash 510,000 Accounts Receivable-net 600,000 Inventories, 12/31/2020 669,000 660,000 990,000 Land Building Accumulated depreciation, building Machinery Accumulated depreciation, machinery Sinking fund assets Bond discount 19,800 444,000 45,000 75,000 75,000 105,000 Treasury shares Accounts payable 567,000 Accrued bond interest 11,250 First mortgage, 6% sinking fund bonds Share capital 679,500 1,500,000 Share premium Donated shares 150,000 180,000 Retained earnings, 12/31/2020 Net sales Purchases Salaries and wages 222,450 2,625,000 850,500 Factory operating expenses Administrative expenses 507,000 364,500 105,000 Bond interest 45,000 6,000,000 6,000,000 Additional data are as…

On December 1, 2019, an advance rent payment of $25,800, representing a three-month prepayment for the months of December, January, and February, was received in cash from the company’s tenant. Required: Use the horizontal model (or write the journal entries) to record the effects of the following items: a. The three months of rent collected in advance on December 1, 2019. b. The adjustment that will be made at the end of each month to show the amount of rent “earned” during the month.