HORNGREN'S FIN.+MGRL..:MANAG.CHP.-MYLAB
7th Edition
ISBN: 9780136503613
Author: MILLER-NOBLES
Publisher: PEARSON
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Question
Chapter 4, Problem 4.1CTEI
1.
To determine
Introduction:
Journal entries: The journal entries are prepared by the organization to record the daily transactions that are non-economic and economic in nature. The ledger accounts are prepared based on the journal entries.
To prepare: The
2.
To determine
Introduction:
Journal entries: The journal entries are prepared by the organization to record the daily transactions that are non-economic and economic in nature. The ledger accounts are prepared based on the journal entries.
Whether it is ethical or not to record the revenue in December. State the violating principle in recording the revenue.
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Students have asked these similar questions
ht
=
ences
X
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to
launch the business. On December 31, the company's records show the following items and amounts.
Cash withdrawals by owner
Consulting revenue
Salaries expense
Cash
$ 8,450
Accounts receivable
16,950
Office supplies
4,080
Rent expense
Land
46,020
Office equipment
18,860
Telephone expense
Accounts payable
9,280
Owner investments
84,920
Miscellaneous expenses
$ 2,930
16,950
4,420
7,900
860
680
Exercise 1-18 (Algo) Preparing an income statement LO P2
Using the above information prepare a December income statement for the business.
ERNST CONSULTING
Income Statement
Revenues
Rent expense
Salaries expense
Telephone expense
Total revenues
$
4,420
7,900
860
$
SA
Assets
Cash
8,450
Accounts receivable
16,950
Office supplies
4,080
Land
46,020
Office equipment
18,860
navable
9,280
13,180
5
11
of 14
Next >
Equipment was acquired at the beginning of the year at a cost of $77,220. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,560.
P1
What was the depreciation expense for the first year? _______
P2
Assuming the equipment was sold at the end of the second year for $58,320, determine the gain or loss on sale of the equipment. $_______________
P3
Journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.
1. ____ Debit / Credit
2.____ Debit / Credit
3.____ Debit / Credit
4.____ Debit / Credit
Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to
launch the business. On December 31, the company's records show the following items and amounts.
Cash
Accounts receivable
Office supplies
Land
Office equipment
Accounts payable
Owner investments
$ 8,450 Cash withdrawals by owner
16,950
4,080 Rent expense
Consulting revenue
Salaries expense
18,860 Telephone expense
Miscellaneous expenses
46,020
9,280
84,920
$ 2,930
16,950
4,420
7,900
860
680
Check my work
Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2
Also assume the following:
a. The owner's initial investment consists of $38,900 cash and $46,020 in land.
b. The company's $18,860 equipment purchase is paid in cash.
c. Cash paid to employees is $2,700. The accounts payable balance of $9,280 consists of the $4,080 office supplies…
Chapter 4 Solutions
HORNGREN'S FIN.+MGRL..:MANAG.CHP.-MYLAB
Ch. 4 - Assets are listed on the balance sheet in the...Ch. 4 - Which of the following accounts would be included...Ch. 4 - Which situation indicates a net loss within the...Ch. 4 - Which of the following accounts is not closed? a....Ch. 4 - What do closing entries accomplish? a. Zero out...Ch. 4 - Which of the following is not a closing entry?Ch. 4 - Which of the following accounts may appear on a...Ch. 4 - Which of the following steps of the accounting...Ch. 4 - Clean Water Softener Systems has Cash of 600,...Ch. 4 - Which of the following statements concerning...
Ch. 4 - What document are financial statements prepared...Ch. 4 - Prob. 2RQCh. 4 - What does the statement of retained earnings show?Ch. 4 - Prob. 4RQCh. 4 - Why are financial statements prepared in a...Ch. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - How could a worksheet help in preparing financial...Ch. 4 - If a business had a net loss for the year, where...Ch. 4 - Prob. 12RQCh. 4 - What are temporary accounts? Are temporary...Ch. 4 - What are permanent accounts? Are permanent...Ch. 4 - How is the Income Summary account used? Is it a...Ch. 4 - What are the steps in the closing process?Ch. 4 - If a business had a net loss for the year, what...Ch. 4 - What types of accounts are listed on the...Ch. 4 - List the steps of the accounting cycle.Ch. 4 - What is the current ratio, and how is it...Ch. 4 - What are reversing entries? Are they required by...Ch. 4 - Prob. 4.1SECh. 4 - Preparing a statement of retained earnings Refer...Ch. 4 - Preparing a balance sheet (unclassified, account...Ch. 4 - Preparing a balance sheet (classified, report...Ch. 4 - Classifying balance sheet accounts For each...Ch. 4 - Using the worksheet to prepare financial...Ch. 4 - Prob. 4.7SECh. 4 - Prob. 4.8SECh. 4 - Prob. 4.9SECh. 4 - Prob. 4.10SECh. 4 - Prob. 4.11SECh. 4 - Prob. 4.12SECh. 4 - Identifying accounts included on a post-dosing...Ch. 4 - Identifying steps in the accounting cycle Review...Ch. 4 - Prob. 4.15SECh. 4 - Prob. 4.16SECh. 4 - Prob. 4.17ECh. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.21ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Prob. 4.24ECh. 4 - Prob. 4.25ECh. 4 - Prob. 4.26ECh. 4 - Prob. 4.27ECh. 4 - Prob. 4.28ECh. 4 - Prob. 4.29APCh. 4 - Prob. 4.30APCh. 4 - Prob. 4.31APCh. 4 - Prob. 4.32APCh. 4 - Prob. 4.33APCh. 4 - Prob. 4.34APCh. 4 - Prob. 4.35BPCh. 4 - Prob. 4.36BPCh. 4 - Prob. 4.37BPCh. 4 - Prob. 4.38BPCh. 4 - Prob. 4.39BPCh. 4 - Prob. 4.40BPCh. 4 - Prob. 4.41CPCh. 4 - Prob. 4.42PSCh. 4 - Prob. 1COPCh. 4 - Prob. 2COPCh. 4 - Prob. 4.1CTEI
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Similar questions
- ht = ences X On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash withdrawals by owner Consulting revenue Salaries expense Cash $ 8,450 Accounts receivable 16,950 Office supplies 4,080 Rent expense Land 46,020 Office equipment 18,860 Telephone expense Accounts payable 9,280 Owner investments 84,920 Miscellaneous expenses $ 2,930 16,950 4,420 7,900 860 680 Exercise 1-18 (Algo) Preparing an income statement LO P2 Using the above information prepare a December income statement for the business. ERNST CONSULTING Income Statement Revenues Rent expense Salaries expense Telephone expense Total revenues $ 4,420 7,900 860 $ SA Assets Cash 8,450 Accounts receivable 16,950 Office supplies 4,080 Land 46,020 Office equipment 18,860 navable 9,280 13,180 5 11 of 14 Next >arrow_forwardAssets Current Assets Cash Credit card receivables Accounts receivable Marketable securities Food Inventories Prepaid expenses Total Current Assets Golden Bay Balance Sheet as at December 31 Year 2018 Year 2019 $ 18,500 9,807 $ 29,400 11,208 5,983 6,882 15,400 2,000 12,880 14,700 10 800 14 900 73370 79 090 Property Plant & Equipment Land Building Equipment Furnishings $ 60,500 828,400 114,900 75,730 (330,100) 16 600 766 030 839 400 $ 60,500 884,400 157,900 81,110 (422,000) 18 300 7 80 210 859 300 Net: Accumulated depreciation China, glass, silver, & linen Total Assets Liabilities & Stockholders' Equity Current Liabilities Accounts payable Accrued expenses payable Taxes payable Current mortgage payable Total Current assets $ 19,200 4,200 12,400 26 900 62 700 $16,500 5,000 20,900 26 000 68 400 Long-term liabilities Mortgage payable Total Liabilities $ $512 800 $486 400 575 500 $555 200 Stockholders' Equity Common stock ($5 par. 40,000 shares issued & OS) $200,000 Retained earnings…arrow_forwardMat lives in Barbados and is desirous of starting his own business from inheritances that his parents left him. He approached you for advice on the best type of business to register. Mr. Mat said he would love to gain benefits from any tax relief that is available that the government has to offer. Give advice to Mr. Mat whether it would be more beneficial to start a Company or an Individual Trading Business. outline for Mr. Mat why setting up either a company, or a trading as business is more advantageous over the other. cover matters like: Tax rates, Available tax reliefs and or tax credits Ease of operations of a company, as well as ease of operations of an individual trading business.arrow_forward
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