Adjusting entries : Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred. Adjusting entries are classified into two categories. They are as follows, Deferrals, or Accruals. Deferrals: Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred. Deferrals are classified into two types. They are prepaid expenses, and unearned revenues. Prepaid expenses: The expenses are paid in cash, before they are incurred. Unearned revenue: The cash is received, before the services are performed. To identify: Theitems that may result in adjusting entries for deferrals.

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Answer 1

Question

Chapter 4, Problem 4.1EYCT

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

To identify: Theitems that may result in adjusting entries for deferrals.

(b)

To determine

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: The two items that may result in adjusting entries for accruals.

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2014 and 2013, and identify where it is reported

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

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Exercise 3-12A (Algo) Conducting sensitivity analysis using a spreadsheet LO 3-5 Use the below table to answer the following questions. Selling Price$27.00 Variable 2,100 3,100 Fixed Cost Cost Sales Volume 4,100 Profitability 5,100 6,100 $25,700 8 $14,200 $33,200 $52,200 $71,200 $90,200 25,700 9 12,100 30,100 48,100 66,100 84,100 25,700 10 10,000 27,000 44,000 61,000 78,000 35,700 8 4,200 23,200 42,200 61,200 80,200 35,700 9 2,100 20,100 38,100 56,100 74,100 35,700 10 17,000 34,000 51,000 68,000 45,700 8 (5,800) 13,200 32,200 51,200 70,200 45,700 9 (7,900) 10,100 28,100 46,100 64,100 45,700 10 (10,000) 7,000 24,000 41,000 58,000 Required a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Rundle projects the following data for Delatine: sales, 4,100 bottles; fixed cost, $25,700; and variable cost per unit, $10. c. Rundle is considering new circumstances that would change the conditions described in…

Which of the following would be classified as a current liability ?

Provide correct answer general Accounting question

Answer 2

Question

Chapter 4, Problem 4.1EYCT

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

To identify: Theitems that may result in adjusting entries for deferrals.

(b)

To determine

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: The two items that may result in adjusting entries for accruals.

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2014 and 2013, and identify where it is reported

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Expert Solution & Answer

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Answer 3

Question

Chapter 4, Problem 4.1EYCT

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

To identify: Theitems that may result in adjusting entries for deferrals.

(b)

To determine

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: The two items that may result in adjusting entries for accruals.

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2014 and 2013, and identify where it is reported

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Expert Solution & Answer

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Answer 4

Question

Chapter 4, Problem 4.1EYCT

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

To identify: Theitems that may result in adjusting entries for deferrals.

(b)

To determine

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: The two items that may result in adjusting entries for accruals.

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2014 and 2013, and identify where it is reported

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 4.1EYCT

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

To identify: Theitems that may result in adjusting entries for deferrals.

(b)

To determine

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: The two items that may result in adjusting entries for accruals.

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2014 and 2013, and identify where it is reported

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Answer 6

Chapter 4, Problem 4.1EYCT

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

To identify: Theitems that may result in adjusting entries for deferrals.

Answer 7

Chapter 4, Problem 4.1EYCT

(a)

To determine

Adjusting entries:

Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. The purpose of adjusting entries is to adjust the revenue, and the expenses for the period in which they actually occurred.

Adjusting entries are classified into two categories. They are as follows,

Deferrals, or

Accruals.

Deferrals:

Deferrals refer to the revenues that are collected in advance before the services are provided or sales are made to the customer, and the expenses are paid in advance before the expenses are incurred.

Deferrals are classified into two types. They are prepaid expenses, and unearned revenues.

Prepaid expenses: The expenses are paid in cash, before they are incurred.

Unearned revenue: The cash is received, before the services are performed.

To identify: Theitems that may result in adjusting entries for deferrals.

Answer 8

(b)

To determine

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: The two items that may result in adjusting entries for accruals.

Answer 9

(b)

To determine

Accruals:

Accruals refer to the revenues that are generated from goods delivered or, service performed to the customer, but cash is not yet received from the customer, and the expenses are incurred, but cash is not yet paid.

Accruals are classified into two types. They are accrued revenues, and accrued expenses.

Accrued revenues: Revenues are generated but not yet received in cash.

Accrued expenses: Expenses are incurred but not yet paid in cash.

To identify: The two items that may result in adjusting entries for accruals.

Answer 10

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2014 and 2013, and identify where it is reported

Answer 11

(c)

To determine

To identify: The amount of depreciation and amortization expense for 2014 and 2013, and identify where it is reported

Answer 12

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Answer 13

(d)

To determine

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 4 - Prob. 1Q Ch. 4 - Identify and stale two generally accepted...Ch. 4 - Prob. 3Q Ch. 4 - Prob. 4Q Ch. 4 - Prob. 5Q Ch. 4 - Why may the financial information in an unadjusted...Ch. 4 - Distinguish between the two categories of...Ch. 4 - What types of accounts does a company debit and...Ch. 4 - Prob. 9Q Ch. 4 - Prob. 10Q

Solution Summary: The author explains that adjusting entries are made at the end of an accounting period in accordance with revenue recognition principle.

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To identify: The amount of depreciation and amortization expense for 2014 and 2013, and identify where it is reported

To identify: The amounts of income tax reported in the cash flow, and identify the amount of income tax expense reported in the income statement.

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