Concept explainers
1.
Introduction:
To identify and prepare:Adjustment entry.
2.
Introduction: Journal entry is recorded for each transaction that has been incurred during the accounting period wherein one or more accounts are debited or credited and the total of both debit and credit equals.
To compute:The amount of prepaid rent paid on April 1 2016.
3.
Introduction: Journal entry is recorded for each transaction that has been incurred during the accounting period wherein one or more accounts are debited or credited and the total of both debit and credit equals.
To identify and prepare:Adjustment entry to record
4.
Introduction: Journal entry is recorded for each transaction that has been incurred during the accounting period wherein one or more accounts are debited or credited and the total of both debit and credit equals.
To compute:Useful life of equipment.
5.
Introduction: Journal entry is recorded for each transaction that has been incurred during the accounting period wherein one or more accounts are debited or credited and the total of both debit and credit equals.
To identify and prepare:Adjustment entry for interest expense.
6.
Introduction: Journal entry is recorded for each transaction that has been incurred during the accounting period wherein one or more accounts are debited or credited and the total of both debit and credit equals.
To compute:Monthly interest rate on the loan.
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Financial Accounting: The Impact on Decision Makers
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- More Review Show (MRS) prepares quarterly statements. The bookkeeper presented to you the records and you found out the following account balances before adjustments for the quarter ended March 31, 200B: The notes receivable balance of P180,000 as of March 31, 200B consisted of a 60-day 12% note for P120,000 dated February 14, 200B and a 30-day 6% note for P60,000 dated March 16, 200B Required: Prepare adjusting entryarrow_forwardA company purchased a certificate of deposit (a short-term investment that pays interest to the purchaser when it matures) on March 1 that will pay $120 of interest 3 months from that date when it matures. On March 31, which of the following adjusting journal entries would be made? Account Debit Credit A. Interest receivable 120 Interest revenue 120 B. Interest receivable 40 Interest revenue 40 C. Interest receivable 120 Unearned revenue 120 D. No entry is recorded on March 31. Group of answer choices A. B. C. D.arrow_forwardNeed correct answer for this questionarrow_forward
- Prepare the necessary journal entries (include journal entry descriptions) for the selected transactions of Nester Company whose fiscal year end is December 31, You MUST show the details of any calculations either in parenthesis or as a footnote. Date Transaction Description 7/1/20Y5 Accepted a 5-month, 6% note in settlement of a past due customer account, Barns Company, with a $9,000 balance. 11/1/20Y5 Accepted a promissory note from a Nester Company executive in exchange for providing the executive with S20,000 to be used for relocation costs. The note carries interest of 9% and is due in 8 months. 12/1/20Y5 Received the amount due on the note from Barns Company. 12/31/20Y5 Accrued interest on the 8-month note received from the Nester Company executive. 7/1/20Y6 Received full payment from the Nester Company executive.arrow_forwardEntries for notes receivable, including year-end entries The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing: 2017 December 7. Received from Unitarian Clothing & Bags Co., on account, a $75,000, 60-day, 3 % note dated December 7. December 31. Recorded an adjusting entry for accrued interest on the note of December 7. December 31. Recorded the closing entry for interest revenue. 2018 February 5. Received payment of note and interest from Unitarian Clothing & Bags Co. Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. 2017, Dec. 7 Dec. 31 Dec. 31 2018, Feb. 5arrow_forwardPrepare an aging schedule to determine the total estimated uncollectibles at March 31,2018arrow_forward
- Please give answerarrow_forwardRefer to the photoarrow_forwardCurrent Attempt in Progress The ledger of Cullumber Company at the end of the current year shows Accounts Receivable $68,000, Credit Sales $810,000, and Sales Returns and Allowances $38,000. Prepare journal entries for each separate scenario below. If Cullumber Company uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Cullumber Company determines that Matisse's $500 balance is uncollectible. (a) If Allowance for Doubtful Accounts has a credit balance of $900 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable. (b) If Allowance for Doubtful Accounts has a debit balance of $490 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 7% of accounts receivable. (c) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles…arrow_forward
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