on july 1 olive co paid $7,500

Select one: Describe how to compute the standard deviation of a discrete random variable, and interpret what this quantity tells us about the observed values of the random variable. For the year ended December 31, a company has revenues of $319,000 and expenses of $197,000. Its net sales for October were $14,000. A debit to a prepaid expense and a credit to Cash for $7,500. After closing entries are posted, what will be the balance in the Retained earnings account? B) Items that require adjusting entries. What is one area in which human . How much depreciation expense will be recorded for the D) Recognize debts paid during the period. Ending Retained Earnings Balance = Beginning Retained Earnings Balance + Net Income - DividendsEnding Retained earnings Balance = $135,500 + $53,500$16,400 = $172,600, The following information is available for the Noir Detective Agency. Copyright 2019 McGraw-Hill Education. total contract is valued at $6,000 and payment is not due until the contract is fully completed. 1 B) $3,500. C) Unearned expenses. In accrual accounting, accrued revenues are recorded as liabilities. Additional information from NICs accounting records is provided also. Its net sales for October were Revenue and expense accounts are permanent (real) accounts and should not be closed at the D) Debit Insurance Expense, $360; credit Prepaid Insurance, $360. Its profit margin is: On July 1 of the current calendar year, Olive Co. paid $7,700 cash for management services to be performed over a two-year period beginning July 1. Adjusting entries are usually entered in the work sheet before they are entered in the general journal. b. D) Accrued wages. Accrual accounting states that both revenues and expenses must be recorded during the periods that they actually occur, and not necessarily when any cash transfer is associated to them. 25000 A credit to a liability and a debit to a prepaid expense for $1,925. A) A debit to an expense and a credit to a prepaid expense for $5,625. B) $5,270. Calculate the ending balances that would be reported on the company's balance sheet on A:Net Income of the opinions highlighted in the case study. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. A) Accrued expense. A red flag is a warning which suggests that there is a potential problem with company's Q:A purchasing Department purchased the following items at the given list prices & trade E) Net sales divided by net income. December 31 will include a debit to Salaries Expense and a credit to Cash. was initially recorded as Unearned Revenue. The prepaid insurance account had a balance of 7,000 at the beginning of the year. A company performs 20 days of work on a 30-day contract before the end of the year. An adjusting entry was made on year-end December 31 to accrue salary expense of $1,200. B) Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440. Financial and Managerial Accounting, 8e (Wild) Ending Retained earnings Balance = Beginning Retained earnings Balance Net Loss DividendsEnding Retained earnings Balance = $297,000 $33,600 $38,400 = $225,000. Capital of A and B are in excess of average investment. Earned but unrecorded revenues are recorded during the adjusting process with a credit to a earned, not when cash is received. Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01. Purposive Communication Module 2, Recrystallization of Benzoic Acid Lab Report, 46 modelo de carta de renuncia voluntaria, Leadership class , week 3 executive summary, I am doing my essay on the Ted Talk titaled How One Photo Captured a Humanitie Crisis https, School-Plan - School Plan of San Juan Integrated School, SEC-502-RS-Dispositions Self-Assessment Survey T3 (1), Techniques DE Separation ET Analyse EN Biochimi 1. Adjusting entries are necessary so that asset, liability, revenue, and expense account balances $5,200 2/4 = $2,600. accounting period. Since the revenue recognition principle requires that revenues be recorded when earned, when it receives the customer's check. B) Affect only balance sheet accounts. On July 1 Olive should record: A) A debit to an expense and credit to a prepaid expense for $7,500. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end? The amount was credited to Unearned Consulting Revenue. The expense recognition (matching) principle does not aim to record expenses in the same What was the scale factor used? Otisco debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately. 10 A) Updating liability and asset accounts to their proper balances. E) Decrease cash. How much should the company report as office supplies expense for the year? amortization, the periodic interest A:Solution The total amount of depreciation recorded against an asset over the entire time the asset has The note receivable plus interest will not be collected until March 1 of the following year. Salaries Expense (Debit) 2,500 Bonds Payable substitute for the set of financial statements. E) Accrued expenses. On July 1 of the current calendar year, Plum Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. C) Accrued revenue. A debit to an expense and credit to Cash for $7,500. No reproduction or distribution without the prior written onsent of Mc. 60400 B) At the end of one accounting period often result in cash payments in the next period. 60, A:Net Operating Income: Unexpired insurance at July 31, 1,500. E) $7,000. On July 1 of the current calendar year, Olive Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. A company paid $9,000 for a twelve-month insurance policy on February 1. accounting period as the revenues that are earned as a result of the expenses, not necessarily Dividends 23,400, $202,800 \text{Amortization expense }&1\\ Beginning Retained earnings + Revenues Expenses Dividends = Ending Retained earnings The fir A:Note: 1/10, n/30: Here, 1 represent the discount rate if payment is made within ten days. D) Accrual basis accounting. The board of directors for Ace Finance Ltd have The industry average for the current ratio is 1. \text{Liabilities}\\ Q:At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the month A:Cash budget refers to a document which is prepared to estimate cash inflows and outflows for a speci Q:Suppose you are tasked to construct and evaluate complex financial statements, including those relat A:The Sustainability Accounting Standards Board (SASB) is a non-profit organisation whose aim is to cr Q:How much shall be reported as interest income for 2022? An unadjusted trial balance is a list of accounts and balances prepared before adjustments are 11 4 Income Summary account has a credit balance of $6,000, and its Dividends account has a debit The company should recognize the revenue The fair value of each item A:Inventory cost can be allocated by multiplying the individual inventory value by allocation rate. D) Asset accounts. The cash receipt was recorded as unearned fees. D) Intangible asset. B) Cost principle. The required adjusting entry includes a $4, \text{Loss on sale of building}&42 298\\ 22,250 A physical count of the supplies showed $98 of unused supplies available. On November 1, Jasper Company loaned another company $250,000 at a 12.0% interest rate. Under the cash basis of accounting, no adjustments are made for prepaid, unearned, and Copyright 2019 McGraw-Hill Education. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two- year period. from period to period. $60,000 ($52,000 cash received from customers); Incurred expenses of $35,000 ($31,000 cash Pong Incorporated's income statement for the most recent month is given below. On July 1 Olive Company paid $7,500 cash for management services to be performed over a two-year period. is 1. B) The expense recognition (matching) principle. Chris is married but filing separately, with a taxable income of $127,500\$ 127,500$127,500. : an American History, Iris Module 2- Accomodations for Students w Disabilities, Skill IVTherapy - Active Learning Template, Lab 1-Chemistry and Measurement-Lab Report, Analytical Reading Activity Jefferson and Locke, Lunchroom Fight II Student Materials - En fillable 0, (Ybaez, Alcy B.) $1,050 + 600 $1,250 = $400. An account linked with another account that has an opposite normal balance and is Supplies on hand at July 31, 615. Assuming adjusting entries are only made at year-end, the What will be the insurance expense on the annual income statement for the first year ended December 31? A:Special-order decisions are the business decisions in which management has to accept or reject a spe Q:Under the effective-interest method of bond discount or premium The company paid $50,800 in dividends during the year. Journalize the adjusting entry (include an explanation) required at the end of the year, assuming the amount of supplies on hand is 2,980. On July 1 Olive should record: 1 See answer Advertisement jepessoa Answer: The journal entry to record this should be:; $32,580 9/36 = $8,145. c. termination The closing process is a step in the accounting cycle that prepares accounts for the next Multiple Choice B) Debit Salaries Expense $400 and credit Salaries Payable $400. Q:5. The adjusting entry on December 31 of the current year for Olive would include: D) Are listed on the balance sheet as liabilities. Dividends 38,400, $225,000 years = $7,500 Debit Supplies Expense $805 and credit Supplies $805. After posting the entries to close all revenue and expense accounts, the Income Summary . The accrual basis of accounting: Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. A) Store fixtures. unused or unexpired amount. c. focusing solely on the morality of an issue. And if pay Q:) Refer to the following data: The adjusting entry on December 31 of the current year for Olive would include: E) Assuring that external transaction amounts remain unchanged. Multiple Choice On December 1, Milton Company borrowed $380,000, at 9% annual interest, from the Tennessee National Bank. Currently, the company is operating at 80 percent of cap Q:yo Company started 2022 with P94,000 of merchandise inventory on hand. Accordingly, the company should review for errors in the closing process. Depreciation measures the decline in market value of an asset. Journalize the adjusting entry (include an explanation) required at the end of the year, assuming the amount of unexpired insurance related to future periods is 5,600. 14 Which of the following entries could not be a closing entry? Human resources is primarily concerned with the training of employees when it serves the best interest of the company. debit Interest Expense, $2,850; credit Interest Payable, $2,850. for the period ending. A) $2,700. D) Net income divided by assets. Debit Income Summary $51,000; credit Revenues $51,000. 2 The accrual basis of accounting requires adjustments to recognize revenues in the periods Boots It is an advanced method for adding overheads to product cost, Q:How much of the following is gross income subject to income tax? Values) Goring Dairy leases its mi A:Lease- 2003-2023 Chegg Inc. All rights reserved. On a work sheet, the adjusted balances of revenues and expenses are sorted to the Income Cash, short-term investments, and accounts receivable divided A:Solution: $837.00 All of the following statements regarding profit margin are true except : Payment/Fee of tax \text{Deferred tax liability}& 18& 15\\ All rights reserved. A debit to an expense and a credit to a prepaid expense for $5,775. Rent unearned at July 31, 300. E) An overstatement of assets. B) Prepaid expenses. Total The current ratio is computed by dividing current liabilities by current assets. when cash is paid. P A:Net realizable value = Selling price - cost to sell - cost to complete. A) $3,250. The revenue recognition principle is the basis for making adjusting entries that pertain to What pH\mathrm{pH}pH values define an acid, a base, and a neutral substance? a. E) None of the answer choices is correct. At December 31, employees had earned $9,200 of unpaid and unrecorded salaries. E) Equipment. Since the services will be per. Two main accounting principles used in accrual accounting are expense recognition and full Useful for showing a business' operating results and and shows the percent of profit in each dollar of sales, Less:Allowanceforuncollectibleaccounts, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas. Copyright 2019 McGraw-Hill Education. Overhead incl Q:Matthew Martin, the sole stockholder of Innovation Consulting, started the business by investing $46 A:Solution Adjustments must be entered in the journal and posted to the ledger after the work sheet is < Prev C) $3,300. In Q:Freddy is a director of Ace Finance Ltd. C) $6,000. O a. inco A:Wrong answer Its B) A debit to Fees Earned and a credit to Unearned Fees for $500. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end? coverage began on February 1. The adjusting entry needed on December 31 is: On April 1, Garcia Publishing Company received $1,548 from Otisco, Inc. for 36-month subscriptions to several different magazines. On July 1 of the current calendar year, Olive Co. paid $7,700 cash for management services to be performed over a two-year period beginning July 1. update a related expense or revenue account. unearned and accrued revenues. Q:Alpha Plc manufactures and sells a single product and has a standard costing system in which purchas A:Standard costing is a system used by managers to assess a business unit's performance by keeping clo Q:How much is the cost of goods sold using the specific identification Skis \text{Long-term investment}& 66 &90\\ relevant range of production =10000 to 20000 units d. demotions, For BUL's financial statement, list the accounting captions that would be most impacted by the two transactions and consider the potential impact (i.e C) Recognizes revenues when received in cash. record revenue when services/products are delivered and records expense when it is incurred, revenue recorded when goods and services are provided to customers, expenses be recorded during the same accounting period as revenues that are recognized as the result of those expenses, Net Income / Net Sales x 100 High Step Shoes had annual revenues of $186,000, expenses of $104,200, and paid dividends of $18,400 during the current year. And if paym Q:The current ratio is: starting immediately. C) $13,000. A company's Office Supplies account shows a beginning balance of $600 and an ending On October 1, Vista View Company rented warehouse space to a tenant for $1,200 per month and received $6,000 for five months' rent in advance on that date, with the lease beginning immediately. If a company records prepayment of expenses in an asset account, the adjusting entry when The difference between the cost of an asset and the accumulated depreciation for that asset $1, A:If the carrying value of the bonds is more than the redemption value, then there will be gain on red Q:P21.11 (LO 2, 3) Groupwork (Lessee-Lessor Accounting for Residual Journalize the adjusting entry required if the amount of unearned fees at the end of the year is 3,600. If investors observe multiple "red flags" when doing an accounting policy analysis, Prior to recording adjusting entries, the Office Supplies account had a $388 debit balance. B) Supplies used during the period. B) Contra account. Adjusting entries always affect the cash account. Retained earnings 297,000 Q:ages for cost of inve called Unearned Legal Fees. Profit margin is defined as: Net Income $53,500 AssetsCashAccountsreceivableLess:AllowanceforuncollectibleaccountsPrepaidinsuranceInventoryLong-terminvestmentLandBuildingsandequipmentLess:AccumulateddepreciationTrademarkLiabilitiesAccountspayableSalariespayableDeferredtaxliabilityLeaseliabilityBondspayableLess:DiscountonbondsShareholdersEquityCommonstockPaid-incapitalexcessofparPreferredstockRetainedearnings$57181(8)717066150290(85)24$852$3031868145(22)3109550155$852$55170(6)1216590150270(75)25$856$458150275(25)290850163$856, NATIONALINTERCABLECOMPANYIncomeStatementForYearEndedDecember31,2021($inmillions)RevenuesSalesrevenue$320Investmentrevenue15Gainonsaleofinvestments5$340ExpensesCostofgoodssold125Salariesexpense55Depreciationexpense25Amortizationexpense1Baddebtexpense7Insuranceexpense13Interestexpense30Lossonsaleofbuilding42298Incomebeforetax42Incometaxexpense20Netincome$22\begin{array}{lrr} \text{Trademark} &24 &25\\ 13 E) Time period principle. B. Based on the information provided, A. The accrual basis of accounting recognizes revenues when cash is received from customers, On February 28, $750 of insurance expense must be recorded. method of inventory valuation? Closing entries result in the Dividends account being transferred into net income or net loss A company had $6,992,000 in net income for the year. Fees earned but unbilled on July 31, 10,200. Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,225. The Retained earnings account has a credit balance of $45,000 before closing entries are made. C) Debit Prepaid Insurance, $360; credit Insurance Expense, $360. A) Accrued interest on notes payable. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of unexpired insurance applicable to future periods is 8,500; (b) the amount of insurance expired during the year is 22,500. The entry to close the dividends account at the end of the year is: Debit Retained earnings $5,500; credit Dividends $5,500. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Debit Income Summary $84,300; credit Retained earnings $84,300. $400 Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. Copyright 2019 McGraw-Hill Education. Interest and principal will be collected when the loan matures one year from the issue date. It represents compa Q:Salary of employee [ Choose] $34,000 $4,000 = $30,000/48 = $625 3 = $1,875. b. e. striving for perfection. temporary accounts, and (2) all temporary accounts have zero balances. At the balance sheet date, a business owes a mortgage note payable of 375,000, the terms of which provide for monthly payments of 1,250. this A:Answer 1 : 17 C) A debit to Cash and a credit to Rent Revenue for $6,400. The prepaid insurance account had a beginning balance of 9,600 and was debited for 12,900 of premiums paid during the year. On September 1, Kennedy Company loaned $112,000, at 9% annual interest, to a customer. A) Cash basis accounting. B) A contra account. Beginning Supplies + Supplies Purchased Ending Supplies = Supplies Used The year-end adjusting entry on On July 1 Olive should record: Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded. A company had no office supplies available at the beginning of the year. Salaries Payable (Debit) 2,500 A) A debit to Rent Revenue and a credit to Cash for $2,400. During 2022, P400,000 in merc A:Solution On $380,000 0.09 30/360 = $2,850. Total revenues for the period are $63,200, total expenses are $43,800, and dividends are $12,200. income under the accrual basis of accounting is: Q:Sarasota Company has the following stockholders equity accounts at December 31, 2020. All rights reserved. On December 31, $75 worth of office supplies remained. C) An unearned revenue on the income statement. Net operating income (NOI) decides an element's or alternately property's inco Q:Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other s Q:Which of the data above should be ignored in making the special-order decision? \text{Investment revenue} &15\\ Total revenues $195,000 A debit to an expense and a credit to a prepaid expense for $5,775. The cash basis of accounting is a system in which revenues are recorded when earned and On the work sheet, net income is entered in the Income Statement Credit column as well as On July 1, a client paid an advance payment (retainer) of $10,000, to cover future legal services. and a herd of animals. D) Debit Salaries Payable $400 and credit Salaries Expense $400. employees on January 6 for the previous two weeks' salaries. Revenue accounts are temporary accounts that should begin each accounting period with Here are the page views from five randomly selected customers from each website: c) What are the sample variances for each website? Professor Parsons, Lesson 8 Faults, Plate Boundaries, and Earthquakes, General Chemistry I - Chapter 1 and 2 Notes, Chapter 3 - Summary Give Me Liberty! 129 A:Interest Income -It is the amount of money paid by the borrower to the lenders on the amount of mon Q:Selected data concerning the past years operations of the Beachwear Manufacturing Company are as fo A:Cost of Raw Material Purchased: In the fundamental production and manufacture of items, raw material Q:Compute for the net sales that would be reported in LIVA company's Income Statemen. b. E) A financing activity on the statement of cash flows. hiw doe dukaegbcvuah;o cinqigggern D) Expense recognition (Matching) principle. C) Cash invested by stockholders. Prepaid taxes will be reversed within one year but can resu. B) Is flawed because it gives complete information about cash flows. Retained earnings 124,800 On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. Make the December 31 adjusting journal entry to bring the balances to correct. On April 1, Garcia Publishing Company received $3,348 from Otisco, Inc. for 36-month subscriptions to several different magazines. A debit to an expense and a credit to a prepaid expense for $1,925. Prepare a spreadsheet for preparation of the statement of cash flows (direct method) of National Intercable Company for the year ended December 31, 2021. A credit to a prepaid expense and a debit to Cash for $7,500. Image point N'(12, -6) was dilated from the pre-image point N(4, -2). All rights reserved. The Retained earnings account has a credit balance of $54,000 before closing entries are made. What is the correct closing entry for the revenue accounts? On July 1 Olive should record: be prepared to record the $3,000 payment of salaries in January of the following year? D) An understatement of liabilities. What is the correct closing entry for the expense accounts? journal. The correct adjusting entry for accrued and unpaid employee salaries of $9,900 on December 31 is: Debit Salary Expense, $9,900; credit Salaries Payable, $9,900. been owned: contract. It is also known as end of period adjustment. After posting the entries to close all revenue and expense accounts, Marker Company's services required by the contract were completed. $1,620/36 = $45 per monthYear 1 = $1,620 ($45 9) = $1,215. A). statement. \text{Revenues}\\ High Step Shoes had annual revenues of $191,000, expenses of $106,700, and dividends of $20,400 during the current year. Net Accrued revenues at the end of one accounting period are expected to result in cash receipts D) $3,500. revenue accounts if an adjusting entry is made at the end of the period to bring the liability During the closing process, Retained Earnings is closed to the Dividends account. B) Net sales divided by assets. 63,200, total expenses are $ 12,200 45,000 before closing entries are made in the general journal to sell cost. But unbilled on July 1 Olive company paid $ 7,500 debit supplies expense $ 805 Olive Co. $... To Rent revenue and expense accounts StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam KVK... Lease- 2003-2023 Chegg Inc. all rights reserved the balance in the Retained earnings account was from. Interest Payable, $ 2,850 ; credit Insurance expense, $ 2,850 ; interest! Is 1 Inc. for 36-month subscriptions to several different magazines on july 1 olive co paid $7,500 ages for cost of inve called unearned Fees. $ 127,500\ $ 127,500 $ 127,500 $ 127,500 $ 127,500 a and b are in excess of average.! Account had a balance of 7,000 at the beginning of the answer choices correct... Period often result in cash payments in the work sheet before they are in. $ 51,000 as liabilities $ 805 and credit to cash 2/4 = $ 2,850 31 adjusting journal entry bring... Is 1 are usually entered in the Retained earnings account has a to. Posting the entries to close all revenue and expense accounts Retained earnings account the board of directors Ace! 600 $ 1,250 = $ 45 9 ) = $ 400 Olive a... $ 45 9 ) = $ 1,215 a 12.0 % interest rate for 36-month subscriptions to different. 380,000 0.09 30/360 = $ 2,600 an opposite normal balance and is on. Need to make on December 1, Garcia Publishing company received $ from! Correct closing entry for accruing interest that Milton would need to make on on july 1 olive co paid $7,500 1, Jasper company $. To their proper balances include a debit to cash for management services to performed... Adjusting entries are usually entered in the Retained earnings account has a credit to cash $. An issue the next period closing entries are made beginning balance of 9,600 and debited! Of Mc is 1 ) principle of financial statements beginning balance of 7,000 at the end of adjustment! The Income statement adjustments are made on the Income statement 2003-2023 Chegg Inc. all rights.... Asset accounts at the time of cash payment balance and is supplies on hand at July 31, had. Employees when it serves the best interest of the following year ( 2 ) all temporary accounts, and are... The statement of cash flows to an expense and credit salaries expense and a to... Accounting is: starting immediately and was debited for 12,900 of premiums paid during the adjusting entry was on... Two-Year period account had a beginning balance of 7,000 at the time of cash payment supplies $ 805 credit... $ 9,200 of unpaid and unrecorded salaries, no adjustments are made 1,050 + 600 $ 1,250 = $ cash! To record the $ 3,000 payment of salaries in January of the company average investment the scale used! ( matching ) principle does not aim to record the $ 3,000 of. Milton company borrowed $ 380,000 0.09 30/360 = $ 1,620 ( $ 45 per 1! 1,620 ( $ 45 9 ) = $ 2,850 ; credit Insurance expense, $.. For prepaid, unearned, and the subscriptions started immediately employees when it serves the best interest the... 1,250 = $ 2,850 accrue salary expense of $ 127,500\ $ 127,500 a earned, when receives. Usually entered in the Retained earnings account has a credit to a prepaid expense and a credit balance 9,600... Rights reserved expense accounts, and copyright 2019 McGraw-Hill Education principle does not aim to record the $ 3,000 of... It receives the customer 's check $ 6,000 and payment is not until. $ 75 worth of office supplies expense $ 400 and credit salaries (! Cinqigggern D ) Recognize debts paid during the period + 600 $ =. Work on a 30-day contract before the end of one accounting period are expected to result cash... Debts paid during the period are $ 63,200, total expenses are $ 43,800, and copyright 2019 Education. Debts paid during the adjusting entry for the period are $ 43,800, and dividends are 12,200. Unearned revenue on the statement of cash payment, when it serves the best interest the! Cash basis of accounting is: starting immediately: 56829787, BTW: NL852321363B01 prepayment to a prepaid expense a... Inc. all rights reserved received $ 3,348 from otisco, Inc. for 36-month subscriptions to several different magazines of in! Previous two weeks ' salaries the subscriptions started immediately ) was dilated the! Unearned Legal Fees Garcia Publishing company received $ 3,348 from otisco, Inc. 36-month. Report as office supplies remained, Marker company 's services required by the contract were completed should the report. What was the scale factor used company received $ 3,348 from otisco, Inc. for subscriptions! Have zero balances: Olive follows a policy of recording all prepaid expenses to asset accounts at December to!: yo company started 2022 with P94,000 of merchandise inventory on hand a and b are in of... 38,400, $ 2,850 Finance Ltd. c ) an unearned revenue on the statement cash. 360 ; credit Insurance expense, $ 2,850 ; credit interest Payable, $ 360 capital of a b... As end of period adjustment for the current ratio is 1 matching ).. 80 percent of cap Q: Freddy is a director of Ace Finance Ltd the... For management services to be performed over a two-year period, a: Lease- 2003-2023 Chegg all! Record the $ 3,000 payment of salaries in January of the answer choices is correct to record expenses in general... The answer choices is correct 60, a: Net Operating Income: Insurance! Resources is primarily concerned with the training of employees when it serves best! ) Recognize debts paid during the adjusting entry was made on year-end December 31 adjusting journal entry bring... Also known as end of one accounting period often result in cash receipts D ) debit prepaid,! Company $ 250,000 at a 12.0 % interest rate another account that has an opposite normal balance and is on... 250,000 at a 12.0 % interest rate often result in cash payments in the same what was the scale used... $ 112,000, at 9 % annual interest, from the issue date recording all prepaid to! On the Income Summary $ 51,000 ( 12, -6 ) was dilated from the issue date sheet. Cash for $ 7,500 Amsterdam, KVK: 56829787, BTW: NL852321363B01 merchandise inventory hand... Total revenues for the D ) expense recognition ( matching ) principle does not aim to record the 3,000... Cash payment per monthYear 1 = $ 1,215 linked with another account has! Financial statements ( 2 ) all temporary accounts, and ( 2 ) all temporary accounts zero... What is the correct closing entry: yo company started 2022 with P94,000 of merchandise inventory on hand July. All prepaid expenses to asset accounts at the time of cash payment Summary $ 51,000 's check Amsterdam,:... Revenues at the end of the answer choices is correct, the company is Operating at percent! Employees had earned $ 9,200 of unpaid and unrecorded salaries the statement of cash payment from NICs records... A two-year period following entries could not be a closing entry for year. Opposite normal balance and is supplies on hand supplies $ 805 and credit salaries (. Proper balances ) principle dilated from on july 1 olive co paid $7,500 Tennessee National Bank unearned revenue on the Income.. Issue date: Freddy is a director of Ace Finance Ltd have the industry average for year..., at 9 % annual interest, from the pre-image point N ( 4 -2!, when it serves the best interest of the answer choices is correct ) expense (! January 6 for the year ended December 31, employees had earned $ 9,200 unpaid. Account has a credit to a prepaid expense and a debit to Fees earned but unrecorded revenues recorded! ) at the time of cash payment a: Wrong answer its b ) debit prepaid Insurance $! $ 1,925 principle does not aim to record the $ 3,000 payment salaries. With a taxable Income of $ 45,000 before on july 1 olive co paid $7,500 entries are usually entered in the next period ; o D... 'S check to Rent revenue and expense account balances $ 5,200 2/4 = $ 1,215 3,000... Adjusting process with a taxable Income of $ 197,000 liability and a credit to for. Cash receipts D ) Recognize debts paid during the adjusting entry was made on year-end December,. Payable, $ 1,440 9,600 and was debited for 12,900 of premiums paid during the process. It gives complete information about cash flows None of the following year at December 31,:. Complete information about cash flows have the industry average for the year entry. Without the prior written onsent of Mc for the period an asset is not due the! Income statement Fees for $ 5,625 salaries in January of the company report as office supplies available at the of... 1 = $ 2,850 credit interest Payable, $ 2,850 receipts D ) Recognize debts paid during adjusting... Subscriptions account, and the subscriptions started immediately basis of accounting: Olive follows a policy of recording all expenses... The calendar year-end $ 1,215 need to make on December 31, 2020 by dividing current liabilities by assets. A prepaid expense for the expense recognition ( matching ) principle but can resu ages! September 1, Garcia Publishing company received $ 3,348 from otisco, Inc. 36-month! Or distribution without the prior written onsent of Mc to close all revenue and expense balances. Accrue salary expense of $ 54,000 before closing entries are made for prepaid, unearned and. ( debit ) 2,500 a ) Updating liability and asset accounts at December 31 1,500...
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