Question 1

Joan Miller owns an advertising agency.One of the adjustments her accountant made at the end of July was $360 for unpaid wages of the secretary.Joan Miller might ask,"Why go to the trouble of making this adjustment? Why worry about it? Doesn't everything come out in the end,when the secretary is paid in August? Because wages expense in total is the same for the two months,isn't the net income in total unchanged?" Give three reasons why adjusting entries can help Joan Miller assess the performance of her business.(Net income was $1,600. )

Accepted Answer

The answer of Joan Miller owns an advertising agency.One of...

Question 2

Answer the following questions.(Show your work. )
a.Revenue of $60,000 was earned,but only $45,000 was collected.Expenses of $36,000 were incurred,but only $30,000 was paid.What is reported net income?
b.Wages of $4,000 are paid every Friday for a five-day workweek.If year end falls on a Tuesday,the adjusting entry for wages would be recorded at what amount?
c.A company vehicle is purchased for $24,000.Assuming an eight-year useful life and zero value at that time,what is the balance of accumulated depreciation after five years?
d.Supplies Expense of $3,600 was recorded for a given year.Assuming that $2,400 in supplies were purchased during the year and that $640 in supplies remained at year end,what was the cost of supplies at the beginning of the year?

Accepted Answer

The answer of Answer the following questions.(Show your work. )
a.Revenue...

Question 3

Gravel Manufacturing had supplies on hand costing $480 on December 31.During the same year,supplies costing $320 were purchased,and $640 in supplies were consumed during the year.What was the cost of supplies on hand on January 1 of that year?

Accepted Answer

The answer of Gravel Manufacturing had supplies on hand costing...

Question 4

The following amounts are taken from the balance sheets of Candy Cane Enterprises:

During 20x5,expenses related to prepaid expenses were $206,000,and expenses related to accrued liabilities were $394,000.Determine the amount of cash payments related to prepaid expenses and to accrued liabilities for 20x5.

Accepted Answer

The answer of The following amounts are taken from the...

Question 5

The 20x5 income statement for Almond Company showed rent expense of $10,800 and salaries expense of $7,200.The related balance sheet account balances at year end for last year and this year were as follows:

a.Compute cash paid for rent during the year.
b.Compute cash paid for salaries during the year.

Accepted Answer

The answer of The 20x5 income statement for Almond Company...

Question 6

Match between columns
                        Premises: Failure to record revenue earned but not yet received
Failure to record depreciation
Failure to convert unearned revenue to earned revenue
Failure to record expired insurance
Failure to record accrued wages
Failure to record accrued interest in the bank

Accepted Answer

The Answer of Not affected and Overstated and Understated is...

Question 7

Match between columns
                        Premises: Failure to record expired rent
Failure to record depreciation
Failure to record revenue earned but not yet received
Failure to record accrued wages
Failure to record accrued interest in the bank
Failure to convert unearned revenue to earned revenue

Accepted Answer

The Answer of Overstated and Not affected and Understated is...

Question 8

Match between columns
                        Premises: Depreciation on machinery is $7,200 for the accounting period.
Commissions amounting to $975 were earned but not yet collected by year end.
Office supplies of $965 were on hand at the beginning of the period.Purchases of office supplies during the period totaled $640.At the end of the period,$120 in office supplies remained.
Interest that has been incurred on a loan but that has not yet been paid or recorded is $675.
Prepaid Rent had a $2,500 balance prior to adjustment.By year end,50 percent had expired.

Accepted Answer

The Answer of Accural and Deferral is...

Question 9

Match between columns
                        Premises: Property taxes that have been incurred but that have not yet been paid or recorded amount to $1,034.
Services totaling $690 have been performed but not yet recorded or billed.
Salaries earned by employees by year end but not yet paid or recorded amounted to $1,655.
Legal fees of $2,890 were collected in advance.By year end,70 percent were still unearned.
Prepaid Insurance had a $900 balance prior to adjustment.By year end,25 percent was still unexpired.
Unrecorded interest on savings bonds is $765.

Accepted Answer

The Answer of Deferral and Accural is...

Quiz 3: Adjusting the Accounts

Gravel Manufacturing had supplies on hand costing $480 on December 31.During the same year,supplies costing $320 were purchased,and $640 in supplies were consumed during the year.What was the cost of supplies on hand on January 1 of that year?

For each of the following oversights,state whether owner's equity will be understated,overstated,or not affected.

For each of the following oversights,state whether total assets will be understated,overstated,or not affected.

State whether each situation is a deferral or an accrual.

State whether each situation is a deferral or an accrual.