2. At the beginning of the 20X1 fiscal year, Hawkeye Inc. had pre-paid rent of $24,000....
2. At the beginning of the 20X1 fiscal year, Hawkeye Inc. had pre-paid rent of $24,000. Hawkeye made no rental payments during the year and ended the year with no pre-paid rent and a credit balance of $12,000 for rent payable (rent payable at the beginning of the year was zero).
NOTE: Question 2 contains parts a and b below.
a. Provide one journal entry to record Hawkeye’s rent expense for the year. (3 points)
b. What effect would Hawkeye’s rent costs/expense have on their working capital (increase, decrease, or no effect—if increase or decrease, provide the amount)? (3 points)
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2. At the beginning of the 20X1 fiscal year, Hawkeye Inc. had
pre-paid rent of $24,000....
On January 1, 20X1, Hawkeye Inc. paid a supplier $3,000 for a previous purchase and delivery...
On January 1, 20X1, Hawkeye Inc. paid a supplier $3,000 for a previous purchase and delivery of inventory. The inventory had not been paid for, and the payment on January 1 reduced the amount Hawkeye Corp. owed to the supplier (accounts payable) by the payment amount. Would this transaction increase, decrease, or have no effect on the current ratio of Hawkeye Inc., which was equal to 1.25 before the transaction (2 points)? Explain your answer in terms of numerator and...
Year 20x2 Current Year 20X3 Year 20X1 849,750 524,000 325,750 $ $ $ 1,580,000 $ 875,200...
Year 20x2 Current Year 20X3 Year 20X1 849,750 524,000 325,750 $ $ $ 1,580,000 $ 875,200 $ 704,800 $ 3,100,000 1,580,000 1,520,000 Income Statement Revenue Cost of Goods Sold Gross Profit Administrative Expenses: Rent Expense Utilities Expense Wages Expense Office Expense Depreciation Expense Total Expenses Net Income 75,000 $ 25,000 $ 145,000 $ 5,500 $ 10,000 $ 260,500 $ 65,250 $ 90,000 $ 40,000 $ 315,000 $ 15,000 $ 65,000 $ 525,000 $ 179,800 $ 162,000 210,000 550,000 28,000 150,000...
Shamsud Ltd. operates on a calendar-year basis. At the beginning of December 2016, the company had...
Shamsud Ltd. operates on a calendar-year basis. At the beginning of December 2016, the company had the following current liabilities on its books: Accounts payable $85,000 Rent payable $10,000 Warranty provision $12,000 Unearned revenue $14,000 In December, the following events occurred: 1. Shamsud purchased a new computer system on account at a cost of $28,000, payable on January 15, 2017. In addition to this, $4,000 was paid in cash to have the new system installed and customized to the company's...
1. 3. 4. The Hughes Tools Company started business on October 1, 2019. Its fiscal year...
1. 3. 4. The Hughes Tools Company started business on October 1, 2019. Its fiscal year runs through to September 30 the following year. The following transactions occurred in the fiscal year that started on October 1, 2019, and ended on September 30, 2020. On October 1, 2019, Jill Hughes invested $179.000 to start the business. Hughes is the only owner. She was issued 10,000 common shares. 2. On October 1, Hughes Tools borrowed $228,000 from a venture capitalist (alender...
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances,...
On August 1, 2018, the beginning of its current fiscal year,
the following opening account balances, listed in alphabetical
order, were reported by Tobique Ltd.
Accounts payable
$2,500
Interest receivable
20
Accounts receivable
4,740
Note receivable, due October 31, 2018
4,000
Accumulated depreciation—equipment
2,030
Retained earnings
6,040
Cash
5,520
Salaries payable
1,460
Common shares
12,000
Supplies
1,030
Equipment
10,100
Unearned revenue
1,380
During August, the following summary transactions were
completed.
Aug. 1
Paid $440 cash for advertising in local newspapers....
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances,...
On August 1, 2018, the beginning of its current fiscal year,
the following opening account balances, listed in alphabetical
order, were reported by Tobique Ltd.
Accounts payable
$2,500
Interest receivable
20
Accounts receivable
4,740
Note receivable, due October 31, 2018
4,000
Accumulated depreciation—equipment
2,030
Retained earnings
6,040
Cash
5,520
Salaries payable
1,460
Common shares
12,000
Supplies
1,030
Equipment
10,100
Unearned revenue
1,380
During August, the following summary transactions were completed.
Aug. 1
Paid $440 cash for advertising in local newspapers....
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances,...
On August 1, 2018, the beginning of its current fiscal year, the
following opening account balances, listed in alphabetical order,
were reported by Tobique Ltd.
Accounts payable
$2,500
Interest receivable
20
Accounts receivable
4,740
Note receivable, due October 31, 2018
4,000
Accumulated depreciation—equipment
2,030
Retained earnings
6,040
Cash
5,520
Salaries payable
1,460
Common shares
12,000
Supplies
1,030
Equipment
10,100
Unearned revenue
1,380
During August, the following summary transactions were
completed.
Aug. 1
Paid $440 cash for advertising in local newspapers....
The Eldorado Corporation's controller prepares adjusting entries only at the end of the fiscal year. The...
The Eldorado Corporation's controller prepares adjusting entries only at the end of the fiscal year. The following adjusting entries were prepared on December 31, 2018: Debit Credit Interest expense 1,080 Interest payable 1,080 Rent expense 20,000 Prepaid rent 20,000 Interest receivable 150 Interest revenue 150 Additional information: The company borrowed $36,000 on March 31, 2018. Principal and interest are due on March 31, 2019. This note is the company’s only interest-bearing debt. Rent for the year on the company’s office...
2. ABC company maintains its records cash basis of accounting during the year and converts them...
2. ABC company maintains its records cash basis of accounting during the year and converts them to accrual basis at the end of the year through adjusting entries. Whe preparing the financial statements of ACC for the year ended December 31, 2019 on accrual basis, you discover the following: a. ABC Company sublet a portion of its warehouse for a one-year period for an annual rental payment of $72,000, beginning on August 1, 2019. The tenant, XYZ company paid the...
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances,...
On August 1, 2018, the beginning of its current fiscal year,
the following opening account balances, listed in alphabetical
order, were reported by Tobique Ltd.
Accounts payable
$2,500
Interest receivable
20
Accounts receivable
4,740
Note receivable, due October 31, 2018
4,000
Accumulated depreciation—equipment
2,030
Retained earnings
6,040
Cash
5,520
Salaries payable
1,460
Common shares
12,000
Supplies
1,030
Equipment
10,100
Unearned revenue
1,380
During August, the following summary transactions were completed.
Aug. 1
Paid $440 cash for advertising in local newspapers....
Year 20x2 Current Year 20X3 Year 20X1 849,750 524,000 325,750 $ $ $ 1,580,000 $ 875,200 $ 704,800 $ 3,100,000 1,580,000 1,520,000 Income Statement Revenue Cost of Goods Sold Gross Profit Administrative Expenses: Rent Expense Utilities Expense Wages Expense Office Expense Depreciation Expense Total Expenses Net Income 75,000 $ 25,000 $ 145,000 $ 5,500 $ 10,000 $ 260,500 $ 65,250 $ 90,000 $ 40,000 $ 315,000 $ 15,000 $ 65,000 $ 525,000 $ 179,800 $ 162,000 210,000 550,000 28,000 150,000...
1. 3. 4. The Hughes Tools Company started business on October 1, 2019. Its fiscal year runs through to September 30 the following year. The following transactions occurred in the fiscal year that started on October 1, 2019, and ended on September 30, 2020. On October 1, 2019, Jill Hughes invested $179.000 to start the business. Hughes is the only owner. She was issued 10,000 common shares. 2. On October 1, Hughes Tools borrowed $228,000 from a venture capitalist (alender...
On August 1, 2018, the beginning of its current fiscal year,
the following opening account balances, listed in alphabetical
order, were reported by Tobique Ltd.
Accounts payable
$2,500
Interest receivable
20
Accounts receivable
4,740
Note receivable, due October 31, 2018
4,000
Accumulated depreciation—equipment
2,030
Retained earnings
6,040
Cash
5,520
Salaries payable
1,460
Common shares
12,000
Supplies
1,030
Equipment
10,100
Unearned revenue
1,380
During August, the following summary transactions were
completed.
Aug. 1
Paid $440 cash for advertising in local newspapers....
On August 1, 2018, the beginning of its current fiscal year,
the following opening account balances, listed in alphabetical
order, were reported by Tobique Ltd.
Accounts payable
$2,500
Interest receivable
20
Accounts receivable
4,740
Note receivable, due October 31, 2018
4,000
Accumulated depreciation—equipment
2,030
Retained earnings
6,040
Cash
5,520
Salaries payable
1,460
Common shares
12,000
Supplies
1,030
Equipment
10,100
Unearned revenue
1,380
During August, the following summary transactions were completed.
Aug. 1
Paid $440 cash for advertising in local newspapers....
On August 1, 2018, the beginning of its current fiscal year, the
following opening account balances, listed in alphabetical order,
were reported by Tobique Ltd.
Accounts payable
$2,500
Interest receivable
20
Accounts receivable
4,740
Note receivable, due October 31, 2018
4,000
Accumulated depreciation—equipment
2,030
Retained earnings
6,040
Cash
5,520
Salaries payable
1,460
Common shares
12,000
Supplies
1,030
Equipment
10,100
Unearned revenue
1,380
During August, the following summary transactions were
completed.
Aug. 1
Paid $440 cash for advertising in local newspapers....
2. ABC company maintains its records cash basis of accounting during the year and converts them to accrual basis at the end of the year through adjusting entries. Whe preparing the financial statements of ACC for the year ended December 31, 2019 on accrual basis, you discover the following: a. ABC Company sublet a portion of its warehouse for a one-year period for an annual rental payment of $72,000, beginning on August 1, 2019. The tenant, XYZ company paid the...
On August 1, 2018, the beginning of its current fiscal year,
the following opening account balances, listed in alphabetical
order, were reported by Tobique Ltd.
Accounts payable
$2,500
Interest receivable
20
Accounts receivable
4,740
Note receivable, due October 31, 2018
4,000
Accumulated depreciation—equipment
2,030
Retained earnings
6,040
Cash
5,520
Salaries payable
1,460
Common shares
12,000
Supplies
1,030
Equipment
10,100
Unearned revenue
1,380
During August, the following summary transactions were completed.
Aug. 1
Paid $440 cash for advertising in local newspapers....
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