John’s Plumbing pays rent on 28 June 2013 in advance of the rental period for which it applies, 01-31 July 2013. John’s...
- John’s Plumbing pays rent on 28 June 2013 in advance of the rental period for which it applies, 01-31 July 2013. John’s Plumbing follows an accrual basis of accounting and has a fiscal year-end of 30 June. It will claim the rent expense on its income statement for the fiscal year ended 30 June 2013. (T/F)
Homework Answers
Under accrual basis expense should be recognised in the period in which such accrued irrespective of cash payment. Rent expense is related to July, so in July expense should be recognised. For the financial year ending on 30th June, rent paid in advance should be shown in balance sheet under assets side.
FALSE
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John’s Plumbing pays rent on 28 June 2013 in advance of the rental period for which it applies, 01-31 July 2013. John’s...
True or False- John’s Plumbing pays rent on 28 June 2013 in advance of the rental...
True or False- John’s Plumbing pays rent on 28 June 2013 in advance of the rental period for which it applies, 01-31 July 2013. John’s Plumbing follows an accrual basis of accounting and has a fiscal year-end of 30 June. It will claim the rent expense on its income statement for the fiscal year ended 30 June 2013.
no explaining 28. On July 1, 2018, Charlie Co. paid $18,000 in advance to Rent-An-Office for...
no
explaining
28. On July 1, 2018, Charlie Co. paid $18,000 in advance to Rent-An-Office for 12 months rent from July 2018 through June 2019. What adjusting entry should Charlie Co, record on December 31, 2018 to record the amount of rent expense incurred in 2018? 18,000 18.000 B. | 18,000 18,000 Rent Expense Cash Rent Expense Prepaid Rent Prepaid Rent Rent Expense Rent Expense Prepaid Rent c. 9,000 9,000 9,000 9,000 29. A list of all accounts and their...
Additional information a) Quarterly income tax instalments paid during the year were: 28 October 2013 28...
Additional information
a) Quarterly income tax instalments paid during the year were:
28 October 2013
28 January 2014
28 April 2014
Note: Final instalment due on July 28
b) The following items are exempt from tax rules:
Royalties are non-assessable
Entertainment expenses are non-deductible
$18,000 18,000 17,000
c) The tax depreciation rate for plant (purchased 3 years ago
for $150,000) is 20%.
d) Tax depreciation on buildings is equal to accounting
depreciation on buildings.
e) During the year, the following...
complete please Problem 2-12 Cash versus accrual accounting [LO2-8] Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company's accountant ob...
complete please
Problem 2-12 Cash versus accrual accounting [LO2-8] Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company's accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2018 Cash receipts: $680,000 4,080 105,000e From customers Interest on note Loan from a local bank Total cash receipts $789,080 Cash disbursements: Purchase of merchandise $391,000 6,120 211,000 11,000 24,500 Annual...
43. Your company, which uses accrual basis accounting, pays $18,000 in advance to cover a 3-year insurance premium...
43. Your company, which uses accrual basis accounting, pays $18,000 in advance to cover a 3-year insurance premium and debits Prepaid Insurance. How much insurance expense has your company incurred after 1 year has elapsed? a. $18,000 b. $12,000 c. $6,000 d. $0 Use the following information for Questions 44 and 45: Your company shows the following data at the end of its first year: Credit sales for the year Accounts Receivable balance Allowance for Doubtful Accounts $1,000,000 100,000 4,000...
1. Which of the following are NOT in accordance with generally accepted accounting principles? cash basis...
1. Which of the following are NOT in accordance with generally accepted accounting principles? cash basis accounting accrual basis accounting both cash and accrual basis accounting neither the cash or accrual basis accounting 2. The balance in the office supplies account on June 1 was $2,000, supplies purchased during June were $4,300, and the supplies on hand at June 30 were $1,500. The amount to be used for the appropriate adjusting entry is 800 6300 3500 4800 3. Melman Company...
New Translate Web... 2 23 59 On July 31, 2020 Baker completed a $1,500 service job...
New Translate Web... 2 23 59 On July 31, 2020 Baker completed a $1,500 service job for a customer. The customer did not pay cash for the job when it was completed the customer will pay for the job on August 15, 2020. It was late in the day when the job was completed and Baker's accounting department did not have time to invoice the customer for the $1,500 completed job, If Baker did not make the July 31 adjusting...
adjusting entries On December 31, 2013, the bookkeeper of Atomic Company prepared a statement of income...
adjusting entries
On December 31, 2013, the bookkeeper of Atomic Company prepared a statement of income and a balance sheet. The statement of income showed net income of $60,000 while the balance sheet reflected total assets of $320,000, total liabilities of $80,000, and shareholders equity of $240,000. The controller of the company realized that the statements were incorrect as the bookkeeper had not prepared adjusting journal entries relating to the following information: 1. Wages amounting to $47,000 for the last...
Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year...
Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company’s accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2021: Cash receipts: From customers $ 650,000 Interest on note 3,600 Loan from a local bank 125,000 Total cash receipts $ 778,600 Cash disbursements: Purchase of merchandise $ 385,000 Annual insurance payment 5,400 Payment of salaries 205,000 Dividends paid to...
Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year...
Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company's accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2021: $685,000 3,640 110,000 $798,640 Cash receipts: From customers Interest on note Loan from a local bank Total cash receipts Cash disbursements: Purchase of merchandise Annual insurance payment Payment of salaries Dividends paid to shareholders Annual rent payment Total cash...
no
explaining
28. On July 1, 2018, Charlie Co. paid $18,000 in advance to Rent-An-Office for 12 months rent from July 2018 through June 2019. What adjusting entry should Charlie Co, record on December 31, 2018 to record the amount of rent expense incurred in 2018? 18,000 18.000 B. | 18,000 18,000 Rent Expense Cash Rent Expense Prepaid Rent Prepaid Rent Rent Expense Rent Expense Prepaid Rent c. 9,000 9,000 9,000 9,000 29. A list of all accounts and their...
Additional information
a) Quarterly income tax instalments paid during the year were:
28 October 2013
28 January 2014
28 April 2014
Note: Final instalment due on July 28
b) The following items are exempt from tax rules:
Royalties are non-assessable
Entertainment expenses are non-deductible
$18,000 18,000 17,000
c) The tax depreciation rate for plant (purchased 3 years ago
for $150,000) is 20%.
d) Tax depreciation on buildings is equal to accounting
depreciation on buildings.
e) During the year, the following...
complete please
Problem 2-12 Cash versus accrual accounting [LO2-8] Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company's accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2018 Cash receipts: $680,000 4,080 105,000e From customers Interest on note Loan from a local bank Total cash receipts $789,080 Cash disbursements: Purchase of merchandise $391,000 6,120 211,000 11,000 24,500 Annual...
43. Your company, which uses accrual basis accounting, pays $18,000 in advance to cover a 3-year insurance premium and debits Prepaid Insurance. How much insurance expense has your company incurred after 1 year has elapsed? a. $18,000 b. $12,000 c. $6,000 d. $0 Use the following information for Questions 44 and 45: Your company shows the following data at the end of its first year: Credit sales for the year Accounts Receivable balance Allowance for Doubtful Accounts $1,000,000 100,000 4,000...
New Translate Web... 2 23 59 On July 31, 2020 Baker completed a $1,500 service job for a customer. The customer did not pay cash for the job when it was completed the customer will pay for the job on August 15, 2020. It was late in the day when the job was completed and Baker's accounting department did not have time to invoice the customer for the $1,500 completed job, If Baker did not make the July 31 adjusting...
adjusting entries
On December 31, 2013, the bookkeeper of Atomic Company prepared a statement of income and a balance sheet. The statement of income showed net income of $60,000 while the balance sheet reflected total assets of $320,000, total liabilities of $80,000, and shareholders equity of $240,000. The controller of the company realized that the statements were incorrect as the bookkeeper had not prepared adjusting journal entries relating to the following information: 1. Wages amounting to $47,000 for the last...
Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company's accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2021: $685,000 3,640 110,000 $798,640 Cash receipts: From customers Interest on note Loan from a local bank Total cash receipts Cash disbursements: Purchase of merchandise Annual insurance payment Payment of salaries Dividends paid to shareholders Annual rent payment Total cash...
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