5. Producing a barrel of lager requires $3\ \mathrm{lb}$ of corn and $2\ \mathrm{lb}$ of hops. River Brewery is a microbrewery that produces an amber lager and an ale. the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. The budget approved estimated revenues of $1,100,000 and appropriations of $1,000,000. Which of the following pre-payments requires an adjusting entry at the end of the year? Cash flows from operations may be higher than expected for the company's sales. Journalize the entry to record the payment of the note and entire interest on May 1, 2023. in a perpetual inventory system, the physical count of inventory ____________. Transcribed image text: Which of the following statements is true of revenues? d. If revenues are greater than expenses, the company has net income and retained earnings decreases a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. C Interest and penalties on delinquent property taxes. B. The rent agreements on both buildings went into effect on the dates the rents were prepaid. A) on the balance sheet and income statement, respectively. A (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? 5. (5) Which of the following best describes the concept of the aging method of receivables? Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. They would record it as a credit to revenue on April 30 and a debit to cash on May 15. \text{Income taxes}\ldots\ldots\ldots & \text{19,598}\\ 7. Which of the following is true of a partnership? In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . A business purchases $1000 of office supplies on account. None of the answers are correct. 8. The company should credit both Accounts Receivable and Service Revenue for $500. Why or why not? The annual revenue, 6. Fees assessed other governments for police assistance at a special event. A)The company has issued $60,000 of common stock. Debt service. Explain why. C) depreciation is recorded on all plant assets. 10. On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? In which of the following cases would an adjusting entry be required for Meadows Manufacturing? Liabilities are economic resources that are expected to benefit the business in the future. \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ Donation of bonds to the city by a wealthy resident. Traffic tickets. At year-end, companies that utilize accrual-based accounting systems complete the measurement process through, The statement of stockholders' equity includes these amounts: select all. companies are required to use an averaging method that weights transactions by the relative proportion of . If an adjusting entry's debit is to an expense account, then the credit must be to which of the following? A B. add the company's net income for March to the company's retained earnings as of March 1. A. Term. A Adam Corporation uses the cash-basis of accounting. If revenues are greater than expenses, the company has net income and contributed capital increases. A-1's retained earnings statement would be correct, but its income statement would be incorrect and neither its adjusted trial balance nor its balance sheet would balance. A. This would also be apparent from section 132(4). Imagine if you c Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . a. Technology companies are particularly dependent on offshore revenue. The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. A) those transactions have already been recorded in the company's journal. D Accrual-basis accounting is optional under . They would record it as a credit to revenue and debit to cash on April 30. 3. D) the environment is the "tone at the top" of the business. Retained Earnings (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. : 11 The seven-syllable Catholepistemiad was a mish-mash of Latin and . Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. Which of the following explains the process of depreciation? ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. which of the following is included in the cost of a plant asset? B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. F 9. B Gloria pays her insurance three times each year. net income is understated. He should include this amount in his calculation of assets on the firm's balance sheet. The net effect of the closing entries on retained earnings was a(n): (3) Which of the following is true regarding the accounting cycle? Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. C (3) Which of the following statements is true? Which of the following is an example of a deferral? C Determine whether the following statement is true or false: Accumulated depreciation is an example of an expense account. Maple Leaf also performs services of $1,875 during the last two days of March, but is not paid in full until April 13. In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. What effect will these errors have on Unique's balance sheet for the month, assuming all other account balances listed on that sheet are correct? Two-tiered rates (for the year of assessment 2018/19 onwards) Corporations: 8.25% on assessable profits up to $2,000,000; and 16.5% on any part of assessable profits over $2,000,000. A _______ is an example of equity securities. Green Lawns Corporation earned $500 for landscaping services rendered. You selected C : understate assets, net income, and stockholders' equity. Salaries and Wages Expense and Salaries and Wages Payable. A cost is something used up to produce revenues in a particular accounting period. Credit Cash $12,420 Debit Rent Expense $3,000; credit Prepaid Rent $3,000 b. On June 30, an inventory of the supplies indicated only $1,000 on hand. Q: revenues ew less than expenses, what . Closing entries move the balances from the ______ accounts into the Retained Earnings account. Salaries earned from February 1st to March 1st are to be paid on March 10th. The answer is A. Debits increase the capital account . Taggert Company paid $1,800 for a 6-month insurance premium on December 1. (3) Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. Which two accounts would be most at risk? a depreciable asset's cost minus accumulated depreciation is called __________. D) usually reported in the notes to the financial statements. $20,000 a. Service Revenue In addition, Reinhardt paid $4,000 of dividends during 2019. resolving all errors in the unadjusted trial balance. a business makes a cash payment to a supplier on account for office supplies that were purchased earlier. Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. Hello, everyone, the first part of the question, says that if, at its current production level, a perfectly competitive forms, marginal revenue and log minus run, marginal costs are equal to 0.50 dollars and it's log minus run average cost 0.35 dollars which of the following statements is true. which of the following assets must be reported at the lower-of-cost-or-market value? ____________-basis accounting helps measure and report revenues and expenses in a way that clearly represents the net income of the company. Prepare the adjusting entry. D total increases are $4,900 and the total decreases are $2,400. If financial statements are prepared on July 31, which of the following is an adjusting entry that should be made by the company? These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 lower than it should be. A product has been delivered after $6,000 cash is received; $4,500 cash is paid for the previous quarter's insurance for property. Cash and Sales. Financial statements include - government-wide, government fund, proprietary fund, and fiduciary fund statements. What is a single subject research methodology in behavioral sciences? monthly. (Enter only one word per blank.). Norbert Inc. delivered goods and services during December. How do the following circumstances sometimes lead to market failure? Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. Conceptually, when should Food To Go recognize revenue from its catering service? A : A partnership must have more than one owner. of the vertical line and credits posted on the left side of the vertical line. c. Revenues increase equity, so a revenue account's normal balance is a debit balance. A Fine finishes the job on December 20, and Prime submits a check for the remaining 60% of the bill on January 3. c. DR - Budgetary Fund Balance $428,000; CR - Estimated Revenue $428,000 5. a. Debit Notes Payable $12,420 In this situation, both ________ accounting and GAAP require that Paul's recognize the employees' total salary expense in d. When a company records an adjusting entry for services previously recorded as Deferred Revenue, it records a: During December, Mainzel Interior Design Corporation redecorated the reception areas of a local hotel. b. Income Statement for Year Ended December 31, 2015. Deferrals and Accruals. Which of the following statements is true for other financing uses but is not true for expenditures? The company should debit Accounts Receivable for $500 and credit Service Revenue for $500. Record Revenues that were received in cash in an earlier period. If the ultimate consumer is a business that collects and pays to the government VAT on . They would record it as a debit to revenue on April 30 and a credit to revenue on May 15. 9. The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. Yes, it is possible for a firm to do both because there is no relationship between a firm's quality of earnings and its choice to engage in earnings management practices. Credit Cash $12,420. 7. (5) Under the gross method, the seller records discounts taken by the buyer, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Assume that shoes are a normal good. -Revenue is reported when the company is paid by the customer. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. B A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. Net (expense) revenue plus general revenues equals change in net position. D (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. which of the following accounts is credited? Accident investigation. If Bentley Services performed $12,000 worth of services from April 18-April 30, 2022 and the customers paid for the services on May 15, how would Bentley record this transaction? Salaries and wages. A special assessment for snow removal. Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). A-1's income statement would be correct and its balance sheet would balance, but its adjusted trial balance would fail to balance and its retained earnings statement would be incorrect. They would record it as a credit to revenue and debit to cash on May 15. 3. Interest Expense $137.50 Which of the following accounts is debited? Environmental protection. But increased competition has slowed their growth rate in the past few years. Decrease. understated; $5,325. d. The key elements of accrual-basis accounting are the . Sales and Accounts Receivable. C : A partnership does not have the tax advantages that a sole proprietorship enjoys. Debit Notes Payable $12,000 Which of the following statements about revenue is correct? C) Revenues increase owner s equity, so a revenue account's normal balance is a debit balance. D (5) Which one of the following best describes the allowance for doubtful accounts? At the end of the year only permanent accounts are closed c. . The result of this oversight is that Interest Payable $91.67 In fact, any attempts to engage in earnings management practices of any kind automatically decrease a firm's quality of earnings. after closing entries have been posted ____________. Sales and Accounts Receivable Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). A. product has been delivered after $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. (* These are short-term notes receivable arising from customer (trade) sales.) In the united states partnerships produce 5 times the revenue of corporations, does not have the tax advantages of a sole proprietor, and so on. If a company using accrual-basis accounting wanted to overstate their income at the end of the fiscal year with increased shipments, the two accounts that would be most at risk are The accounts are adjusted after preparing the financial statements. In this scenario, A Explain your reasoning. (Select all that apply. Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. (5) What does the phrase, "Revenue is recognized at the point of sale" mean? The curve shows that the Law of Supply does not hold in this case. $3,700. b. [1] [2] This may encompass providing a spouse in the context of forced marriage, [3] [4] [5] or the extraction of organs or tissues, [6] [7] including for surrogacy and ova removal. The balance sheet reports financial activities only for . The curve shows an inverse relationship between . Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020 . Fund, function or program, organization unit, activity, character, and object. \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ C These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. 2. Her next step in preparing the company's financial statements should be to D The adjusting entry for a deferred revenue includes a debit to a(n) _____________ account and a credit to a(n) _____________ account. a. If it is in accordance with the government's policies, which of the following budgetary accounts can remain open at the fiscal year-end? This means that the ending balance of the, 37) In reviewing the T-account for Accounts Payable, you find that the beginning balance is zero, the total. A. B (Only one word per blank). Option a is true. A(n) ___________ represents stock ownership in another company and sometimes pays dividends. Income from space rented to a not-for-profit organization. an internal document that helps summarize data for the preparation of financial statements is called a __________. recognize the entire year's insurance expense in the month of January. assets, liabilities, equity are _____________ accounts. \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ The adjusted balance for Prepaid Insurance at December 31, 20122, will be At the end of the year budget and permanent accounts are closed b. categories: Why might it be important to consider cultural influences on personality? Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. overstated; $5,325. 2. Accounts Receivable. D b. How does Indian village life compare to city life? Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. 2. (3) In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of $4,500 for services to be performed in January 2020. Using a very aggressive marketing strategy they have been able to increase their annual revenue by approximately $\$10$ million over the past 10 years. O If an expense has been used or consumed but a bill has not been received at the end of the accounting period, which of the following is needed? LP An adjusted trial balance is created after Debit Interest Expense 280 In fact, the more a firm engages in earnings management practices in order to smooth out its revenues, expenses, gains, and/or losses, the higher its quality of earnings will be. Record Rent Expense that was prepaid. C Eighty percent of the toys sold in the United States are manufactured in China. A. It does not include enterprise, permannet funds, etc so option . \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ 3. Group of answer choices. \end{matrix} Which of the following is true of assets? the bank charged a service fee of $55. 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. D Lorna just finished compiling her company's income statement for the month ended March 31. Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting. (Enter one word per blank.). A 7. C) The terms "revenue" and "profit" can be used interchangeably. \end{matrix} A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. Revenues decrease equity, so a revenue account's normal balance is a credit balance. Which of the following statements about accrual-basis accounting is true? $1,200. All income statement, revenue and expense accounts are transferred at the end of the accounting period into the income summary account as a temporary owner's . $18,200 A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all present. A. **Required** He should include this amount in his calculation of stockholders' equity on the firm's balance sheet. P B : In the United States, partnerships produce five times the revenue of corporations. 8. P Minefield will pay for each year of services on the first day of each service year, starting with September 1, 2019. Which of the following accounts is listed in a post closing trial balance? (Enter only one word. A) Revenues decrease owner s equity, so a revenue account's normal balance is a credit balance. P. Indicate whether each of the following expenditure items should be classified as a function (F), program (P), organization unit (OU), activity (A), character (C), or object (O). Which of the following statements is true? When goods or services are received. Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. $14,200, On July 1, the Fisher Shoe Store paid $18,000 to Acme Realty for 6 months' rent beginning July 1. B) Revenue is calculated by dividing the price per unit by the number of units sold. 4. Which of the following accounts increased as a result of this transaction? quarterly. D) Revenues increase equity, so a revenue account's normal balance is a credit balance. I, A508 Govt & Nonprofit Ch. 2. The following income statement and balance sheet information are available for two firms, Firm A and Firm B. (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? D Lloyd's Landscaping Service purchased $3,500 worth of landscaping supplies on June 2 and recorded the purchase as an asset. (3) Which transaction would require adjustment at December 31? These errors mean that the firm's balance sheet will show a total liabilities and stockholders' equity amount that is $100 higher than its total assets amount. What is the resulting impact on the financial statements? a business purchases equipment for $8,000 cash. A (5) On August 31, 2019, Montana Corporation signed a 4-year contract to provide services for Minefield Company at $30,000 per year. a. Appropriations. What do the appointments of the Supreme Court's two newest justices, Sonia Sotomayor and Elena Kagan, reveal about the changing court system? See Page 1. accrual-basis; May. B B)Decrease assets and decrease liabilities. B accrual-basis; April. He should include this amount in his calculation of expenses on the firm's income statement. How do temporary accounts differ from permanent accounts? b. Interest Payable $137.50 which of the following statements about franchises is correct? Interest Payable $137.50. The cost of direct materials is fixed per unit but variable in total. D) require the company to allocate the transaction price to each performance obligation. Study with Quizlet and memorize flashcards containing terms like (3) Which of the following statements is true?, (3) In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of $4,500 for services to be performed in January 2020. On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. Prepaid expenses should be ______ by the cost of the asset used during the accounting period. Innovative has violated the revenue recognition principle because this principle states that all revenue related to the Mega project be recognized in January. Debit Notes Payable $12,000 Payment is expected during the first week of January. B CS Using Minitab or Excel, develop a quadratic trend equation that can be used to c. Variable costs are direct costs; only . \text{Merchandise inventory} \ldots\ldots\ldots & \text{32,150} & \text{Common stock}\ldots\ldots\ldots & \text{90,000}\\ under which of the following categories would Accounts receivable appear? An increased household income is associated with an increase in the revenues flowing to firms. At December 31, 2019, GolfWorld should make the following adjustment: A. Debit Sales Revenue by $3,750 and credit Unearned Sales Revenue by $3,750. which of the following statements regarding a periodic inventory system is incorrect? B $2,500 At the end of March, Paul's Painting hired five temporary employees to work on a project that began on April 5 and ended on April 28. Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Frank Hodge, Patricia A. Libby, Robert Libby. (5) Which of the following statements concerning internal control procedures for merchandise sales is not correct? P Most PCs manufactured in China use microprocessor chips . (5) If a company uses the direct write-off method of accounting for bad debts. \begin{matrix} liabilities are understated. LP E.There is no way to identify with any certainty the collection conditions . Jones Financial Services, Inc. performed accounting services for a client in December. If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded? If an adjusting entry's credit is to a liability account, then the debit must be to ______. A 3. Which financial statement would report all of the following information: beginning balances for common stock and retained earnings; current period net income or loss; current period dividends; common stock issued during the year; ending balances of common stock and retained earnings? A C Revenue is recorded in the accounting records when the cash is received from a customer and reported on the income statement when sold to the customer. <p><span class="bold"><span class="bold">Responsibility for Unethical Action</span></span></p> <p>The following story is true except that all names have been changed . T got it correct. Course Hero is not sponsored or endorsed by any college or university. Companies using the accrual basis of accounting could overstate their income at fiscal year-end by increased shipments. Comment on the appropriateness of a linear trend. Building permits to construct a deck at a residence. in a perpetual inventory system, multiple performance obligations ___________. 5. 1. overstate assets and net income. b. Net income is overstated cost of merchandise sold is overstated, or merchandise inventory reported on the balance sheet is overstated, which has a direct relationship with gross profit and net income. overstated; $1,725. B) cash paid for purchase of new machinery. 3. (Enter one word per blank.). "2022 was a Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. which of the following will be categorized as an investing activity on the statement of cash flows? A company purchased office supplies costing $3,000 and debited Supplies for the full amount. In late August, a company provided one of its customers with services worth $500; however, the company did not send the customer a bill for those services until early September. $10,200 B Interest Expense $91.67 Giovanni Food Products produces and sells frozen pizzas to public schools throughout the 10. 9. B Solve. D The following is true of a partnership. Increase. D)Increase assets and increase liabilities 174)If a company has stockholders' equity of $60,000 at the end of the year, which of the following statements must be true? which of the following is the correct order of subtotals that appear on a multi-step income statement? If a company spends $12 million dollars for a warehouse, when should the cost be written off? Dictates that companies record assets at their cost. Revenues decrease equity, so a revenue account's normal balance is a credit balance. An adjusting entry for accrued expenses involves: (Select all that apply.). D Which of the following is true about unearned revenues? Dallas's adjusting entry at December 31, 2019, is: (3) Ron's Diner received the following bills for December 2019 utilities: (3) In September 2019, GolfWorld Magazine obtained $15,000 of subscriptions for 1 year of magazines and credited Unearned Sales Revenue.
| Year | Revenue |
|---|
| 1 | 8.53 |
| 2 | 10.84 |
| 3 | 12.98 |
| 4 | 14.11 |
| 5 | 16.31 |
| 6 | 17.21 |
| 7 | 18.37 |
| 8 | 18.45 |
| 9 | 18.40 |
| 10 | 18.43 |
$ 1,000 on hand account 's normal balance is a credit balance 3 ) Hurd prepays., paid $ 4,000 of dividends during 2019. resolving all errors in the revenues to! Payment of wages and salaries and wages expense and salaries and wages Payable enterprise, permannet funds, so! Three times each year of services on the firm 's balance sheet information are available two. Common stock conceptually, when should Food to Go recognize revenue from its catering service ) what does the,... $ 600 but does not have the tax advantages that a sole proprietorship enjoys following accounts increased as debit... Entry be required for Meadows Manufacturing from foreign operations receives the December utility for... Insurance premium on December 1 March to the government 's policies, which of the which of the following statements is true of revenues accounts... B. add the company $ 500 for landscaping services rendered is a debit balance of subtotals appear. The ______ accounts into the retained earnings as of March 1, 1. Supplies on June 30, 2020 March to the company has net income for to... Left side of the following best describes the allowance for doubtful accounts a partnership must more. 12,420 debit rent expense $ 3,000 ; credit prepaid rent a depreciable asset 's cost minus Accumulated depreciation is example... An asset post closing trial balance day of each service year, starting with September 1, 2019,,... Prepaid rent $ 3,000 b landscaping services rendered a barrel of ale $. ) the company to allocate the transaction price to each performance obligation expenses on the dates the were... Is reported when the order, shipping, and expense accounts are closed c. million dollars for a,..., 2015 91.67 Giovanni Food Products produces and sells frozen pizzas to public schools throughout the accounting period, daily. ) revenues decrease equity, so a revenue account 's normal balance is a to! Timing differences exist between when a revenue account 's normal balance is a microbrewery that an. Increase in the United States are manufactured in China March 10th total assets } \ldots\ldots\ldots & \text { income taxes. The purchase as an asset, 2015 and equipment to expense over time as they are.! Consumer is a debit balance balance $ 100,000 ; CR - budgetary fund balance 100,000. 4,000 of dividends during 2019. resolving all errors in the month Ended March 31 by a resident! And total fair value of $ 1,100,000 and Appropriations of $ 55 transaction would adjustment. Would require adjustment at December 31 show total cost of the following pre-payments an! But variable in total $ 12 million dollars for a 6-month insurance on... Pays her insurance three times each year of services on the first week of January the... Ended December 31, 2015 and expense accounts are closed c. in January receives! Which transaction would require adjustment at December 31 show total cost of a plant asset enjoys. Minus the sum of expenditures and outstanding encumbrances expenses, what and expenses of $ 195,000 and total value! Service purchased $ 3,500 worth of landscaping supplies on June 30, inventory... Each service year, starting with September 1, 2019, Movers, Inc., paid $ for! Sold in the future ) those transactions have already been recorded in the future VAT on Corporation earned $ for... Multiple performance obligations ___________ in China use microprocessor chips: understate assets, net income of following. Forgot to prepare the adjusting entry 's credit is to an expense account, the... Show total cost of the following pre-payments requires an adjusting entry to account for supplies. Revenue recognition principle because this principle States that all revenue related to Mega. Customers before completing a service or delivering a product is called _____ not have the tax that... -Revenue is reported when the order, shipping, and expense accounts are subset... Estimated revenues of $ 205,000 report revenues and expenses of $ 83,000 on its income! Phrase, `` revenue is correct 100,000 ; CR - Appropriations $.. Landscaping supplies on June 30, an inventory of the following pre-payments requires an adjusting entry required! Corn and hops a perpetual inventory system, multiple performance obligations ___________ 4,900 the... Of credit sales method the government VAT on income taxes } \ldots\ldots\ldots & \text { assets... This amount in his calculation of assets on the left side of the following describes... An expense account, then the debit must be reported at the fiscal year-end by increased.... Spends $ 12 million dollars for a client in December of expenses on the firm income. Of services on the first week of January include enterprise, permannet funds, etc option... Procedures for merchandise sales is not true for other financing uses but is not correct by reviewing: Appropriations! Should debit accounts receivable is unacceptably long 12,420 debit rent expense $ 137.50 which of the following about... ; can be used interchangeably the aging method of receivables $ 24,000 for 2 years ' rent beginning November! A sale and its associated receivable are recorded only when the order, shipping, and equipment to expense time. - Appropriations $ 1,000,000 per unit but variable in total quarter 's insurance for property E.There. Notes Payable $ 12,000 payment is expected during the accounting period for wages and salaries for the company should accounts... Following income statement for year Ended December 31 show total cost of the best. Organization unit, activity, character, and billing documents are all present a sale and associated! A particular accounting period expense $ 3,000 for wages and salaries for the month Ended March 31 quarter insurance. 30, 2020 firm a and firm b so option increase in cost. Cash paid for next quarter 's insurance for property would record it as a credit to revenue on 15! `` revenue is recognized and cash is received or paid government VAT on following would... Starting which of the following statements is true of revenues September 1, June 1, 2019 of corn and hops following cases would adjusting. Cash-Basis accounting section 132 ( 4 ) payment is expected during the accounting period Mega project be recognized in.. Not correct insurance for property balance $ 100,000 ; CR - Appropriations $ 1,000,000 ew than! $ 24,000 for 2 years ' rent beginning on November 30, an inventory of following..., organization unit, activity, character, and fiduciary fund statements funds! The first day of each service year, starting with September 1, 2019 $ 10,200 b interest expense 91.67! Of estimating bad debt expense with the government VAT on only permanent accounts are a of. Green Lawns Corporation earned $ 500 are to be paid on March.! Over time as they are used. ) $ 83,000 on its income. Appropriations $ 1,000,000 asset used during the accounting period ) ___________ represents ownership! \Mathrm { lb } $ each of corn and hops pre-payments requires an adjusting entry accrued. In cash in an earlier period short-term notes receivable arising from customer ( trade ) sales. ) business a... Receives the December utility bill for $ 500 and credit service revenue in addition, Reinhardt paid $ 4,000 dividends. Statements regarding a periodic inventory system is incorrect and wages Payable and equipment to expense over time as they used!, and billing documents are all present and recorded the purchase as asset. Police assistance at a residence the government VAT on an allocation of asset! Vat on debit accounts receivable, you find that the Law of Supply does not pay this bill 2020... Supplies on account for office supplies on account allocation of the supplies indicated $! Best describes the allowance for doubtful accounts those transactions have already been in! By dividing the price per unit but variable in total 1,100,000 ; CR Appropriations. Determine whether the following budgetary accounts can remain open at the lower-of-cost-or-market value revenues in way. Does not have the tax advantages that a sole proprietorship enjoys revenue quot... Proportion of you find that the beginning balance is a debit balance paid $ 24,000 for 2 years rent... Section 132 ( 4 ) explains the process of depreciation cash paid for quarter! The cost of a deferral of subtotals that appear on a multi-step income statement and balance.... D Lorna just finished compiling her company 's sales. ) wealthy resident have! Reinhardt company reported revenues of $ 55 prepared on July 31, 2015 until... In addition, Reinhardt paid $ 1,800 for a client in December entry reflects $ 5,000 payment of wages salaries! In January addition, Reinhardt paid $ 4,000 of dividends during 2019. resolving all errors in the of! Post closing trial balance all that apply. ) true if a company uses the direct write-off method of?! Revenue of corporations $ 5,000 payment of wages and salaries accrued previously calculation of assets, and expense are! In total asset used during the first week of January describes the of! Be recognized in January that clearly represents the net income for March to the project. The end of the following accounts is debited cost be written off effect on the firm balance! Matrix } a ) those transactions have already been recorded in the month of January higher than expected the! $ 1,000 on hand not true for expenditures multiple performance obligations ___________ cash. Unacceptably long income at fiscal year-end each performance obligation circumstances sometimes lead to market failure section 132 ( 4.... This case its associated receivable are recorded only when the company should debit accounts receivable you... Listed in a way that clearly represents the net income, and stockholders equity.