Problem set C
PROBLEM 3-1C
For each of the following entries, enter the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.) A. To record receipt of unearned revenue. B. To record this period’s earning of prior unearned revenue. C. To record payment of an accrued expense.
D. To record receipt of an accrued revenue.
E. To record an accrued expense.
F. To record an accrued revenue
G. To record this period’s use of a prepaid expense.
H. To record payment of a prepaid expense. I. To record this period’s depreciation expense.
______ 1. Interest Expense 600 Interest Payable 600
______ 2. Interest Payable 600
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The tenant has agreed to not fall behind again.
f. On December 1, the company rented space to another tenant for $3,200 per month. The tenant paid six months' rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account.
Required 1. Use the information to prepare adjusting entries as of December 31, 2008. 2. Prepare journal entries to record the first subsequent cash transactions in 2009 for parts c and e.
PROBLEM 3-3C
Champlain Confuser Systems, a tech center owned by Sam Champlain, provides training to individuals who pay tuition directly to the school. The school also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2008, follows. Champlain Confuser Systems initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2008, follow.
Additional Items a. An analysis of the company’s insurance policies shows that $3,600 of coverage has expired. b. An inventory count shows that teaching supplies costing $900 are available at year-end 2008. c. Annual depreciation on the equipment is $7,200. d. Annual depreciation on the professional library is $1,500. e. On October 1, the company agreed to do a special five-month course for a
If some research is undertaken that provides evidence that capital markets do not always behave in accordance with the Efficient Market Hypothesis, does this invalidate research that adopts an assumption that capital markets are efficient?
d. The Johnsons own a rental home. They incurred $8,500 of expenses associated with the property.
Describe= max 3 pts, 1 for each bullet Explain= max 3 pts, 1 for each bullet
The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $78,000; Credit Sales $810,000; and Sales Returns and Allowances $40,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date: Name: ID: Answer the following Questions: 1. Tower Inc. owns 30% of Yale Co. and applies the equity method. During the current year, Tower bought inventory costing $66,000 and then sold it to Yale for $120,000. At year-end, only $24,000 of merchandise was still being held by Yale. What amount of inter-company inventory profit must be deferred by Tower? A. $6,480 B. $3,240 C. $10,800 D. $16,200 E. $6,610 2. All of the following statements regarding the investment account using the equity method are true except A. The investment is recorded at cost B. Dividends received are reported as revenue C. Net income of investee increases the investment account D. Dividends received reduce the investment account E.
Classify each of the items as an asset, liability; revenue; or expense from the company's viewpoint. Also indicate the normal account balance of each item.
Using your paraphrase and notes of the text, write a four- to six-sentence journal entry. Write your own topic sentence. Then provide two supporting examples and a closing sentence to back up the topic sentence.
Student Cases with Solutions to accompany Accounting & Auditing Research: Tools & Strategies (7th edition)
According to the fact of this case, Parent Co. (Parent) wholly owns Poor Son Co. (Poor Son) as a legal subsidiary, and both of them all nonpublic companies. However, in January 2007 Poor Son filed a voluntary bankruptcy under Chapter 11 of the U.S. bankruptcy code because of its inability of meet obligations as they became due. Then, Parent claimed the loss of control of Poor Son and deconsolidated Poor Son from its financial statement. Through the bidding process in May 2009, Poor Son and OtherCo, the winning sponsor, filed a joint plan of reorganization to the bankruptcy court, but the plan was rescinded by OtherCo later due to significant market value shrink of Poor Son. After that, the
Due to the information, 20 acres of land equal 80 sheep according to the exchange rate of last year, a one-room cabin equal 3 acres of land and equal 12 sheep finally, a plow equals 2 goat and equal 2/3 sheep according to last year’s exchange rate and 2 carts which were traded with a poor acre of land equals 8 sheep plus 400 sheep. So Deyonne’s total assets are 500(2/3) sheep. Deyonne’s liabilities and assets deduction are 35 sheep plus 3 sheep, which will come to 38 sheep,
The accounting system we use today started in Venice in renaissance period over 520 years ago. The trade business increased hugely during this time and all the financial recordings had to be written down to help people see how their business is doing. During that time in 1494 the first book about was published in accounting by Luca Paciolli and was called “The Collected Knowledge of Arithmetic, Geometry, Proportion and Proportionality”. He was called “The father of Accounting” and most of his described principles have been used up until this day.
There are general rules and concepts that preside over the field of accounting. These general rules, known as basic accounting principles and guidelines, shape the groundwork on which more thorough, complex, and legalistic accounting rules are based. The Financial Accounting Standards Board (FASB) uses the basic accounting principles and guidelines as a foundation for their own comprehensive and complete set of accounting rules and standards.
1. A brief history of the two organisations, and their objectives, in as far as they
Corporations are often the victims of the most common white-collar crimes that occur in corporate America. According to the Association of Certified Fraud Examiners (cfenet.com), “abuse and fraud by employees cost U.S. organizations more than $400 billion annually…[which equals] $9 per employee per day.”