Questions from Financial Accounting

Q: A company fails to recognize an expense incurred but not paid.

A company fails to recognize an expense incurred but not paid. Indicate which of the following types of accounts is debited and which is credited in the adjusting entry: (a) asset, (b) liability, (c)...

Q: Suppose the following information was reported by Gap, Inc.

Suppose the following information was reported by Gap, Inc. (a) Determine the overall percentage decrease in Gap’s total assets from 2013 to 2017. What was the average decrease per y...

Q: (a) When entering a transaction in the journal, should

(a) When entering a transaction in the journal, should the debit or credit be written first? (b) Which should be indented, the debit or the credit?

Q: Selected transactions from the journal of Baylee Inc. during its first

Selected transactions from the journal of Baylee Inc. during its first month of operations are presented here. Instructions (a) Post the transactions to T-accounts. (b) Prepare a trial balance at Augu...

Q: Action Quest Games Inc. adjusts its accounts annually. The following

Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2017. 1. Purchased a 1-year insurance policy on June 1 for $1,800 cash. 2....

Q: (a) Should accounting transaction debits and credits be recorded directly

(a) Should accounting transaction debits and credits be recorded directly in the ledger accounts? (b) What are the advantages of first recording transactions in the journal and then posting to the led...

Q: A company makes an accrued revenue adjusting entry for $780 and

A company makes an accrued revenue adjusting entry for $780 and an accrued expense adjusting entry for $510. How much was net income understated or overstated prior to these entries? Explain.

Q: Farley Bains, an auditor with Nolls CPAs, is performing a

Farley Bains, an auditor with Nolls CPAs, is performing a review of Ryder Company’s Inventory account. Ryder did not have a good year, and top management is under pressure to boost reported income. Ac...

Q: Here is the ledger for Kriscoe Co. / Instructions

Here is the ledger for Kriscoe Co. Instructions (a) Reproduce the journal entries for only the transactions that occurred on October 1, 10, and 20, and provide explanations for each. (b) Prepare a tri...

Q: Greenock Limited has the following information available for accruals for the year

Greenock Limited has the following information available for accruals for the year ended December 31, 2017. The company adjusts its accounts annually. 1. The December utility bill for $425 was unrecor...