Question: A select list of transactions for Anuradha’
A select list of transactions for Anuradha’s Goals follows:
For each transaction, identify what type of adjusting entry would be needed. Select from the following four types of adjusting entries: deferred expense, deferred revenue, accrued expense, and accrued revenue.
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Apr. 1 Paid six months of rent, $4,800. 10 Received $1,200 from customer for six-month service contract that began April 1. 15 Purchased a computer for $1,000. 18 Purchased $300 of office supplies on account. 30 Work performed but not yet billed to customer, $500. 30 Employees earned $600 in salaries that will be paid May 2.
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> For each account listed, identify the category that it would appear on a classified balance sheet. Use the following categories: Current Assets; Long-term Investments; Property, Plant, and Equipment; Intangible Assets; Current Liabilities; Long-term Liab
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> Resort Travel borrowed $33,000 on September 1, 2018, by signing a one-year note payable to State One Bank. Resort’s interest expense on the note payable for the remainder of the fiscal year (September through November) is $355. Requirements: 1. Record t
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> Protection Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the year, Protection Home has coll
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> The tobacco companies have paid billions because of smoking-related illnesses. In particular, Philip Morris, a leading cigarette manufacturer, paid more than $3,000,000,000 in settlement payments in one year. Requirements: 1. Suppose you are the chief f
> When is an adjusted trial balance prepared, and what is its purpose?
> What are the two basic categories of adjusting entries? Provide two examples of each.
> When are adjusting entries completed, and what is their purpose?
> Under the revenue recognition principle, when is revenue recorded?
> What is a worksheet, and how is it used to help prepare an adjusted trial balance?
> If a payment of a deferred expense was recorded under the alternative treatment, what account would be debited in the adjusting entry?
> If a payment of a deferred expense was recorded under the alternative treatment, what account would be debited at the time of payment?
> If an accrued expense is not recorded at the end of the year, what is the impact on the financial statements?
> What are the two rules to remember about adjusting entries?
> What is an accrued revenue? Provide an example.
> Consider the following accounting terms and definitions, and match each term to the definition: 1. Accounting equation a. An economic resource that is expected to be of benefit in the future 2. Asset b. Debts that are owed to creditors 3. Balance sh
> What is an accrued expense? Provide an example.
> What is a deferred revenue? Provide an example.
> How is book value calculated, and what does it represent?
> What does accumulated depreciation represent?
> In the recording of depreciation expense, which account is credited?
> What is a contra account?
> What is the process of allocating the cost of a plant asset over its useful life called?
> What is a deferred expense? Provide an example.
> Under the matching principle, when are expenses recorded?
> What is a fiscal year? Why might companies choose to use a fiscal year that is not a calendar year?
> Consider the following accounting terms and definitions, and match each term to the definition: //
> Which accounting concept or principle requires companies to divide their activities into small time segments such as months, quarters, or years?
> Which method of accounting (cash or accrual basis) is consistent with Generally Accepted Accounting Principles?
> What is the difference between cash basis accounting and accrual basis accounting?
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> The unadjusted trial balance of Midway Inn Company at December 31, 2018, and the data needed for the adjustments follow. Adjustment data at December 31 follow: a. As of December 31, Midway Inn had $800 of Prepaid Insurance remaining. b. At the end of t
> The unadjusted trial balance of Avery Air Purification System at December 31, 2018, and the data needed for the adjustments follow. Adjustment data at December 31 follow: a. On December 15, Avery contracted to perform services for a client receiving $2
> Harrison Fishing Charters has collected the following data for the December 31 adjusting entries: a. The company received its electric bill on December 31 for $375 but will not pay it until January 5. (Use the Utilities Payable account.) b. Harrison pur
> Lopez Landscaping has the following data for the December 31 adjusting entries: a. Each Friday, Lopez pays employees for the current week’s work. The amount of the weekly payroll is $6,500 for a five-day workweek. This year, December 31 falls on a Wedne
> Rapid Way Pack’n Mail completed the following transactions during 2018: Requirements: 1. Journalize the transactions assuming that Rapid Way debits an asset account for prepaid expenses and credits a liability account for unearned rev
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> Greavy Theater Production Company’s partially completed worksheet as of December 31, 2018, follows. Adjustment data at December 31 follow: a. As of December 31, Greavy had performed $500 of service revenue but has not yet billed custo
> The unadjusted trial balance of Guthrie Inn Company at December 31, 2018, and the data needed for the adjustments follow. Adjustment data at December 31 follow: a. As of December 31, Guthrie had $700 of Prepaid Insurance remaining. b. At the end of the
> The unadjusted trial balance of Anniston Air Purification System at December 31, 2018, and the data needed for the adjustments follow. Adjustment data at December 31 follow: a. On December 15, Anniston contracted to perform services for a client receiv
> Griffin Fishing Charters has collected the following data for the December 31 adjustingentries: a. The company received its electric bill on December 31 for $375 but will not pay it until January 5. (Use the Utilities Payable account.) b. Griffin purcha
> Laughter Landscaping has collected the following data for the December 31 adjusting entries: a. Each Friday, Laughter pays employees for the current week’s work. The amount of the weekly payroll is $8,000 for a five-day workweek. This year, December 31 f
> This problem continues the Crystal Clear Cleaning situation from Chapter 2. Start from the unadjusted trial balance that Crystal Clear Cleaning prepared at November 30, 2018: Consider the following adjustment data: a. Cleaning supplies on hand at the e
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> At the beginning of the year, Modish Advertising owed customers $2,100 for unearned revenue collected in advance. During the year, Modish received advance cash receipts of $6,100 and earned $20,000 of service revenue (exclusive of any amount earned from
> At the beginning of the year, office supplies of $1,200 were on hand. During the year, Tempo Air Conditioning Service paid $4,000 for more office supplies. At the end of the year, Tempo has $800 of office supplies on hand. Requirements: 1. Record the ad
> What are the steps used when analyzing a business transaction?
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