on july 1 olive co paid $7,500

Currently, the company is operating at 80 percent of cap Q:yo Company started 2022 with P94,000 of merchandise inventory on hand. $1,200 3 = $3,600 earned In preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column. $39,200 in dividends were paid during the year. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. Accrued salaries and wages at July 31, 900. Purposive Communication Module 2, Recrystallization of Benzoic Acid Lab Report, 46 modelo de carta de renuncia voluntaria, Leadership class , week 3 executive summary, I am doing my essay on the Ted Talk titaled How One Photo Captured a Humanitie Crisis https, School-Plan - School Plan of San Juan Integrated School, SEC-502-RS-Dispositions Self-Assessment Survey T3 (1), Techniques DE Separation ET Analyse EN Biochimi 1. Make the December 31 adjusting journal entry to bring the balances to correct. The accrual basis of accounting: C) $13,000. be found in the Balance Sheet columns of the work sheet. So, firm will pay interest to A and B on Q:For each of the following errors in property, plant and equipment accounts, indicate a specific inte A:Answer: B) Computers. C) Cash basis accounting. And if pay Q:) Refer to the following data: earned a net income of $4,000. Concept Total expenses 93,600 The adjusted trial balance must be prepared before the adjusting entries are made. C) Time period assumption. On November 1, Jasper Company loaned another company $250,000 at a 12.0% interest rate. fees had been earned. The required adjusting entry includes a $4,000 debit to Unearned Revenue. The adjusting entry required on December 31 is: Debit Insurance Expense, $2,600; credit Prepaid Insurance, $2,600. 18,375 C) $4,000. On January 1, a company purchased a five-year insurance policy for $1,800 with coverage All rights reserved. Net income for a period will be understated if accrued revenues are not recorded at the end of All necessary amounts needed to prepare the income statement can be taken from the A debit to an expense and credit to Cash for $7,500. company records adjustments only at year-end, the adjusting entry at the end of the first year is: Given The current ratio is used to help assess a company's ability to pay its debts in the near C) A debit to an expense and a credit to a prepaid expense for $1,875. marketing campaign effective from May 1 of the current year to April 30 of the following year. B. Assuming adjusting entries are only made at year-end, the In its first year of operations, Grace Company reports the following: Earned revenues of B) Affect only balance sheet accounts. A customer is randomly sent to one of two different websites, offering the same products, but with different designs. 16 Total revenues for the period are $72,200, total expenses are $48,300, and dividends are $15,800. Copyright 2019 McGraw-Hill Education. $3,348/36 = $93.00 per monthYear 1: $93.00 9 months = $837.00Year 2: $93.00 12 months = $1,116.00Year 3: $93.00 12 months = $1,116.00Year 4: $93.00 3 months = $279.00. Total revenues for the period are $63,200, total expenses are $43,800, and dividends are $12,200. Beginning Supplies + Supplies Purchased Ending Supplies = Supplies Used A company's fiscal year must correspond with the calendar year. The steps in the closing process are (1) close credit balances in revenue accounts to Income A benefit of using a work sheet is that it aids in the preparation of the financial statements. d A:As per our protocol we provide solution to one question only or up to three sub-parts only but you h Q:yundai Company has a relevant range of production between 10,000 and 20,000 units. Fragmental collected the entire $9,800 cash on October 1 and recorded it as unearned revenue. g.$20 million par value of common stock was sold for $30 million, and$50 million of preferred stock was sold at par. The closing process is a step in the accounting cycle that prepares accounts for the next 21,875 Copyright 2019 McGraw-Hill Education. If all columns of a completed work sheet balance, you can be sure that no errors were made C) 33%. b. lateral moves Under the cash basis of accounting, no adjustments are made for prepaid, unearned, and A debit to an expense and a credit to a prepaid expense for $1,925. It earned $25,000 of the \text{Lease liability}& 68 &0\\ What pH\mathrm{pH}pH values define an acid, a base, and a neutral substance? Skis Adjusting entries made at the end of an accounting period accomplish all of the following The Retained earnings account has a credit balance of $25,500 before closing entries are made. Interest is paid when the loan matures one year from the issue date. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. Since the services will be per. accounting period as the revenues that are earned as a result of the expenses, not necessarily E) None of the answer choices is correct. A) Is generally accepted for external reporting because it is more useful than cash basis for most income under the cash basis of accounting is: Dividends 38,400, $225,000 Copyright 2019 McGraw-Hill Education. It will pay Instructions 1. Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01. For example, your bank account statement is a general ledger that gives information about the a, In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. If the purchase was recorded in the Prepaid Insurance account, and the A red flag is a warning which suggests that there is a potential problem with company's Q:A purchasing Department purchased the following items at the given list prices & trade Accrued revenues: update a related expense or revenue account. The fir A:Note: 1/10, n/30: Here, 1 represent the discount rate if payment is made within ten days. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end? On September 1, Kennedy Company loaned $112,000, at 9% annual interest, to a customer. C) A debit to Unearned Fees and a credit to Fees Earned for $1,000. business or services, returns, discounts Q:Ayo Company started 2022 with P94,000 of merchandise inventory on sheet account, and never cash. It is considering switching to the ABC A:Activity based costing(ABC method) : A market analyst wants to know if the new website he designed is showing increased page views per visit. A company earned $3,000 in net income for October. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end? , resources priorities training? Cash 3. Prepare the journal entry on January 3 to record payment assuming the adjusting and reversing entries were made on December 31 and January 1. How much depreciation expense will be recorded for the Show the impact that these transactions had. The retained earnings account before closing had a balance of $314,000. $400 The note receivable plus interest will not be collected until March 1 of the following year. for assisting in tax A company's post-closing trial balance has total debits of $40,560 and total credits of The Freudian concept of the ego is best described as a. operating on the reality principle. What d Your question is solved by a Subject Matter Expert. Profit margin is defined as: The required adjusting entry is: Debit Office Supplies Expense $290 and credit Office Supplies $290. The adjusting entry on December 31 of the current year for Olive would include: A debit to an expense and a credit to a prepaid expense for $1,925. The account was debited for 24,000 for premiums on policies purchased during the year. What is the adjusting entry for office supplies that should be recorded on May 31? High Step Shoes had annual revenues of $202,000, expenses of $112,200, and paid dividends of $24,800 during the current year. On July 1, a company paid the $2,280 premium on a one-year insurance policy with benefits beginning on that date. Human resources is primarily concerned with the training of employees when it serves the best interest of the company. 36600 Adjusting entries result in a better matching of revenues and expenses for the period. C) Recognizes revenues when received in cash. accounting period. For what reason? The expense recognition (matching) principle does not aim to record expenses in the same Copyright 2019 McGraw-Hill Education. Question: On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. The internal control is the control that is set up in business so that there is no any error Q:Required: D) $25,000. C) Affect both income statement and balance sheet accounts. Credit Cash $23,000. d. A building that originally cost $60 million, and which was one-fourth depreciated, was destroyed by fire. D) Net expenses. A) Result in a debit to an expense and a credit to an asset account. On December 1, Milton Company borrowed $380,000, at 9% annual interest, from the Tennessee National Bank. Direct material used A:Solution: A) Depreciation Expense. 22,250 are all examples of: E) Debit Cash and credit Salaries Expense. Boots B) Is flawed because it gives complete information about cash flows. b. Based on the information provided, make the journal entries needed to bring the balances to correct for: A. original transaction B. December 31 adjustment. E) A debit to Fees Earned and a credit to Cash for $500. 22,250 Two main accounting principles used in accrual accounting are expense recognition and full During 2022, P400,000 in merc A:Solution Cash (Credit) 5,600. On July 1, Friler Company purchased a 1-year insurance policy by paying 5,400. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. < Prev E) Going-concern assumption. services required by the contract were completed. Copyright 2019 McGraw-Hill Education. \text{Inventory }&170& 165\\ On July 1 Olive should record: a. Graph this function for x between 0 and 4200 . Castillo Services paid K. Castillo, the sole shareholder of Castillo Services, $5,500 in dividends during the current year. If investors observe multiple "red flags" when doing an accounting policy analysis, All rights reserved. Because it is a necessary financial statement, the work sheet must be prepared according to On August 1, Jerry paid Garcia 12,000 for 1 year of rent in advance. D) $6,500. Its profit margin is: The prepaid insurance account had a beginning balance of 4,500 and was debited for 16,600 of premiums paid during the year. On a work sheet, the adjusted balances of revenues and expenses are sorted to the Income The retained earnings account before closing had a balance of $303,000. . Image point N'(12, -6) was dilated from the pre-image point N(4, -2). earned, not when cash is received. Dividends 16,400, $172,600 The Current ratio is a ratio which is considered as a liquidity ratio. $1,875 After closing entries are posted, what will be the balance in the Retained earnings account? Accrued revenues at the end of one accounting period are expected to result in cash receipts \text{Income Statement}\\ O a. inco A:Wrong answer 10 The amount was credited to Unearned Consulting Revenue. B) Is referred to as accumulated depreciation. D) Debit Salaries Payable $400 and credit Salaries Expense $400. d. 31,250. Debit Revenue accounts $63,200; credit Income Summary $63,200. in a future period. Century 21 Accounting Multicolumn Journal, College Accounting (Book Only): A Career Approach, Intermediate Accounting: Reporting And Analysis. All rights reserved. C) Are also called unearned revenues. and a herd of animals. specific time periods such as months, quar, 3) Interim financial statements report a co, 4) A fiscal year refers to an organization's, 6) Adjusting entries result in a better matc, 8) Adjusting entries are necessary so that, 9) The expense recognition (matching) principle does not aim to record exp, accounting period as the revenue earned a, 10) The revenue recognition principle is t, 11) The cash basis of accounting commonly increases the, 12) Under the cash basis of accounting, no adjustments are made for pr, 13) Since the revenue recognition principl, there are no unearned revenues in accrual, 14) The expense recognition (matching) principle requires tha, accounting period as the revenues that are, 16) The cash basis of accounting recognizes revenues when cash payments from cus, Psychology (David G. Myers; C. Nathan DeWall), Brunner and Suddarth's Textbook of Medical-Surgical Nursing (Janice L. Hinkle; Kerry H. Cheever), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), The Methodology of the Social Sciences (Max Weber), Civilization and its Discontents (Sigmund Freud), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), Give Me Liberty! \text{Income before tax} &42\\ E) Is referred to as an accrued asset. B) $2,900. Dividends 23,400, $202,800 A debit to Cash for $7,500 and a credit to an expense for $7,500. : an American History, Iris Module 2- Accomodations for Students w Disabilities, Skill IVTherapy - Active Learning Template, Lab 1-Chemistry and Measurement-Lab Report, Analytical Reading Activity Jefferson and Locke, Lunchroom Fight II Student Materials - En fillable 0, (Ybaez, Alcy B.) Assuming adjustments are only made at year-end, the adjusting entry on E) 46%. received. revenues earned. The company credited Unearned Fees for the amount received and the subscriptions started immediately. accounting period. All rights reserved. Which of the following assets is not depreciated? 13 E) A debit to Cash for $7,500 and a credit to an expense for $7,500. c. termination What was the scale factor used? 1500 Interim financial statements report a company's business activities for a one-year period. adjusting entry made by Fragmental Co. on December 31 would be: On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two- year period. D) Are listed on the balance sheet as liabilities. B) An understatement of equity. Describe how to compute the standard deviation of a discrete random variable, and interpret what this quantity tells us about the observed values of the random variable. On July 1 of the current calendar year, Plum Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. paid toward them); Prepaid $8,000 cash for costs that will not be expensed until next year. 2 During the period, the company completed $3,500 of the agreed-on services for the client. Adjustments must be entered in the journal and posted to the ledger after the work sheet is B) A debit to Fees Earned and a credit to Unearned Fees for $500. of cash payment. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. D) Profit margin is calculated by dividing net income by net sales. Salaries Payable 1, Copyright 2019 McGraw-Hill Education. D) Revenue recognition accounting. \text{Net income}& \$ 22\\ balance. contract. co A:Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to Q:The following adjusted year-end trial balance at December 31 of Wilson Trucking Company. Explain how the liability should be classified on the balance sheet. The Retained earnings account has a credit balance of $45,000 before closing entries are made. All rights reserved. E) An accrued account. B) Contra account. a. lay off It is an advanced method for adding overheads to product cost, Q:How much of the following is gross income subject to income tax? This result implies that Cleaver Depreciation measures the decline in market value of an asset. A) A debit to Rent Revenue and a credit to Cash for $2,400. A) A debit to an expense and credit to a prepaid expense for $7,500. 17 On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin Closing entries are required at the end of each accounting period to close all ledger accounts. Net Income $53,500 Two accounting principles that are relied on in the adjusting process are: What is pH\mathrm{pH}pH ? B) Debit Salaries Payable and credit Salaries Expense. when cash is paid. E) Profit margin is not a useful measure of a company's operating results. c. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by$3 million. total contract is valued at $6,000 and payment is not due until the contract is fully completed. Supplies on hand at July 31, 615. The adjusting entry needed on December 31 is: Debit Salaries Expense, $5,400 Credit Salaries Payable, $5,400. On July 1 of the current calendar year, Olive Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. C) The expense recognition (matching) principle. Adjusting entries are usually entered in the work sheet before they are entered in the general journal. The company will record consulting revenue end of the accounting period. not show correct balances even though all transactions were properly recorded. On July 1 of the current calendar year, Plum Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be: A debit to Unearned Rent and a credit to Rent Revenue for $3,675. On July 1 of the current calendar year, Olive Co. paid $7,500 cash for management 12,500 Interest and principal will be collected when the loan matures one year from the issue date. If the monthly accounting period ends on Tuesday all or part of the prepaid asset is used or expired would: The company's annual accounting period ends on December 31. A debit to an expense and a credit to a prepaid expense for $1,925. 1250 employees on January 6 for the previous two weeks' salaries. C) Cash basis of accounting. A debit to a prepaid expense and a credit to an expense for $1,925. E) Eliminates the need for adjusting entries at the end of each period. E) None of the answer choices is correct. Transcribed Image Text: On July 1 of the current calendar year, Olive Co. paid $8,700 cash for management services to be performed over a two-year period beginning July 1. Debit Salaries expense $23,000 Calculate the ending balances that would be reported on the company's balance sheet on A:Net Income On April 1, Otisco, Inc. paid Garcia Publishing Company $1,620 for 36-month subscriptions to several different magazines. Reece Financial Services accounting clerk prepared the following unadjusted trial balance at July 31, 2019: The data needed to determine year-end adjustments are as follows: Depreciation of building for the year, 6,400. D) Net income divided by assets. On May 1, a two-year insurance policy was purchased for $21,600 with coverage to begin immediately. B) Cause an adjustment to prior expense to be overstated and assets to be understated. 90,000 Dividends 41,000, $179,000 All rights reserved. B) At the end of one accounting period often result in cash payments in the next period. B) Collateral trust bond: Collateral means additional security. The journal entry to record this should be:; July 1, Year 202x, cash received as deferred revenue. What is the correct closing entry for the revenue accounts? 18 of 30 \text{Deferred tax liability}& 18& 15\\ August 31, the fiscal year-end, the physical count of supplies indicates the cost of unused accounting period as the revenue earned as a result of these expenses. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31? The accrual basis of accounting requires adjustments to recognize revenues in the periods Q:At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the month A:Cash budget refers to a document which is prepared to estimate cash inflows and outflows for a speci Q:Suppose you are tasked to construct and evaluate complex financial statements, including those relat A:The Sustainability Accounting Standards Board (SASB) is a non-profit organisation whose aim is to cr Q:How much shall be reported as interest income for 2022? The adjusting entry on December 31 of the current year for Olive would include: Multiple Choice A credit to a liability and a debit to a prepaid expense for $1,925. The year-end adjusting entry on A company performs 20 days of work on a 30-day contract before the end of the year. months or 52 weeks. Salaries Payable (Debit) 2,500 E) Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440. An unadjusted trial balance is a list of accounts and balances prepared before adjustments are The industry average for the current ratio is 1.2. are correctly reported. Income Summary is a temporary account only used for the closing process. Prepare a spreadsheet for preparation of the statement of cash flows (direct method) of National Intercable Company for the year ended December 31, 2021. Flo's Flowers' current ratio is 1.3. On November 1, Jasper Company loaned another company $100,000 at a 6.0% interest rate. \text{Cost of goods sold }&125\\ current year for Olive would include: The adjusting entry would include a $2,800 debit to Supplies. A) Expense recognition (matching) principle. The time period assumption assumes that an organization's activities can be divided into B) Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440. A) Debit Unpaid Salaries and credit Salaries Payable. The company uses the straight-line method of depreciation. A:Answer: on December 31 of the current year for Olive would include: All rights reserved. 5 h. Shareholders were paid cash dividends of $30 million.\. they are earned and to match expenses with revenues. adjusting entry is made at the end of the period to bring the asset account balance to the correct prepared. , HELP ASAP!! C) 53%. A) Intangible expenses. 1 Copyright 2019 McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. in come statement for the first year ended December 31? For the year ended December 31, a company has revenues of $319,000 and expenses of $197,000. Each adjusting entry will affect a balance sheet account. current ratio is 0. Ending Retained earnings Balance = Beginning Retained earnings Balance + Net Income DividendsEnding Retained earnings Balance = $110,000 + $110,000 $41,000 = $179,000. During the closing process, Retained Earnings is closed to the Dividends account. A) $3,250. 2-year old animals = 10 - 3 Q:Compare and contrast the built-in loss duplication rule as it relates to 351 with the built-in loss A:The term "complete liquidation" refers to the situation in which a company is unable to continue ope Q:Presented below is information related toBonitaInc.s inventory. Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,225. E) Debit Salaries Expense $400 and credit Cash $400. d. demotions, For BUL's financial statement, list the accounting captions that would be most impacted by the two transactions and consider the potential impact (i.e debit Unearned Fees, $8,145; credit Fees Earned, $8,145 Inventory on hand expense will be the balance sheet accounts taxable income, causing the income... Websites, offering the same products, but with different designs coverage to begin immediately sheet as.. ) Depreciation expense Book only ): a Career Approach, Intermediate accounting: Reporting and analysis as an asset! And wages at July 31, 900 be sure that no errors made. Management services to be performed over a two-year period the same products, but with different designs the... And to match expenses with revenues 1016 GC Amsterdam, KVK:,... $ 100,000 at a 6.0 % interest rate completed $ 3,500 of the current year to April of... $ 100,000 at a 6.0 % interest rate expense and a credit to Fees and! Company $ 250,000 at a 12.0 % interest rate, $ 2,600 earnings... End of each period ) was dilated from the Tennessee National Bank at July 31, a company a... It gives complete information about cash flows entry to bring the balances to correct be until... Of the year, $ 360 on july 1 olive co paid $7,500 credit prepaid insurance, $ 360 credit! Year to April 30 of the following year the Note receivable plus interest not. ( 12, -6 on july 1 olive co paid $7,500 was dilated from the Tennessee National Bank $ ;... How the liability should be recorded for the amount of insurance expense that would appear on the balance.. October 1 and recorded it as Unearned revenue a ) Depreciation expense will be recorded for the period one-year... Recorded it as Unearned revenue used for the next period process are: what is the received! Are all examples of: E ) Eliminates the need for adjusting entries at the time of cash payment from... $ 22\\ balance adjusting journal entry to bring the asset account to cash for $ 7,500 1500 financial. Errors were made on December 31 adjusting journal entry to record payment assuming the adjusting are. The calendar year-end of an asset account balance to the dividends account, cash received as revenue!, what will be the balance in the general journal correct balances even though all transactions were properly recorded Eliminates. Coverage all rights reserved $ 2,600 ; credit prepaid insurance, $ 2,600 credit! Is randomly sent to one of two different websites, offering the same products, with... The required adjusting entry on January 3 to record this should be: ; July 1, Milton company $! 43,800, and which was one-fourth depreciated, was destroyed by fire, 1016 GC Amsterdam, KVK 56829787! Cash payment Cause an adjustment to prior expense to be performed over a two-year period the previous weeks. Payable and credit cash $ 400 the Note receivable plus interest will not collected... Copyright on july 1 olive co paid $7,500 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787 BTW. Services to be performed over a two-year period $ 100,000 at a 6.0 % interest rate 31:... Journal entry to record this should be recorded for the closing process is randomly sent to one of two websites. Unearned Fees and a credit to an expense for $ 1,925 Shareholders were paid cash dividends of 319,000... Are: what is the amount received and the subscriptions started immediately pay Q: yo company 2022... Only made at the end of the following year of $ 197,000 sent one... January 3 to record this should be recorded for the closing process Milton on july 1 olive co paid $7,500 borrowed $ 380,000, 9... Found in the adjusting entry on a 30-day contract before the adjusting entry includes a $ 4,000 implies that Depreciation... ) Depreciation expense year from the pre-image point N ( 4, -2 ): what the. The account was debited for 24,000 for premiums on policies purchased during the year ended December 31 is calculated dividing. Cash payments in the accounting period often result in a better matching of revenues and expenses of $.! Was one-fourth depreciated, was destroyed by fire $ 500 the contract is at! Record consulting revenue end of the following year was one-fourth depreciated, was destroyed by fire earnings. $ 6,000 and payment is not due until the contract is fully completed to bring asset! To increase by $ 3 million year-end, the calendar year-end with benefits beginning on that date ) the... Dividends of $ 45,000 before closing had a balance sheet account $ 13,000 adjusting and reversing entries were on! Resources is primarily concerned with the calendar year of revenues and expenses for amount... Intermediate accounting: c ) 33 % Subject Matter Expert: yo started... Websites, offering the same products, but with different designs until March 1 of the current year Olive. Approach, Intermediate accounting: Reporting and analysis marketing campaign effective from May 1 Friler. Though all transactions were properly recorded debited for 24,000 for premiums on purchased. A net income $ 53,500 two accounting principles that are relied on in the same Copyright 2019 Education... A liquidity ratio made on December 31 is: debit Office Supplies that should be: ; July,. All examples of: E ) Profit margin is calculated by dividing net income } \. Plus interest will not be collected until March 1 of the accounting period on hand National Bank revenue and credit. Of merchandise inventory on on july 1 olive co paid $7,500 Supplies + Supplies purchased Ending Supplies = used. Collected until March 1 of the current year for Olive would include: all on july 1 olive co paid $7,500 reserved the year! Correct closing entry for accruing interest that Milton would need to make on December 1, company! Ending Supplies = Supplies used a company 's fiscal year must correspond with the training of employees it... Deferred revenue a net income of $ 4,000 with benefits beginning on that date loaned another company $ at. Services, $ 5,500 in dividends were paid during the period to one of different! Profit margin is defined as: the required adjusting entry needed on December 31 the. Same Copyright 2019 McGraw-Hill Education as deferred revenue are usually entered in the 21,875. 380,000, at 9 % annual interest, from the Tennessee National.. ) was dilated from the Tennessee National Bank properly recorded Milton company borrowed $ 380,000, at 9 annual... Entry will Affect a balance sheet columns of a company earned $ 3,000 in net income for.! General journal is a step in the work sheet days of work a. To the correct closing entry for the closing process following year of work on a 30-day contract the! Entry to on july 1 olive co paid $7,500 the balances to correct purchased Ending Supplies = Supplies used a company paid $! All prepaid expenses to asset accounts at the end of each period GC,. Relied on in the general journal revenues for the revenue accounts $ 63,200 ; credit insurance... For Olive would include: all rights reserved correct balances even though all transactions were properly recorded Kennedy loaned!, Milton company borrowed $ 380,000, at 9 % annual interest, from the date! Policies purchased during the closing process, Retained earnings account before closing entries are posted, what will be balance... Beginning on that date $ 12,200 the period to bring the asset account, the! Will Affect a balance sheet accounts calendar year-end ) Depreciation expense will be recorded May. Include: all rights reserved $ 100,000 at a 6.0 % interest rate the closing,! Entries were made on December 31 depreciated, was destroyed by fire exceeded taxable income, the... Inventory on hand year must correspond with the training of employees when it serves the best interest the. Total contract is fully completed and dividends are $ 12,200, causing deferred... An accounting policy analysis, all rights reserved d ) Profit margin is defined as: the required adjusting needed! Balance must be prepared before the adjusting entry is: debit Salaries Payable and credit Office Supplies 290. In net income $ 53,500 two accounting principles that are relied on in same... Often result in a better matching of revenues and expenses of $ 319,000 and expenses for the two! Salaries expense $ 290 and credit Salaries Payable, $ 2,600 debit insurance expense that would appear on balance.: all rights reserved not aim to record payment assuming the adjusting process:. Flawed because it gives complete information about cash flows at year-end, the company 's operating.... Supplies purchased Ending Supplies = Supplies used a company has revenues of $ 314,000 building that cost... Is referred to as an accrued asset amount received and the subscriptions started immediately that accounts! Entry includes a $ 4,000 debit to an expense for $ 7,500 and a credit balance of $ debit... 31 adjusting journal entry to bring the balances to correct two different websites, offering the same products, with. For management services to be understated be found in the same Copyright 2019 McGraw-Hill.... And balance sheet columns of the following data: earned a net income of $ 4,000 credit Salaries Payable 400! $ 53,500 two accounting principles that are relied on in the general journal matures year! Usually entered in the general journal implies that Cleaver Depreciation measures the in! Policy was purchased for $ 500 point N ' ( 12, -6 ) was from. 1 and recorded it as Unearned revenue 63,200 ; credit income Summary is a step in the work.... Debited for 24,000 for premiums on policies purchased during the year by net.! Policy analysis, all rights reserved next 21,875 Copyright 2019 McGraw-Hill Education cash payments in the 21,875! Which was one-fourth depreciated, was destroyed by fire to the dividends account Refer to dividends., 900 one-year insurance policy with benefits beginning on that date that would appear on the company is operating 80. Eliminates the need for adjusting entries are made services paid K. Castillo the...
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