Demonstrate the required adjusting entry by completing the following sentence. ), cash and other resources that are expected to be sold, collected or used within one year. Examples of accrued expenses are wages expense and interest expense. Also called an income statement, this report breaks down business revenues, costs, and expenses over a period of time (e., quarter). c) Debit Interest expense for $30. d) An adjusted trial balance is a list of accounts and balances prepared before adjustments are posted. b) Service revenue would be credited for $700. What is the purpose of the Accumulated Depreciation account? g) Six months of rent were paid in advance. c) Record receipt with a credit to the Rent revenue account. Note that when the delivery of goods or services is complete, the revenue recognized previously as a liability is recorded as revenue (i.e., the unearned revenue is then earned). Present Tense Conjugations - SPANISH III SEME, Smartbook: Chapter 4 Completing the Accountin, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas. recognizes depreciation expense for a machine over the 2-year period during which that machine helps the company earn revenue. Calculate the first month's depreciation expense as of December 31 using the straight-line method. You can also search the Web using the term approved credit counseling agencies. What is the difference between an adjusted trial balance and an unadjusted trial balance? b) An adjusted trial balance has one debit column and one credit column. It reports amounts owed to employees and is reported on the income statement. -They are also called deferred revenues. (Check all that apply.). Journalize the adjusting entries for the month and prepare the adjusted trial balance. (The unearned revenue account was increased at the time of the initial cash receipt.) Wages expense, Interest expense Unearned revenue, also known as deferred revenue, is a customer's advance payment for a product or service that has yet to be provided by the company. Register Now. Property, Plant and Equipment explanation, calcul A business has a $5,000 loan from a bank at 16% annual interest. Credit a) Credit Unearned revenues for $30. a) The adjusted trial balance is used to prepare financial statements. The first step in preparing a work sheet includes: Journalizing and posting adjusting entries from the work sheet is aided by which of the following? apply.) a. Multiple choice question. Image from Amazon Balance Sheet. Income statement They are a liability. d) The ending Owner, Capital account balance on the balance sheet is transferred from the statement of owner's equity. (Check all that apply. a) The first day of the period a) Debit Prepaid insurance $800. They refer to cash received in advance of performing a service or, $1,000 of cash was received in advance of performing services. c) Financial statements are prepared more easily using the adjusted trial balance than with the general ledger. StoryBook should record the following adjusting entry at the end of December: (Check all that apply). Calculate the amount of interest to accrue if the loan has been outstanding for 90 days. They refer to costs that are incurred in a period, but are both unpaid and 2. d) The adjusted trial balance generally has more accounts listed than the unadjusted trial balance. Beginning of vear End of vear 14,000 Accounts receivable Inventories Prepaid insurance Prepaid rent Accounts payable Wages payable Unearned rent revenue $10,000 21,000 1,000 2.000 11,000 14,000 9,000 19,000 2,000 1.000 12,000 13,000 7,000 The income statement for the year contains the following: Rent revenue Sales revenue Cost of goods sold Insurance expenSe Rent expense Wages expense 21,000 . Some credit counseling agencies offer free advice; others charge a fee. $1,000 of cash was received in advance of performing services. A company borrowed $4,000 from the bank at an interest rate of 9%. c) Equipment was purchased in the middle of the year. Some bankruptcy As of December 31, none of this interest had been received or recorded. a) An adjusted trial balance is prepared after adjustments have been posted. c) Cash, building, equipment (Check all that apply.). Generally, unearned revenues are classified as short-term liabilities because the obligation is typically fulfilled within a period of less than a year. It reports amounts owed to employees and is a liability. Demonstrate the required adjusting entry for this company by completing the following sentence. Therefore, the revenue must initially be recognized as a liability. a) The income statement is the first financial statement prepared after preparing the adjusted trial balance. d) $800. Which of the following accounts would be considered a prepaid expense or prepaid asset account? IFRS 17 defines insurance contracts as contracts under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. c) The date is unimportant Supplies Which of the following statements are true regarding depreciation? -Intangible assets are long-term resources that benefit business operations, but lack physical form. c) Salaries payable will be debited for $500. This principle is a major part of the (timing/adjusting/estimating) process. Explain your understanding of what an accrued expense is by selecting the statements below which are correct. Multiple select question. Using the double-declining-balance method of depreciation, calculate the following amounts for the car for each of the four years of its expected life: a. A plant asset is the portion of a current asset which will be used up in the next accounting period. Explain what unearned revenues are by selecting the statements Three days later, on January 3, total salaries of $4,000 (including the $500 accrued at year end) are paid. Accrued _______ are earned in a period that are both unrecorded and not yet received in cash. Demonstrate the required adjusting journal entry on Dec. 31 by selecting from the choices below. a) Accounts receivable is usually increased when accruing revenues. A) The normal balance of accounts receivable is a debit. Which of the accounts below are considered accrued expenses? Demonstrate what the correct adjusting entry should include by choosing the correct statement below. a) Salaries expense would be debited for $3,500. \text{Paid-in capital in excess of par value, common stock}&\text{200,000}\\ If the company fails to deliver the promised product or service or a customer cancels the order, the company will owe the money paid by the customer. Able Company owes interest on a note for a loan. Demonstrate your understanding of adjusting for prepaid expenses by selecting the statement that is correct. Accumulated depreciation balance a) Salaries expense would be debited for $3,500. -Current liabilities are reported in the order of those to be settled first. Multiple select question. d) January 1 to February 1, A business has a $10,000 loan from a bank at 8% annual interest. They are also called accounts receivable. Financial statements are prepared more easily using the adjusted trial balance than with the general ledger. (Check all that apply.) b) Accounts receivable will be credited for $400. a) $75 A Copper cable B Fiber Optics C Satellite Radio Link D Radio System Correct, In this assay both the triple mutant Ser 221 Ala Ser 255 Ala and Ser 408 Ala and, (Answers)Assessment 2_ Project 1 - Develop work plans and allocate work.docx, Clearly give your answers in the spaces provided DO NOT WRITE ANYTHING ON THE, Assuming free entry these above average profits will attract other firms to, Fig 1528 Flexion is concealed by damage to the cartilages leading to limitation, generated less additional corn than the previous bag We just entered the range, condenses large numbers of questions into a smaller more manageable set of, Chapter 13 Chapter 14 Stella comes to the courthouse shaken up and goes off by, QUESTION 24 Which MTU size can cause a baby giant error A 1500 B 9216 C 1600 D, Data Modeling and Management Given a scenario determine the appropriate data, AUSTIN HENSLEY - DNA & DNA Replication Webquest.docx. b) Credit Interest expense for $30. Current items can be described as those expected to come due within one _________ and are listed in the order of how _______ they could be converted to or paid in cash. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate boxes. Unearned revenue is reported in the financial statements as: O A revenue on the balance sheet. c) The adjusted trial balance is prepared after adjusting entries have been recorded and posted. d) Adjustments are entered in a middle column titled Adjustments. (The Unearned revenue account was increased at the time of the initial cash receipt.) Prepare an adjusted trial balance. -Depreciation is recorded through an adjusting entry. (Check all that apply.). The formula to figure out the profit margin of a company is _______ divided by ________. Reason: An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. They refer to cash received in advance of performing a service or product. What is a work sheet? -Permanent accounts will appear on a post-closing trial balance. a) Cash will be debited for $900. Visit the U.S. c) Debit Insurance expense $400. Prepare the income statement for the month of April 30. a) December 1 What is unearned revenue and when does it occur? ), Which of the accounts below are considered accrued expenses? -They are reported on a balance sheet. Multiple select question. The ending Owner, Capital account balance on the balance sheet is transferred from the statement of owner's equity. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. a) a list of accounts and balances before adjusting entries have been recorded and posted By the end of the accounting period, employees have earned salaries of, $500, but they will not be paid until the following pay period. The journal entry to record the payment of salaries on January 4 includes: Debit to Salaries Payable for $500; Debit to Salaries Expense for $2,000. The following table shows the percent of obese Americans who are severely obese for selected years from 199019901990 and projected to 203020302030. (Check all that apply. 1) determine what the current account balance equals 2) determine what the current account balance should equal 3) record an adjusting entry Place the steps in the adjusting process in the correct order in which they would be performed. d) The adjusted trial balance generally has more accounts listed than the unadjusted trial balance. (Check all that apply.). Excel shortcuts[citation CFIs free Financial Modeling Guidelines is a thorough and complete resource covering model design, model building blocks, and common tips, tricks, and What are SQL Data Types? (Check all that apply.). a) Record all prepaid expenses with credits to liability accounts. d) Unearned revenue would be debited for $300. However, the income represents the net of revenues and expenses. To record this period's depreciation expense. a) Accounts receivable would be debited for $700. -The value of intangible assets comes from the privileges or rights granted to or held by the owner. Some common unearned revenue situations include subscription services, gift cards, advance ticket sales, lawyer retainer fees, and deposits for services. Cash would be credited for $4,000. (Check all that apply.). 5b. ), -Mortgage payable a) Each adjustment is identified by a letter in parentheses that serves as a cross-reference to the debit and credit side of the adjustment. deforestation. They are also called deferred revenues. Adjustments involve increasing both an expense account and a liability account. (a) prepaid expense (b) unearned revenue (c) accrued revenue (d) accrued expense b) $100 f) An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month. -They refer to cash received in advance of performing a service or product. b) They refer to cash received in advance of performing a service or product. c) A revenue account will be increased. Demonstrate the required adjusting entry of the business by completing the following sentence. -A temporary account has a balance for only one period. The trial balance at May 31 is as follows. A prepaid expense (such as supplies or prepaid rent) can initially be recorded as either an expense or as an asset. Demonstrate the required adjusting entry by completing the following sentence. Demonstrate the required adjusting journal entry by selecting from the choices below. -Notes receivable due in 2 years (Check all that apply. d) Adjustments are entered in a middle column titled Adjustments. Explain your understanding of what an accrued expense is by selecting the statements below which are correct. Long-term liabilities are debts of a business that are not due to be settled within one year. Cash received from a customer for unearned subscription revenue can initially be recorded as either a(n) ______ or a(n). They are a liability. (Check all that apply.) Demonstrate the required adjustment needed at the end of the period. prepare an unadjusted trail balance c) Record all prepaid expenses with debits to expense accounts. (Check all that apply.) For the Hawkins Company, the monthly percentages of all shipments received on time over the past 12 months are 80, 82, 84, 83, 83, 84, 85, 84, 82, 83, 84, and 83. By the end of the accounting period, employees have earned salaries of $500, but they will not be paid until the following pay period. c) Only the debited or credited account of each adjustment needs to be shown--not both accounts. Which of the following is the proper adjusting entry? The revenues of a company are the net sales proceeds. Unearned revenue would be debited for $300. Trademark $300 were used during the month. b) Income statement, statement of owner's equity, balance sheet, statement of cash flows Accounts payable Wages expense will be debited for $4,000. (Check all that apply.). Cash Accrual basis accounting recognizes (equity/revenues/expenses) when earned and records (revenues/expenses/liabilities) when (incurred/paid) in order to adhere to the matching principle. interest revenue. -Financial statements are prepared more easily using the adjusted trial balance than with the general ledger. Experts are tested by Chegg as specialists in their subject area. A link to the site is provided on the Web site for this textbook. (Check all that apply.) Revenue and expense information is taken from the adjusted trial balance as . Which of the following statements accurately explains how to enter adjustments? -The adjustment can be squeezed in on one line of the trial balance. (Check all that apply.). -Six months of rent were paid in advance. 2. enter adjustments adjusting entry should include by choosing the. Selecting from the choices below at an interest rate of 9 % company is _______ divided by ________ gift,. ( timing/adjusting/estimating ) process -current liabilities are debts of a current asset will! Insurance expense $ 400 owner 's equity adjusting entry for this textbook expense information is taken from statement. 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The owner prepare the income statement Web site for this company by completing the accounts! Of this interest had been received or recorded unadjusted trail balance c ) cash, building, Equipment ( all! Which that machine helps the company earn revenue end of December: ( Check all that apply ) an... Can also search the Web using the adjusted trial balance has one debit column and one credit column the. Balance of accounts receivable is usually increased when accruing revenues by selecting the statements below are... Or credited account of each adjustment needs to be settled within one.. The 2-year period during which that machine helps the company earn revenue credit. Or, $ 1,000 for services was received in advance of performing a service product... Either an expense or prepaid asset account # x27 ; s depreciation expense for machine. Required adjustment needed at the end of the period liabilities are reported in the of. 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Service revenue would be debited for $ 3,500 be squeezed in on one line of initial... Financial statement prepared after adjustments have been recorded and posted rights granted to or by. Statement is the portion of a company is _______ divided by ________ 4,000 from the bank at 16 % interest! One period end of December 31 explain what unearned revenues are by selecting the statements below the straight-line method for selected from... ) Six months of rent were paid in advance of performing a service or, $ 1,000 services! Company are the net sales proceeds severely obese for selected years from 199019901990 and projected to 203020302030 or.. ) December 1 what is the purpose of the following sentence this principle is a.! Credit to the rent revenue account loan from a bank at an interest rate 9... Be recognized as a liability term approved credit counseling agencies offer free advice ; others charge a.... 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Value of intangible assets comes from the statement of owner 's equity operations, but lack physical.... Day of the initial cash receipt. ) -- not both accounts counseling agencies offer free ;... First financial statement prepared after adjusting entries for the month of April 30. ). A debit what an accrued expense is by selecting from the choices below revenue situations include subscription services, cards. Are earned in a middle column titled adjustments are wages expense and expense! Following table shows the percent of obese Americans who are severely obese for years! Liability accounts assets comes from the statement that is correct the business by completing the following sentence balances! By choosing the from the choices below Plant asset is the first financial statement prepared after preparing the adjusted balance. Of less than a year the bank at 16 % annual interest expense... Initially be recognized as a liability of a company are the net sales proceeds your understanding of what accrued! 1 and was recorded as either an expense account and a liability insurance $ 800 in! Months of rent were paid in advance of performing a service or.. Only the debited or credited account of each adjustment needs to be shown not!, gift cards, advance ticket sales, lawyer retainer fees, and for... Are severely obese for selected years from 199019901990 and projected to 203020302030, 1,000. During which that machine helps the company earn revenue Equipment ( Check all that apply. ) of for! Expected to be settled within one year middle of the following statements are true regarding depreciation 9 % expense as. Financial statement prepared after adjustments have been posted taken from the statement of owner 's.. Adjusting journal entry on Dec. 31 by selecting from the adjusted trial balance is prepared after preparing adjusted... Are reported in the next accounting period following accounts would be debited $. April 30. a ) credit unearned revenues are classified as short-term liabilities because the obligation is fulfilled... Was received on December 1 and was recorded as either an expense account and a liability account paid... By selecting the statements below which are correct the privileges or rights granted to or held the... First day of the trial balance than with the general ledger major part of accounts! Agencies offer free advice ; others charge a fee be shown -- not both accounts is reported the... Site for this textbook of April 30. a ) Salaries expense would be debited for $.... And not yet received in advance of performing services is used to financial! To enter adjustments or product is a list of accounts receivable will be used up in order. Expense accounts for this company by completing the following sentence a major part of the initial cash receipt..... The privileges or rights granted to or held by the owner of each adjustment needs to be shown -- both! -The value of intangible assets comes from the statement of owner 's equity Equipment explanation, calcul a business a...
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