Homework Answers
Solution:
| Journal Entries | |||
| Event | Particulars | Debit | Credit |
| 1 | Cash Dr | $570.00 | |
| To Unearned service revenue | $570.00 | ||
| (To record payment received for service not performed yet) | |||
| 2 | Unearned service revenue Dr | $38.00 | |
| To Service Revenue | $38.00 | ||
| (To record revenue) | |||
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Cornerstone Exercise 8-29 (Algorithmic) Unearned Sales Revenue Trademark Lawn Services offers a promotion where they will...
Brief Exercise 8-52 Unearned Sales Revenue Curtis's Carpet Cleaning normally charges $90 to clean one room...
Brief Exercise 8-52 Unearned Sales Revenue Curtis's Carpet Cleaning normally charges $90 to clean one room of carpeting. During the holiday season, Curtis offers a promotion to clean the customer's carpet 10 times at a discounted rate if the customer pays $600 in advance. Required: 1. Make the journal entry to record the customer's prepayment of $600. (Record sale) 2. Make the journal entry to record Curtis's cleaning of the carpet one time. (Record recognition of sales revenue)
Cornerstone Exercise 9-23 (Algorithmic) Issuance of Long-Term Debt Anne Corp. issued $375,000, 5% bonds. Required: Provide...
Cornerstone Exercise 9-23 (Algorithmic) Issuance of Long-Term Debt Anne Corp. issued $375,000, 5% bonds. Required: Provide the necessary journal entry to record the issuance of these bonds assuming: a. The bonds were issued at par. Cash 375,000 Bonds Payable 375,000 Record issuance of bond at par Check My Work Forrect b. The bonds were issued at 102. Cash Bonds Payable Premium on Bonds Payable Record issuance of bond at premium Check My Work 3 more Check My Work uses remaining....
Brief Exercise 8-53 Unearned Rent Revenue Mannion Property Management leases commercial properties and expects its clients...
Brief Exercise 8-53 Unearned Rent Revenue Mannion Property Management leases commercial properties and expects its clients to pay rent on a monthly basis. A new client signs a 4-year lease with a yearly rent of $420,000 and agrees to pay the first 6 months in advance. Required: 1. Make the journal entry to record the customer's prepayment of 6 months' rent. (Record Record prepayment of rent) 2. Make the journal entry to record the necessary adjusting entry after 1 month...
Cornerstone Exercise 4-17 (Algorithmic) Bank Reconciliation The accountant for Bellows Corp. was preparing a bank reconciliation...
Cornerstone Exercise 4-17 (Algorithmic) Bank Reconciliation The accountant for Bellows Corp. was preparing a bank reconciliation as of April 30. The following items were identified: Bellows' book balance $28,750 Outstanding checks 900 Interest earned on checking account 83 Customer's NSF check returned by the bank 374 In addition, Bellows made an error in recording a customer's check; the amount was recorded in cash receipts as $370, the bank recorded the amount correctly as $730. Required: What amount will Bellows report...
cornerstone Exercise 5-25 (Algorithmic) Percentage of Credit Sales Clarissa Company has credit sales of $522,000 during...
cornerstone Exercise 5-25 (Algorithmic) Percentage of Credit Sales Clarissa Company has credit sales of $522,000 during 2019 and estimates at the end of 2019 that 2.5% of these credit sales will eventually default. Also, during 2019 a customer defaults on a $770 balance related to goods purchased in 2018. Prior to the write-off for the $770 default, Clarissa's accounts receivable and allowance for doubtful accounts balances were $402,000 and $129 (credit), respectively, Required: - 1. Prepare the journal entry to...
Problem 9-94A (Algorithmic) Note Computations and Entries (Straight line) On January 1, 2020, Sisek Company borrowed...
Problem 9-94A (Algorithmic) Note Computations and Entries (Straight line) On January 1, 2020, Sisek Company borrowed $716,000 with a 10-year, 9.75% note, interest payable semiannually on June 30 and December 31. Cash in the amount of $708,800 was received when the note was issued. Required: 1. Prepare the necessary journal entry at January 1, 2020. 2020 Jan. 1 Record issuance of notes at discount Accounting sumerie field 2. Prepare the necessary journal entry at June 30, 2020. If required, round...
Cornerstone Exercise 5-33 (Algorithmic) Accounting for Credit Card Sales Frank's Tattoos and Body Piercing operates near...
Cornerstone Exercise 5-33 (Algorithmic) Accounting for Credit Card Sales Frank's Tattoos and Body Piercing operates near campus. At the end of a recent day, Frank's cash register included credit card documents for the following sales amounts: MasterCard $756 Visa 486 The merchant's charges are 1.8% for MasterCard and 2.1% for Visa, Frank's also had cash sales of $375 and $1,000 of sales on credit to a local business Required: Prepare a journal entry to record these sales. If an amount...
Cornerstone Exercise 4-21 (Algorithmic) Cash Over and Short On a recent day, Pence Company obtained the...
Cornerstone Exercise 4-21 (Algorithmic) Cash Over and Short On a recent day, Pence Company obtained the following data from its cash registers: Cash Sales per Register Tape Cash in Register after Removing Opening Change $12,650.01 Register 1 $12,656.12 11,429.57 11,591.18 Register 2 Register 3 11,425.42 11,590.18 Pence deposits its cash receipts in its bank account daily Required: amount box does not require an entry, leave it blank. Round your ans 35,676.87 x Prepare a journal entry to record Cash Cash...
Problem 8-77A (Algorithmic) Excise Taxes Clinton Power provides electricity to a wide area of western Kentucky. Du...
Problem 8-77A (Algorithmic) Excise Taxes Clinton Power provides electricity to a wide area of western Kentucky. During October 2019 it billed 18,700 of its residential customers located in the town of Heyworth a total of $2,540,000 for electricity (this is considered revenue). In addition Clinton is required to collect the following taxes: a. State Excise Tax: A tax of $3.00 per customer plus 2% of billing used to fund the Kentucky Energy Commission b. Federal Excise Tax: A tax of...
Cornerstone Exercise 5-24 (Algorithmic) Sales Discounts Not Token Bolton sold a customer service contract with a...
Cornerstone Exercise 5-24 (Algorithmic) Sales Discounts Not Token Bolton sold a customer service contract with a price of $40,000 to Sammy's Wholesale Company. Bolton offered terms of 1/10, 1/30 and expects Sammy to pay within the discount period. Required: Prepare the journal entry assuming the payment is made after 10 days after the discount period). If an amount box does not require an entry, leave it blank. Cash 39,600 Sales Discounts x 400 Accounts Receivable 40,000 X Record collection within...
Brief Exercise 8-52 Unearned Sales Revenue Curtis's Carpet Cleaning normally charges $90 to clean one room of carpeting. During the holiday season, Curtis offers a promotion to clean the customer's carpet 10 times at a discounted rate if the customer pays $600 in advance. Required: 1. Make the journal entry to record the customer's prepayment of $600. (Record sale) 2. Make the journal entry to record Curtis's cleaning of the carpet one time. (Record recognition of sales revenue)
Cornerstone Exercise 9-23 (Algorithmic) Issuance of Long-Term Debt Anne Corp. issued $375,000, 5% bonds. Required: Provide the necessary journal entry to record the issuance of these bonds assuming: a. The bonds were issued at par. Cash 375,000 Bonds Payable 375,000 Record issuance of bond at par Check My Work Forrect b. The bonds were issued at 102. Cash Bonds Payable Premium on Bonds Payable Record issuance of bond at premium Check My Work 3 more Check My Work uses remaining....
Brief Exercise 8-53 Unearned Rent Revenue Mannion Property Management leases commercial properties and expects its clients to pay rent on a monthly basis. A new client signs a 4-year lease with a yearly rent of $420,000 and agrees to pay the first 6 months in advance. Required: 1. Make the journal entry to record the customer's prepayment of 6 months' rent. (Record Record prepayment of rent) 2. Make the journal entry to record the necessary adjusting entry after 1 month...
Cornerstone Exercise 4-17 (Algorithmic) Bank Reconciliation The accountant for Bellows Corp. was preparing a bank reconciliation as of April 30. The following items were identified: Bellows' book balance $28,750 Outstanding checks 900 Interest earned on checking account 83 Customer's NSF check returned by the bank 374 In addition, Bellows made an error in recording a customer's check; the amount was recorded in cash receipts as $370, the bank recorded the amount correctly as $730. Required: What amount will Bellows report...
cornerstone Exercise 5-25 (Algorithmic) Percentage of Credit Sales Clarissa Company has credit sales of $522,000 during 2019 and estimates at the end of 2019 that 2.5% of these credit sales will eventually default. Also, during 2019 a customer defaults on a $770 balance related to goods purchased in 2018. Prior to the write-off for the $770 default, Clarissa's accounts receivable and allowance for doubtful accounts balances were $402,000 and $129 (credit), respectively, Required: - 1. Prepare the journal entry to...
Problem 9-94A (Algorithmic) Note Computations and Entries (Straight line) On January 1, 2020, Sisek Company borrowed $716,000 with a 10-year, 9.75% note, interest payable semiannually on June 30 and December 31. Cash in the amount of $708,800 was received when the note was issued. Required: 1. Prepare the necessary journal entry at January 1, 2020. 2020 Jan. 1 Record issuance of notes at discount Accounting sumerie field 2. Prepare the necessary journal entry at June 30, 2020. If required, round...
Cornerstone Exercise 5-33 (Algorithmic) Accounting for Credit Card Sales Frank's Tattoos and Body Piercing operates near campus. At the end of a recent day, Frank's cash register included credit card documents for the following sales amounts: MasterCard $756 Visa 486 The merchant's charges are 1.8% for MasterCard and 2.1% for Visa, Frank's also had cash sales of $375 and $1,000 of sales on credit to a local business Required: Prepare a journal entry to record these sales. If an amount...
Cornerstone Exercise 4-21 (Algorithmic) Cash Over and Short On a recent day, Pence Company obtained the following data from its cash registers: Cash Sales per Register Tape Cash in Register after Removing Opening Change $12,650.01 Register 1 $12,656.12 11,429.57 11,591.18 Register 2 Register 3 11,425.42 11,590.18 Pence deposits its cash receipts in its bank account daily Required: amount box does not require an entry, leave it blank. Round your ans 35,676.87 x Prepare a journal entry to record Cash Cash...
Problem 8-77A (Algorithmic) Excise Taxes Clinton Power provides electricity to a wide area of western Kentucky. During October 2019 it billed 18,700 of its residential customers located in the town of Heyworth a total of $2,540,000 for electricity (this is considered revenue). In addition Clinton is required to collect the following taxes: a. State Excise Tax: A tax of $3.00 per customer plus 2% of billing used to fund the Kentucky Energy Commission b. Federal Excise Tax: A tax of...
Cornerstone Exercise 5-24 (Algorithmic) Sales Discounts Not Token Bolton sold a customer service contract with a price of $40,000 to Sammy's Wholesale Company. Bolton offered terms of 1/10, 1/30 and expects Sammy to pay within the discount period. Required: Prepare the journal entry assuming the payment is made after 10 days after the discount period). If an amount box does not require an entry, leave it blank. Cash 39,600 Sales Discounts x 400 Accounts Receivable 40,000 X Record collection within...
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