Homework Answers
Answer
- Revenue account was credited for $ 12226 on 1st Feb. This advance revenue cash is received for 4 months, starting from 1st May ending 31 Aug.
- Year is ending on 30th June.
- No of months for which revenue is considered ‘earned’ till year end = 2 months (May and June)
- Revenue should have been credited for this 2 months revenue = $ 12226 x 2 / 4 = $ 6,113
- Hence, revenue account is EXCESS CREDITED by $ 6113 [12226 – 6113]
- Therefore, Revenue account will be Debited by $ 6113 and Unearned revenue will be credited for $ 6113 as revenue for remaning 2 months.
- Correct Answer
Option ‘a’ A Credit of $ 6113 to Unearned Revenue
Add Answer to:
On February 1, 20x1 the Abdoll business paid Fraser $12226 cash to complete a renovation on...
multiple-choice questions Financial Accounting for Business about ( Accrual Accounting) 6)On February 1, 20x1 the Abdoll...
multiple-choice questions Financial Accounting for Business about ( Accrual Accounting) 6)On February 1, 20x1 the Abdoll business paid Fraser $13481 cash to complete a renovation on their property starting in May 20x1 and ending August 31, 20x1. Both parties agreed to the work being completed in equal parts over the summer. Fraser’s year-end is June 30, 20x1. Assuming the initial entry made on February 1, 20x1 by Fraser was a credit of $13481 to revenue, the following adjusting entry is...
On August 1, 2009, a magazine publisher receives $24 cash for a year s subscription ending...
On August 1, 2009, a magazine publisher receives $24 cash for a year s subscription ending July 31, 2010. This transaction was originally recorded with a credit to Subscription Revenue. The adjusting entry on December 31, 2009, would be: Debit to Unearned Revenue, credit to Subscription Revenue for $14. Debit to Subscription Revenue, credit to Unearned Revenue for $14. Debit to Subscription Revenue, credit to Unearned Revenue for $10. Debit to Unearned Revenue, credit to Subscription Revenue for $10.
1. Which of the following are NOT in accordance with generally accepted accounting principles? cash basis...
1. Which of the following are NOT in accordance with generally accepted accounting principles? cash basis accounting accrual basis accounting both cash and accrual basis accounting neither the cash or accrual basis accounting 2. The balance in the office supplies account on June 1 was $2,000, supplies purchased during June were $4,300, and the supplies on hand at June 30 were $1,500. The amount to be used for the appropriate adjusting entry is 800 6300 3500 4800 3. Melman Company...
Cuthill Corporation has 2 loans outstanding: $10398 taken on Feb 1, 20x1 at 8% interest •...
Cuthill Corporation has 2 loans outstanding: $10398 taken on Feb 1, 20x1 at 8% interest • $25497 taken on Nov 30, 20x1 at 12% interest. The final year-end adjusting entry for interest expense for the year 20x1 will be: Select one: O a. A debit to interest expense of $ 1017 O b. A debit to interest expense of $ 948 O C. A credit to interest expense of $ 1203 d. A credit to interest expense of $ 1272...
Karr Corporation received cash of $6483 on August 1, 20x8 for one year's rent in advance...
Karr Corporation received cash of $6483 on August 1, 20x8 for one year's rent in advance and recorded the transaction with a credit to Rent Revenue. The December 31, 20x8 adjusting entry is: Select one: a. Debit Unearned Rent and credit Rent Revenue, $2701 O b. Debit Rent Revenue and credit Unearned Rent, $2701 O c. Debit Rent Revenue and credit Unearned Rent, $3782 O d. Debit Cash and credit Unearned Rent, $3782
TO Karr Corporation received cash of $6421 on August 1, 20x8 for one year's rent in...
TO Karr Corporation received cash of $6421 on August 1, 20x8 for one year's rent in advance and recorded the transaction with a credit to Rent Revenue, The December 31, 20x8 adjusting entry is: Select one: a. Debit Rent Revenue and credit Unearned Rent $2675 b. Debit Rent Revenue and credit Unearned Rent $374 12 c. Debit Unlearned Rent and credit Rent Revenue, $2675 d. Debit Cash and credit Unearned Rent, $3746 Check
A loan was made to another business on May 1, 20x1 in the amount of $3132...
A loan was made to another business on May 1, 20x1 in the amount of $3132 at 5% interest. The adjusting entry made at year end (December 31, 20x1) by the accountant was to increase both interest receivable and revenue by $156.6. Which of the following statements is true: ES Select one: a. The accountant incorrectly debited interest receivable too much in the amount of $ 52.20 b. To correct the error the accountant must debit interest receivable and credit...
Check Karr Corporation received cash of $7679 on August 1, 20x8 for one year's rent in...
Check Karr Corporation received cash of $7679 on August 1, 20x8 for one year's rent in advance and recorded the transaction with a credit to Rent Revenue. The December 31, 20x8 adjusting entry is Select one: • a. Debit Rent Revenue and credit Uneamed Rent, $3200 O b. Debit Unearned Rent and credit Rent Revenue, $3200 O C. Debit Rent Revenue and credit Unearned Rent, $4479 O d. Debit Cash and credit Unearned Rent, S4479 Check Next page
At Pronghorn Corp., prepaid costs are debited to expense when cash is paid and unearned revenues...
At Pronghorn Corp., prepaid costs are debited to expense when cash is paid and unearned revenues are credited to revenue when the cash is received. During January of the current year, the following transactions occurred. Jan. 2 Received $10,100 for services to be performed in the future. Paid $3,672 for casualty insurance protection for the year. Paid $4,650 for supplies. 10 On January 31, it is determined that $3,460 of the service revenue has been earned and that there is...
1. ABC Co. borrowed $525,000 on July 1, 20X1 at a 4% annual interest rate. Principal...
1. ABC Co. borrowed $525,000 on July 1, 20X1 at a 4% annual interest rate. Principal and interest will be repaid to the lender in six months on December 31, 20X1. Interest expense is accrued monthly. What adjusting entry is needed on July 31, 20X1 to accrue interest expense? a. Debit: Interest expense……………...1,750 Credit: Cash………….…..………….1,750 b. Debit: Interest expense………………1,750 Credit: Interest payable……………...1,750 c. Debit: Interest payable……………..21,000 Credit: Cash………………..………21,000 d. Debit: Interest expense…………......21,000 Credit: Interest payable………….…21,000 2. On October 1, 20X7,...
Cuthill Corporation has 2 loans outstanding: $10398 taken on Feb 1, 20x1 at 8% interest • $25497 taken on Nov 30, 20x1 at 12% interest. The final year-end adjusting entry for interest expense for the year 20x1 will be: Select one: O a. A debit to interest expense of $ 1017 O b. A debit to interest expense of $ 948 O C. A credit to interest expense of $ 1203 d. A credit to interest expense of $ 1272...
Karr Corporation received cash of $6483 on August 1, 20x8 for one year's rent in advance and recorded the transaction with a credit to Rent Revenue. The December 31, 20x8 adjusting entry is: Select one: a. Debit Unearned Rent and credit Rent Revenue, $2701 O b. Debit Rent Revenue and credit Unearned Rent, $2701 O c. Debit Rent Revenue and credit Unearned Rent, $3782 O d. Debit Cash and credit Unearned Rent, $3782
TO Karr Corporation received cash of $6421 on August 1, 20x8 for one year's rent in advance and recorded the transaction with a credit to Rent Revenue, The December 31, 20x8 adjusting entry is: Select one: a. Debit Rent Revenue and credit Unearned Rent $2675 b. Debit Rent Revenue and credit Unearned Rent $374 12 c. Debit Unlearned Rent and credit Rent Revenue, $2675 d. Debit Cash and credit Unearned Rent, $3746 Check
A loan was made to another business on May 1, 20x1 in the amount of $3132 at 5% interest. The adjusting entry made at year end (December 31, 20x1) by the accountant was to increase both interest receivable and revenue by $156.6. Which of the following statements is true: ES Select one: a. The accountant incorrectly debited interest receivable too much in the amount of $ 52.20 b. To correct the error the accountant must debit interest receivable and credit...
Check Karr Corporation received cash of $7679 on August 1, 20x8 for one year's rent in advance and recorded the transaction with a credit to Rent Revenue. The December 31, 20x8 adjusting entry is Select one: • a. Debit Rent Revenue and credit Uneamed Rent, $3200 O b. Debit Unearned Rent and credit Rent Revenue, $3200 O C. Debit Rent Revenue and credit Unearned Rent, $4479 O d. Debit Cash and credit Unearned Rent, S4479 Check Next page
At Pronghorn Corp., prepaid costs are debited to expense when cash is paid and unearned revenues are credited to revenue when the cash is received. During January of the current year, the following transactions occurred. Jan. 2 Received $10,100 for services to be performed in the future. Paid $3,672 for casualty insurance protection for the year. Paid $4,650 for supplies. 10 On January 31, it is determined that $3,460 of the service revenue has been earned and that there is...
Most questions answered within 3 hours.
-
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 19 minutes ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 1 hour ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 1 hour ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 3 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 3 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 4 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 5 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 5 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 5 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 6 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 6 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 6 hours ago