For 9 and 10 | |||
Services for the prepayment shall be provided during the period Oct 1 - Jan 31 | |||
9) | On Dec 31, services for 3 months have been provided. | ||
Therefore, balance in Deferred Revenue Account shall get reduced by ($ 20000 x 3/4) $ 15000 | |||
Ending Balance would be ($ 20000 - $ 15000) $ 5000 | |||
10) | On the other hand, service revenue recognized would be $ 15000 |
For 11 and 12 | ||||||
Amount has been borrowed on Nov 1. | ||||||
Till Dec 31, interest expense for 2 months has already been incurred | ||||||
11) | Amount of interest expense should be reported is ($ 500000 x 4.5% x 2/12) $ 3750 | |||||
12) | Assets | Liabilities | Equity | Revenue | Expenses | Net Income |
c | b | a | c | b | a |
I need help with 9-12 Use the following to answer questions 9 - 10 On October...
Use the following to answer questions 9 - 10 On November 1", the company received a $21,000 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue was credited on November 1 and no other entries regarding this transaction were made until December 31st. 9. $_ After the adjusting entry has been recorded on December 31", determine the ending balance in the deferred revenue account that should be recorded on the December 31"...
Use the following to answer questions 9-10 On November 1". the company received a $21,000 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue was credited on November and no other entries regarding this transaction were made until December 31st 9. $ After the adjusting entry has been recorded on December 31, determine the ending balance in the deferred revenue account that should be recorded on the December 31- Balance Sheet 10....
Use the following to answer questions 11 - 12 On September 1" the company borrows $100,000 from a local bank for nine months. A note is signed with principal and 4.5% interest to be paid when the note matures next year. A note payable was recognized on September 1" and no other entries regarding this transaction were made until December 31st. 11. $ In the adjusting entry recorded on December 31" determine the amount of interest expense that should be...
I need help with 13-16 Use the following to answer questions 13-14 The company incurs employee salaries of $25,000 for the last week of December which will be paid on January 5th. 13. Record the adjusting entry on December 31st related to the employee salaries Account Debit Credit 14. $ Indicate by how much net income in the income statement is higher or lower if the adjustment in #13 is not recorded (if lower put"-" in front of your answer)....
Use the following to answer questions 15-16 On December 1st, the company pays a local radio station $48,000 for 3 months of radio ads that are to be aired equally throughout December through February. Prepaid Advertising was debited on December 1st and no other entries regarding this transaction were made since then. 15. $__ After the adjusting entry has been recorded on December 31s, determine the amount of advertising expense for the year ended December 31* 16. $_ After the...
Use the following to answer questions 15-16 On December 1st, the company pays a local radio station $48,000 for 3 months of radio ads that are to be aired equally throughout December through February. Prepaid Advertising was debited on December in and no other entries regarding this transaction were made since then. 15. $ After the adjusting entry has been recorded on December 31", determine the amount of advertising expense for the year ended December 31 16. S After the...
Accrual Based Accounting – Adjusting Journal Entries (AJEs): Say Something, Inc. rents equipment for the 12 months, paying $14,400 cash in advance on August 1st, 2019 for the rental period of August 1st, 2019 – July 31, 2020. Record the journal entry for the original payment in advance on August 1st, 2019. Record the adjusting entry to recognize Rent Expense on December 31st, 2019. Assume Say Something uses an annual accounting period which ends on December 31st, 2019 and adjusting...
wywo Consider the following situations for Shocker: 16.66 points 1. On November 28, 2021, Shocker receives a $3,600 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. 2. On December 1, 2021, the company pays a local radio station $2,520 for 30 radio ads that were to be alred, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the month of December totaling...
Exercise 3-10A Record year-end adjusting entries (LO3-3) Consider the following situations for Shocker: 1. On November 28, 2021, Shocker receives a $4,500 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited 2. On December 1, 2021, the company pays a local radio station $2,700 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the...
Record adjusting journal entries for each of the following for year ended December 31 Assume no other adjusting entries are made during the year. a. Unearned Rent Revenue. The Krug Company collected $7.800 rent in advance on November 1. debiting Cash and crediting Unearned Rent Revenue. The tenant was paying 12 months' rent in advance and occupancy began November 1. b. Unearned Services Revenue. The company charges $90 per insect treatment. A customer paid $360 on October 1 in advance...