Question

40) The following events pertain to Bills Company December 28, 2018 Bills was contacted by a customer for possible accounting and December 30, 2018 tax services. Bills signed a formal agreement with the customer to provide accounting and tax services in 2019. The customer paid $1,000 in advance for the services to be provided by Bills Company. Bills provided accounting and tax services to the customer. January 4, 2019 January 11, 2019 Using accrual basis accounting, on which date should Bills Company record revenue for me accounting and tax services? A) January 4, 2019. B) January 11, 2019. C) December 31, 2018. D) December 30, 2018. 1) The following information pertains to Sooner Company's cash balance and bank reconciliation as o August 31: Company balance before reconciliation $5,000 Checks outstanding $2,500 Notes collected by the bank $2,200 Service fee $50 Deposits outstanding $2,000 What is the correct cash balance for Sooner Company? A) $7,650. B) 57.150. C) $7.250. D) 55,150 42) At the beginning of December, Global Corporation had $2,000 in supplies on hand. During the month, supplies purchased amounted to $3,000, but by the end of the month the supplies balance was only $800. What is the appropriate month-end adjusting entry? A) Debit Supplies Expense 54,200, credit Supplies 54,200 B) Debit Supplies 54,200, credit Supplies Expense 54,200. C) Debit Cash 5800, credit Supplies $800. D) Debit Cash 54,200, credit Supplies $4,200.

Answer 1

General Paste BIU - - - E E EE - 5 - % + P Format as Table- Cell Styles - Styles Delete- Format Clipboard Font Alignment Number Cells B3 x fc || Revenue is recognised when service is actually provided A в 40 B. -january 11, 2019 Revenue is refognised when service is actually provided 41 A. 7650 balance before reconciliation add: cheques outstanding add: notes collected less: service fee less: deposits outstanding cash balance for sooner company 5000 2500 2200 -50 2000 7650 42 A. 2000 debit supplies expense 4,200, credit supplies 4 opening stock of supplies add: purchases 3000 less: closing stock -800 Supplies used during the month 4200 Sheet1