Homework Answers
d. All of the above
In Accural method, all the expenses and revenues are recorded when they are incurred not when they are paid. It gives a clear financial position of an organisation.
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In the Accrual Method of Accounting: 10. Adjusting entries have to be made that would not...
GAAP refers to: a. General Association of Accounting Professionals &
GAAP refers to: a. General Association of Accounting Professionals b. Generally Accepted Accounting Profession c. Rules that assure consistency in reporting financial history d. Rules that are set up to make sure each company reports their own financial history. Accounting is a process that: a. Reports the profit and loss a firm makes b. Reports the financial history of the firm c. Reports information to external users of the financial statements. d. Reports to the S.E.C. There are four basic financial statements required by GAAP. They are: a. Balance Sheet,...
LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method...
LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method records transactions only when cash is received? b) Which method records transaction when it occurs, regardless of when the cash is paid? L02. What concepts and principles apply to accrual basis accounting a) Match the concept (by number) to the correct terminology. 1. Time period concept 2. Revenue recognition principle 3. Matching Principle 4. Fiscal year __An accounting time period that may not coincide...
Accrual Based Accounting – Adjusting Journal Entries (AJEs): Say Something, Inc. rents equipment for the 12...
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...
Jilian Carter was preparing the adjusting journal entries for Jilian’s Java, a business that uses accrual...
Jilian Carter was preparing the adjusting journal entries for Jilian’s Java, a business that uses accrual accounting, in order to prepare an adjusted trial balance and financial statements. She knew that $610 of salaries related to the current accounting period had accrued but wouldn’t be paid until the next period. Jilian thought that simply not including the adjustment for these salaries would mean that salaries expense would be lower and reported net income would be higher than it would have...
Requirement 3. State why accrual accounting results in an accurate measurement of income Accrual accounting resuits...
Requirement 3. State why accrual accounting results in an accurate measurement of income Accrual accounting resuits in an accurate measurement of income because it records revenues when earned, regardless of when the cash is recerved and matches the expenses incurred to produce that revenue by recording expenses on the last day of the accounting perio s more complete reports on the last day of the accounting period when cash is received when earned, regardless of when the cash is received,...
Mastering Adjusting Entries The following information relates to questions 31 and 32: CBA Co. uses accrual...
Mastering Adjusting Entries The following information relates to questions 31 and 32: CBA Co. uses accrual basis accounting. It collects $20,000 in December for a job and credits unearned revenue. By the end of December, its year end. CBA has completed 40% of the work. 31. How much revenue has CBA earned in December? a. $20,000 b. $12,000 c. $8,000 d. $0 32. Which accounts does CBA debit and credit in the adjusting journal entry on December 31? a. Unearned...
Accrual Based Accounting – Adjusting Journal Entries (AJEs): Say Something, Inc. purchases equipment on 5/1/2019, paying...
Accrual Based Accounting – Adjusting Journal Entries (AJEs): Say Something, Inc. purchases equipment on 5/1/2019, paying $4,500 in cash. The equipment has a 4-year useful life, $0 salvage value, and Say Something uses the ‘straight line depreciation’ method to allocate the cost of the equipment evenly over its useful life. Record the journal entry for the original purchase of equipment on May 1st, 2019. Record the adjusting entry to recognize Depreciation Expense on December 31st, 2019. Assume Say Something uses...
QUESTION 18 At the end of the accounting period, an adjusting entry is made to reflect...
QUESTION 18 At the end of the accounting period, an adjusting entry is made to reflect revenues earned (performance obligations have been satisfied), but cash is not yet collected. This is required due to which method of accounting? a. Accrual basis method of accounting b. Full disclosure C Cash basis method of accounting d. Expense recognition e. Transaction approach QUESTION 19 Symonds Manufacturing has a December 31 year-end. Major flooding occurred on January 18 due to record snow and rainfall,...
1) If a company is using accrual basis accounting, when should it record revenue? A) when...
1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...
Income Measurement & Accrual Accounting - please explain how you got the adjusting entries!!! Please show...
Income Measurement & Accrual Accounting - please explain how
you got the adjusting entries!!! Please show what you debited and
credited for each transaction and how you got the number. Thank
you!
Aggie Consulting Unadjusted Trial Balance - December 31, 2018 Credits Cash Accounts Receivable Debits $ 11,500 3,500 1,200 24,000 14,000 Supplies Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Unearned Service Revenue $1,400 1,900 2,800 10,300 7,500 4,500 Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Advertising Expense...
LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method records transactions only when cash is received? b) Which method records transaction when it occurs, regardless of when the cash is paid? L02. What concepts and principles apply to accrual basis accounting a) Match the concept (by number) to the correct terminology. 1. Time period concept 2. Revenue recognition principle 3. Matching Principle 4. Fiscal year __An accounting time period that may not coincide...
Requirement 3. State why accrual accounting results in an accurate measurement of income Accrual accounting resuits in an accurate measurement of income because it records revenues when earned, regardless of when the cash is recerved and matches the expenses incurred to produce that revenue by recording expenses on the last day of the accounting perio s more complete reports on the last day of the accounting period when cash is received when earned, regardless of when the cash is received,...
Mastering Adjusting Entries The following information relates to questions 31 and 32: CBA Co. uses accrual basis accounting. It collects $20,000 in December for a job and credits unearned revenue. By the end of December, its year end. CBA has completed 40% of the work. 31. How much revenue has CBA earned in December? a. $20,000 b. $12,000 c. $8,000 d. $0 32. Which accounts does CBA debit and credit in the adjusting journal entry on December 31? a. Unearned...
QUESTION 18 At the end of the accounting period, an adjusting entry is made to reflect revenues earned (performance obligations have been satisfied), but cash is not yet collected. This is required due to which method of accounting? a. Accrual basis method of accounting b. Full disclosure C Cash basis method of accounting d. Expense recognition e. Transaction approach QUESTION 19 Symonds Manufacturing has a December 31 year-end. Major flooding occurred on January 18 due to record snow and rainfall,...
1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...
Income Measurement & Accrual Accounting - please explain how
you got the adjusting entries!!! Please show what you debited and
credited for each transaction and how you got the number. Thank
you!
Aggie Consulting Unadjusted Trial Balance - December 31, 2018 Credits Cash Accounts Receivable Debits $ 11,500 3,500 1,200 24,000 14,000 Supplies Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Unearned Service Revenue $1,400 1,900 2,800 10,300 7,500 4,500 Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Advertising Expense...
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