Brief Exercise 3-29 Accrual- and Cash-Basis Accounting The following are several transactions for Halpin Advertising Company....
Brief Exercise 3-29 Accrual- and Cash-Basis Accounting
The following are several transactions for Halpin Advertising Company.
Purchased $1,000 of supplies.
Sold $5,000 of advertising services, on account, to customers.
Used $250 of supplies.
Collected $3,000 from customers in payment of their accounts.
Purchased equipment for $10,000 cash.
Recorded $500 depreciation on the equipment for the current period.
Identify the effect, if any, that each of the above transactions would have on net income under cash-basis accounting and accrual-basis accounting. If your answer is zero, enter "0". Enter negative values as negative numbers.
Homework Answers
| item | cash basis | accrual basis |
| a. | -1000 | 0 |
| b. | 0 | 5,000 |
| c. | 0 | -250 |
| d. | 3000 | 0 |
| e. | -10,000 | 0 |
| f. | 0 | -500 |
cash basis is only concerned whether cash is paid or received and is not concerned with matching of a period's revenues with its expenses.
accrual basis is concerned with matching a period's revenues with its expenses and not with actual cash receipts or payments.
Add Answer to:
Brief Exercise 3-29 Accrual- and Cash-Basis Accounting
The following are several transactions for Halpin Advertising
Company....
Accrual- and Cash-Basis Accounting The following are several transactions for Halpin Advertising Company. a. Purchased $1,000...
Accrual- and Cash-Basis Accounting The following are several transactions for Halpin Advertising Company. a. Purchased $1,000 of supplies. b. Sold $5,000 of advertising services, on account, to customers. c. Used $250 of supplies. d. Collected $3,000 from customers in payment of their accounts. e. Purchased equipment for $10,000 cash. f. Recorded $500 depreciation on the equipment for the current period. Required: Identify the effect, if any, that each of the above transactions would have on net income under cash-basis accounting...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Johnny Flowers Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $2,690 for six months of advertising. Johnny Flowers Law Firm recorded $2,690 in the Prepaid Advertising account. Accrual basis/Cash basis If Johnny Flowers Law Firm had recorded their expenses using the other method, how much advertising expense would they...
1. Match each term associated with accrual-basis and cash-basis accounting with its most appropriate description. Accru...
1. Match each term associated with accrual-basis and cash-basis accounting with its most appropriate description. Accrual-basis expense Accrual-basis revenue Revenue recognition principle Cause-and-effect Cash basis revenue Cash-basis expense Match each of the options above to the items below. A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in May. A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in June A company...
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...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Johnny Flowers Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $880 for six months of advertising. Johnny Flowers Law Firm recorded $880 in the Prepaid Advertising account. If Johnny Flowers Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for...
Exercise 1-2 (Algo) Accrual accounting (L01-2) Listed below are several transactions that took place during the...
Exercise 1-2 (Algo) Accrual accounting (L01-2) Listed below are several transactions that took place during the second and third years of operations for the RPG Company. Year 2 Year 3 $250,000 $350,000 160,000 300,000 Amounts billed to customers for services rendered Cash collected from credit customers Cash disbursements: Payment of rent salaries paid to employees for services rendered during the year Utilities Advertising 70,000 130,000 20,000 10,000 150,000 30,000 25,000 In addition, you learn that the company incurred advertising costs...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question The Blue Nile Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $1,170 for six months of advertising. Blue Nile Law Firm recorded $1,170 in the Prepaid Advertising account. If Blue Nile Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for...
CASH BASIS VERSUS ACCRUAL BASIS ACCOUNTING (11 Marks) The following transactions for January 2020 are as...
CASH BASIS VERSUS ACCRUAL BASIS ACCOUNTING (11 Marks) The following transactions for January 2020 are as follows: 1 Purchased a two-year insurance policy for cash, $1,800 9 Performed a service on account, $800 16 Paid wages to employees, $950 18 Completed a job for a customer and collected $600 cash 23 Collected $500 of the amount owed from May 9 30 Accrued wages of $650 Using the Cash basis of accounting, calculate the Net Income (Loss) for January 2020. (5...
Activity 1.c - Identifying Differences between Cash and Accrual Basis Read each scenario, decide whether the...
Activity 1.c - Identifying Differences between Cash and Accrual Basis Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Johnny Flowers Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $180 for six months of advertising. Johnny Flowers Law Firm recorded $180 in the Prepaid Advertising account. Accrual basisCash basiscorrect If Johnny Flowers Law Firm had recorded their expenses...
Exercise 2-18 (Algo) Cash versus accrual accounting [LO2-9] Stanley and Jones Lawn Service Company (S&J) maintains...
Exercise 2-18 (Algo) Cash versus accrual accounting [LO2-9] Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $190,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2021, the following cash flows were recorded: Cash collected for: Services to customers $ 410,000 Cash paid for: Salaries $ 189,000 Supplies 34,000 Rent 18,000 Insurance 8,000 Miscellaneous 29,000 278,000 Net...
Accrual- and Cash-Basis Accounting The following are several transactions for Halpin Advertising Company. a. Purchased $1,000 of supplies. b. Sold $5,000 of advertising services, on account, to customers. c. Used $250 of supplies. d. Collected $3,000 from customers in payment of their accounts. e. Purchased equipment for $10,000 cash. f. Recorded $500 depreciation on the equipment for the current period. Required: Identify the effect, if any, that each of the above transactions would have on net income under cash-basis accounting...
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...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Johnny Flowers Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $880 for six months of advertising. Johnny Flowers Law Firm recorded $880 in the Prepaid Advertising account. If Johnny Flowers Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for...
Exercise 1-2 (Algo) Accrual accounting (L01-2) Listed below are several transactions that took place during the second and third years of operations for the RPG Company. Year 2 Year 3 $250,000 $350,000 160,000 300,000 Amounts billed to customers for services rendered Cash collected from credit customers Cash disbursements: Payment of rent salaries paid to employees for services rendered during the year Utilities Advertising 70,000 130,000 20,000 10,000 150,000 30,000 25,000 In addition, you learn that the company incurred advertising costs...
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question The Blue Nile Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $1,170 for six months of advertising. Blue Nile Law Firm recorded $1,170 in the Prepaid Advertising account. If Blue Nile Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for...
CASH BASIS VERSUS ACCRUAL BASIS ACCOUNTING (11 Marks) The following transactions for January 2020 are as follows: 1 Purchased a two-year insurance policy for cash, $1,800 9 Performed a service on account, $800 16 Paid wages to employees, $950 18 Completed a job for a customer and collected $600 cash 23 Collected $500 of the amount owed from May 9 30 Accrued wages of $650 Using the Cash basis of accounting, calculate the Net Income (Loss) for January 2020. (5...
Most questions answered within 3 hours.
-
Select a target behavior from your list of potential target
behaviors. State your target behavior in...
asked 8 minutes ago -
Guns make a unique marking on the bullets they fire and their
shell casings. These markings...
asked 11 minutes ago -
Bourque Enterprises is considering a new project. The project
will generate sales of $1.5 million, $2.2...
asked 23 minutes ago -
data structures c++
please implement the QuickSort algorithm as a C++ function. Use
it to sort...
asked 23 minutes ago -
A young investment manager tells his client that the probability
of making a positive return with...
asked 26 minutes ago -
Calculate the final discrete available-to-promise quantity for
Week 1 using the following table.
Weeks
1
2...
asked 57 minutes ago -
Bob is gambling in the casino. The probability that he will win
nothing is 0.2. The...
asked 2 hours ago -
A free electron and a free proton are exactly 0.70 cm apart.
A)
Find the magnitude...
asked 2 hours ago -
Identify and Describe the major sources of U.S law. Provide a
sport-related example of each.
asked 2 hours ago -
NASA's Ames Research Center in Mountain View, California, houses
a 20g centrifuge used to conduct research...
asked 3 hours ago -
I want a python code using recursion ONLY.
I cannot use any loops, dictionaries or modules....
asked 3 hours ago -
Tobin Supplies Company expects sales next year to be $450,000.
Inventory and accounts receivable will increase...
asked 4 hours ago