Homework Answers
1. Answer $100,000
Explanation:
When cash basis revenue model is used, the amount of cash received from the sale from debtors will be the amount of revenue for the Year. Hence, $100,000 should be recognized.
2. Answer $105,000
Explanation:
Revenue under Accrual Basis = Closing Accounts Receivables + Cash Received from debtors - Opening Accounts Receivables + Opening Unearned Revenues - Closing Unearned Revenues
Hence, Revenue under Accrual Basis = $13,000 + $100,000 -$10,000 + $6,000 - $4,000 = $105,000
3. Answer $10,000
Explanation:
When cash basis revenue model is used, the amount of cash paid for the rent will be the amount of expense for the Year. Hence, $10,000 should be recognized.
4. Answer $11,000
Explanation:
Rent Expenses under Accrual Basis = Opening Prepaid Rent Expenses + Cash paid during the period - Closing Prepaid Rent Expenses + Closing Rent Payable - Opening Rent Payable
Hence, Rent Expenses under Accrual Basis = $2,000 + $10,000 -$3,000 + $5,000 - $3,000 = $11,000
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QUESTION 33 After going private, Dell decided to use the cash basis accounting to simplify things....
aining Time: 1 hour, 04 minutes, 44 seconds. astion Completion Status: QUESTION 37 After going private,...
aining Time: 1 hour, 04 minutes, 44 seconds. astion Completion Status: QUESTION 37 After going private, Dell decided to use the cash basis accounting to simplify things. The company received $100,000 in cash from customers during 2011. Dell also paid $20,000 for rent during 20x1. Considering this and using the following information, determine the amount of accrual-basis revenue Dell should recognize for 2011 Accounts receivable Unearned revenue Prepaid rent 1/1 510,000 6,000 2,000 3,000 12/31 $13,000 4,000 3,000 5,000 Rent...
Remaining Time: 1 hour, 36 minutes, 07 seconds. Question Completion Status: Aher going private, Dell decided...
Remaining Time: 1 hour, 36 minutes, 07 seconds. Question Completion Status: Aher going private, Dell decided to use the cash basis accounting to simplify things. The company received $100.000 in cash from customers during 2011. Del miso paid 320,000 for rent during 20x1. Considering this and using the following information, determine the amount of accrual basis revenue Del should recognize for 2011 111 12/31 Accounts receivable Uneared revenue Prepaid rent Rent Payable $10,000 6,000 2,000 3.000 $13,000 4,000 3,000 5,000...
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...
Use the following to answer questions 1-4 A company maintains its records using accrual basis accounting;...
Use the following to answer questions 1-4 A company maintains its records using accrual basis accounting; however, their accountant wants to create a statement of cash flows and needs to determine the cash flow from operating activities. For simplicity, we assume only one expense account (salaries). The following is data gathered from their records. Services provided to customers during the period Salaries expense for the period Accounts receivable (beginning balance) Accounts receivable (ending balance) Salaries payable beginning balance) Salaries pavable...
QUESTION: The cash purchase of a building reduces total assets when using accrual basis accounting. o...
QUESTION:
The cash purchase of a building reduces total assets when
using accrual basis accounting.
o True
o False
1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires ſive employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the monthly rent...
Problem 3-2A Convert cash-basis accounting to accrual-basis accounting (LO3-1, 3-2) Minutemen Law Services maintains its books...
Problem 3-2A Convert cash-basis accounting to accrual-basis accounting (LO3-1, 3-2) Minutemen Law Services maintains its books using cash-basis accounting. However, the company decides to borrow $100,000 from a local bank, and the bank requires Minutemen to provide annual financial statements prepared using accrual basis accounting as part of the credit worthiness verification. During 2021, the company records the following cash flows: $61,000 Cash collected from customers Cash paid for: Salaries Supplies Rent Insurance Utilities Net cash flows $35, 100 3,100...
Q: The cash purchase of a building reduces total assets when using accrual basis accounting. A:...
Q: The cash purchase of a building reduces total assets when
using accrual basis accounting.
A: True or False ??
Goal: Transaction analysis using ACCRUAL-basis accounting. 1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires five employees to manage and operate the business. c. On January...
Sparky's Family Practice, M.D., maintains the accounting records of the clinic on a cash basis. During...
Sparky's Family Practice, M.D., maintains the accounting records of the clinic on a cash basis. During 20x1, Dr. Sparky collected $142,600 from the patients and paid $55,470 in expenses. At January 1, 20x1 and December 31, 20x1, the clinic had the following assets and liabilities. January 1, 20x1 December 31, 20x1 Accounts Receivable $9,200 $15,900 Unearned Revenue 2,800 4,100 Accrued Expenses 3,400 2,300 Prepaid Expenses 1,900 3,400 Equipment 40,000 40,000 *For accrual accounting purposes, Sparky uses a straight-line method of...
For May, what is net income or net loss using cash basis accounting and what is...
For May, what is net income or net loss using cash basis accounting and what is net income or loss using accrual basis accounting? (Use parentheses or a minus sign to indicate a loss. Round amounts to the nearest whole dollar during calculations & for final answers, as applicable.) Cash Basis Amount Accrual Basis Amount Net income (loss) 1 More Info May 1 Prepaid rent for three months, $1,500. 5 Received and paid electricity bill, $250. 9 Received cash for...
QUESTION: The sale of inventory increases the inventory balance using accrual-basis accounting. o True o False...
QUESTION:
The sale of inventory increases the inventory balance using
accrual-basis accounting.
o True
o False
1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires ſive employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the monthly rent of $500 cash....
aining Time: 1 hour, 04 minutes, 44 seconds. astion Completion Status: QUESTION 37 After going private, Dell decided to use the cash basis accounting to simplify things. The company received $100,000 in cash from customers during 2011. Dell also paid $20,000 for rent during 20x1. Considering this and using the following information, determine the amount of accrual-basis revenue Dell should recognize for 2011 Accounts receivable Unearned revenue Prepaid rent 1/1 510,000 6,000 2,000 3,000 12/31 $13,000 4,000 3,000 5,000 Rent...
Remaining Time: 1 hour, 36 minutes, 07 seconds. Question Completion Status: Aher going private, Dell decided to use the cash basis accounting to simplify things. The company received $100.000 in cash from customers during 2011. Del miso paid 320,000 for rent during 20x1. Considering this and using the following information, determine the amount of accrual basis revenue Del should recognize for 2011 111 12/31 Accounts receivable Uneared revenue Prepaid rent Rent Payable $10,000 6,000 2,000 3.000 $13,000 4,000 3,000 5,000...
Use the following to answer questions 1-4 A company maintains its records using accrual basis accounting; however, their accountant wants to create a statement of cash flows and needs to determine the cash flow from operating activities. For simplicity, we assume only one expense account (salaries). The following is data gathered from their records. Services provided to customers during the period Salaries expense for the period Accounts receivable (beginning balance) Accounts receivable (ending balance) Salaries payable beginning balance) Salaries pavable...
QUESTION:
The cash purchase of a building reduces total assets when
using accrual basis accounting.
o True
o False
1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires ſive employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the monthly rent...
Problem 3-2A Convert cash-basis accounting to accrual-basis accounting (LO3-1, 3-2) Minutemen Law Services maintains its books using cash-basis accounting. However, the company decides to borrow $100,000 from a local bank, and the bank requires Minutemen to provide annual financial statements prepared using accrual basis accounting as part of the credit worthiness verification. During 2021, the company records the following cash flows: $61,000 Cash collected from customers Cash paid for: Salaries Supplies Rent Insurance Utilities Net cash flows $35, 100 3,100...
Q: The cash purchase of a building reduces total assets when
using accrual basis accounting.
A: True or False ??
Goal: Transaction analysis using ACCRUAL-basis accounting. 1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires five employees to manage and operate the business. c. On January...
For May, what is net income or net loss using cash basis accounting and what is net income or loss using accrual basis accounting? (Use parentheses or a minus sign to indicate a loss. Round amounts to the nearest whole dollar during calculations & for final answers, as applicable.) Cash Basis Amount Accrual Basis Amount Net income (loss) 1 More Info May 1 Prepaid rent for three months, $1,500. 5 Received and paid electricity bill, $250. 9 Received cash for...
QUESTION:
The sale of inventory increases the inventory balance using
accrual-basis accounting.
o True
o False
1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires ſive employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the monthly rent of $500 cash....
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