Homework Answers
answer: asset will be overstated by $5000 and net income and stockholder's equity overstated by $500
the company paid prepaid rent $60000 for 12 months.for each month $5000 ($60000/12) is taken as expense .if this is omitted in february month .then the total expenses will be understated by $5000 and net income will be $5000 overstated.this net income is taken into the retained earnings section of stock holder's equity.the equity section too becomes overstated by $5000.prepaid rent is an asset account each month this account should be credited with the monthly expense charge $5000 and if it is omitted to credit the account, asset account will be overstated by $5000.
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Question 41 2 pts Carlton, Inc. pays its rent of $60,000 annually on January 1 and...
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1- Under IFRS, which of the following is generally not a guideline for recognizing revenue? The...
1- Under IFRS, which of the following is generally
not a guideline for recognizing revenue?
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When (or as) the company satisfies the performance
obligation.
The contract is identified with the client.
Collection is reasonably assured.
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Liabilities will be understated and revenues will be
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unadjusted trial balance and I have to calculate net income using
the additional data they give me. I figured out the AJEs for
transactions A, B, and E, but I need help with transactions B and
C. I'm confused because for transaction C I debited insurance
expense of 1,800 and credited prepaid insurance of 1,800 (which
seems to be a deferred expense) and for transaction D I debited...
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financials:
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Hi there, can you please answer questions 1-4. they are all very
short :) Also, the circled answer may or may not be correct and
please disregard the blue scribble marks
Enter Shift Part A (20 marks) he balance in the Prepaid Rent account before adjustment at the end of the year is $12,000 and represents three months rent starting on November 1. The adjusting entry required on December 31, assuming adjusting entries have not previously been made, is Debit...
1- Under IFRS, which of the following is generally
not a guideline for recognizing revenue?
The transaction price is determinable.
When (or as) the company satisfies the performance
obligation.
The contract is identified with the client.
Collection is reasonably assured.
2- If Bee Corp. fails to adjust the Unearned Rent account for
rent that has been earned, what effect will this have on that
month’s financial statements?
Liabilities will be understated and revenues will be
understated.
Assets will be understated...
1) Complete the below table listing Debit and Credit rules: C- E L- A- E- D R- 2) The Revenue Recognition Principle says that companies recognize revenue when (when the is satisfied). It does not matter when is received (it could be before, during, or after). You should match with revenues when the company makes efforts to generate those revenues. 3) Accrual-basis accounting means that transactions that change a company's financial statements are recorded in the periods in which the...
Hi, I'm stuck on two adjusting entries. The problem gives me an
unadjusted trial balance and I have to calculate net income using
the additional data they give me. I figured out the AJEs for
transactions A, B, and E, but I need help with transactions B and
C. I'm confused because for transaction C I debited insurance
expense of 1,800 and credited prepaid insurance of 1,800 (which
seems to be a deferred expense) and for transaction D I debited...
Prepaid Insurance-Annual Adjustments On April 1, 2017, Stratton, Inc., purchases a 24-month property insurance policy for $96,000. The policy is effective immediately. Assume that Stratton prepares adjustments only once a year, on December 31. Required: 1. Compute the monthly cost of the insurance policy. per month 2. Identify and analyze the transaction to record the purchase of the policy on April 1, 2017 Activity Accounts Statement(s) Financing Investing Operating How does this entry affect the accounting equatid If a financial...
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question:
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