Homework Answers
| Cash Basis | Accrual Basis | |
| a. | Supplies Expense on October 25th | Prepaid Supplies on October 25th |
| b. | No impact | Loan Payable on October 25th |
| Adjustment for Interest Payable on December 31 | ||
Add Answer to:
Show the cash vs. accrual impacts of 3 tonnes of fertilizer purchased for cash at $525/tonne...
Exercise 3 – Accrual vs. cash accounting: Taos Corporation sells beauty products. The company's fiscal year...
Exercise 3 – Accrual vs. cash accounting: Taos Corporation sells beauty products. The company's fiscal year ends on December 31. The following transactions occurred in 2019 (assume no income taxes are incurred): a. Purchased $470,000 of soaps from its supplier on account. b. Paid $61,000 in wages to employees for work performed in 2019. In addition, $94,000 of wages for work performed in 2018 were paid in January 2019, and $7,000 of wages for work performed in December 2019 will...
Financial Reporting Theory Cash vs. Accrual You are provided the following information for the Del Campo...
Financial Reporting Theory Cash vs. Accrual You are provided the following information for the Del Campo Consulting Associates. Assume that all supplies purchased were used in operations in the year of purchase. Rental payments pertain to rental space used in the year of payment. 2019 2018 Service revenue (accrual basis) $250,000 $185,000 Cash collected from clients 97,000 80,000 Operating expenses: Salary expense (accrual basis) 12,000 16,500 Purchased supplies for cash Purchased supplies on account 4,000 2,500 1,000 1,500 Depreciation expense...
Please explain and show steps. Thank you. Zambrano Wholesale Corporation maintains its records on a cash...
Please explain and show steps. Thank you. Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company’s accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2021: Cash receipts: From customers $ 705,000 Interest on note 4,480 Loan from a local bank 95,000 Total cash receipts $ 804,480 Cash disbursements: Purchase of merchandise $ 396,000 Annual insurance payment 6,720...
complete please Problem 2-12 Cash versus accrual accounting [LO2-8] Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company's accountant ob...
complete please
Problem 2-12 Cash versus accrual accounting [LO2-8] Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company's accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2018 Cash receipts: $680,000 4,080 105,000e From customers Interest on note Loan from a local bank Total cash receipts $789,080 Cash disbursements: Purchase of merchandise $391,000 6,120 211,000 11,000 24,500 Annual...
You have just been hired as the accountant for Lay’s Lush Landscape Sales & Service, Inc....
You have just been hired as the accountant for Lay’s Lush Landscape Sales & Service, Inc. which started operations on January 01, 2016. Prepare the journal entries (omit explanations) for all transactions from January 01, 2016 through June 30, 2016, post all journal entries to the general ledger, and prepare an Unadjusted Trial Balance for the six months ending June 30, 2016. Transactions: 1/1 The owner of the business contributed $10,000 cash and a truck worth $16,000 to the business...
Problem 10-3A On September 30, 2017, Coldwater Corporation purchased equipment for $940,000. The equipment was purchased...
Problem 10-3A On September 30, 2017, Coldwater Corporation purchased equipment for $940,000. The equipment was purchased with a $100,000 down payment and a three-year, 5%, $840,000 bank loan for the balance. The terms provide for payment of the bank loan with quarterly fixed principal payments of $70,000, plus interest, starting on December 31. Coldwater has a November 30 year end and records adjusting entries annually. Record the purchase of equipment on September 30, 2017. (Round answers to the nearest whole...
Kayak Co. budgeted the following cash receipts (excluding dash receipts from loans received) and cash payments...
Kayak Co. budgeted the following cash receipts (excluding dash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Receipts $525,000 400,eee 45e,eee Cash payments $475,eee 350, eee 525,e00 January February March According to a credit agreement with the company's bank, Kayak promises to have a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow...
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...
3 Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash...
3 Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. 3 points January February March Cash Receipts $522,000 402,000 453,000 Cash payments $468,800 348,800 528,000 eBook According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow...
Brief Exercise 10-4 Fischer Company borrowed $47,280 from National bank on August 1 for three months;...
Brief Exercise 10-4 Fischer Company borrowed $47,280 from National bank on August 1 for three months; 5% interest is payable the first of each month, starting September 1. Fischer's year end is September 30 and the company records adjusting entries only at that time. Your answer is correct. Prepare a journal entry to record the receipt of the bank loan on August 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account...
Exercise 3 – Accrual vs. cash accounting: Taos Corporation sells beauty products. The company's fiscal year ends on December 31. The following transactions occurred in 2019 (assume no income taxes are incurred): a. Purchased $470,000 of soaps from its supplier on account. b. Paid $61,000 in wages to employees for work performed in 2019. In addition, $94,000 of wages for work performed in 2018 were paid in January 2019, and $7,000 of wages for work performed in December 2019 will...
Financial Reporting Theory Cash vs. Accrual You are provided the following information for the Del Campo Consulting Associates. Assume that all supplies purchased were used in operations in the year of purchase. Rental payments pertain to rental space used in the year of payment. 2019 2018 Service revenue (accrual basis) $250,000 $185,000 Cash collected from clients 97,000 80,000 Operating expenses: Salary expense (accrual basis) 12,000 16,500 Purchased supplies for cash Purchased supplies on account 4,000 2,500 1,000 1,500 Depreciation expense...
complete please
Problem 2-12 Cash versus accrual accounting [LO2-8] Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company's accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2018 Cash receipts: $680,000 4,080 105,000e From customers Interest on note Loan from a local bank Total cash receipts $789,080 Cash disbursements: Purchase of merchandise $391,000 6,120 211,000 11,000 24,500 Annual...
Problem 10-3A On September 30, 2017, Coldwater Corporation purchased equipment for $940,000. The equipment was purchased with a $100,000 down payment and a three-year, 5%, $840,000 bank loan for the balance. The terms provide for payment of the bank loan with quarterly fixed principal payments of $70,000, plus interest, starting on December 31. Coldwater has a November 30 year end and records adjusting entries annually. Record the purchase of equipment on September 30, 2017. (Round answers to the nearest whole...
Kayak Co. budgeted the following cash receipts (excluding dash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Receipts $525,000 400,eee 45e,eee Cash payments $475,eee 350, eee 525,e00 January February March According to a credit agreement with the company's bank, Kayak promises to have a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow...
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...
3 Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. 3 points January February March Cash Receipts $522,000 402,000 453,000 Cash payments $468,800 348,800 528,000 eBook According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow...
Brief Exercise 10-4 Fischer Company borrowed $47,280 from National bank on August 1 for three months; 5% interest is payable the first of each month, starting September 1. Fischer's year end is September 30 and the company records adjusting entries only at that time. Your answer is correct. Prepare a journal entry to record the receipt of the bank loan on August 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account...
Most questions answered within 3 hours.
-
How would you train your employees to avoid risks of using
mobile devices?
asked 9 minutes ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 1 hour ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 1 hour ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 2 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 4 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 3 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 5 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 6 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 6 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 6 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 6 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 6 hours ago