8)
Debit | Credit | |
Unearned revenue | 3000 | |
Service revenue | 3000 |
9)
Debit | Credit | |
Interest expense | 450 | |
Interest payable | 450 |
Assets: not impacted | Revenue: not impacted |
Liabilities: understated | Expense: understated |
Stockholder's equity: overstated |
10)
Debit | Credit | |
Depreciation expense | 650 | |
Accumulated depreciation | 650 |
Assets: overstated | Revenue: not impacted |
Liabilities: not impacted | Expense: understated |
Stockholder's equity: overstated |
11)
Debit | Credit | |
Supplies expense | 500 | |
Supplies | 500 |
Assets: overstated | Revenue: not impacted |
Liabilities: not impacted | Expense: understated |
Stockholder's equity: overstated |
12)
Debit | Credit | |
Accounts receivable | 700 | |
Service revenue | 700 |
Assets: understated | Revenue: understated |
Liabilities: not impacted | Expense: not impacted |
Stockholder's equity: understated |
13)
Debit | Credit | |
Wages expense | 5000 | |
Wages payable | 5000 |
Assets: not impacted | Revenue: not impacted |
Liabilities: understated | Expense: understated |
Stockholder's equity: overstated |
Daisy Corporation | ||
Adjusted Trial Balance | ||
June 30th, 2020 | ||
Cash | 12000 | |
Accounts receivable | 700 | |
Supplies ($2000 - $500) | 1500 | |
Prepaid insurance | 1300 | |
Building | 500000 | |
Land | 73500 | |
Equipment | 128000 | |
Accumulated depreciation ($3000 + $650) | 3650 | |
Accounts payable | 8000 | |
Unearned revenue ($5000 - $3000) | 2000 | |
Wages payable | 5000 | |
Interest payable | 450 | |
Notes payable | 37800 | |
Common stock | 472000 | |
Retained earnings | 102000 | |
Dividends | 6000 | |
Service revenue ($120000 + $3000 + $700) | 123700 | |
Adertising expense | 2000 | |
Depreciation expense | 650 | |
Supplies expense | 500 | |
Wages expense ($23000 + $5000) | 28000 | |
Interest expense | 450 | |
Totals | 754600 | 754600 |
8) Daisy Co. previously received & recorded $5,000 cash from a client for future consulting services....
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...
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Is this correct? In recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries for the following situations: O (Click to view the adjusting entries.) Determine the effects on the income statement and balance sheet by identifying whether assets, liabilities, equity, revenue, and expenses are either overstated or understated. Use the following table. Adjustment a has been provided as an example. Begin by determining the effects for adjusting entries b. and c. and then determine the effects for...
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Willycom Company borrowed $80,000 from China Bank on September 2, 2012. Willycom signed a 180 day, 12% note payable to China Bank. On December 31, 2012, part of the adjusting entry should include: Debit Interest Expense for $3,200. Credit Interest Payable for $4,800. Debit Interest Expense for $9,600. Credit Note Payable for $80,000. None of the above. Use the following information for the next two questions On December 31, 2012, Lauren Company prepared year-end financial statements. Lauren failed to record any...
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