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Office Supplies
Faberton, Inc. purchases office supplies once a month and
prepares monthly financial statements. The asset account Office
Supplies on Hand has a balance of $1,550 on May 1. Purchases of
supplies during May amount to $1,100. Supplies on hand at May 31
amount to $920.
Required:
1. Identify and analyze the effect of the
adjustment on May 31.
Activity
Accounts
Statement(s)
How does this entry affect the accounting equation?
If a financial statement item is not affected, select...
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Debit Company Adjusted Trial Balance December 31, 20X7 Cash $6,500 Accounts receivable 8,000 Supplies 1,000 Prepaid Rent (3 months) 2,500 Equipment, net 42,000 Accounts payable Salary payable Unearned revenue (2 month advance) Note payable - long term Common stock Retained earnings Dividends 4,000 Service revenue Salary expense 40,000 Rent expense 10,000 Supplies expense 1,500 Depreciation expense 5,000 Utilities expense 1,200 $4,000 2,000 2,000 14,000 10,000 14,700 75,000 Total $121,700 $121.700 *Assume 30% income tax Balance Sheet Assets Liabilities Total Liabilities...
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Liberty Company calculates that interest of $900 has accrued at December 31 on outstanding notes payable. How should Liberty record this on December 317 Select one: BALANCE SHEET INCOME STATEMENT STOCKHOLDER'S EQUITY REVENUE ASSETS Cash Prepaid interest 900 LIABILITIES Interest Payable EXPENSE Interest Expense -900 +900 Ob BALANCE SHEET INCOME STATEMENT STOCKHOLDER'S EQUITY . ASSETS Cash Prepaid interest REVENUE LIABILITIES Interest Payable +900 EXPENSE Interest Expense 900 900 C BALANCE SHEET INCOME STATEMENT STOCKHOLDER'S EQUITY LIABILITIES Interest Payable ASSETS Cash...
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Create a balance sheet
I TUDIUM 1. The adjusted trial balance of Debit Company is shown below: Debit Company Adjusted Trial Balance December 31, 20X7 Cash $6,500 Accounts receivable 8,000 Supplies 1,000 Prepaid Rent (3 months) 2,500 Equipment, net 42,000 Accounts payable Salary payable Unearned revenue (2 month advance) Note payable - long term Common stock Retained earnings- Dividends Service revenue Salary expense 40,000 Rent expense 10,000 Supplies expense Depreciation expense 5,000 Utilities expense 1,200 $4,000 2,000 2,000 14,000 10,000...
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Problem 2.4A (Static) Preparing an income statement, a statement of owner's equity, and a balance sheet. LO 2-4, 2-5 Exp 0 + 980 980 + - 980 The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton Assets Liab. Owner's Equity Accls. Accts. T.Cotton Cash + Rec. + Supp. + Equip. = Pay + Capital + Rev. Balances, May 1 15,000 + 3.000 + 5,800 + 33,800 - 7.000 + 50,600...
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Accounting Manipulation Problems
a) The Office Supplies account had a $900 balance at the
beginning of the current year; $400 of office supplies were
purchased during the year; and the year-end balance sheet showed
$300 of office supplies; office supplies expense for the year must
have been ___________
b) The Prepaid Insurance account began the current year with a
balance of $1,500; the income statement for the year showed
Insurance Expense of 1,800; and the year-end balance sheet showed
Prepaid...
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Debit Credit Balance Balance Account Cash 21,805 Accounts Receivable 2,700 Office Supplies 160 Prepaid Insurance 1,100 Equipment 8,200 Van 6,000 Accounts Payable 4,400 Wilhelm Kohl, Capital 25,000 Wilhelm Kohl, Drawing 2,900 Service Fees 15,500 Rent Expense 850 Wages Expense 800 Phone Expense 230 Gas and Oil Expense 155 Totals 44,900 44,900 Change in owner's equity: Check My Work All work saved. Rent Expense 850 Wages Expense 800 230 Phone Expense I Gas and Oil Expense 155 Totals 44,900 44,900 Change...
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Need help solving for all information
Following are the accounts for Dakota Corporation. Both ordinary journal entries and adjusting journal entries have been posted for the year and the balances are as of December 31, 2019. All balances are normal for account type. You need to prepare financials statements as of December 31, 2019. You do not need to prepare a proper statement heading. Use a - (hyphen) to represent that no data is presented. Use the account names exactly...
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A company had no office supplies at the beginning of the year. During the year, the company purchased $400 worth of office supplies. On December 31, $150 worth of office supplies remained. How much should the company report as office supplies expense for the year? Multiple Choice O $150 о O $250 o $200 O $550 O $400 On April 30, 2014, a three-year insurance policy was purchased for $19,260 with coverage to begin immediately. What is the amount of...
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On January 1, Year 2, the Supplies account of Sheldon Company had a balance of $1,200. During the year, the company purchased $3,400 of supplies on account and made partial payments totaling $3,000 on those accounts. On December 31, Year 2, Sheldon determined that there were $1,400 of supplies on hand. Which of the following would be reported on Sheldon's Year 2 financial statements? Multiple Choice $1,600 of supplies: $200 of supplies expense $1,400 of supplies: $2,000 of supplies expense...
Office Supplies
Faberton, Inc. purchases office supplies once a month and
prepares monthly financial statements. The asset account Office
Supplies on Hand has a balance of $1,550 on May 1. Purchases of
supplies during May amount to $1,100. Supplies on hand at May 31
amount to $920.
Required:
1. Identify and analyze the effect of the
adjustment on May 31.
Activity
Accounts
Statement(s)
How does this entry affect the accounting equation?
If a financial statement item is not affected, select...
Debit Company Adjusted Trial Balance December 31, 20X7 Cash $6,500 Accounts receivable 8,000 Supplies 1,000 Prepaid Rent (3 months) 2,500 Equipment, net 42,000 Accounts payable Salary payable Unearned revenue (2 month advance) Note payable - long term Common stock Retained earnings Dividends 4,000 Service revenue Salary expense 40,000 Rent expense 10,000 Supplies expense 1,500 Depreciation expense 5,000 Utilities expense 1,200 $4,000 2,000 2,000 14,000 10,000 14,700 75,000 Total $121,700 $121.700 *Assume 30% income tax Balance Sheet Assets Liabilities Total Liabilities...
Liberty Company calculates that interest of $900 has accrued at December 31 on outstanding notes payable. How should Liberty record this on December 317 Select one: BALANCE SHEET INCOME STATEMENT STOCKHOLDER'S EQUITY REVENUE ASSETS Cash Prepaid interest 900 LIABILITIES Interest Payable EXPENSE Interest Expense -900 +900 Ob BALANCE SHEET INCOME STATEMENT STOCKHOLDER'S EQUITY . ASSETS Cash Prepaid interest REVENUE LIABILITIES Interest Payable +900 EXPENSE Interest Expense 900 900 C BALANCE SHEET INCOME STATEMENT STOCKHOLDER'S EQUITY LIABILITIES Interest Payable ASSETS Cash...
Create a balance sheet
I TUDIUM 1. The adjusted trial balance of Debit Company is shown below: Debit Company Adjusted Trial Balance December 31, 20X7 Cash $6,500 Accounts receivable 8,000 Supplies 1,000 Prepaid Rent (3 months) 2,500 Equipment, net 42,000 Accounts payable Salary payable Unearned revenue (2 month advance) Note payable - long term Common stock Retained earnings- Dividends Service revenue Salary expense 40,000 Rent expense 10,000 Supplies expense Depreciation expense 5,000 Utilities expense 1,200 $4,000 2,000 2,000 14,000 10,000...
Problem 2.4A (Static) Preparing an income statement, a statement of owner's equity, and a balance sheet. LO 2-4, 2-5 Exp 0 + 980 980 + - 980 The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton Assets Liab. Owner's Equity Accls. Accts. T.Cotton Cash + Rec. + Supp. + Equip. = Pay + Capital + Rev. Balances, May 1 15,000 + 3.000 + 5,800 + 33,800 - 7.000 + 50,600...
Debit Credit Balance Balance Account Cash 21,805 Accounts Receivable 2,700 Office Supplies 160 Prepaid Insurance 1,100 Equipment 8,200 Van 6,000 Accounts Payable 4,400 Wilhelm Kohl, Capital 25,000 Wilhelm Kohl, Drawing 2,900 Service Fees 15,500 Rent Expense 850 Wages Expense 800 Phone Expense 230 Gas and Oil Expense 155 Totals 44,900 44,900 Change in owner's equity: Check My Work All work saved. Rent Expense 850 Wages Expense 800 230 Phone Expense I Gas and Oil Expense 155 Totals 44,900 44,900 Change...
Need help solving for all information
Following are the accounts for Dakota Corporation. Both ordinary journal entries and adjusting journal entries have been posted for the year and the balances are as of December 31, 2019. All balances are normal for account type. You need to prepare financials statements as of December 31, 2019. You do not need to prepare a proper statement heading. Use a - (hyphen) to represent that no data is presented. Use the account names exactly...
A company had no office supplies at the beginning of the year. During the year, the company purchased $400 worth of office supplies. On December 31, $150 worth of office supplies remained. How much should the company report as office supplies expense for the year? Multiple Choice O $150 о O $250 o $200 O $550 O $400 On April 30, 2014, a three-year insurance policy was purchased for $19,260 with coverage to begin immediately. What is the amount of...
On January 1, Year 2, the Supplies account of Sheldon Company had a balance of $1,200. During the year, the company purchased $3,400 of supplies on account and made partial payments totaling $3,000 on those accounts. On December 31, Year 2, Sheldon determined that there were $1,400 of supplies on hand. Which of the following would be reported on Sheldon's Year 2 financial statements? Multiple Choice $1,600 of supplies: $200 of supplies expense $1,400 of supplies: $2,000 of supplies expense...