True or False- John’s Plumbing pays rent on 28 June 2013 in advance of the rental...
True or False- John’s Plumbing pays rent on 28 June 2013 in advance of the rental period for which it applies, 01-31 July 2013. John’s Plumbing follows an accrual basis of accounting and has a fiscal year-end of 30 June. It will claim the rent expense on its income statement for the fiscal year ended 30 June 2013.
Homework Answers
Answer: False
Since the rent pertains to the period 01-31 July 2013 and John’s Plumbing follows the accrual basis of accounting, it will claim the rent expense on its income statement in the period to which it pertains irrespective of when it is actually paid. Thus, John’s will claim the rent expense on its income statement not for the fiscal year ended 30 June 2013 but for the fiscal year ended 30 June 2014. On 30 June 2013 it will carry the amount paid on its balance sheet as prepaid rent and then claim it as rent expense in July 2013.
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True or False- John’s Plumbing pays rent on 28 June 2013 in advance of the rental...
John’s Plumbing pays rent on 28 June 2013 in advance of the rental period for which it applies, 01-31 July 2013. John’s...
John’s Plumbing pays rent on 28 June 2013 in advance of the rental period for which it applies, 01-31 July 2013. John’s Plumbing follows an accrual basis of accounting and has a fiscal year-end of 30 June. It will claim the rent expense on its income statement for the fiscal year ended 30 June 2013. (T/F)
true or false? When a company pays its rent in advance, an asset is reported on...
true or false? When a company pays its rent in advance, an asset is reported on the balance sheet.
Additional information a) Quarterly income tax instalments paid during the year were: 28 October 2013 28...
Additional information
a) Quarterly income tax instalments paid during the year were:
28 October 2013
28 January 2014
28 April 2014
Note: Final instalment due on July 28
b) The following items are exempt from tax rules:
Royalties are non-assessable
Entertainment expenses are non-deductible
$18,000 18,000 17,000
c) The tax depreciation rate for plant (purchased 3 years ago
for $150,000) is 20%.
d) Tax depreciation on buildings is equal to accounting
depreciation on buildings.
e) During the year, the following...
no explaining 28. On July 1, 2018, Charlie Co. paid $18,000 in advance to Rent-An-Office for...
no
explaining
28. On July 1, 2018, Charlie Co. paid $18,000 in advance to Rent-An-Office for 12 months rent from July 2018 through June 2019. What adjusting entry should Charlie Co, record on December 31, 2018 to record the amount of rent expense incurred in 2018? 18,000 18.000 B. | 18,000 18,000 Rent Expense Cash Rent Expense Prepaid Rent Prepaid Rent Rent Expense Rent Expense Prepaid Rent c. 9,000 9,000 9,000 9,000 29. A list of all accounts and their...
1) Fred and Phyllis Black are a married couple with no children. On June 15, 2019,...
1) Fred and Phyllis Black are a married couple with no children. On June 15, 2019, Fred died. Phyllis has not remarried. For 2019, what is Phyllis' most favorable filing status? 2) Fred and Phyllis Black are a married couple with no children. On June 15, 2019, Fred died. In 2020, Phyllis has not remarried and has a dependent son who continues to live with her. For 2019, what is Phyllis' most favorable filing status for 2020? 3) Fred and...
43. Your company, which uses accrual basis accounting, pays $18,000 in advance to cover a 3-year insurance premium...
43. Your company, which uses accrual basis accounting, pays $18,000 in advance to cover a 3-year insurance premium and debits Prepaid Insurance. How much insurance expense has your company incurred after 1 year has elapsed? a. $18,000 b. $12,000 c. $6,000 d. $0 Use the following information for Questions 44 and 45: Your company shows the following data at the end of its first year: Credit sales for the year Accounts Receivable balance Allowance for Doubtful Accounts $1,000,000 100,000 4,000...
2. ABC company maintains its records cash basis of accounting during the year and converts them...
2. ABC company maintains its records cash basis of accounting during the year and converts them to accrual basis at the end of the year through adjusting entries. Whe preparing the financial statements of ACC for the year ended December 31, 2019 on accrual basis, you discover the following: a. ABC Company sublet a portion of its warehouse for a one-year period for an annual rental payment of $72,000, beginning on August 1, 2019. The tenant, XYZ company paid the...
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...
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...
QUESTION 17 Free response question: Please answer the following questions on paper, scan the papers and...
QUESTION 17 Free response question: Please answer the following questions on paper, scan the papers and upload as a single file at the end of the exam. Part II Contd. 2. ABC company maintains its records cash basis of accounting during the year and then converts them to accrual basis at the end of the year through adjusting entries. While preparing the financial statements of ACC for the year ended December 31, 2020 on accrual basis, you discover the following:...
Additional information
a) Quarterly income tax instalments paid during the year were:
28 October 2013
28 January 2014
28 April 2014
Note: Final instalment due on July 28
b) The following items are exempt from tax rules:
Royalties are non-assessable
Entertainment expenses are non-deductible
$18,000 18,000 17,000
c) The tax depreciation rate for plant (purchased 3 years ago
for $150,000) is 20%.
d) Tax depreciation on buildings is equal to accounting
depreciation on buildings.
e) During the year, the following...
no
explaining
28. On July 1, 2018, Charlie Co. paid $18,000 in advance to Rent-An-Office for 12 months rent from July 2018 through June 2019. What adjusting entry should Charlie Co, record on December 31, 2018 to record the amount of rent expense incurred in 2018? 18,000 18.000 B. | 18,000 18,000 Rent Expense Cash Rent Expense Prepaid Rent Prepaid Rent Rent Expense Rent Expense Prepaid Rent c. 9,000 9,000 9,000 9,000 29. A list of all accounts and their...
43. Your company, which uses accrual basis accounting, pays $18,000 in advance to cover a 3-year insurance premium and debits Prepaid Insurance. How much insurance expense has your company incurred after 1 year has elapsed? a. $18,000 b. $12,000 c. $6,000 d. $0 Use the following information for Questions 44 and 45: Your company shows the following data at the end of its first year: Credit sales for the year Accounts Receivable balance Allowance for Doubtful Accounts $1,000,000 100,000 4,000...
2. ABC company maintains its records cash basis of accounting during the year and converts them to accrual basis at the end of the year through adjusting entries. Whe preparing the financial statements of ACC for the year ended December 31, 2019 on accrual basis, you discover the following: a. ABC Company sublet a portion of its warehouse for a one-year period for an annual rental payment of $72,000, beginning on August 1, 2019. The tenant, XYZ company paid the...
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...
QUESTION 17 Free response question: Please answer the following questions on paper, scan the papers and upload as a single file at the end of the exam. Part II Contd. 2. ABC company maintains its records cash basis of accounting during the year and then converts them to accrual basis at the end of the year through adjusting entries. While preparing the financial statements of ACC for the year ended December 31, 2020 on accrual basis, you discover the following:...
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