Question 1

Marian Company collected $8,000 cash in advance during March for services to be performed in April and May. At the end of April an adjusting entry was made to debit Unearned Revenue and credit Service Revenue for $4,200. The ending balance in the Unearned Revenue account was $3,800.
A. What entry was made during March when the original $8,000 was collected?
B. How much will Marian report on its balance sheet as a liability at the end of April as a result of the transactions?

Accepted Answer

The answer of Marian Company collected $8,000 cash in advance...

Question 2

Total assets, liabilities, and shareholders' equity are $4,000, $1,000, and $3,000 before current period wages of $200 are paid. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

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The answer of Total assets, liabilities, and shareholders' equity are...

Question 3

On October 1, 2010, Edinboro Company rented a building from another company for $90,000 for a two-year time period. Edinboro Company debited the rent expense account on October 1 when the payment was made. What adjustment for rent is necessary at December 31, 2010?

Accepted Answer

The answer of On October 1, 2010, Edinboro Company rented...

Question 4

During the first year of business, office supplies were purchased for cash in the amount of $2,000 and the amount was debited to supplies expense. At the end of the first year, the physical count indicated that $500 of supplies was unused. How much should be reported on the income statement at year end for office supplies expense? On the balance sheet for office supplies?

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The answer of During the first year of business, office...

Question 5

Total assets, liabilities, and shareholders' equity are $15,000, $6,000, and $9,000 before a $2,000 note payable is paid. Determine the new amounts of assets, liabilities, and shareholders' equity after this event?

Accepted Answer

The answer of Total assets, liabilities, and shareholders' equity are...

Question 6

Houston Times Publishing Inc. sells two-year magazine subscriptions. Cash receipts from subscribers are credited to Unearned Subscriptions. On December 31, 2010, immediately before the company made adjusting entries, the Unearned Subscriptions account had a balance of $8,000. Outstanding subscriptions relating to magazines that have not been delivered as of December 31, 2010, will be mailed to customers as follows:  At December 31, 2010, what amount should Houston Times Publishing Inc. report as the balance for Unearned Subscriptions? Where should this amount be reported?

Accepted Answer

The answer of Houston Times Publishing Inc. sells two-year magazine...

Question 7

Wages Payable on January 1 equals $12,000. By the end of the current year, Wage Expense equals $420,000, and cash payments for wages were $424,000. What is the balance in the T-account, Wages Payable, on December 31?

Accepted Answer

The answer of Wages Payable on January 1 equals $12,000....

Question 8

Total assets, liabilities, and shareholders' equity are $14,000, $7,000, and $7,000 before a new copy machine is purchased in exchange for a $1,000 note payable. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

Accepted Answer

The answer of Total assets, liabilities, and shareholders' equity are...

Question 9

For each of the transactions listed in 1 through 5 below, indicate whether it involves a deferral (D) or an accrual (A) by placing the letter of the correct response in the space provided.

Accepted Answer

The answer of For each of the transactions listed in...

Question 10

Ohio Company, a corporation, began operations on December 1, 2010. During January of 2011, the following transactions occurred:
$\bullet$Billed customers $12,000 for services performed during January.
$\bullet$Received payment from customers in the amount of $6,000 for services performed and billed in December.
$\bullet$Received cash of $7,000 for services performed during January for customers who paid cash immediately. (No bills were mailed.)
A. How much total Revenue should Ohio Company report for January, 2011?
B. Determine the increase in cash during January of 2011 as a result of these transactions.

Accepted Answer

The answer of Ohio Company, a corporation, began operations on...

Question 11

For each transaction numbered 1 through 12 below, identify its effect on the accounting equation by selecting from a through h below. You may use each letter more than once or not at all.

Accepted Answer

The answer of For each transaction numbered 1 through 12...

Question 12

Mingo Company has been in business several years. During January of 2010, the following transactions occurred:
$\bullet$Paid employees $6,000 for wages during January.
$\bullet$Paid $2,000 cash for other operating expenses of which $1,000 related to December and the balance related to January.
$\bullet$Paid utilities and rent for January in the amount of $1,800.
$\bullet$Paid a cash dividend to shareholders in the amount of $900 during January.
How much is total Expenses that Mingo Company will report for January 2010? Why is this amount different than the amount paid during the month?

Accepted Answer

The answer of Mingo Company has been in business several...

Question 13

Total assets, liabilities, and shareholders' equity are $7,000, $5,000, and $1,000 before a new machine is purchased for $500 cash. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

Accepted Answer

The answer of Total assets, liabilities, and shareholders' equity are...

Question 14

Total assets, liabilities, and shareholders' equity are $22,000, $5,000, and $17,000 before land costing $10,000 is purchased in exchange for a $1,000 note payable and $9,000 cash. During the year, the company earned $50,000 of revenues of which only $45,000 was collected. Expenses totaling $44,000 were incurred, but $2,000 of this had not been paid by the end of the year. Show the amounts that would be reported on the accounting equation as a result of these transactions.

Accepted Answer

The answer of Total assets, liabilities, and shareholders' equity are...

Question 15

Retained earnings on January 1 and December 31 are $65,000 and $58,000, respectively. During the year, net income is $113,000. How much dividends did the company declare and pay to the shareholders?
a. $177,000
b. $171,000
c. $107,000
d. $120,000

Accepted Answer

The answer of Retained earnings on January 1 and December...

Question 16

Total assets, liabilities, and shareholders' equity are $5,000, $1,500, and $3,500 before common stock is issued for $500 cash. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

Accepted Answer

The answer of Total assets, liabilities, and shareholders' equity are...

Question 17

Inventory on January 1 and December 31 is $46,000 and $42,000, respectively. Accounts payable on January 1 and December 31 are $31,000 and $29,000, respectively. During the year, cost of goods sold is $186,000. How much is the current year's cash payments to suppliers of inventory?
a. $184,000
b. $213,000
c. $181,000
d. $191,000

Accepted Answer

The answer of Inventory on January 1 and December 31...

Question 18

The accounts for Jalisa Company are listed below, identified by number. Following the list of accounts is a series of adjusting entries (a through f) prepared by Jalisa Company. For each entry, identify the number(s) of the accounts to be debited and credited and place them in the space provided adjacent to each adjusting entry.

Accepted Answer

The answer of The accounts for Jalisa Company are listed...

Question 19

When a landlord records rent received in advance from a tenant in a revenue account, the adjusting entry required at year end to allocate the rent to the proper periods has an impact on financial statement elements. What effect (increase, decrease, no effect) does the required adjustment have on each of the following elements?

Accepted Answer

The answer of When a landlord records rent received in...

Question 20

Total assets, liabilities, and shareholders' equity are $6,000, $4,000, and $2,000 before $1,000 is received in exchange for a $1,000 bond payable. What change occurred to liabilities? Why is there no change in shareholders' equity?

Accepted Answer

The answer of Total assets, liabilities, and shareholders' equity are...

Quiz 4: The Mechanics of Financial Accounting

Total assets, liabilities, and shareholders' equity are $4,000, $1,000, and $3,000 before current period wages of $200 are paid. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

On October 1, 2010, Edinboro Company rented a building from another company for $90,000 for a two-year time period. Edinboro Company debited the rent expense account on October 1 when the payment was made. What adjustment for rent is necessary at December 31, 2010?

Total assets, liabilities, and shareholders' equity are $15,000, $6,000, and $9,000 before a $2,000 note payable is paid. Determine the new amounts of assets, liabilities, and shareholders' equity after this event?

Wages Payable on January 1 equals $12,000. By the end of the current year, Wage Expense equals $420,000, and cash payments for wages were $424,000. What is the balance in the T-account, Wages Payable, on December 31?

Total assets, liabilities, and shareholders' equity are $14,000, $7,000, and $7,000 before a new copy machine is purchased in exchange for a $1,000 note payable. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

For each of the transactions listed in 1 through 5 below, indicate whether it involves a deferral (D) or an accrual (A) by placing the letter of the correct response in the space provided.

For each transaction numbered 1 through 12 below, identify its effect on the accounting equation by selecting from a through h below. You may use each letter more than once or not at all.

Total assets, liabilities, and shareholders' equity are $7,000, $5,000, and $1,000 before a new machine is purchased for $500 cash. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

Retained earnings on January 1 and December 31 are $65,000 and $58,000, respectively. During the year, net income is $113,000. How much dividends did the company declare and pay to the shareholders? a. $177,000 b. $171,000 c. $107,000 d. $120,000

Total assets, liabilities, and shareholders' equity are $5,000, $1,500, and $3,500 before common stock is issued for $500 cash. What are the new amounts of assets, liabilities, and shareholders' equity after this event?

Total assets, liabilities, and shareholders' equity are $6,000, $4,000, and $2,000 before $1,000 is received in exchange for a $1,000 bond payable. What change occurred to liabilities? Why is there no change in shareholders' equity?