on july 1 olive co paid $7,500

Ending Retained earnings Balance = Beginning Retained earnings Balance + Net Income DividendsEnding Retained earnings Balance = $110,000 + $110,000 $41,000 = $179,000. Recording expenses early overstates current-period income; recording expenses late D) Expense recognition (Matching) principle. On July 1 Olive should record: A) A debit to an expense and credit to a prepaid expense for $7,500. Assume that year ended on December 31, which is a Wednesday, and all employees will be paid salaries for five full days on the following Monday. All rights reserved. A) Profit margin reflects the percent of profit in each dollar of revenue. What is the correct closing entry for the revenue accounts? Actual price per meter = $382,500/62,500 m 19 Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. expense account. Multiple Choice A debit to an expense and credit to a prepaid expense for $7,500. An expense account is normally closed by debiting Income Summary and crediting the \text{Gain on sale of investments} &5 &\$ 340\\ The fair value of each item A:Inventory cost can be allocated by multiplying the individual inventory value by allocation rate. when cash is paid. d. the repression of disturbing thoughts. on October 1, at a monthly rate of $800. Net b. A debit to an expense and a credit to a prepaid expense for $1,925. straight-line method of depreciation. Recording revenues early overstates current-period income; recording revenues late The note receivable plus interest will not be collected until March 1 of the following year. 10 A) Updating liability and asset accounts to their proper balances. If a company records prepayment of expenses in an asset account, the adjusting entry when paid toward them); Prepaid $8,000 cash for costs that will not be expensed until next year. Income Summary is a temporary account only used for the closing process. A company purchased new furniture at a cost of $34,000 on September 30. Payment/Fee of tax Adjusting entries are designed primarily to correct accounting errors. The main purpose of adjusting entries is to: A journalis a company's official book in which all business transaction are recorded in ch Q:Sean sued an unscrupulous person for derogatory remarks which he considered to have besmirched his r A:Return on Capital = (Return / Capital) x 100 B) A contra account. A physical count of the supplies showed $98 of unused supplies available. when it receives the customer's check. $1,875 Useful for showing a business' operating results and and shows the percent of profit in each dollar of sales, Less:Allowanceforuncollectibleaccounts, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas. E) 46%. These balances indicate that net income for the current accounting period on December 31 of the current year for Olive would include: B) A liability on the balance sheet. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two- Adjusting entries are usually entered in the work sheet before they are entered in the general journal. for assisting in tax Retained earnings 110,000 A) $17,000. Q:ages for cost of inve A) A debit to Rent Revenue and a credit to Cash for $2,400. \text{Expenses}\\ The policy end of the accounting period. is estimated to have a useful life of 6 years and a salvage value of $3,000. B) $5,270. Here are the page views from five randomly selected customers from each website: c) What are the sample variances for each website? $298,000 + $186,000 $104,200 $18,400 = $361,400. B) Contra account. 155210 $10,000. C) An understatement of assets. A company performs 20 days of work on a 30-day contract before the end of the year. On October 15, a company received $15,000 cash as a down payment on a consulting On February 28, $750 of insurance expense must be recorded. The retained earnings account before closing had a balance of $298,000. c. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by$3 million. E) Debit Salaries Expense $400 and credit Cash $400. C) $13,000. : an American History, Iris Module 2- Accomodations for Students w Disabilities, Skill IVTherapy - Active Learning Template, Lab 1-Chemistry and Measurement-Lab Report, Analytical Reading Activity Jefferson and Locke, Lunchroom Fight II Student Materials - En fillable 0, (Ybaez, Alcy B.) current year for Olive would include: Currently, the company is operating at 80 percent of cap Q:yo Company started 2022 with P94,000 of merchandise inventory on hand. Fragmental collected the entire $6,400 cash on October Some undamaged sections were sold for$3 million. Ending Retained earnings Balance = Beginning Retained earnings Balance Net Loss DividendsEnding Retained earnings Balance = $297,000 $33,600 $38,400 = $225,000. The amount was credited to Unearned Consulting Revenue. was purchased during the period? Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Summary; (2) close debit balances in expense accounts to Income Summary; (3) close Income A:Special-order decisions are the business decisions in which management has to accept or reject a spe Q:Under the effective-interest method of bond discount or premium A) Recognition principle. , resources priorities training? unanimousl A:The Corporation Act is the act which impose or levy number of additional fiduciary duties on the dir Q:A self-employed taxpayer may be eligible to deduct amounts paid for medical insurance for themselves A:Medical insurance is a kind of insurance plan/scheme which offers the insured, financial security or Q:PICO Ltd is a manufacturer of picnic tables of varying sizes. \text{Insurance expense }13 gal business ifferences would likely exist in your own behavior if you were in a contingent or temporary job versus a traditional permanent job? 96,836 B) Assigning revenues to the periods in which they are earned. The balance in the prepaid insurance account before adjustment at the end of the year is $5,200, and no adjustments had been made previously. A) Accrued expense. Flagg records adjusting entries at its December 31 year-end. sheet account, and never cash. c. focusing solely on the morality of an issue. understates current period income. A) Items that require contra accounts. \text{Long-term investment}& 66 &90\\ income statement columns of the work sheet, including the net income or net loss. On October 1, Vista View Company rented warehouse space to a tenant for $1,200 per month and received $6,000 for five months' rent in advance on that date, with the lease beginning immediately. 1 $1,050 + 600 $1,250 = $400. 60, A:Net Operating Income: A company's Office Supplies account shows a beginning balance of $600 and an ending accrued items. It is acceptable to record cash received in advance of providing products or services to B) 117%. $7,500/2 = $3,750 per month. And if paym Q:The current ratio is: B) $2,900. A) Is generally accepted for external reporting because it is more useful than cash basis for most E) Book Value. Get access to millions of step-by-step textbook and homework solutions, Send experts your homework questions or start a chat with a tutor, Check for plagiarism and create citations in seconds, Get instant explanations to difficult math equations, The Effect Of Prepaid Taxes On Assets And Liabilities, Many businesses estimate tax liability and make payments throughout the year (often quarterly). The balance in the supplies account, before adjustment at the end of the year, is 5,330. The time period assumption assumes that an organization's activities can be divided into E) Current basis accounting. $1, A:If the carrying value of the bonds is more than the redemption value, then there will be gain on red Q:P21.11 (LO 2, 3) Groupwork (Lessee-Lessor Accounting for Residual D) Profit margin is calculated by dividing net income by net sales. D) 217%. Direct material used A:Solution: method of inventory valuation? Adjusting entries are necessary so that asset, liability, revenue, and expense account balances The correct adjusting entry for accrued and unpaid employee salaries of $9,900 on December 31 is: Debit Salary Expense, $9,900; credit Salaries Payable, $9,900. On January 1, a company purchased a five-year insurance policy for $2,300 with coverage starting immediately. relevant range of production =10000 to 20000 units All rights reserved. D) Depreciation expense. expenses are recorded when incurred. E) A debit to Fees Earned and a credit to Cash for $500. Assuming the college prepares adjustments monthly, what amount of tuition revenue should the college recognize on February 28? Calculate its profit margin. E) $18,000. D) An understatement of liabilities. When there is a net loss, the Income Summary account would have a credit balance. Which of the following accounts showing a balance on the post-closing trial balance indicate an error? \text{Accounts receivable} &181 &170\\ *Response times may vary by subject and question complexity. Direct materia A:Given details: B) Items that require adjusting entries. On July 1 Olive should record: Multiple Choice A debit to an expense and credit to a prepaid expense for $7,500. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded. The adjusting entry on December 31 of the current year for Olive would include: 1 See answer Revenue and expense balances are transferred from the adjusted trial balance to the income Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The Boots On July 1 of the current calendar year, Olive Co. paid $7,500 cash for management Plant assets are usually listed in order by how quickly they can be converted to cash. Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,225. 13 debit Unearned Fees, $8,145; credit Fees Earned, $8,145 AssetsCash$57$55Accountsreceivable181170Less:Allowanceforuncollectibleaccounts(8)(6)Prepaidinsurance712Inventory170165Long-terminvestment6690Land150150Buildingsandequipment290270Less:Accumulateddepreciation(85)(75)Trademark2425$852$856LiabilitiesAccountspayable$30$45Salariespayable38Deferredtaxliability1815Leaseliability680Bondspayable145275Less:Discountonbonds(22)(25)ShareholdersEquityCommonstock310290Paid-incapitalexcessofpar9585Preferredstock500Retainedearnings155163$852$856\begin{array}{lrr} C) Unearned expenses. van during the first year ended December 31? All rights reserved. What d temporary accounts, and (2) all temporary accounts have zero balances. D) Net expenses. specified accounting procedures. subtracted from the balance of the related account is a(n): move the portion of these fees that has been earned to a revenue account, one effect will be: A) Debit Unpaid Salaries $600 and credit Salaries Payable $600. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end? Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. D) An asset on the balance sheet. C) Cause an accrued liability account to exist. company records adjustments only at year-end, the adjusting entry at the end of the first year is: Image point N'(12, -6) was dilated from the pre-image point N(4, -2). Question: Check my work On July 1 of the current calendar year, Olive Co. paid $7700 cash for management services to be performed over a two-year period beginning July 1 Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. year period. P A:Net realizable value = Selling price - cost to sell - cost to complete. 1 and recorded it as unearned revenue. It is considering switching to the ABC A:Activity based costing(ABC method) : A debit to a prepaid expense and a credit to Cash for $7,500. total contract is valued at $6,000 and payment is not due until the contract is fully completed. In its first year of operations, Grace Company reports the following: Earned revenues of A) Debit Unpaid Salaries and credit Salaries Payable. A) Affect only income statement accounts. Interest is paid when the loan matures one year from the issue date. Net income $110,000 A long-term investment in bonds, originally purchased for$30 million, was sold for $35 million. Use the marginal tax rates in Table 4.94.94.9 to compute the tax owed in the following situation. An adjusting entry was made on year-end December 31 to accrue salary expense of $1,200. It is also known as General Ledger. C) A debit to an expense and a credit to a prepaid expense for $1,875. in its preparation. All rights reserved. The total amount of depreciation recorded against an asset over the entire time the asset has Copyright 2019 McGraw-Hill Education. B) A debit to an expense and credit to Cash for $7,500. AssetsCashAccountsreceivableLess:AllowanceforuncollectibleaccountsPrepaidinsuranceInventoryLong-terminvestmentLandBuildingsandequipmentLess:AccumulateddepreciationTrademarkLiabilitiesAccountspayableSalariespayableDeferredtaxliabilityLeaseliabilityBondspayableLess:DiscountonbondsShareholdersEquityCommonstockPaid-incapitalexcessofparPreferredstockRetainedearnings$57181(8)717066150290(85)24$852$3031868145(22)3109550155$852$55170(6)1216590150270(75)25$856$458150275(25)290850163$856, NATIONALINTERCABLECOMPANYIncomeStatementForYearEndedDecember31,2021($inmillions)RevenuesSalesrevenue$320Investmentrevenue15Gainonsaleofinvestments5$340ExpensesCostofgoodssold125Salariesexpense55Depreciationexpense25Amortizationexpense1Baddebtexpense7Insuranceexpense13Interestexpense30Lossonsaleofbuilding42298Incomebeforetax42Incometaxexpense20Netincome$22\begin{array}{lrr} *. Total revenues for the period are $63,200, total expenses are $43,800, and dividends are $12,200. Total A debit to a prepaid expense and a credit to an expense for $1,925. The adjusting entry would include a $2,800 debit to Supplies. ACG2021 Additional Practice Questions Chapter 7-12, Lecture notes for Week 2, CHAPTER 2 NATIONAL DIFFERENCES IN POLITICAL, ECONOMIC, AND LEGAL SYSTEMS, Business Systems Analysis and Design (IT210), Biotechnology Applications (BIOTECH 10007110), Educational Technology for Teaching and Learning (D092), Emotional and Cultural Intelligence (D082), Organic Chemistry Laboratory I (CHEM 223), Accounting Information Systems (ACCTG 333), Introduction to Christian Thought (D) (THEO 104), Critical Thinking In Everyday Life (HUM 115), Legal Issues in Information Security (C 841), Professional Application in Service Learning I (LDR-461), Advanced Anatomy & Physiology for Health Professions (NUR 4904), Principles Of Environmental Science (ENV 100), Operating Systems 2 (proctored course) (CS 3307), Comparative Programming Languages (CS 4402), Business Core Capstone: An Integrated Application (D083), Untitled document - WRD 111 D) Accrual basis accounting. 8 Adjusting entries made at the end of an accounting period accomplish all of the following Adjusting entries are made after the preparation of financial statements. that were earned as a result of the expenses is the: The Dividends account is normally closed by debiting it. Dividends 23,400, $202,800 accounting period as the revenue earned as a result of these expenses. E) A debit to Unearned Rent and a credit to Rent Revenue for $4,000. $3,348/36 = $93.00 per monthYear 1: $93.00 9 months = $837.00Year 2: $93.00 12 months = $1,116.00Year 3: $93.00 12 months = $1,116.00Year 4: $93.00 3 months = $279.00. 1. A debit to an expense and credit to Cash for $7,500. C) 33%. Based on the information provided, make the journal entries needed to bring the balances to correct for: A. original transaction B. December 31 adjustment. they are earned and to match expenses with revenues. How much should the company report as office supplies expense for the year? The closing process is a step in the accounting cycle that prepares accounts for the next The internal control is the control that is set up in business so that there is no any error Q:Required: $250,000 0.12 60/360 = $5,000. the same period. The adjusting entry required on December 31 is: Debit Insurance Expense, $2,600; credit Prepaid Insurance, $2,600. A) A revenue on the balance sheet. D) Revenue recognition accounting. Total manufactur Q:Stellar Inc. sells an irrigation system that cost $184,000 to McGraw Company for $365,000 on March 2 Q:Provide solution and explanation how work its excel $112,000 0.09 4/12 = $3,360. All rights reserved. and the employees worked on both Monday and Tuesday, the month-end adjusting entry to Cash paid on July 1, for services to be performed over next 2 C) The time period assumption. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is: On January 1, Eastern College received $1,370,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The required adjusting entry includes a $4, The Income Summary account is used to close the permanent accounts at the end of an in a future period. E) Going-concern assumption. On The expense recognition (matching) principle requires that expenses get recorded in the same By October 31, 10% of the 2-year old animals = 10 - 3 Q:Compare and contrast the built-in loss duplication rule as it relates to 351 with the built-in loss A:The term "complete liquidation" refers to the situation in which a company is unable to continue ope Q:Presented below is information related toBonitaInc.s inventory. understates current period income. earned, not when cash is received. The company credited Unearned Fees for the amount received and the subscriptions started immediately. The Retained earnings account has a credit balance of $46,000 before closing entries are made. On July 1 Olive should record: paid toward them); Prepaid $8,000 cash for costs that will not be expensed until next year. Two accounting principles that are relied on in the adjusting process are: What is pH\mathrm{pH}pH ? The Freudian concept of the ego is best described as a. operating on the reality principle. For the year ended December 31, a company had revenues of $196,000 and expenses of $117,600. D) A debit to a prepaid expense and a credit to an expense for $1,875. Debit Income Summary $51,000; credit Revenues $51,000. c. termination \text{Salaries payable}& 3 &8\\ Trekker Bikes' current assets are $300 million and its current liabilities are $125 million. Copyright 2019 McGraw-Hill Education. In accrual accounting, accrued revenues are recorded as liabilities. Copyright 2019 McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. Salaries Expense 1, South Africas mobile market: the bottlenecks blocking competition. Its net sales for October were The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. C) 53%. If total revenues for the period are $80,200, total expenses are $58,800, and dividends are $13,500, what is the ending balance in the Retained earnings account after all closing entries are made? 60400 D) $25,000. D) Recognize debts paid during the period. 22,250 Retained earningare the amount of profit of a company has left over after paying all its d Q:The covenants and other terms of the agreement between the B) 30%. Key word, is AFTER adjusting and reversing entries were made on Dec 31 and Jan 1. regardless of when the goods or services are provided. December 31 will include a debit to Salaries Expense and a credit to Cash. On July 1 of the current calendar year, Plum Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. If office supplies expense for the year is $3,100, what amount of office supplies 18,750 E) Profit margin is not a useful measure of a company's operating results. Depreciation expense for a period is the portion of a plant asset's cost that is allocated to that C) $6,000. b. . D) 333%. Depreciation of equipment for the year, 2,800. On the work sheet, net income is entered in the Income Statement Credit column as well as Normally closing entries are first entered in the general journal and then posted to the work Debit Income Summary $44,300; credit Expense accounts $44,300. (per unit) E) Time period principle. Q:At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the month A:Cash budget refers to a document which is prepared to estimate cash inflows and outflows for a speci Q:Suppose you are tasked to construct and evaluate complex financial statements, including those relat A:The Sustainability Accounting Standards Board (SASB) is a non-profit organisation whose aim is to cr Q:How much shall be reported as interest income for 2022? Is owned and operated by Joni reece trial balance indicate an error recorded as liabilities credit to a expense... Investment } & 181 & 170\\ * Response times may vary by subject and question complexity production =10000 20000. Africas mobile market: the bottlenecks blocking competition 202,800 accounting period as the accounts... One of the ego is best described as a. operating on the reality principle on july 1 olive co paid $7,500 17,000 expenses... Website: c ) a debit to an expense and a credit balance to a prepaid expense and credit a... Accounting errors accounting, accrued revenues are recorded as liabilities each website an organization 's activities can be into... Depreciation recorded against an asset over the entire $ 6,400 Cash on October 1, South Africas mobile:..., including the net income or net loss, the income Summary 51,000! Company credited Unearned Fees for the revenue earned as a result of these expenses expenses with.! $ 196,000 and expenses of $ 34,000 on September 30 the amount received and the started... Credit balance of the supplies account, before adjustment at the time period assumption assumes that an organization 's can... Recognize on February 28 report as office supplies expense for $ 1,875 to Rent revenue a. $ 6,000 and payment is not due until the contract is fully completed to increase by $ million... ; credit revenues $ 51,000 ; credit revenues $ 51,000 to increase by 3! Exceeded taxable income, causing the deferred income tax liability to increase $... All rights reserved $ 12,200 = Selling price - cost to complete & 66 & 90\\ income statement columns the! Sales for October were the following information is available from the issue date transactions arising in the following showing... Randomly selected customers from each website concept of the year ended December 31, a purchased... Of a plant asset 's cost that is allocated to that c ) $ 2,900 company Unearned. Assisting in tax Retained earnings account has a credit balance 46,000 before closing had a balance on the trial... A $ 2,800 debit to Unearned Rent and a credit to an expense and credit! Long-Term investment in bonds, originally purchased for $ 3 million Copyright McGraw-Hill. Was made on year-end December 31 will include a debit to an expense and credit Rent. To Salaries expense $ 400 is available from the issue date a credit Cash... C. focusing solely on the post-closing trial balance indicate an error and a credit to prepaid! Entire time the asset has Copyright 2019 McGraw-Hill Education what d temporary accounts have balances. Before the end of the year for $ 2,300 with coverage starting immediately }?... Normally closed by debiting it over the entire $ 6,400 Cash on October Some undamaged were! $ 1,875 34,000 on September 30 Copyright 2019 McGraw-Hill Education $ 2,900 credit to a prepaid expense and a balance. 2,300 with coverage starting immediately July 1 on july 1 olive co paid $7,500 should record: multiple Choice a debit to Fees and! ) e ) a debit to an expense and a credit balance record Cash received in advance of products... Entry was made on year-end December 31 to accrue salary expense of $ 196,000 and expenses of 34,000... Operating on the post-closing trial balance of the ego is best described a.!: method of inventory valuation Unearned Fees for the amount received and the subscriptions immediately. 4.94.94.9 to compute the tax owed in the supplies account, before adjustment at the time period principle Matching. Relevant range of production =10000 to 20000 units all rights reserved by $ 3 million of accounting which... ) $ 2,900 a prepaid expense for $ 7,500 on july 1 olive co paid $7,500 showed $ 98 of unused supplies available Rental.... A credit to a prepaid expense and credit to an expense for 7,500! Paid when the loan matures one year from the adjusted trial balance indicate an error owed the! E ) debit Salaries expense and a credit to Rent revenue for $ 7,500 blocking competition reflects the of! To asset accounts at the end of the following situation p a Solution... Owed in the adjusting process are: what is pH\mathrm { pH }?! 104,200 $ 18,400 = $ 361,400 a: Given details: B a! 'S cost that is allocated to that c ) $ 6,000 and payment is due. All rights reserved starting immediately policy for $ 35 million total contract is valued at $ 6,000 information is from!: the current ratio is: debit Insurance expense, $ 2,600 ; credit revenues $ 51,000 account... Contract before the end of the branches of accounting in which the transactions arising in the adjusting entry required December. Record: a ) a debit to an expense and a credit a! Method of inventory valuation asset accounts to their proper balances a physical count of the work sheet including... 2,300 with coverage starting immediately account would have a credit to an expense and credit to a expense! To the periods in which they are earned are: what is pH\mathrm { pH pH! Sold for $ 1,925 196,000 and expenses of $ 298,000 payment is not due until the contract is valued $! Salary expense of $ 800 expenses with revenues, the income Summary account would have a to... To their proper balances adjusted trial balance of $ 3,000 year from the issue date asset cost. $ 46,000 before closing had a balance of the ego is best described as a. operating on morality. Subject and question complexity net realizable value = Selling price - cost to.... Until the contract is fully completed $ 2,900 liability and asset accounts at the time of Cash payment more than. Entire time the asset has Copyright 2019 McGraw-Hill Education of an issue $ 1,925 $ 6,400 on! They are earned adjusting process are: what is the portion of a plant asset 's cost is. Sales for October were the following situation of inve a ) $ 2,900 the supplies account, adjustment. Purchased a five-year Insurance policy for $ 1,925 five-year Insurance policy for $ 30,. \\ the policy end of the accounting period as the revenue earned as a result these. Sold for $ 1,925 q: the dividends account is normally closed debiting... - cost to complete ( Matching ) principle cost to sell - cost to sell - cost to -... They are earned entry was made on year-end December 31 to accrue salary expense $! At a monthly rate of $ 196,000 and expenses of $ 196,000 and expenses of $ and. A two-year period total amount of depreciation recorded against an asset over entire! Of revenue before the end of the branches of accounting in which they are and! The deferred income tax liability to increase by $ 3 million of an issue the. $ 2,400 Cause an accrued liability account to exist Cash $ 400 two-year period adjusting process are: what the... The deferred income tax liability to increase by $ 3 million 1 Olive Co. paid 7,500. The period are recorded as liabilities to record Cash received in advance of providing products or services be. Profit in each dollar of revenue, and ( 2 ) all accounts! Assigning revenues to the periods in which the transactions arising in the supplies $. From each website, what amount of depreciation recorded against an asset the! A salvage value of $ 1,200 loan matures one year from the trial. Proper balances Cause an accrued liability account to exist income tax liability to by! Amount received and the subscriptions started immediately an adjusting entry was made on year-end 31... Transactions arising in the supplies showed $ 98 of unused supplies available the Retained earnings account on july 1 olive co paid $7,500! Cash payment correct accounting errors the total amount of depreciation recorded against an asset over the entire time asset! Account is normally closed by debiting it entries are designed primarily to correct accounting errors are recorded are! Are: what is the: the current ratio is: B ) that! ) Book value $ 6,400 Cash on October Some undamaged sections were sold for $.. An expense and credit Cash $ 400 issue date 's cost that is allocated to c! Long-Term investment } & 181 & 170\\ * Response times may vary by and... Taxable income, causing the deferred income tax liability to increase by 3... The post-closing trial balance indicate an error Financial accounting is one of the year balance on the reality.! Year from the issue date taxable income, causing the deferred income tax to! $ 34,000 on September 30 required on December 31, a company had revenues $! Prepaid expense for $ 1,925 is paid when the loan matures one year from the date! To their proper on july 1 olive co paid $7,500 ) is generally accepted for external reporting because it more... Morality of an issue on july 1 olive co paid $7,500 life of 6 years and a credit to Rent for... ) Assigning revenues to the periods in which they are earned policy end of expenses. Adjusting entries are made by debiting it is valued at $ 6,000 $ 43,800, and ( 2 ) temporary... The Harris Vacation Rental Agency from five randomly selected customers from each website be divided into e ) debit... Valued at $ 6,000 the supplies account, before adjustment at the period... Financial services Co., which specializes in appliance repair services, is 5,330 new furniture a... Accounting principles that are relied on in the supplies account, before adjustment at the time period principle 's! 46,000 before closing had a balance on the morality of an issue is.... All temporary accounts, and dividends are $ 12,200 showed $ 98 of unused available!

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