Salaries and Wages Payable Accrued Expense Salaries and Wages Exp 7 Unearned

Salaries and wages payable accrued expense salaries

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6.Salaries and Wages PayableAccrued ExpenseSalaries and Wages Exp.7.Unearned Service RevenueUnearned RevenueService RevenueAns: N/A, LO 2 & 3, BT: K, Difficulty: Moderate, TOT: 10 min., AACSB: Analytic, AICPA FC: Reporting, IMA: ReportingFOR INSTRUCTOR USE ONLY4-65
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Test Bank for Survey of Accounting, First EditionEx. 245Match the statements below with the appropriate terms by entering the appropriate letter code inthe spaces provided.TERMS:A.Prepaid ExpensesB.Unearned RevenuesC.Accrued RevenuesD.Accrued ExpensesSTATEMENTS:_____1.A revenue not yet recognized; collected in advance._____2.Office supplies on hand that will be used in the next period._____3.Subscription revenue collected; not yet recognized._____4.Rent not yet collected; already recognized._____5.An expense incurred; not yet paid or recorded._____6.A revenue recognized; not yet collected or recorded._____7.An expense not yet incurred; paid in advance._____8.Interest expense incurred; not yet paid.Solution 245(5 min.)1.B2.A3.B4.C5.D6.C7.A8.DFOR INSTRUCTOR USE ONLY4-66
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Accrual Accounting ConceptsEx. 246A review of the tabular summary of Wilde Co. at December 31, 2017, produces the following data pertaining to the preparation of annual adjustments:Instructions:Show the adjustments at December 31, 2017. Indicate the change in each account affected (In-crease or Decrease), the account title of each account affected, and the amount.Solution 246(a)Increase Salaries and Wages Expense$2,440Increase Salaries and Wages Payable2,440(5 X $800 X 2/5 = $1,600)(3 X $700 X 2/5 = $ 840)[(1st sal./wk. × 5 × 2/5) + (2nd sal./wk. × 3 × 2/5)](b)Decrease Unearned Rent Revenue$9,000Increase Rent Revenue9,000(3/12 X $8,000 X 3 = $6,000)(1/12 X $18,000 X 2 = $3,000)[(1st rent/lease × 3 × 3/12) + (2nd rent/lease × 2 × 1/12)](c)Increase Interest Receivable$900Increase Interest Revenue900($90,000 X .06 X 2/12 = $900)(Prin. X Int. rate x Fraction of yr.)Ans: N/A, LO 2 & 3, BT: AP, Difficulty: Hard, TOT: 15 min., AACSB: Analytic, AICPA FC: Reporting, IMA: ReportingFOR INSTRUCTOR USE ONLY4-67
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Test Bank for Survey of Accounting, First EditionEx. 247A review of the tabular summary of Weakly Service Co. at December 31, 2017, produces the fol-
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