On january 1 the biddle biddle cpas received a 9000

This preview shows page 18 - 22 out of 33 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Essentials of Business Analytics
The document you are viewing contains questions related to this textbook.
Chapter 6 / Exercise 1
Essentials of Business Analytics
Camm/Cochran
Expert Verified
On January 1, the Biddle & Biddle, CPAs received a $9,000 cash retainer for legal services to berendered ratably over the next 3 months. The full amount was credited to the liability accountUnearned Revenue. Assuming that the revenue is earned ratably over the 3 month period, whatadjusting journal entry should be made at January 31?4-34
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Essentials of Business Analytics
The document you are viewing contains questions related to this textbook.
Chapter 6 / Exercise 1
Essentials of Business Analytics
Camm/Cochran
Expert Verified
A Further Look at Financial StatementsBe. 117On February 1, the Acts Tax Service received a $2,000 cash retainer for tax preparation services tobe rendered ratably over the next 4 months. The full amount was credited to the liability accountUnearned Revenue. Assuming that the revenue is earned ratably over the 4 month period, whatbalance would be reported on the February 28 balance sheet for Unearned Revenue?
Better Publications, sold annual subscriptions to their magazine for $24,000 in December, 2006.The magazine is published monthly. The new subscribers received their first magazine in January,2007.1.What adjusting entry should be made in January if the subscriptions were originallyrecorded as a liability?2.What amount will be reported on the January 2007 balance sheet for Unearned Revenue?Be. 119River Ridge Music School borrowed $20,000 from the bank signing a 10%, 6-month note onNovember 1. Principal and interest are payable to the bank on May 1. If the company preparesmonthly financial statements, what adjusting entry should the company make at November 30 withregard to the note (round answer to the nearest dollar)?4-33
Test Bank for Financial Accounting: Tools for Business Decision MakingBe. 120Match 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 earned; collected in advance._____2.An expense incurred; not yet paid or recorded._____3.A revenue earned; not yet collected or recorded._____4.An expense not yet incurred; paid in advance.4-34
A Further Look at Financial StatementsBe. 121Prepare adjusting entries for the following transactions. Omit explanations.1.Depreciation on equipment is $800 for the accounting period.2.There was no beginning balance of supplies and purchased $500 of office supplies duringthe period. At the end of the period $80 of supplies were on hand.3.Prepaid rent had a $1,000 normal balance prior to adjustment. By year end $600 wasunexpired.Be. 122Prepare adjusting entries for the following transactions. Omit explanations.1.Unrecorded interest accrued on savings bonds is $250.2.Property taxes incurred but not paid or recorded amount to $900.3.Salaries incurred by year end but not yet paid or recorded amounted to $750.
4-33

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture