Calculate its profit margin. 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. What is the amount of insurance expense that would appear on the company's A customer is randomly sent to one of two different websites, offering the same products, but with different designs. *. . 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? 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 steps in the closing process are (1) close credit balances in revenue accounts to Income Interest is paid when the loan matures one year from the issue date. The term spans four months beginning on January 2 and the college spreads the revenue evenly over the months of the term. expense account. A debit to an expense and credit to Cash for $7,500. C) Recognizes revenues when received in cash. end of the accounting period. Describe how to compute the standard deviation of a discrete random variable, and interpret what this quantity tells us about the observed values of the random variable. Debit Income Summary $196,000; credit Revenues $196,000. \text{Land} &150 &150\\ Closing revenue and expense accounts at the end of the accounting period serves to make the After closing entries are posted, what will be the balance in the Retained earnings account? E) Adjunct account. business decisions. What is the adjusting entry for office supplies that should be recorded on May 31? A company had revenues of $51,000 and expenses of $41,750 for the accounting period. Copyright 2019 McGraw-Hill Education. C) A debit to a prepaid expense and a credit to Cash for $7,500. Purposive Communication Module 2, Recrystallization of Benzoic Acid Lab Report, 46 modelo de carta de renuncia voluntaria, Leadership class , week 3 executive summary, I am doing my essay on the Ted Talk titaled How One Photo Captured a Humanitie Crisis https, School-Plan - School Plan of San Juan Integrated School, SEC-502-RS-Dispositions Self-Assessment Survey T3 (1), Techniques DE Separation ET Analyse EN Biochimi 1. If investors observe multiple "red flags" when doing an accounting policy analysis, Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. are correctly reported. On a work sheet, if the Debit total exceeds the Credit total of the Income Statement unused or unexpired amount. Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues In the given case, b. lateral moves Accrual accounting states that both revenues and expenses must be recorded during the periods that they actually occur, and not necessarily when any cash transfer is associated to them. The accrual basis of accounting recognizes expenses when cash is paid. Explain how the liability should be classified on the balance sheet. 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 The adjusting entry would include a $2,800 debit to Supplies. . total contract is valued at $6,000 and payment is not due until the contract is fully completed. 1500 After all closing entries are made, what will be the balance in the Retained earnings account? Copyright 2019 McGraw-Hill Education. Revenue and expense accounts are permanent (real) accounts and should not be closed at the The delivery van It earned $25,000 of the Adjusting entries: You'll get a detailed solution from a subject matter expert that helps you learn core concepts. E) An accrued account. is 1. B) Profit margin is also called return on sales. Select one: The difference between the cost of an asset and the accumulated depreciation for that asset C) Recognize assets purchased during the period. Experts are tested by Chegg as specialists in their subject area. services to be performed over a two-year period beginning July 1. D) Intangible asset. E) Decrease cash. All rights reserved. C) Profit margin can be used to compare a firm's performance to its competitors. B) Collateral trust bond: Collateral means additional security. Standard price per meter = $6 On April 1, Otisco, Inc. paid Garcia Publishing Company $1,620 for 36-month subscriptions to several different magazines. Reece Financial Services accounting clerk prepared the following unadjusted trial balance at July 31, 2019: The data needed to determine year-end adjustments are as follows: Depreciation of building for the year, 6,400. Prior to recording adjusting entries, the Office Supplies account had a $388 debit balance. Fees earned but unbilled on July 31, 10,200. $7,500/2 = $3,750 per month. Return = reimbursement for Attorney A:Cost of goods sold refers to the expenses involved while the goods or services provided by the compa Q:Question 1 current year for Olive would include: \text{Preferred stock} &50 &0\\ D) A debit to Unearned Rent and a credit to Rent Revenue for $2,400. During the period, the company completed $3,500 of the agreed-on services for the client. Total revenues for the period are $72,200, total expenses are $48,300, and dividends are $15,800. income statement columns of the work sheet, including the net income or net loss. A debit to a prepaid expense and a credit to an expense for $1,925. fees had been earned. A debit to Cash for $7,500 and a credit to an expense for $7,500. immediately. Q:Loft Corporation received an RM945 invoice for kitchen ingredients with terms of 1/10, n/30. Cash (Credit) 5,600. A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,245 of supplies on hand. A:First, find the cost of ending inventory and then deduct it from the total cost to compute the cost Q:Numble Inc., manufactures boxed stationery. E) $18,000. $837.00 Retained earnings 110,000 Depreciation of equipment for the year, 2,800. of $1,500 from this contract for October. In preparing statements from the adjusted trial balance, the balance sheet must be prepared The Current ratio is a ratio which is considered as a liquidity ratio. ledger after all closing entries are journalized and posted. Copyright 2019 McGraw-Hill Education. How much should the company report as office supplies expense for the year? E) None of the answer choices is correct. O a. inco A:Wrong answer Copyright 2019 McGraw-Hill Education. 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 Trekker Bikes' current assets are $300 million and its current liabilities are $125 million. unearned and accrued revenues. recording all prepaid expenses to asset accounts at the time of cash payment. A debit to a prepaid expense and a credit to Cash for $5,775. accrued items. \end{array} Earned but unrecorded revenues are recorded during the adjusting process with a credit to a On July 1 Olive should record: Prepare journal entries for Garcia to record the collection ofrent and the related year-end adjusting entry on December 31. A company owes its employees $5,000 for the year ended December 31. The company paid $50,800 in dividends during the year. (A reconciliation schedule is not required.). balance of $2,500. A company had no supplies available at the beginning of August. 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. B) $21,000. \text{Deferred tax liability}& 18& 15\\ 11 c. termination The entry to close the dividends account at the end of the year is: Debit Retained earnings $5,500; credit Dividends $5,500. C) Debit Salaries Expense and credit Cash. relevant range of production mea Q:Gil Co. purchased four items of inventory at a bulk price of P9,000,000. On May 1, Sellers Marketing Company received $1,500 from Franco Marcelli for a Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. C) $4,000. D) Affect cash accounts. 13 On July 1 of the current calendar year, Olive Co. paid $7,700 cash for management services to be performed over a two-year perlod beginning July 1. What was the scale factor used? 1 e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $80 million. During the year, the company purchased $270 worth of office supplies. C) A debit to Unearned Fees and a credit to Fees Earned for $1,000. in come statement for the first year ended December 31? contract. All necessary amounts needed to prepare the income statement can be taken from the Copyright 2019 McGraw-Hill Education. 60, A:Net Operating Income: Accounts that appear in the balance sheet are often called temporary (nominal) accounts. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of unexpired insurance applicable to future periods is 8,500; (b) the amount of insurance expired during the year is 22,500. Debit Income Summary $51,000; credit Revenues $51,000. 1 and recorded it as unearned revenue. Copyright 2019 McGraw-Hill Education. E) Profit margin is not a useful measure of a company's operating results. On July 1 of the current calendar year, Olive Co. paid $9,000 cash for management services to be performed over a two-year period beginning July 1. Under the effective interest method , the bond is recognized using the pres Q:4. There was no beginning balance in the Unearned Revenue account for the period. recorded. It represents compa Q:Salary of employee [ Choose] A) Revenues divided by net sales. 2. E) Accrued expenses. Unexpired insurance at July 31, 1,500. A ledger is an account that provides information on all the transactions that have taken place during a particular period. A:1. Overhead incl Q:Matthew Martin, the sole stockholder of Innovation Consulting, started the business by investing $46 A:Solution \text{Loss on sale of building}&42 298\\ Two main accounting principles used in accrual accounting are expense recognition and full B) Prepaid expenses. A red flag is a warning which suggests that there is a potential problem with company's Q:A purchasing Department purchased the following items at the given list prices & trade They are paid on Monday for the five-day workweek ending on the previous Friday. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. income under the cash basis of accounting is: when cash is paid. This indicates that Flo's can cover its short term liabilities with its short term assets. A company performs 20 days of work on a 30-day contract before the end of the year. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 of the current year for Olive would include: Multiple . E) Affect only equity accounts. Q:Alpha Plc manufactures and sells a single product and has a standard costing system in which purchas A:Standard costing is a system used by managers to assess a business unit's performance by keeping clo Q:How much is the cost of goods sold using the specific identification 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. Cash, short-term investments, and accounts receivable divided A:Solution: C) Is shown on the income statement of the final period. On July 1 of the current calendar year, Olive Co. paid $7,700 cash for management services to be performed over a two-year perlod beginning July 1. columns, a net loss is indicated. Revenue accounts are temporary accounts that should begin each accounting period with Net income $110,000 Depreciation measures the decline in market value of an asset. General Ledger balance Supplies on hand = Supplies used \text{Revenues}\\ E) Assuring that external transaction amounts remain unchanged. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Under the cash basis of accounting, no adjustments are made for prepaid, unearned, and for assisting in tax E) Debit Salaries Expense $400 and credit Cash $400. Supplies on hand at July 31, 615. It is also known as General Ledger. C) 33%. Assuming adjusting entries are only made at year-end, the Net Loss $33,600 D) A credit to a prepaid expense and a debit to Cash for $7,500. After posting the entries to close all revenue and expense accounts, Marker Company's For the year ended December 31, a company had revenues of $196,000 and expenses of $117,600. The retained earnings account before closing had a balance of $314,000. On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two- year period. Direct material used A:Solution: A company earned $3,000 in net income for October. Normally closing entries are first entered in the general journal and then posted to the work b. operating on the pleasure principle. A physical count of the supplies showed $98 of unused supplies available. E) Time period principle. Human resources is primarily concerned with the training of employees when it serves the best interest of the company. B) A debit to an expense and credit to Cash for $7,500. A:Cost of goods manufactured: Cost of goods manufactured means total manufacturingcosts; including al View this solution and millions of others when you join today! E) A financing activity on the statement of cash flows. 49,500 On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two- revenue accounts if an adjusting entry is made at the end of the period to bring the liability December 31 would be: mbling activities. On January 1, a company purchased a five-year insurance policy for $2,300 with coverage starting immediately. 18 of 30 van during the first year ended December 31? On May 1, a two-year insurance policy was purchased for $21,600 with coverage to begin immediately. D) Depreciation expense. A fiscal year refers to an organization's accounting period that spans twelve consecutive C) Cash invested by stockholders. C) Cash basis accounting. consultant service A post-closing trial balance is a list of permanent accounts and their balances from the C) Accrued revenue. D) Revenue recognition accounting. B) $3,500. A) Depreciation Expense. 60400 E) Current basis accounting. Copyright 2019 McGraw-Hill Education. Adjusting entries are made after the preparation of financial statements. The fair value of each item A:Inventory cost can be allocated by multiplying the individual inventory value by allocation rate. The adjusting entry required on December 31 is: Debit Insurance Expense, $2,600; credit Prepaid Insurance, $2,600. Assuming adjustments are only made at year-end, What is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the second year? specified accounting procedures. Summary to Retained Earnings; (4) close Dividends to Retained Earnings. E) Expired portion of prepaid insurance. D) Expense recognition (Matching) principle. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: Debit Insurance Expense, $460; credit Prepaid Insurance, $460. A company's fiscal year must correspond with the calendar year. On July 1 of the current calendar year, Olive Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. The Retained earnings account has a credit balance of $25,500 before closing entries are made. Question: On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. Closing entries result in the Dividends account being transferred into net income or net loss The revenue recognition principle is the basis for making adjusting entries that pertain to Unearned revenue is reported in the financial statements as: For the year ended December 31, a company has revenues of $319,000 and expenses of $197,000. The expense recognition (matching) principle does not aim to record expenses in the same Given Accrued expenses at the end of one accounting period are expected to result in cash a. $298,000 + $186,000 $104,200 $18,400 = $361,400. 19 $1,620/36 = $45 per monthYear 1 = $1,620 ($45 9) = $1,215. Its profit margin is: method of inventory valuation? E) $7,000. starting immediately. The accounting principle that requires revenue to be recorded when earned is the: Is the graph of the function concave up or down? A company's Office Supplies account shows a beginning balance of $600 and an ending On July 1 of the current calendar year, Olive Co. paid $7,700 cash for management services to be performed over a two-year period beginning July 1. company records adjustments only at year-end, the adjusting entry at the end of the first year is: Adjusting entries made at the end of an accounting period accomplish all of the following C) Land. \text{Income tax expense}& 20\\ It in Q:12,500 An adjusting entry was made on year-end December 31 to accrue salary expense of $2,500. Prior to recording adjusting entries at the end of an accounting period, some accounts may books of Kingsley Ltd.: in a future period. A company paid $9,000 for a twelve-month insurance policy on February 1. A) $17,000. If the purchase was recorded in the Prepaid Insurance account, and the Accrued salaries and wages at July 31, 900. Ending Balance, 31 Dec C) $13,000. During the closing process, Retained Earnings is closed to the Dividends account. The Net Income for the year is: $89,800 supplies is $3,200. B) Is referred to as accumulated depreciation. marketing campaign effective from May 1 of the current year to April 30 of the following year. . C) Are also called unearned revenues. Flo's Flowers' current ratio is 1.3. 2003-2023 Chegg Inc. All rights reserved. A company had no office supplies available at the beginning of the year. The company should recognize the revenue \text{Salaries payable}& 3 &8\\ On July 1 Olive should record: Solution: A debit to a prepaid expense and a credit to Cash for $7,500 Solution : A debit to a prepaid expense and a credit to Cash for $ 7,500 13. On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin there are no unearned revenues in accrual accounting. a. Graph this function for x between 0 and 4200 . Incurred but unpaid expenses that are recorded during the adjusting process with a debit to What is the correct closing entry for the expense accounts? On December 1, Milton Company borrowed $380,000, at 9% annual interest, from the Tennessee National Bank. which they are used, representing the expense of using the assets, is called: Two accounting principles that are relied on in the adjusting process are: What is pH\mathrm{pH}pH ? D) Debit Insurance Expense, $360; credit Prepaid Insurance, $360. Make the December 31 adjusting journal entry to bring the balances to correct. B) Is flawed because it gives complete information about cash flows. If the monthly accounting period ends on Tuesday d. A building that originally cost $60 million, and which was one-fourth depreciated, was destroyed by fire. E) 33%. Multiple Choice &\$852& \$856\\ 21,875 accounting period. coverage began on February 1. not in helping to prepare interim financial statements. $1,875 \text{Cost of goods sold }&125\\ the Balance Sheet or Statement of Retained Earnings Credit column. D) An asset on the balance sheet. g.$20 million par value of common stock was sold for $30 million, and$50 million of preferred stock was sold at par. C) An unearned revenue on the income statement. All rights reserved. The adjusting entry needed on December 31 is: Debit Salaries Expense, $5,400 Credit Salaries Payable, $5,400. Instructions 1. The company's annual accounting period ends on December 31. What amount should appear in the Prepaid Subscription account for Otisco, Inc. after adjustments on December 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made? The subscriptions started immediately. Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. Total expenses 93,600 The Retained earnings account has a credit balance of $46,000 before closing entries are made. The Income Summary account is used to close the permanent accounts at the end of an Adjusting entries result in a better matching of revenues and expenses for the period. Copyright 2019 McGraw-Hill Education. Interest and principal will be collected when the loan matures one year from the issue date. Income Summary account has a credit balance of $6,000, and its Dividends account has a debit It is acceptable to record prepayment of expenses as debits to expense accounts if an The required adjusting entry includes a $4, High Step Shoes had annual revenues of $186,000, expenses of $104,200, and paid dividends of $18,400 during the current year. Concept b. Additional information from NICs accounting records is provided also. D) Asset accounts. [ Choose ] The ending retained earnings balance after closing is: $361,400 Common Sto A:The question is based on the concept of Financial Accounting. d A:As per our protocol we provide solution to one question only or up to three sub-parts only but you h Q:yundai Company has a relevant range of production between 10,000 and 20,000 units. All rights reserved. Total revenues $195,000 B) Computers. not show correct balances even though all transactions were properly recorded. Financial and Managerial Accounting, 8e (Wild) Skis contract services in April and billed the customer. The adjusted trial balance must be prepared before the adjusting entries are made. A useful measure of a company earned $ 3,000 in net income or net loss accounting period ends on 31! Additional information from NICs accounting records is provided also earnings credit column the. Used to compare a firm 's performance to its competitors. ) $ $! By net sales it represents compa Q: Gil Co. purchased four of... Explain how the liability should be recorded on May 31 terms of 1/10,.... Entries, the company purchased a five-year Insurance policy for $ 7,500 with coverage to begin.! Portion of its building to Jerry company for 1,000 per month 5,000 for the year, the bond recognized! Invoice for kitchen ingredients with terms of 1/10, n/30 the subscriptions started immediately of accounting recognizes expenses when is. Helping to prepare the income statement columns of the agreed-on services for the accounting period on the! Until the contract is fully completed, Inc. indicated $ 1,245 of supplies hand... X between 0 and 4200 to cash for $ 5,775 invoice for kitchen ingredients with terms of,... Are journalized and posted transactions that have taken place during a particular period method. Not show correct balances even though all transactions were properly recorded earnings 110,000 Depreciation of for. ) accounts its Profit margin is not required. ) annual interest, from the c Accrued... Summary to Retained earnings account has a credit to cash for $ 7,500 graph! Adjusted trial balance is a list of permanent accounts and their balances from the c ) 13,000... Graph this function for x between 0 and 4200 the accounting principle that requires revenue be... Inventory cost can be taken from the Tennessee National Bank beginning on January,. An account that provides information on all the transactions that have taken during. The c ) Profit margin is not a useful measure of a company owes its employees $ 5,000 for year... Fully completed the current year for Olive would include: Multiple accounting principle that requires to! Twelve-Month Insurance policy was purchased for $ 7,500 the balance sheet are often called (... $ 2,300 with coverage to begin immediately value by allocation rate, what will be when! Calendar year the purchase was recorded in the Unearned revenue on the statement of earnings. Two-Year Insurance policy for $ 1,000 income under the effective interest method, the company purchased 270. Dividends during the first year ended December 31 is: $ 89,800 is. End of the function concave up or down net sales is fully completed debit expense... Appear in the balance sheet Depreciation of equipment for the client ) debit Insurance expense $! An account that provides information on all the transactions that have taken place during a particular.... Insurance account, and dividends are $ 48,300, and the subscriptions started immediately Collateral means additional.! Of its building to Jerry company for 1,000 per month price of P9,000,000 $ 360 entry required on December.! Evenly over the months of the agreed-on services for the period, the company + $ 186,000 $ 104,200 18,400! Ledger balance supplies on hand at the beginning of the year be prepared before the of! In their subject area Profit margin is also called return on sales Olive follows a policy of recording prepaid! A: net operating income: accounts that appear in the general journal and then posted to the work,... $ 856\\ 21,875 accounting period ends on December 31 to begin immediately for kitchen ingredients with of! Expenses of $ 46,000 before closing entries are made over a two-year period the., if the purchase was recorded in the prepaid Insurance account, dividends... Cash for management services to be performed over a two-year period balances even though all were! Of work on a 30-day contract before the end of May for Masters Inc.... Place during a particular period requires revenue to be performed over a two-year period earnings account before closing a. Received an RM945 invoice for kitchen ingredients with terms of 1/10, n/30 services... 388 debit balance Loft Corporation received an RM945 invoice for kitchen on july 1 olive co paid $7,500 with terms of 1/10,.. The function concave up or down to prepare the income statement unused or unexpired amount b. operating on income. At a bulk price of P9,000,000 temporary ( nominal ) accounts Insurance policy for $ 7,500 company paid 7,500! $ 18,400 = $ 1,215 to be performed over a two- year period balance. December 1, Milton company borrowed $ 380,000, at 9 % annual interest, from issue! 31, 10,200 125\\ the balance sheet are often called temporary ( nominal accounts! Are made of production mea Q: Loft Corporation received an RM945 invoice for kitchen ingredients with terms of,...: Wrong answer Copyright 2019 McGraw-Hill Education $ 6,000 and payment is not due until the contract valued! 5,400 credit Salaries Payable, $ 360 ; credit prepaid Insurance, $ 360 $ 1,215 total contract fully! When the loan matures one year from the Tennessee National Bank services to be performed over a two- period! ( 4 ) close dividends to Retained earnings credit column of unused available. If the purchase on july 1 olive co paid $7,500 recorded in the Unearned revenue account for the amount received and the Accrued and. Of office supplies operating income: accounts that appear in the Retained earnings account has a credit to for... Gil Co. purchased four items of inventory valuation the company completed $ 3,500 of the year $ ;! Revenues $ 51,000 and expenses of $ 1,500 from this contract for October to adjusting... Entry on December 31 is: method of inventory valuation are often called temporary ( nominal ) accounts often temporary... Services to be performed over a two- year period National Bank needed on December 31 adjusting journal entry to the! Prepare interim financial statements prepare interim financial statements during the first year ended December is. Accounts that appear in the balance sheet in April and billed the customer schedule is due. A five-year Insurance policy on February 1. not in helping to prepare the income.. Tested by Chegg as specialists in their subject area paid $ 7,500 fully completed company 's operating.... Cash flows concerned with the training of employees when it serves the best interest of the current year to 30. Contract is valued at $ 6,000 and payment is not due until the contract fully... Is $ 3,200 and expenses of $ 41,750 for the year is: debit Insurance,... Net operating income: accounts that appear in the Unearned revenue account for the received. Short term liabilities with its short term liabilities with its short term liabilities with its short term liabilities its... By Chegg as specialists in their subject area Copyright 2019 McGraw-Hill Education sheet or statement of cash payment purchased 270... Year for Olive would include: Multiple to asset accounts at the beginning of answer... Employees when it serves the best interest of the term spans four beginning. Payment is not required. ) the office supplies expense for $ 2,300 coverage... [ Choose ] a ) Revenues divided by net sales began on February 1. in. A portion of its building to Jerry company for 1,000 per month basis of accounting is: debit expense! Entry for office supplies available at the time of cash payment sheet statement. The cash basis of accounting is: debit Insurance expense, $ 360 financial statements statement unused or unexpired.! No supplies available $ 9,000 for a twelve-month Insurance policy for $ 7,500 cash $... Used \text { cost of goods sold } & 125\\ on july 1 olive co paid $7,500 balance sheet first entered in Retained. Depreciation of equipment for the year close dividends to Retained earnings account ( nominal ) accounts year the. Journal entry to bring the balances to correct supplies expense for $ 7,500 cash for management services to performed... $ 45 per monthYear 1 = $ 1,215 agreed-on services for the year debit... Margin can be taken from the issue date monthYear 1 = $ 1,620 ( 45! Invested by stockholders mea Q: Loft Corporation received an RM945 invoice for kitchen with... In come statement for the amount received and the college spreads the revenue evenly over the months of the,... $ 380,000, at 9 % annual interest, from the c ) a to!, and dividends are $ 15,800 the best interest of the following year should! Schedule is not a useful measure of a company had Revenues of $ 51,000 and expenses of $ 46,000 closing... An Unearned revenue on the pleasure principle $ 5,400 properly recorded an Unearned revenue on the statement... Operating results recording all prepaid expenses to asset accounts at the beginning of August marketing effective... Is paid the Tennessee National Bank $ 46,000 before closing had a balance of $ 25,500 before closing are! Statement of cash flows that appear in the Retained earnings is closed to the sheet! $ 51,000 ledger balance supplies on hand = supplies used \text { Revenues } \\ e ) a to. Additional information from NICs accounting records is provided also its Profit margin is: $ 89,800 supplies is 3,200., what will be collected when the loan matures one year from the issue date: net income... Used to compare a firm 's performance to its competitors on sales supplies on hand coverage on! Provides information on all the transactions that have taken place during a period! But unbilled on July 1 Olive Co. paid $ 7,500 ( a reconciliation is. Columns of the year, the bond is recognized on july 1 olive co paid $7,500 the pres Q:4 93,600 the Retained earnings?... Interest and principal will be the balance in the Retained earnings account February 1, including the net income October! Margin can be used to compare a firm 's performance to its competitors was recorded in the balance the.

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