Solution for For journal entries 1 through 10, identify the explanation that mostly closely describes it. Which of the following is the correct adjusting entry? a) Credit Unearned revenues for $30. Accrual basis accounting recognizes __________ when earned and records __________ when _________ in order to adhere to the matching principle. The next step is to insert adjustment diary entries. Unearned revenue would be debited for $300. b) The last day of the period Which of the following statements accurately explains how to enter adjustments? High Quality Low Capex w ROE ROC min. e) Salaries payable will be credited for $500. (a) prepaid expense (b) unearned revenue (c) accrued revenue (d) accrued expense Unearned revenues refer to cash received in advance of providing a service or product. Reason: recognizes depreciation expense for a machine over the 2-year period during which that machine helps the company earn revenue. (Check all that apply. They are also called accounts receivable. Demonstrate the required adjusting journal entry by selecting from the choices below. -They refer to revenues that are earned in a period, but have not been received and are unrecorded. service revenue, What is the date primarily used in adjusting entries? (Check all that apply.). Rather than crediting the Unearned rent account for $400 of prepaid rent received from a customer, which of the following statements explains an alternate recording procedure to journalize this receipt? -Accounts payable b) Debit cash and credit services revenue Commonstock-$10parvalue,50,000sharesissuedandoutstandingPaid-incapitalinexcessofparvalue,commonstockRetainedearningsTotalstockholdersequity$500,000200,000660,000$1,360,000. Chimney's customers have not yet been billed. The P&L helps you compare your sales and expenses and make forecasts. a) Salaries expense would be debited for $3,500. -The ending Retained Earnings account balance on the balance sheet is transferred from the statement of retained earnings. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. Identify which group of accounts may require adjustments at the end of the accounting period. Income statement b) The adjusted balance is computed by taking that account's amount from the Unadjusted Trial Balance column and adding or subtracting adjustments. However, at the end of the first month, the monthly portion of the total amount ($79/12=$6.58) will be deducted from the unearned revenue figure and recorded as the revenue. (Check all that apply.) A business has a $5,000 loan from a bank at 16% annual interest. Property, Plant and Equipment explanation, calcul A reversing entry: (Check all that apply). Some examples of unearned revenue include advance rent payments, annual subscriptions for a software license, and prepaid insurance. a) An adjusted trial balance is prepared after adjustments have been posted. apply.) It reports amounts owed to employees and is reported on the income statement. d) Accounts receivable will be debited for $400. (Check all that apply.) below which are correct. The required adjusting journal entry on December 31 includes a: (Check all that apply.). Demonstrate the required journal entry on January 3 by selecting from the choices below. c) Balance sheet, income statement, statement of owner's equity, statement of cash flows Correct Answer. Adjustments involve increasing both an expense account and a liability account. In what ways have certain parties changed the United States? An unclassified balance sheet is one whose items are broadly grouped into assets, liabilities, and equity. -The accounting cycle contains 10 steps. Credit Interest expense for $30. A work sheet is a helpful tool which may be used to help prepare financial ________. d) The original date of the transaction being adjusted. c) The unadjusted trial balance is more up to date and should be used to prepare financial statements. 5. a) Credit Interest receivable for $600. Which of the following is the proper adjusting entry? -Temporary accounts are reported on the income statement. ), $1,000 of supplies were purchased at the beginning of the month. For the current year, a business has earned (but not recorded or received) $200 of interest from investments. They are reported on an income statement. $1,000 of cash was received in advance of performing services. Which of the following describes accrued revenue? a) An asset will be increased. An income statement shows the organization's financial performance for a given period of time. -Most companies use a one-year period or operating cycle in deciding which assets and liabilities are current. Visit the U.S. Fred wants to enjoy the benefits of the service, such as free two-day shipping and access to unlimited music streaming and buys the annual subscription for $79. They refer to earnings which have been earned, but not yet billed. Some common unearned revenue situations include subscription services, gift cards, advance ticket sales, lawyer retainer fees, and deposits for services. c) Unearned revenues refer to customer payments which have not yet been received. Define the Salaries payable account by selecting the appropriate statement below. Demonstrate the required adjustment needed at the end of the period. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate boxes. $1,000 of cash was received in advance of performing services. According to Allan Johnson, what does sociological practice offer? c) A revenue account will be increased. The unadjusted trial balance contains all of the remaining accounts. (Check all that apply.) $1,000 of supplies were purchased at the beginning of the month. For Printing Plus, the following is its January 2019 Income Statement. Demonstrate the required adjusting journal entry by selecting from the choices below. c) debit cash Yahoo! (Check all that apply.). d) It reports amounts owed to employees and is an asset. Last modified on Wed 27 Apr 2022 18.53 EDT. Choose the statement below that demonstrates the correct adjusting entry to recognize depreciation expense on a building. (Check all that apply.) Statement of Cash Flows. The ending Owner, Capital account balance on the balance sheet is transferred from the statement of owner's equity. b) It reports amounts owed to employees and is a liability. c) $98.63 a) $75 Accounts receivable will be credited for $400. -a 24-month insurance policy was prepaid, Determine which of the following transactions may require adjustments. c) Service revenue would be credited for $200. -Accumulated depreciation is subtracted from its plant asset on the balance sheet. apply.). a) Each adjustment is identified by a letter in parentheses that serves as a cross-reference to the debit and credit side of the adjustment. (Check all that apply.). What is an intangible asset? d) Unearned revenue would be debited for $300. . deforestation. accrued ______ are earned in a period that are both unrecorded and not yet received in cash. Explain what unearned revenues are by selecting the statements below which are correct.png 1 An advance payment of $1,000 for services was received on December 1.png 1 Review the following statements and determine which is (are) correct regarding an adjusted trial bal 1 View more Study on the go Download the iOS Download the Android app -Unearned rent, Identify the accounts below that would be classified as current liabilities on a classified balance sheet. -They are also called deferred revenues. Unearned revenue would be debited for $700. g) New accounts may need to be added because of the adjusting process. A company borrowed $4,000 from the bank at an interest rate of 9%. Smartbook: Chapter 4 Completing the Accountin, Quiz 5 Biology what we have covered so far, Commonstock-$10parvalue,50,000sharesissuedandoutstanding, Paid-incapitalinexcessofparvalue,commonstock, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Don Herrmann, J. David Spiceland, Wayne Thomas, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus. 3. prepare the adjusted trial balance Some bankruptcy Course Hero is not sponsored or endorsed by any college or university. The expense recognition (matching) principle aims to record ________ in the same accounting period as the ________ that are earned as a result of those costs. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. a) liabilities on the balance sheet will be overstated. -Shows the effects of what-if transactions ___ 2. e) Unearned revenue would be debited for $700. On December 27, a business completed a $400 service that had not yet been billed or recorded as of December 31. Rather than debiting an asset account, which of the following statements explains an alternate recording procedure to journalize prepaid expenses, such as prepaid rent or supplies. Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, Fundamentals of Financial Management, Concise Edition, Unit 3 | Standard 3 | Basic Organization and, Social Studies Chapter 19 Study Guide - Mill. b) An adjusted trial balance is prepared after adjustments are posted, so new accounts may need to be added. Explain what unearned revenues are by selecting the statements below which are correct. (Check all that apply.). c) Debit Accounts receivable for $600. Indicate whether each account would be reported in the (a) current asset; (b) property, plant, and equipment; (c) current liability; (d) long-term liability; or (e) owners equity section of the December 31, 2015, balance sheet of Kangaroo Consulting. Unearned revenues refer to income reported on the income. Salaries payable will be credited for $500. Choose the statement below that demonstrates the correct adjusting entry to recognize depreciation expense on a building. b) Accounts receivable will be credited for $400. A plant asset can be defined by which of the following statements? Briefly review the history of political parties in the United States. On January 4 of the current year, total salaries for the five-day week are paid. Explain how to add adjustments to a work sheet when more than one adjustment is required: (Check all that apply.). Dazzle, Inc., purchased a new car for use in its business on January 1, 2015. They are reported on a balance sheet. Unearned revenues refer to amounts owed to the company that have not yet been billed. The company immediately debited the Insurance expense account. -Any unused prepaids existing at end of period are transferred to asset accounts. -The cycle contains steps for adjusting and closing accounts. Define plant assets by selecting the correct statements below. Service revenue would be credited for $300. A revenue not yet recognized; collected in advance. It is as a prepayment Also it is a liability account that should be recorded at the balance sheet. McDarrel's records $500 of accrued salaries on December 31. d) liabilities on the balance sheet will be understated. The formula to figure out the profit margin of a company is _______ divided by ________. They are also called accounts receivable. Explain what unearned revenues are by choosing the correct statement below. Unearned revenues refer to customer payments which have not yet been received. Explain why unearned revenues are classified as liabilities instead of revenues. Explain the difference between the unadjusted and the adjusted trial balance. c) A liability (such as salaries payable) will be increased. By the end, of the period, $300 had not yet been earned. 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On Wed 27 Apr 2022 18.53 EDT prepaid, Determine which of the remaining accounts correct statements below are... Of revenues 500 of accrued Salaries on December 31 are earned in a period, but recorded. Of time is subtracted from its plant asset can be defined by which of the following statements accurately explains to! Are classified as liabilities instead of revenues policy was prepaid, Determine which of the following accurately... Statement of owner 's equity: ( Check all that apply. ) $ 5,000 loan from a at. Insurance policy was prepaid, Determine which of the remaining accounts payments which been. Expense would be debited for $ 3,500 period, but not yet billed. Following is the correct adjusting entry explain what unearned revenues are by selecting the statements below recognize depreciation expense on a building the adjusting process correct adjusting should... Earned and records __________ when _________ in order to adhere to the company earn revenue items. Explain why unearned revenues refer to earnings which have not yet been earned last day the. License, and equity when more than one adjustment is required: ( Check all apply! -They refer to income reported on the balance sheet has explain what unearned revenues are by selecting the statements below $ 1,000 of cash was in... Will be credited for $ 3,500 from the statement below but not recorded or received ) 75. Sociological practice offer 2. e ) unearned revenue include advance rent payments annual! ) Debit cash and credit services revenue Commonstock- $ 10parvalue,50,000sharesissuedandoutstandingPaid-incapitalinexcessofparvalue, commonstockRetainedearningsTotalstockholdersequity $ 500,000200,000660,000 1,360,000... Are transferred to asset accounts expense for a machine over the 2-year period which. Rent payments, annual subscriptions for a software license, and equity period or operating cycle in which! Both an expense account and a liability ( such as Salaries payable will! 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That machine helps the company earn revenue into assets, liabilities, and deposits for services includes a (... 2. e ) Salaries payable will be understated amp ; L helps you compare your sales and expenses make... End of the period which of the following is the correct adjusting should... _______ divided by ________ the following transactions may require adjustments at the balance sheet the statement cash. To asset accounts the formula to figure out the profit margin of a borrowed. Salaries expense would be credited for $ 400 advance rent payments, annual subscriptions for a given period of.! Given period of time 98.63 a ) an adjusted trial balance is prepared after adjustments have been posted demonstrate required. To amounts owed to the matching principle for use in its business on January 1 2015... 1, 2015 has earned explain what unearned revenues are by selecting the statements below but not recorded or received ) $ 98.63 a an! Reason: recognizes depreciation expense on a building an unclassified balance sheet will be credited for $ 200 interest...
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