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A company pays its employees $1,750 each Friday, which amounts to $350 per day for the five-day workweek that begins on Monday. 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
$1,400
A company recorded 2 days of accrued salaries of $2,100 for its employees on January 31. On February 9, it paid its employees $8,400 for these accrued salaries and for other salaries earned through February 9. Assuming the company does not prepare reversing entries, the January 31 and February 9 journal entries are:
/31 Salaries Expense 2,100 Salaries Payable 2,100 2/9 Salaries Expense 6,300 Salaries Payable 2,100 Cash 8,400
Identify which error will cause the trial balance to be out of balance.
A $140 cash receipt from a customer in payment of her account posted as a $140 debit to Cash and a $14 credit to Accounts Receivable.
On May 31, the Cash account of Teasel had a normal balance of $5,200. During May, the account was debited for a total of $12,400 and credited for a total of $11,700. What was the balance in the Cash account at the beginning of May
A $4,500 debit balance.
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,200. Fragmental collected the entire $9,600 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be:
A debit to Unearned Rent and a credit to Rent Revenue for $3,600.
Ted Catering received $1,040 cash in advance from a customer for catering services to be provided in three months. Determine the general journal entry that Ted Catering will make to record the cash receipt. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.
Cash 1,040 Unearned Catering Revenue 1,040
Adriana Graphic Design receives $2,500 from a client billed in a previous month for services provided. Which of the following general journal entries will Adriana Graphic Design make to record this transactio
Cash 2,500 Accounts Receivable 2,500
Silvia's Studio provided $170 of dance instruction and rented out its dance studio to the same client for another $110. The client paid cash immediately. Identify the general journal entry below that Silvia's Studio will make to record the transaction.
Cash 280 Rental Revenue 110 Instruction Revenue 170
Matthew Martin, the owner of Innovation Consulting, started the business by investing $46,000 cash. Identify the general journal entry below that Innovation Consulting will make to record the transaction.
Cash 46,000 M. Martin, Capital
GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $82,000 for 6-months services in advance. GreenLawn's general journal entry to record this transaction will include a
Credit to Unearned Revenue for $82,000.
A law firm billed a client $3,600 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?
Debit Accounts Receivable, $3,600; credit Legal Fees Revenue, $3,600.
Alicia Tax Services paid $520 to settle an account payable. Which of the following general journal entries will Alicia Tax Services make to record this transaction?
Debit Accounts payable, $520; credit Cash, $520.
Victor Cruz contributed $90,000 in cash and land worth $170,000 to open a new business, VC Consulting. Which of the following general journal entries will VC Consulting make to record this transaction?
Debit Cash $90,000; Debit Land $170,000; Credit Cruz, Capital $260,000.
A law firm collected $2,200 on account for work performed in the previous month. Which of the following general journal entries will the firm make to record this collection of cash?
Debit Cash, $2,200; credit Accounts Receivable, $2,200.
A law firm collected $3,500 in advance for work to be performed in three months. Which of the following general journal entries will the firm make to record this transaction?
Debit Cash, $3,500; credit Unearned Legal Fees Revenue, $3,500.
Green Cleaning purchased $530 of office supplies on credit. The company's policy is to initially record prepaid and unearned items in balance sheet accounts. Which of the following general journal entries will Green Cleaning make to record this transaction?
Debit Office supplies, $530; credit Accounts payable, $530.
Sanborn Company rents space to a tenant for $2,800 per month. The tenant currently owes rent for November and December. The tenant has agreed to pay the November, December, and January rents in full on January 15 and has agreed not to fall behind again. Assuming adjustments are only made at year-end, the adjusting entry needed on December 31 is:
Debit Rent Receivable, $5,600; credit Rent Earned, $5,600.
A company pays each of its two office employees each Friday at the rate of $290 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:
Debit Salaries Expense $1,160 and credit Salaries Payable $1,160
Sanborn Company has 10 employees, who earn a total of $3,800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:
Debit Salaries Expense, $11,400; credit Salaries Payable, $11,400.
The correct adjusting entry for accrued and unpaid employee salaries of $10,200 on December 31 is:
Debit Salary Expense, $10,200; credit Salaries Payable, $10,200.
Edison Consulting received a $410 utilities bill and immediately paid it. Edison's general journal entry to record this transaction will include a:
Debit to Utilities Expense for $410.
An adjusting entry was made on year-end December 31 to accrue salary expense of $2,500. Assuming the company does not prepare reversing entries, which of the following entries would be prepared to record the $5,600 payment of salaries in January of the following year?
Salaries Payable 2,500 Salaries Expense 3,100 Cash 5,600
Specter Consulting purchased $7,600 of supplies and paid cash immediately. Which of the following general journal entries will Specter Consulting make to record this transaction? Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.
Supplies 7,600 Cash 7,60
A $150 credit to Supplies was credited to Fees Earned by mistake. By what amounts are the accounts under- or overstated as a result of this error?
Supplies, overstated $150; Fees Earned, overstated $150.
Russell Co. received a $700 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it. Which of the following general journal entries will Russell Co. make to record the receipt of the bill?
Utilities Expense 700 Accounts Payable 700
Jose Consulting paid $700 cash for utilities for the current month. Determine the general journal entry that Jose Consulting will make to record this transaction.
Utilities Expense 700 Cash 700
On December 1, Simpson Marketing Company received $3,000 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned fees. The adjusting entry for the year ended December 31 would include:
a debit to Unearned Fees for $1,500.
On April 1, Griffith Publishing Company received $16,380 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the first year?
debit Unearned Fees, $4,095; credit Fees Earned, $4,095.
A company made no adjusting entry for accrued and unpaid employee salaries of $9,900 on December 31. Which of the following statements is true?
it will understate expenses and overstate net income by $9,900.
