Accounting Quiz idk

Net income= retained earnings after revenue and expense accounts have been closed to income summary

=Revenue - Expenses

On July 31, Green Company paid a supplier $150 on account. The bookkeeper recorded this by debiting Supplies $510 and crediting Accounts Payable for $510.

Accounts payable 510-debit supplies - 510 credit accounts payable -150 - debit cash-150 date it!

March 3: Hayes Company pays balance due of $3,100 on tools previously purchased. August 4: Hayes Company pays dividends of $2,500.

Accounts payable= debit 3100, Cash credit =3100 Dividends= debit, 2500, Cash credit = 2500

The company purchased $2,840 worth of supplies. By the end of the year, $2,210 of supplies remain. The difference, $630, must have been used up and needs to be expensed at the end of the year as an adjusting entry.

Amount expensed =Amount paid - Amount remaining = $2,840 - $2,210 = $630

On November 1, Hayes Company paid $10,200 for two years of insurance in advance.

Amount expensed: 850 Amount in the prepaid insurance account: 9350

On January 2, 2016, Butler Company purchased land that cost $540,000, a building on the land that cost $840,000, and equipment that cost $30,000. The building has an estimated useful life of 25 years. The equipment has an estimated useful life of 6 years.

Annual depreciation amount = (Cost - Salvage value)/Useful life Yearly depreciation = Cost/ Yrs of life =$840,000/25 = $33,600. Book value of buildings = Buildings (cost) - Accumulated depreciation, buildings = $840,000 - $33,600 = $806,400. Total property, plant, and equipment=Land+Book value of buildings+Book value of equipment = $540,000 + $806,400 +$25,000 = $1,371,400

On December 31, Morris Co. had the following list of accounts.

Assets = cash, accounts receivable, supplies, prepaid rent Liabilities= accounts payable, unearned revenue Stockholders' Equity= capital stock, retained earnings

Ending balance in retained earnings =

Beginning balance + Net income - Dividends

The book value of an asset is computed by taking the asset's cost and subtracting the accumulated depreciation. The asset's cost in this problem is $33,300. Accumulated depreciation is $5,550. The difference, $27,750, is the book value.

Book value = $33,300 - $5,550 = $27,750

The company purchased equipment for $33,300 that will last 6 years. We will expense this equipment equally over that 6-year period as depreciation expense.

Depreciation expense per year = $33,300/ 6 = $5,550

May 29:Wood Company purchases equipment costing $4,400, paying 40% down and the rest on account. August 27:Wood Company receives and pays a bill for a two-year insurance policy premium, $2,700. The policy begins on September 1.

Equipment: Debit=4400 Accounts Payable: 2640, credit, Cash: 1760-credit Prepaid Insurance, Debit: 2700 Cash, Credit, 2700

Prepare the third closing entry to close the Income Summary account to the Retained Earnings account, given that net income for the period = $32,730.

Income summary=32,730, debit Retained earnings = 32730, credit

On December 31, Edwards Company has incurred interest expense of $4,300 on outstanding notes, even though the company will not actually pay the interest until the following year.

Interest Expense, debit; 4300 Interest Payable, Credit, 4300

On December 31, Henderson Company has earned interest revenue of $3,100 on outstanding notes, even though the company will not actually receive the interest until the following year.

Interest Receivable, debit: 3100 Interest Revenue, credit: 3100

March 5 :Rogers Company pays current month's rent, $1,200. August 3: Rogers Company pays $1,700 of monthly salaries.

Rent Expense, Debit : 1200 Cash, credit: 1200 Salaries Expense: Debit: 1700, Cash: 1700

On September 1, Sanchez Magazine Company receives annual subscriptions totaling $593,400. The first issue will be received by the subscriber one month after the money is received. Sanchez Magazine Company's fiscal year ends December 31.

Subscriptions earned each month = $593,400/12 = $49,450 Revenue earned this year= Months remaining in the year × Earnings per month = 3 × $49,450 = $148,350

A debit to cash for 915 was not posted.

The trail balance is not balanced, 915 difference, credit

A payment of $280 on account for supplies previously purchased was recorded as a debit accounts payable for $280 and a credit to cash for $820

The trail balance was not balanced, difference=540, credit

A credit to account payable for $365 was omitted.

The trial balance was not balanced. 365 difference, debit

A 885 credit to Service Revenue was posted as a 885 credit to Unearned Revenue

Trail balanced ? Yes

The dividends account balance of 775 was listed in the trial balanced as credit.

Trial balance? no amount difference? 1550 which one with the larger total? credit

A receipt of 300 on account for services already performed was recorded as a debit to cash for 300 and a credit to service revenue for 30.

Trial balance? no amount difference? 270 which one is larger total? debit

On October 1, the beginning of the new term, Rogers Institute, a private school, receives $152,400 in tuition for the upcoming semester, which lasts four months. Rogers Institute's fiscal year ends December 31.How much revenue would Rogers recognize from this amount for the current year?

Tuition earned per month= $152,400/4 = $38,100 Tuition earned in the current year = Number of months remaining × Tuition earned per month = 3 × $38,100 = $114,300

cash equivalent

a three month t-bill due in 30 days, cash money in a market account

Checks received but not yet deposited

cash

coins

cash

A three month t-bill due in 30 days

cash equivalent

debit

cash, buildings, dividends, accounts receivable, insurance expense, dividends, rent expense, notes receivable

cash

coins, paper money

neither

customer's NSF Check

A receipt of 900 on account for services already performed was recorded as a debit to Cash for 90 and a credit to accounts receivable for 900

is not still balanced 810, difference credit

a one year t-bill coming due in 30 days

neither

an investment in stocks that business is planning to hold for 80 days

neither

cash owed to us by a customer

neither

Temporary account

service revenue, dividends, income summary

credit

service revenue, retained earnings, unearned revenue, accounts payable, salaries payable,capital stock

On September 1, Carter Company received $910 for services to be performed in the future. The bookkeeper recorded this by debiting Cash for $190 and crediting Service Revenue for $190.

service revenue= 190, debit cash = 190, credit cash=910, debit unearned revenue= 910, credit

A payment of $130 on account for supplies previously purchased was recorded as a debit to Supplies Expense and a credit for Cash for $130

the trial balance is balance

The 875 balance of supplies in the general ledger was omitted from the trial balance

trial balance? no difference in amount? 875 which on with the larger total? credit

The 210 accounts receivable balance in the general ledger was listed as 120 in the trial balance

trial balance? no difference in amount? 90 Which one with the larger total? credit

A 565 debit to accounts payable was posted AS A 565 debit to cash

trial balance? yes

Permanent account

unearned revenue, retained earnings, any liabilities