Mr. Juma paid the rent three months in advance for his shop. Write a short note on prepaid expenses with Literature Review and by providing examples.
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- Iman purchased an electric lawn mower, an edger, and an extension cord from her neighborhood yard and garden store. Immediately thereafter, the store emailed her a bill for these items. The bill stated that payment was due within 30 days. The bill is called a(n): Multiple Choice ledger statement. warranty. indenture. receipt. invoice.Which Journal? If you received a check from Mr. Jones for $500 for work you performed last week, which journal wouldyou use to record receipt of the amount they owed you? What would be recorded?Hannah received an invoice in the mail from Carpet Country for $4235. The invoice was dated March 22 and had term 3/15, 2/20 , n/60. If she made payment of $1000 on each of April 2, April 9, and April 22, how much does Hannah still owe?
- Refer to the previous question. Suppose you later received a letter in the mail with a $100 check in it from Daniel Delinkquint, together with a note describing how he had become a born-again Christian (much like Zacchaeus) and had determined to pay off all his debts (albeit not four-fold like Zacchaeus). Give the appropriate general journal entry(ies), if any, to reflect this payment from Daniel. Write “none” if no entry is required. Previous Question: Daniel Delinkquint owes your business $100 on account. He has moved and you have no idea how to contact him. You feel that perhaps the $100 he owes is not worth the time and effort to try to locate him. Furthermore, even if you did locate him, he probably would not pay the balance because he disputed it the last time your talked with him. An allowance has been made for this account in the past in accordance with GAAP. Give the appropriate general journal entry(ies), if any, to reflect your decision to not pursue collection from Daniel…Clarisse started a magazine publication called The Good Life. A subscriber pays P100 for one issue. Fifty subscribers made a one year payment on March 1 and another 100 subscribers on August 1 which Clarisse credited to Advances from Subscribers. She sends the magazine to each of these subscribers every month. Required: a. Make the entry to record collections received on March 1 and August 1. b. Assuming no changes in subscribers, compute for the Subscription Revenue that she should report at the end of December and prepare the journal entry to adjust the liability to a revenue account.Jackie owns a temporary employment agency that hires personnel to perform accounting services for clients. During the year, her expenses for her clients include the following: Cab fare to and from restaurants Gratuity at restaurants Meals Cover charges All expenses are reasonable. Required: a. How much of these expenses can Jackie deduct? b. How is the deduction classified? Required A Complete this question by entering your answers in the tabs below. Required B Cab fare to and from restaurants Gratuity at restaurants Meals Cover Charges Total deduction How much of these expenses can Jackie deduct? Note: Leave no cells blank. Enter "0" wherever required. $ 450 400 4,500 350 Answer is complete but not entirely correct. $ $ $ $ $ 450✔ 200 x 2,250 X 175 X 3,075 X
- You are the owner of a catering company and require advance payments from clients before providing catering services. You receive an order from the Coopers, who would like you to cater their wedding on June 10. The Coopers pay you $5,500 cash on March 25. Recored your journal entries for the initial payment form the Coopers, and when the catering service has been provided on June 10.Cy discovers a receipt for renter insurance for the storage locker rental. The renter insurance was purchased from Cyrus Insurance to provide insurance coverage for the inventory that Cy planned to store in the storage locker. Mookie The Beagle™ Concierge purchased 1 month of renter insurance coverage for the period January 1 through January 31, 2022. Using the company credit card, Mookie The Beagle™ Concierge paid $16.00 on January 16, 2022 for the 1 month of insurance coverage. So at the end of the accounting period on January 31, 1 month of rent had expired at $16.00. Since Mookie The Beagle™ Concierge had not recorded the transaction, the entire $16.00 should be recorded as Renter Insurance Expense with an adjusting entry to bring accounts up to date at January 31. Create Adjusting Journal Entry. (Round your answer to 2 decimal places.) Select Create (+) icon > Journal Entry Enter the adjusting journal entry in QBO on January 31, 2022 Enter Journal No.: ADJ 8 Complete the…As the owner of a hair salon business, you expect to recieve the utility bill on June 14 for the service provided in May. The average monthly bill is around $3,500. 1. When should the utility bill be recorded dated June 14? a) In June, because this is when you received the bill. b) In July, because this is when you will pay the bill. c) In May, because this is when the expense was incurred. Please explain for the answer.
- Samantha and Samuel both have student credit cards issued by VISA. Their credit card statements show they are at their credit card limit of $500 this month. Samantha manages her credit well and ensures that her credit card balance is paid off in full each month before the payment deadline while Samuel cannot manage to pay off the minimum amount required each month. Complete the sentence: For Financial Statement reporting purposes, __________________________________________. a) It does not matter where Samantha or Samuel report the$500 as long as it is shown on one of their Financial Statements. b) Both Samantha and Samuel would report their $500 on their Balance Sheet as a current liability. c) Both Samantha and Samuel would report their $500 on their Cash Flow statement as an expense. d) Samantha would report her $500 on her Cash Flow statement as an expense while Samuel would report his credit card debt of $500 on his Balance Sheet as a current liability. e) Samantha would report her…Lizzie Gunderson is trying to establish a credit history and applied for a Visa credit card. She paid the previous month's statement balance in full. The card carries a finance charge rate of 16%. What is the amount of finance charge if Lizzie pays off the current $168.20 monthly statement balance in full?You habe a business where you babysit for people in your local area.Some of your customers pay you mimmediately after you finish a job.Some customers ask you to send them a bill.It is now the 30th June and you have collected $3,600 from cash-paying customers.Your remaining customers owe you $5,200. How much service revenue would you have under accrual accounting?