A sole trader whose financial year end is 31 December rents the premises from which she operates. During 20X1 she paid rent totalling £15670, which includes one bill for £4320 for the quarter ended 28 February 20X2. After making the appropriate adjustment at 31 December 20X1, the business's financial statements will include the following: Rent expense £17110; Accrual £1440 Rent expense £18550; Accrual £2880 Rent expense £14230; Prepayment £1440 Rent expense £12790; Prepayment £2880
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A sole trader whose financial year end is 31 December rents the premises from which she operates. During 20X1 she paid rent totalling £15670, which includes one bill for £4320 for the quarter ended 28 February 20X2.
After making the appropriate adjustment at 31 December 20X1, the business's financial statements will include the following:
| Rent expense £17110; Accrual £1440 | |
| Rent expense £18550; Accrual £2880 | |
| Rent expense £14230; Prepayment £1440 | |
| Rent expense £12790; Prepayment £2880 |
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- Black Ltd commenced trading on 1 September Year 3 and is preparing its accounts for the year ended 31 August Year 4. During its first year of trading the company pays total telephone company invoices of £4,300. The three-month invoice paid in July Year 4 includes calls of £1,200 for the quarter up to 30 June Year 4 and advance rental of £960 for the quarter to 30 September Year 4. The invoice received in October Year 4 includes calls of £840 for the quarter up to 30 September Year 4 and advance rental of £1,200 for the quarter to 31 December Year 4. What is the telephone expense to be recorded in the income statement for the first year of trading?Black Ltd commenced trading on 1 September Year 3 and is preparing its accounts for the year ended 31 August Year 4. During its first year of trading the company pays total telephone company invoices of £4,300. The three-month invoice paid in July Year 4 includes calls of £1,200 for the quarter up to 30 June Year 4 and advance rental of £960 for the quarter to 30 September Year 4. The invoice received in October Year 4 includes calls of £840 for the quarter up to 30 September Year 4 and advance rental of £1,200 for the quarter to 31 December Year 4. What is the telephone expense to be recorded in the income statement for the first year of trading? D a) £5,180 b) £4,300 c) £4,860 d) £4,540Entity A received a 12%, ₱200,000, one-year, note receivable on October 1, 20x1. Entity A uses a calendar year period. The principal and interest on the note are due on October 1, 20x2. What is the adjusting entry to take up accrued interest income on December 31, 20x1? Entity A is renting out its building to a tenant for a monthly rent of ₱30,000. As of December 31, 20x1, the tenant has not yet paid the rent for the months of November and December. What is the adjusting entry to take up accrued rent income on December 31, 20x1? Entity A issued a 12%, ₱500,000, one-year, note payable on July 1, 20x1. The principal and interest are due on July 1, 20x2. What is the adjusting entry to take up accrued interest expense on December 31, 20x1? Entity A has equipment with a historical cost of ₱1,000,000. The equipment was estimated to have a 10-year useful life when it was acquired four years ago. What is the adjusting entry to take up the annual depreciation…
- On June 8, Alton Co. issued an $77,100, 7%, 120-day note payable to Seller Co. Assume that the fiscal year of Seller Co. ends June 30. Using a 360-day year in your calculations, what is the amount of interest revenue recognized by Seller in the following year? When required, round your answer to the nearest dollar. $450 $1,469 $900 $5,397On September 1, Kennedy Company loaned $126,000, at 11% annual interest, to a customer. Interest and principal will be collected when the loan matures one year from the issue date. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end? Multiple Choice Debit Cash, $4,620; credit Interest Revenue, $4,620. Debit Interest Expense, $4,620; credit Interest Payable, $4,620 Debit Interest Receivable, 4,620; credit Interest Revenue, $4620. Debit Interest Expense, $13,860; credit Interest Payable, $13,860 Debit Interest Receivable, $13,860; credit Cash, $13,860 Graw 7:26 PM W 100% 3 Type here to search 2/21/2022At 31 March 20X7, accrued rent payable was £300. During the year to 31 March 20X8, £4,000 cash was paid. This included an invoice for rent for £1,200 which covered the quarter ending 30 April 20X8. What was the charge for rent in the statement of profit or loss for the year ending 31 March 20x8?
- A.Yasoplc is a manufacture company and its financial year ended at 31st December 2019. Total assets are £40m and net profit before tax is £12m.Yasoplc’s trade receivables ledger includesa large number ofcustomers. The year-end trade receivables balance is £4m (comparable to £2m in 2018) and the allowance for trade receivables is £400,000 (comparable to £600,000 in 2018). •Describe substantive procedures the auditor should perform to obtainsufficientand appropriate audit evidence in relation toYasoplc’s trade receivables.A. Yaso plc is a manufacture company and its financial year ended at 31st December 2019. Total assets are £40m and net profit before tax is £12m. Yaso plc's trade receivables ledger includes a large number of customers. The year-end trade receivables balance is £4m (comparable to £2m in 2018) and the allowance for trade receivables is £400,000 (comparable to £600,000 in 2018). Requirement: Describe substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to Yaso plc's trade receivables.As at 31 December 2019, the company require inclusion in a financial statement the following: 1 January 2019 the company made a loan of £12,000 to an employee, charging 2% interest per year. On 1 January 2020, the employee repaid the loan in full plus interest The company paid insurance premium of £9,000 in September 2019, for period ending 31 August 2020 In January 2020, the company received overdue due rent of £4,000 from customer, covering period to December 2019. Calculate the amount to be included the company’s statement of financial position as at 31 December 2019 a. Current assets £10,000 Current liabilities £12,240 b. Current assets £22,240 Current liabilities nil c. Current assets £10,240 Current liabilities nil d. Current assets £16,240 Current liabilities £6,000
- Suppose Alladin Travel, Inc., holds a note receivable as an investment. At the endof June, $100 of interest revenue has been earned. Journalize the accrued revenueadjustment at June 30.Carry out the adjustment journal entries on 31 December 20X1 (accounting year 01.01-31.12) of the Kapa company. On 1/2/20X1 the company received a bank loan of 60,000€ with a duration of one year at an annual interest rate of 5%. Capital and interest are payable at the end of the loan agreement. On 01/3/20X1 the company received the rents for the next twelve months amounting to 1000 €. The accountant entered the amount in an effective account. On 01/05/20X1 the company paid the annual insurance premiums of the means of transport amounting to 30000. The accountant entered the amount into a claim account. On 1/11/20X1 it granted a loan of €9000 to a supplier for seven months, at an annual interest rate of 7%. Interest will be collected on the date of repayment of the loan. On 1/12/20X1 it collects €3500 as a deposit for services that will be offered from 15/12/20X1 until 31/12/20X2. The accountant enters the event in an income account.Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that it will owe 17,400 in property taxes for the year. On June 1, its property taxes are assessed at 17,000, which it pays immediately. Prepare the related journal entries for April 1, May 1, and June 1. Then compute the monthly property tax expense that Cee Co. would record during June through March.
