Identify each of the following events as Accrual, Deferral or Neither. a. Incurred operating expenses on account. b. Paid cash for utilities expense. c. Collected $100,000 in advance for services to be performed over next 3 months. d. Paid cash to purchase supplies. e. Recorded expense for salaries owed to employees at the end of the period. f. made cash distribution to the owner. g. provided services on account. h. recognized interest on a note payable before cash is paid i. paid one year's rent in advance j. Purchased a computer with a 3-year life k. Collected deposits from costumers l. Invested vehicle for business use m. Paid salaries n. Recieved water bill for the month o. Purchased a 2-year insurance premium.

State whether each situation is a prepaid expense, unearned revenue, accrued revenue or an accrued expense. 1. 2. 3. 4. Unrecorded interest on savings bonds is is $245. Property taxes that have been incurred but that have not yet been paid or recorded amount to $300. Legal fees of $1,000 were collected in advance. By year end 60 percent were still unearned. Prepaid insurance had a $500 balance prior to adjustment. By year end, 40 percent was still unexpired.

A company engaged in the following transactions: Dec.1- Performed services for cash, $750 Dec.1- Paid expenses in cash, $550. Dec 2- Performed services on credit, $900. Dec 3- Collected on account, $600. Dec 4- Incurred expenses on credit, $650. Dec 5- Paid on account, $350. Enter the correct titles on the following T accounts, as attached, and enter the above transactions in the accounts. Determine the cash balance after these transactions, the amount still to be received, and the amount still to be paid.

Listed below are several transactions that took place during the second and third years of operations for the ABC Company. Cash flows: Cash collected from credit customers Cash disbursements: Salaries paid to employees for services rendered during the year Advertising Utilities Payment of rent Balance Sheet information Accounts receivable - End of year Accounts payable - End of year Payables Payables Utilities Accounts payable - total Advertising - Year 1 $20,000 3,000 800 $3,800 Year 2 $260,000 180,000 15,000 8,000 80,000 Year 2 $35,000 4,000 1,200 $5,200 Year 3 $400,000 Year 3 $18,000 2,000 0 $2,000 Required: 1. Calculate the net operating cash flow for years 2 and 3. 2. Prepare an income statement for each year according to the accrual accounting method. 210,000 22,000 6,000 0 In addition, you learn that there were no anticipated bad debts on receivables, and the rent payment was for a two-year period, year 2 and year 3.

K Bryson Inc. collects cash from customers two ways: 1. Accrued Revenue. Some customers pay Bryson after Bryson has performed service for the customer. During 2020, Bryson made sales of $53,000 on account and later received cash of $45,000 on account from these customers. 2. Unearned Revenue. A few customers pay Bryson in advance, and Bryson later performs service for the customer. During 2020, Bryson collected $6,500 cash in advance and later earned $5,000 of this amount. Journalize the following for Bryson: a. Earning service revenue of $53,000 on account and then collecting $45,000 on account b. Receiving $6,500 in advance and then earning $5,000 as service revenue a. Journalize Bryson earning service revenue of $53,000 on account and then collecting $45,000 on account. Start by recording earning service revenue on account. (Record debits first, then credits. Explanations are not required.) Date 2020 Accounts Debit Credit

Which one of the following transactions can immediately improve the Debt to Total Assets Ratio?   A Receive $5,200 cash for services provided and recorded before. B Provide services and receive $5,000 cash. C Adjust for the consumption of supplies after the annual stocktake. D Purchase Vehicle for $6,000 on credit. E Pay $2,300 annual insurance premium.