Identify the accounting principle or assumption that best explains each situation. 1. In December of this year, Chavez Landscaping received a customer's order and cash prepayment to install sod at a house that would not be ready for installation until March of next year Chavez should record the revenue from the customer order in March of next year, not in December of this year. 2. Green Cleaners Incorporated purchased bleach for an upcoming job. Green Cleaners does not record the expense until It performs the cleaning job. 3. Chen Organics purchased a tractor for $20,000 cash. The owner believes the tractor is really worth $30,000. The tractor is still recorded at $20,000 on the balance sheet.
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- (Error Analysis and Correcting Entry) You have been engaged to review the financial statements of Gottschalk Corporation. In the course of your examination, you conclude that the bookkeeper hired during the current year is not doing a good job. You notice a number of irregularities as follows.1. Year-end wages payable of $3,400 were not recorded because the bookkeeper thought that “they were immaterial.”2. Accrued vacation pay for the year of $31,100 was not recorded because the bookkeeper “never heard that you had to do it.”3. Insurance for a 12-month period purchased on November 1 of this year was charged to insurance expense in the amount of $2,640 because “the amount of the check is about the same every year.”4. Reported sales revenue for the year is $2,120,000. This includes all sales taxes collected for the year. The sales tax rate is 6%. Because the sales tax is forwarded to the state’s Department of Revenue, the Sales Tax Expense account is debited. The bookkeeper thought that…Do not copy from bartleby. Otherwisw i will give you dislike When DeSoto Water Works purchased equipment at the end of 2020 at a cost of $64,000, the company debited Buildings and credited Cash $64,000. The error was discovered in 2021. Prepare the journal entry DeSoto will use to correct the error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record entry to correct error. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journalParty Warehouse Inc. rents a wide variety of products (e.g., tables, chairs, tents) for special events. Upon rental, Party Warehouse requires a deposit which is forfeited if the equipment is not returned at the end of the rental period. Deposits charged are twice the cost of the equipment, and Party Warehouse keeps the equipment in its accounting records until deposits are forfeited. On April 5, a customer rented various products for an event to be held on April 8, and Party Warehouse collected a $10,000 deposit. The products were returned on April 10. Required: 1. Prepare the entries to record the receipt of the deposit and refund of the deposit at the end of the rental period. 2. Assume that the customer only returns 90% of the containers on April 10. Prepare the entries to record the forfeiture of the deposit.
- For each of the following situations write the principle, assumption, or concept that justifies orexplains what occurred.A. A landscaper received a customer’s order and cash prepayment to install sod at a house that would notbe ready for installation until March of next year. The owner should record the revenue from thecustomer order in March of next year, not in December of this year.B. A company divides its income statements into four quarters for the year.C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at$205,000.D. Brandy’s Flower Shop is forecasting its balance sheet for the next five years.E. When preparing financials for a company, the owner makes sure that the expense transactions arekept separate from expenses of the other company that he owns.F. A company records the expenses incurred to generate the revenues reported.During November 200X John painted a barn. The customer does not pay John until January this next year. Which of the following statements is correct? Using accrual accounting, the revenue is reported in January. Using accrual accounting, the revenue is reported in November. Using accrual accounting, the revenue is reported in the month John bought the paint for the barn. Using accrual accounting, the revenue is reported in the month John bought the paint for the barn.Please dont copy past other answers from other websites. They are wrong. This is an activity in my workbook and is not for marks. The second picture is the layout of the answer. I need help with how to write the answer in the layout that's in my textbook. Question: Journalise ALL the above transactions for the year ended 28 February 2021 inthe General Journal including the year-end adjustment entries for depreciation.Round off to the nearest RandNarrations are not required
- Jon Yanta, owner of Yanta’s Yard Care, is disappointed that his business incurred a net loss for June of the current year. Mr. Yanta would have preferred not to have to reduce his capital by $880.00. He knows that you are studying accounting, so Mr. Yanta asks you to analyze his work sheet for June. Review the statements provided in the worksheet, and based on your analysis of the work sheet, indicate the likely causes of the net loss for Yanta’s Yard Care as well as the steps Mr. Yanta can take to avoid a net loss in future months. Select True or False for each of the given statements. Jon Yanta’s sales exceeded the amount of his expenses. Reducing expenses could improve the company’s results. An increase in total revenue could result in net income. Rent expense of $5,500 would have resulted in net income. Supplies expense were not a significant portion of total expenses. Selling more services would have no effect on revenues. An increase in prices could result in higher…This is a continuation of the last problem I submitted. I made an error in my last submission by not attaching the picture so I am just resubmitting with attachment. I am sorry for any inconveniance. The following events occur for Morris Engineering during 2021 and 2022, its first two years of operations. February 2, 2021 Provide services to customers on account for $38,000. July 23, 2021 Receive $27,000 from customers on account. December 31, 2021 Estimate that 25% of uncollected accounts will not be received. April 12, 2022 Provide services to customers on account for $51,000. June 28, 2022 Receive $6,000 from customers for services provided in 2021. September 13, 2022 Write off the remaining amounts owed from services provided in 2021. October 5, 2022 Receive $45,000 from customers for services provided in 2022. December 31, 2022 Estimate that 25% of uncollected accounts will not be received.…You have been asked by a client to review the records of Sheffield Company, a small manufacturer of precision tools and machines. Your client is interested in buying the business, and arrangements have been made for you to review the accounting records. Your examination reveals the following information.1. Sheffield Company commenced business on April 1, 2018, and has been reporting on a fiscal year ending March 31. The company has never been audited, but the annual statements prepared by the bookkeeper reflect the following income before closing and before deducting income taxes. Year EndedMarch 31 IncomeBefore Taxes 2019 $83,772 2020 130,338 2021 121,189 2. A relatively small number of machines have been shipped on consignment. These transactions have been recorded as ordinary sales and billed as such. On March 31 of each year, machines billed and in the hands of consignees amounted to: 2019 $7,605 2020 none 2021 6,540 Sales price was…
- Drex Montanez, a previously employed individual finally decided to put up his own business somewhat in year 2021. During this time of pandemic, he decided to do some trading of pizza oven and pizza board. The following are transactions in April 2021: April 4 The following assets were invested in business by Drex: Cash -10,000; Supplies 1,250; Office Equipment- 7,500; Furniture 1,250. April 4 Paid three months advance rental to Ninang Lessor for 1,500 per month. April 4 Paid Casualty insurance PRU UK amounting to 1,800. April 6 Received cash from GTZ Enterprise on sale of merchandise for 3,000. April 7 Purchase additional furniture on account from Crizfat Furniture amounting to 1,800. April 8 Cash Sales from walk in client amounting to 800 April 11 Paid Cash advertisement to Bulgar Newspaper amounting to 120. April 12 Paid debt amounting to 800…Drex Montanez, a previously employed individual finally decided to put up his own business somewhat in year 2021. During this time of pandemic, he decided to do some trading of pizza oven and pizza board. The following are transactions in April 2021: April 4 The following assets were invested in business by Drex: Cash -10,000; Supplies 1,250; Office Equipment- 7,500; Furniture 1,250. April 4 Paid three months advance rental to Ninang Lessor for 1,500 per month. April 4 Paid Casualty insurance PRU UK amounting to 1,800. April 6 Received cash from GTZ Enterprise on sale of merchandise for 3,000. April 7 Purchase additional furniture on account from Crizfat Furniture amounting to 1,800. April 8 Cash Sales from walk in client amounting to 800 April 11 Paid Cash advertisement to Bulgar Newspaper amounting to 120. April 12 Paid debt amounting to 800…Drex Montanez, a previously employed individual finally decided to put up his own business somewhat in year 2021. During this time of pandemic, he decided to do some trading of pizza oven and pizza board. The following are transactions in April 2021: April 4 The following assets were invested in business by Drex: Cash -10,000; Supplies 1,250; Office Equipment- 7,500; Furniture 1,250. April 4 Paid three months advance rental to Ninang Lessor for 1,500 per month. April 4 Paid Casualty insurance PRU UK amounting to 1,800. April 6 Received cash from GTZ Enterprise on sale of merchandise for 3,000. April 7 Purchase additional furniture on account from Crizfat Furniture amounting to 1,800. April 8 Cash Sales from walk in client amounting to 800 April 11 Paid Cash advertisement to Bulgar Newspaper amounting to 120. April 12 Paid debt amounting to 800…