Joel Feliciano has started his own business, Property Appraisals. He inspects property for buyers and sellers of real estate. Feliciano rents office space and has a part-time assistant to answer the phone and to help with inspections. The transactions for the month of September are as follows: a. Feliciano invested cash by making a deposit in a bank account for the business, P150,000. b. Paid rent for the month, P3,000. C. Bought a second-hand service vehicle for cash, P80,000. d. Bought service tools on account, P30,000. e. Paid electricity bill, P500. f. g. h. i. j. Paid a one-year insurance premium on the service vehicle, P6,000. Received cash from clients for service performed, P20,000. Paid salaries to assistant for first half of the month, P2,000. Performed appraisal services for clients on account, P10,000. Paid water bill, P350. k. Bought office supplies for cash, P1,000. 1. Received cash from clients for inspections performed on account in (i), P3,000. m. Paid salaries to assistant for last half of the month, P2,500. n. Made partial payment on service tools bought in (d), P10,000. O. Additional revenues earned amounted to P20,000: P14,000 for cash and P6,000 on account. p. Feliciano withdrew cash for personal expenses, P5,000. Required: Establish the following accounts in a financial transaction worksheet: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Service Tools; Service Vehicle; Accounts Payable; Feliciano, Capital; Feliciano, Withdrawals ; Revenues; Expenses

Javier Jimenez operates a delivery service. During the month of April, the firm had the following transactions. April 1 Issued a check in the amount of $4,800 to pay the monthly rent for the next 3 months. April 2 Javier made an additional investment of cash in amount of $11,200. April 4 Performed services for $715 in cash. April 6 Sent a check in the amount of $410 to the utility company to pay the monthly bill. April 7 Purchased supplies in the amount of $870 on credit. Prepare journal entries to record the above transactions. View transaction list Journal entry worksheet 1 2 3 Date April 01 Issued a check in the amount of $4,800 to pay the monthly rent for the next 3 months. Note: Enter debits before credits. 5 General Journal Debit Credit >

Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.

Ray, the owner of a small company, asked Holmes, CPA, to conduct an audit of the company’s records. Ray told Holmes that the audit must be completed in time to submit audited financial statements to a bank as part of a loan application. Holmes immediately accepted the engagement and agreed to provide an auditor’s report within three weeks. Ray agreed to pay Holmes a fixed fee plus a bonus if the loan was granted. Holmes hired two accounting students to conduct the audit and spent several hours telling them exactly what to do. Holmes told the students not to spend time reviewing the controls but to concentrate on proving the mathematical accuracy of the ledger accounts and to summarize the data in the accounting records that support Ray’s financial statements. The students followed Holmes’ instructions and after two weeks gave Holmes the financial statements, which did not include footnotes because the company did not have any unusual transactions. Holmes reviewed the statements and prepared an unqualified auditor’s report. The report, however, did not refer to GAAP or to the year-to-year application of such principles. Briefly describe each of the ten standards included in the PCAOB guidance and indicate how the action(s) of Holmes resulted in a failure to comply with each standard.

Journalize the following: 1. On the books & records of Company A: On May 2nd, Company A received $100 of interest income from the bank earned in April. If the books are on an accrual basis, record the entry in April and in May when cash was received April                                                                                       May   2. On the books & records of Company A: In January, Company A purchased Investment in XYZ for $100. Payment was made in cash. In March, Company A sold Investment in XYZ for $150. Payment was received in cash.     3. On the books & records of Company A: On April 1st, Company A paid $1,200 for insurance expense that covers the year 4/1/17-3/31/18. Record 4/1/17 entry for payment of $1,200 Record 4/30/17 journal entry     4. There are 2 parallel funds, Fund A and Fund B. Together, the funds will make an investment of $100k, with a 65/35 split. The investment will be paid in cash, however, Fund B does not currently have any cash so Fund…

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?

John Grey owns Grey's Snow Plowing. In October, Grey's collects $12,000 cash for 6 commercial accounts for which he will provide snowplowing for the entire season. To record this transaction, Grey will enter which of the following entries? (Check all that apply.) Debit to Unearned Plowing Revenue Debit to Plowing Revenue Credit to Cash Credit to Unearned Plowing Revenue Debit to Cash Check all that apply. Credit to Plowing Revenue

James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1.  DATE   TRANSACTIONS 20X1   Mar. 4   Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days.   11   A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent.   22   Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent.   23   Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent.   25   Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance.   28   Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…

James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1.  DATE   TRANSACTIONS 20X1   Mar. 4   Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days.   11   A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent.   22   Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent.   23   Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent.   25   Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance.   28   Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…

James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1.  DATE   TRANSACTIONS 20X1   Mar. 4   Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days.   11   A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent.   22   Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent.   23   Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent.   25   Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance.   28   Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…