Show effects of the above transactions on the accounting equation using the following format.  Assume the note payable is to be repaid within the year

Q: Which of the following best describes the statement of profit or loss? A It is a summary of assets…

A: The business entities want to know the the profitability and the financial position of the…

Q: The revenue recognition principle states that all types of incomes should be recorded or recognized…

A: We have the following question: The revenue recognition principle states that all types of incomes…

Q: can refer to a company's remaining revenues after paying all expenses and taxes. Select one: a.…

A: Revenue is the total amount of income generated by business by way of selling of goods and services.…

Q: List the name of at least four accounts that represent accruals or deferrals—these could be accrued…

A: The accounts that represent accruals or deferrals are used to prepare books as per accrual method of…

Q: It is added to income received to determine the total income for the year that is recorded under the…

A: Net income: It can be defined as the excess of a company's sales revenue over the expenses incurred…

Q: REQUIRED: PREPARE A STATEMENT OF COMPREHENSIVE INCOME IN A PRESCRIBED FORMAT FOR THE YEAR USING THE…

A: An income statement is one of the financial statements that shows the financial position of the…

Q: The financial statement that contains the balances of the assets, liabilities, and owner’s equity as…

A: Financial Statements comprises of Balance Sheet, Statement of Profit and Loss, etc. These are used…

Q: Give what is required, For the Classification: (Classify the account if it is current/noncurrent…

A: The different accounts in the business are classified as asset, liabilities, revenue, expenses and…

Q: Which of the following accounts would appear only in an accrual basis accounting system, and which…

A: Cash basis of accounting system :  In cash basis of accounting system , the accounts are recorded…

Q: Which one of the following increases the current liabilities of a business entity? Select one: a.…

A: Liabilities are know as the financial obligation or financial debt which has to payable by the…

Q: What is the charge to statement of profit or loss for receivables expense for the year?

A: Allowances for receivables can be defined as the amount of receivables which is expected to be…

Q: Are transactions recorded on a fiscal‐year basis or a calendar‐year basis? Does it have to be one or…

A: Fiscal year is a 12 months period, which normally starts from Apr 1 to Mar 31 of next year. Calendar…

Q: Which of the following liabilities is created when a company receives cash for services to be…

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Prepare the following for the year ended 31 December 2020 i. Accounts payable and accounts…

A:

Q: Enter the amount of each transaction on individual items of the accounting equation. Show new…

A: Accounting equation: Accounting equation is the defined as the equation that describes the balance…

Q: Five account classifications are shown as column headings in the table below. For each account…

A: Different accounts have different effects with increase or decrease on basis of debit and credit.

Q: If an accrued expense is not recorded at the end of the year, what is the impact on the financial…

A: Adjusting entries:An adjusting entry is prepared when the trial balance is not up-to-date, and…

Q: The balance sheet reports the final balances of the permanent accounts at the end of the fiscal…

A: The balance sheet is s an essential part of financial statements. It contains all the assets,…

Q: Suppose that at the end of the year there is an outstanding note receivable. The adjusting entry to…

A: 1. Accounting Equation - The accounting Equation is calculated using the following equation - Assets…

Q: Deferred revenues represent liabilities recorded when cash is received from customers in advance of…

A: Adjusting entries:Adjusting entries are the journal entries, which are recorded at the end of the…

Q: What are the accounts that remain open and carried over from year to year?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: With the aid of the accounting equation, explain why increases in assets in accounting are recorded…

A: Ans. As per the double entry book keeping, the accounting equation is total assets is equal to the…

Q: When should liabilities for each of the following items be recorded in the accounts of the business…

A: Account payables means the amount owed by business to outsider for the goods received and services…

Q: What amount should be reported as net realizable value of accounts receivable on December 31?

A: Accounts receivables is the amount that is due to the company by their debtors by credit sales or…

Q: Classify each of the accounts listed below as assets (A), liabilities (L), owner's equity (OE),…

A: SOLUTION- An income statement is a financial statement that shows you how profitable your business…

Q: At year-end, what amount should be reported as total noncurrent liabilities?

A: Liabilities are the amount of money which the business or the company owes to the creditors and as…

Q: Which of the following increases the current assets of a business entity? A) Consumable inventory…

A: Current assets are those assets in the business entity which are either in cash or can be converted…

Q: The accounting concept that supports reporting revenues in the period in which they are earned is…

A: Explanation: 1. Revenue recognition concept: As per the revenue recognition concept, revenues are…

Q: Calculate the first year's net income under the accrual basis of accounting.

A: In accrual basis of accounting, the revenue earned and expenses incurred in current period would be…

Q: Which of the following would you expect to find in acorrectly prepared income statement?a. Cash…

A: Income statement: It shows all the income earned by the business and the expenses incurred during an…

Q: A promise to pay an amount on a specific future date plus interest is recorded in which account?…

A: Accounting is a term used to describe a wide range of activities. It may be defined as the process…

Q: If a credit sale is made to a New customer, and the amount due is received before the year ends,…

A: Sales made on cash or credit both are recorded as sales from the beginning of the transaction and…

Q: Required: Complete the table using additions and subtractions to show the dollar effects of…

A: The Important thing about the double entry system is that it always effect two or more accounts and…

Q: The adjusting entry to record the accrual of income tax expense includes a: O A. credit to Income…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: What is the current year's accounts payable balance

A: Accounts payable are those people to whom company owed money. They are recorded as current liability…

Q: Assign account numbers and specify whether each account would appear on the balance sheet or income…

A: The question is based on the concept of Financial Accounting.

Q: The revenue recognition principle requires Time to be divided into annual periods to measure…

A:

Q: Which of the following accounts would probably need to be adjusted at year O Notes Payable Supplies…

A: Solution: Broadly there are 4 type of accounts that requires adjustment at year end. They are…

Q: s liabilities incurred prior year, what is the proper debit

A: Option a is wrong because accounts receivable is not liability, it is an asset. Option b is wrong…

Q: In the Excel, or spreadsheet, approach to recording financial transactions, any transactions…

A: Balance sheet is one of the financial statement of business which shows all assets and liabilities…