The company orders $25,000 of office supplies from its office supplies vendor. The supplies have not arrived yet. For each element of the fundamental accounting equation (A, L, E), indicate whether that element increases, decreases, or ultimately remains unchanged.
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The company orders $25,000 of office supplies from its office supplies vendor. The supplies have not arrived yet.
For each element of the fundamental
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- Piedmont Inc. has the following transactions for its first month of business: A. What are the individual account balances, and the total balance, in the accounts payable subsidiary ledger? B. What is the balance in the Accounts Payable general ledger account?A business reports its own office stationery on the balance sheet at its $400 cost, although it cannot be sold for more than $10 as scrap paper. Which accounting principle and/or assumption justifies this treatment?Suppose you have been given a job as an Accounting Clerk in a retail store and have been asked by the manager for advice on an accounting issue. You were told that most of the companies customers pay immediately for services rendered while a few pay stsometime later. As at December 31 , 2013 the company collected $30,000 from its cash customers, while $25,000 is owed by other customers for services rendered within the same period. Advice the manager how much should be recorded as service revenue under the cash basis and accrual basis of accounting for the period in question.
- Complete the following problem in Excel. Use a different tab for each financial statement. A. Calculate the ending balance for each account. (The area shaded in yellow) B. Create the income statement. C. Create the statement of owner's equity. D. Create the balance sheet. Cash $50,000 (6,000) 6,000 1,250 (750) 3,200 Assets Liabilities Inventory Equipment Accounts Wages Payable Payable (1,000) 22,000 1,000 22,000 600 175 3,000 Owner's Equity Common Stock 50,000 Retained Earnings 1,250 (750) (600) (3,000) 3.200 (175)The following balances were taken from the Ramirez Company ledger at the end of the period: Retained Earnings 125,000 Dividends 15,000 Service Revenue 400,000 Salary Expense 220,000 Utilities Expense 35,000 Rent Expense 75,000 Miscellaneous Expense 22,000 Prepare the journal entries required to close the accounts. You may submit a file to respond to this question if that is easier.Suppose a business receives a bill for services rendered from one of itssuppliers. The business will pay the supplier next month. When the businessreceives the bill from its supplier, explain how this affect the accounting equationin terms of increasing or decreasing assets, liabilities, or owner’s equity?
- Klein Interiors has the following account balances at the end of the year. Use only the appropriate accounts to prepare a balance sheet. Accounts Balances Equipment $ 87,200 Accounts payable 11,600 Common stock 22,000 Service revenue 55,800 Cash 9,500 Retained earnings ? Salaries expense 38,200 Notes payable 29,500 I was able to finish the rest of the balance sheet but am having a hard time finding the retained earnings.On November 10, JumpStart provides $2,170 in services to clients. At the time of service, the clients paid $650 in cash and put the balance on account. Required: (a) Journalize this event.* (b) On November 20, JumpStart’s clients paid an additional $560 on their accounts due. Journalize this event.* (c) Calculate the accounts receivable balance on November 30. *Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSJumpStartGeneral Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Office Supplies 14 Prepaid Insurance 15 Land 16 Office Equipment 17 Building 18 Truck LIABILITIES 21 Notes Payable 22 Accounts Payable 23 Unearned Revenue EQUITY 31 JumpStart, Capital 32 JumpStart, Drawing REVENUE 41 Fees Earned EXPENSES 51 Wages Expense 53 Rent Expense 54 Utilities Expense 55 Maintenance Expense 59 Miscellaneous Expense (a) On November 10, JumpStart…cary signed up and paid $960 for a 6 month ceramics course on June 1st with Choplet Ceramics. As of August 1st, Choplet’s accounting records would indicate: A. $320 of revenue, $640 of accounts receivable B.$320 of revenue, $640 of deferred revenue C. $960 of revenue, $960 of cash D. $640 of revenue, $320 of accounts receivable
- Companies recognize revenue as earned and record the revenue when __________. A. the customer's order is received B. the return period is over C. the order is delivered D. the order is shipped Miranda Corp. received an order from a customer on October 1. The toys were shipped on October 15. The customer sent a check for full payment on November 5. Miranda received the check on November 10 and deposited it in the bank account. Miranda should record sales revenue related to this series of transactions on ____5) The CEO of the company is very concerned about the number of journal entries passing through the accounting ledgers, and has asked for your views on the role of the journal in the accounting system. He also produces a listing of transactions which he believes were never put through the system. The list is as follows: July 8 July 10 July 12 July 28 July 29 July 31 Billed clients $5,910 for services provided Declared $1,200 dividends, payable on October 31. Received a cheque for 50% of service fees billed on July 8. Collected payment for services which will be provided in August $5,000. Purchased supplies worth $1,000 on account. Paid $3,125 in salaries earned by employees during this month. Recognising that these transactions should have been posted to the ledger in the month of July you then seek to : a) Explain the role of the jounal b) Prepare tne relevant journal entries to properly record these transactions. ccounting system. 10The company takes out a $1,000,000 loan from the bank. For each element of the fundamental accounting equation (A, L, E), indicate whether that element increases, decreases, or ultimately remains unchanged.