The given transactions were completed by Mon Inc. during May 2021. Indicate the effects of each transaction by placing the appropriate letter in the space provided. Letter Result A Increase in asset, decrease in another asset B Increase in asset, increase in liability Increase in asset, increase in owner's equity D Decrease in asset, decrease in liability Decrease in asset, decrease in owner's equity Increase in liability, decrease in owner's equity Response Transaction Paid wages to employees. Owner invested her personal computer into the business. Paid 2 months insurance in advance. Received cash from customers for services provided during the month. Received bills for utilities to be paid next month. Owner withdrew cash for personal purposes. Paid advertising expenses with cash. Borrowed cash from the bank. Received cash from customers owing for services provided last month.

The given transactions were completed by Mon Inc. during May 2021. Indicate the effects of each transaction by placing the appropriate letter in the space provided. Letter Result A Increase in asset, decrease in another asset B Increase in asset, increase in liability Increase in asset, increase in owner's equity D Decrease in asset, decrease in liability Decrease in asset, decrease in owner's equity Increase in liability, decrease in owner's equity Response Transaction Paid wages to employees. Owner invested her personal computer into the business. Paid 2 months insurance in advance. Received cash from customers for services provided during the month. Received bills for utilities to be paid next month. Owner withdrew cash for personal purposes. Paid advertising expenses with cash. Borrowed cash from the bank. Received cash from customers owing for services provided last month.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 17P: On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and...

See similar textbooks

Similar questions

Darin Development Company engaged in the following transactions during the current year. (Click the icon to view the transactions.) Requirement Identify and classify the noncash assets and liabilities resulting from the current-year transactions. Assume that your classification is made as of the end of the current year. (If an input field is not used in the table leave the input field empty; do not select a label or enter a zero.) a. b. C. d. e. f. Account Name Classification Amount Transactions a. Borrowed $400,000 from Pleasantville Community Bank at the beginning of the year. The terms of the note call for annual payments of $50,000. The first annual payment has not been paid as of the end of the current year. (Ignore any interest payable.) b. Made sales for the current year amounting to $2,900,000 with 40% collected during the current year. c. Acquired inventory costing $345,000 on account. d. Incurred taxes due on the current year's income of $76,000. e. Paid $60,000 for a…
Alcorn Service Company was formed on January 1. Year 1. Events Affecting the Year 1 Accounting Period 1. Acquired $64,000 cash from the issue common stock. 2. Purchased $2,000 of supplies on account. 3. Purchased land that cost $26,000 cash. 4. Paid $2,000 cash to settle accounts payable created in Event 2 5. Recognized revenue on account of $50,000. 6. Paid $25,000 cash for other operating expenses. 7. Collected $42,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $3,600 on December 31, Year 1 9. Had $600 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $24,000 cash from the issue of common stock. 2. Paid $3,600 cash to settle the salaries payable obligation. 3. Paid $4,800 cash in advance to lease office space. 4. Sold the land that cost $26,000 for $26,000 cash. 5. Received $6,000 cash in advance for services to be performed in the future. 6. Purchased…
E. What should have been the ENTRY to record the receipt of note from Company A on May 1, 2020? F. What should be the carrying value of the note received from Company A on May 1, 2020 G. How much is the gain or loss on sale of the land, if any?
Classify the accounts listed below by matching the account name with one of the following financial statementsections in which the account would be reported:a. Current Assetsb. Fixed Assetsc. Intangible Assetsd. Current Liabilitye. Long-Term Liabilityf. Owners’ Equityg. Revenuesh. Operating Expensesi. Other Income/Expense____ 31. Buildings____ 32. Accumulated Depreciation - Buildings____ 33. Depreciation Expense____ 34. Trademarks____ 35. Amortization Expense____ 36. Repairs Expense____ 37. Land Improvements____ 38. Gain on sale of equipment____ 39. Loss on disposal of asset____ 40. Loss from Impaired Goodwill
Match each term with the definition that best describes it. Accruals [ Choose ] [Choose ] An account offset against an asset account on the balance sheet. Accrued expenses Revenues for services performed but not yet received in cash or recorded. The process of allocating the cost of an asset to expense over its useful life. The length of service of a long-lived asset. A liability recorded for cash received before services are performed. Expenses incurred but not yet paid in cash or recorded. Adjusting entries for either prepaid expenses or unearned revenues. Expenses paid in cash before they are used or consumed. Adjusting entries for either accrued revenues or accrued expenses. Monthly or quarterly accounting time periods. Accrued revenues Contra asset account Deferrals [ Choose ] Depreciation [ Choose ] Prepaid expenses (prepayments) [ Choose ] Unearned revenues [ Choose ]
For each of the following situations, indicate the effect on assets, net income, and retained earnings at December 31, 2020 and 2021 as follows: • O if the financial statement element is overstated. • U if the financial statement element is understated. • NE if there is no effect on the financial statements. Provide a brief explanation for your choice eg NI U – expenses too high Note: please present in a table form a) Depreciation expense on machinery is too high for 2020 and the 2021 depreciation expense is correct. b) A 3-year rental agreement was signed on Jan. 1 2020 and recorded as a prepaid asset. No rent expense has been recognized. c) 2019 ending inventory was overstated by $10,000; 2020 inventory understated by $8,000; 2021 inventory was correct. d) A machine with a 15-year useful life was expensed when purchased in 2020. e) Did not accrue interest expense on a note payable at Dec 31 2020. Interest expensed when paid in 2021.
P22.2 (LO 1, 2, 3) Excel Groupwork (Change in Estimate and Error Correction) Holtzman Company is in the process of preparing its financial statements for 2020. Assume that no entries for de- preciation have been recorded in 2020. The following information related to depreciation of fixed assets is provided to you. 1. Holtzman purchased equipment on January 2, 2017, for $85,000. At that time, the equipment had an estimated useful life of 10 years with a $5,000 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2020, as a result of additional information, the company deter- mined that the equipment has a remaining useful life of 4 years with a $3,000 salvage value. 2. During 2020, Holtzman changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $300,000. It had a useful life of 10 years and a salvage value of $30,000. The following computations present depreciation on both bases for 2018…
For each of the following situations, indicate the effect on assets, net income, andretained earnings at December 31, 2020 and 2021 as follows:• O if the financial statement element is overstated.• U if the financial statement element is understated.• NE if there is no effect on the financial statements.Provide a brief explanation for your choice eg NI U – expenses too highNote: please present in a table form a) Depreciation expense on machinery is too high for 2020 and the 2021depreciation expense is correct. b) A 3-year rental agreement was signed on Jan. 1 2020 and recorded as aprepaid asset. No rent expense has been recognized. c) 2019 ending inventory was overstated by $10,000; 2020 inventoryunderstated by $8,000; 2021 inventory was correct.
Required: Indicate the effects of the following on the accounting equation. (Enter decreases to account categories as negative amounts and do not round your intermediate calculations.) 1. The adjustment for depreciation at the end of 2019. 2. The two expenditures during 2020 for (a) the major overhaul of the equipment and (b) repairs and maintenance.
Depreciation of equipment during 2021 was overstated by P 16,000. What would be the adjusting entry if the error was discovered at December 31, 2022? Group of answer choices: a. Debit - Retained Earnings, P 16,000; Credit - Accumulated Depreciation, P 16,000. b. Debit - Accumulated Depreciation, P 16,000; Credit - Equipment, P 16,000. c. Debit - Accumulated Depreciation, P 16,000; Credit - Retained Earnings, P 16,000. d. No adjusting entry is necessary
Provide the term that best describes the statement in Column A. In your answer book just write the letter from column A with the correct term from Column B. Column A Column B A. Resources controlled by the entity for less than one year as a result of a past event from which future economic benefits are expected to likely to flow into the entity. Allowances for credit losses adjustment B. The account credited when recording the depreciation adjustment. Accrual concept C. The supporting document used for the depreciation entry. Income received in advance D. The difference between the original cost and the accumulated depreciation of the asset. Accrued income E. When the selling price is less than the carrying value. Consumable stores on hand F. The concept where all expenses is assigned to the financial period in which they were incurred. Carrying value G. The account to be debited when recording the…
Which of the following is not a required disclosure regarding intangible assets that are amortized for each period a company presents a balance sheet? a. the total costb. the accumulated amortizationc. the amortization expensed. the estimated amortization expense for the next ten years