What is the difference between ‘Cash’ basis and ‘Accrual’ basis of accounting.

Q: Glen carries a $125.000 insurance policy on his ife. Premiums paid over the years total S6.000. Divi...

A: Glen would be charged tax only on the amount of interest earned on accumulated dividend, i.e. $1500....

Q: Shari exchanges an office building in New Orleans (adjusted basis of $500,000) for an office buildin...

A: Realized gain = value of office building in Baton Rouge - value of office building in Orleans =$9000...

Q: During the current year, Random reports the following results: Income Rentals: $200,000 Dividend (fr...

A: Adjusted ordinary income is total income available from all sources after all deductions and expense...

Q: elocity, a publicly traded corporation with a calendar fiscal year, entered into an agreement with W...

A: The transaction price includes both the fixed amount and the variable amount. The fixed amount in th...

Q: ABC Company experienced a decline in the value of its inventory in 2020 which resulted in a write-do...

A: Allowance method: It  is also known as loss method because a loss on inventory write down is debited...

Q: 3. The following information is taken from WaterLake Company's Trial balance: WaterLake Company Adju...

A: Accounts receivable are those customer accounts to whom business has made credit sales on account an...

Q: is counted only every month-end. All sales are made on account and mark up on cost is 25%. The follo...

A: Sales during June = Collections made in June + Ending accounts receivable - beginning accounts recei...

Q: A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2019.   Exercise...

A: Insurance expense is the amount money that has been incurred by the entity to buy the insurance. Ins...

Q: Esquire Comic Book Company had income before tax of $1,350,000 in 2021 before considering the follow...

A: Income statement is the financial statement which is prepared by the entities to depict the profitab...

Q: Prepare a schedule starting with pretax financial income and compute taxable income.

A: Pretax financial income is the income which the company has earned during the year before the income...

Q: 1. On January 1, 2021, Monica purchased a cleaning equipment amounting to P50,000. She expects to us...

A:

Q: 31 December 2020 and 31 December 2021: 2020 (RM) 2021 (RM) ASSETS: Freehold land 477,000 212,000 52,...

A: Statement of cash flow is prepared to see the flow of cash in the company. It serves as cash book bu...

Q: An accounting information system comprises five generic parts. Which of the following gives an examp...

A: Internal control is defined as the procedure and process used by the company to- safeguard assets  ...

Q: Exercises 3-5 (Division of Profit; Interest on Average Capital and Salaries to Partners) The partner...

A: The partnership comes into existence when two or more persons agree to do the business and further s...

Q: The County of Maxnell decides to create a waste management department and offer its services to the ...

A: Answer -  Working Note -  Interest calculate on balance Note payable -  (Feb Note Payable = $224,000...

Q: On January 1, 2020, Stellar Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were ...

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are entit...

Q: HONGTIST Co. have segment C and segment U. During the past years, 50,000 and 20, 000 were produced ...

A: The differential analysis is performed to compare the different alternatives available with the busi...

Q: Freeflight Airlines is presently operating at 70 percent of capacity. Management of the airline is c...

A: The division may be incurring losses on individual level but on whole it may be providing benefit to...

Q: Halogen Laminated Products Company began business on January 1, 2021. During January, the following ...

A: Journal entries represents the initial reporting of the transactions in the books of accounts. These...

Q: 3. When purchasing merchandise for resale on account, record the transaction in the sales journal. b...

A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...

Q: Mia Company uses activity-based costing and reports the following for this year. Activity Cost Drive...

A:

Q: Westinghouse Company manufactures major appliances. Because of growing interest in its product, it h...

A: >Mixed Cost is a cost that has the features of BOTH - Variable cost as well as Fixed Cost. &g...

Q: After posting is completed in the accounts receivable ledger and the g ledger, the total of the acco...

A: Solution: Accounts receivable ledgers are subsidiary ledgers where all credit sales with respective ...

Q: As of January 1, 2015, DLSU Inc. has a total of 2,000 employees. Under the SSS Law, DLSU is required...

A: Accrued Expenses arises when payment of expenses is less than the required expenses whereas prepaid ...

Q: Lolitas Factpry produced 3 kinds of bubbe soap products with the following cost information:     ...

A: The break-even point is the situation where the company does not incur a loss and also it does not e...

Q: P Corporation acquired an 80% interest in S Company on January 1, 2020 for P425,000. On this date, t...

A: Calculation of Goodwill recognized at January 1, 2020:   Amount (P) Share capital 175,000 Ret...

Q: n March 1, AYE Merchandising had an inventory of P560,000 in its retail store. Purchases made in Mar...

A: solution given Inventory March 1 560000 Purchases during March 480000 Sales during m...

Q: Martyr Company paid or collected during 2021 the following items: Interest revenue 75,500 Insuran...

A: The cash received for interest during 2021 :- = Interest revenue during the year 2021 + Decrease in ...

Q: The trial balance will be out of balance if:

A: Trial balance: Trial balance is a summary of all ledger accounts with credit and debit balances and ...

Q: Prepaid insurance 50 Retained earnings (beginning) 1,600 Salaries and wages expense 600 265 Salaries...

A: Net income (NI), also known as net earnings, is calculated by subtracting sales from the cost of goo...

Q: Consider the unadjusted trial balance of Riverdale Company at June 30, 2016, and the related month-e...

A: GIVEN     Riverdale Company Trial Balance 30-Jun-16   Balance   Debit Cred...

Q: outside supplier for P92 each. Required: Assuming that Gamma can normally sell 57,000 units to outsi...

A: solution given capacity                =60000 units   Amount Per unit Sales 7200000 ...

Q: Introduction to Basics, Inc. sells products with reusable and expensive containers. The customer is ...

A: Container Account In the Container Accounting the treatment are made for held for container with the...

Q: Consider a Japanese firm that sells product Y in the local market and contemplates sales to the US. ...

A: a) : Price of Y P = 250 - Q Marginal revenue = 250 - 2Q Marginal cost = 15 At equilibrium MR = MC 25...

Q: Indicate the financial statement on which each of the following items appears: income statement, sta...

A: Balance Sheet includes asset and liability of the Company Income Statement includes revenue and expe...

Q: 24 Paid the shop assistant for the one week salary, P3,600. 25 Cash service income for the week, P8,...

A: Statement of Owner's Equity - Statement of owner's equity includes amount contributed by the owner o...

Q: expense, and advertising expense. It categorizes the remaining expenses a Adjusted Account Balances ...

A:                            Working Notes :-                  Cost of Goods Sold Particulars Amoun...

Q: Using the following information, prepare a bank reconciliation. Bank balance: $4,021 Book balance: ...

A: A bank reconciliation statement is prepared at a certain time period. It is used to match the book b...

Q: 11. BTS Company reported the following increase(decrease) in the account balances for the current ye...

A: Effect on equity, increase in all current assets is an increasing effect on equity, and a decrease i...

Q: Bertrand Incorporated purchased some shop equipment for $4,500 in cash. By mistake, the journal entr...

A: Correcting entries means a journal entries made to correct the error made in the previous journal en...

Q: Required: 1. Prepare journal entries in connection with the warranty using the “expense as incurred”...

A: Warranty is a form of assurance that is being provided by seller to the buyer that in case product w...

Q: Maggie Vitteta, single, works 30 hours per week at $14.00 an hour. How much is taken out for federal...

A: Here asking about to calculate the Federal Income taxes using the withhold allowance for single tax ...

Q: 8. Customers' individual accounts are included in a subsidiary ledger referred to as the accounts pa...

A: The subsidiary ledgers are the collections of individual accounts that are of similar nature. 

Q: supplies expense, and advertising expense. It categorizes the remaining expenses as general and admi...

A: Income Statement - This statement shows the income earned and loss incurred by the organization in t...

Q: 4. Sunland Company has the following two temporary differences between its income tax expense and i...

A: The above mentioned question solution with calculation given in the following steps.

Q: Age of Customer Debt Amounts owed Estimate of % that (including GST) will not be collected. 1-30 day...

A: Answer a (i) Journal Entry Account Titles and Explanations  Debit Credit Bad Debts Expe...

Q: March 1 Brooks invested $195,000 cash along with $24,000 in office equipment in the company. March 2...

A: 1. Date General Journal Debit Credit Mar 01 Cash 195,000     Office equipment ...

Q: Act. No. 2018-20 Conf. No. Name of Customers Balance 18,000 Melba dela Cruz Ronald Magno 001 2018-35...

A: Account No Name of customer conf no Address Per client Confirmation result returned by post office N...

Q: 5. Dapitan, Inc. has the following receipts during 2021: From service billings to clients Advances f...

A: cash basis income is calculated in the year in which it is received regardless of its earning actual...

Q: EB8.  LO 8.6Prepare the journal entry to reconcile the bank statement in Exercise 8.7.(Previous que...

A: Bank reconciliation is a statement prepared to check what are the items that has caused a difference...