EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Joanne is part of the accounts payable team at a local furniture store, responsible for recording invoices received by the business and payments made by the business. The furniture store receives an invoice for internet usage for the amount of $450. The invoice states that payment is due in 30 days, therefore Joanne records the transaction accordingly and sets a calendar reminder to pay on the due date. Based on this information, the journal entry in the furniture store's accounting system would include:
On March 1, a designer received a check for $7,500 from a customer for services to be provided after the customer chooses a color scheme for the first floor of her house. On July 31, the designer completed the design work for this customer.
Prepare the July 31 journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Before you begin this assignment, review the Tying It All Together feature in the chapter.
Part of Fry’s Electronics, Inc.'s experience involves providing technical support to its customers. This includes in-home installations of electronics and also computer support at their retail store locations.
Requirements
Suppose Fry’s Electronics, Inc. provides $10,500 of computer support at the Dallas-Fort Worth store during the month of November. How would Fry's Electronics record this transaction? Assume all customers paid in cash. What financial statement(s) would this transaction affect?
Assume Fry’s Electronics, Inc.’s Modesto, California, location received $24,000 for an annual contract to provide computer support to the local city government. How would Fry’s Electronics record this transaction? What financial statement(s) would this transaction affect?
What is the difference in how revenue is recorded in requirements 1 and 2? Clearly state when revenue is recorded in each requirement.
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- Shafinaz running a medium-sized 24 hours petrol station kiosk at Johor Bahru, Johor. The petrol station has six pump attendants cum general workers, a cashier and accounts clerk. The employees record their attendance using a punch card which they manually write their name, time and month of work. Each employee is required to keep their own punch card and submit it to the accounts clerk, at the end of every month. Any overtime payment will be verbally authorize by Shafinaz with flat-rate RM3.50 per hour. No other record is maintained as the owner is satisfied with the comprehensive information stated in the payroll master schedule. Cashier or account clerk would prepare a cheque based on the amount in the payroll master schedule and hand over the cheques to Syafinaz for her signature. The cheques are then distributed to the employees by cashier.a. Evaluate any FIVE (5) weaknesses in the above internal control system.arrow_forwardCornwall Mobile Detailing (CMD) is a service that washes and details a customer's vehicle at their home or office. It operates on a membership basis. Members pay $200 dues per month, which entitle them to a complete wash and detail service monthly. Members may also order additional car washes during the month at a fee of $75. Additional washes are common in both summer and winter months. The number of members also varies with the season. The number of members and the average number of additional washes by members for the months of interest follow: January February March April May June Members 360 420 980 1,120 1,150 1,300 March Apri May June Additional Washes (Average per Member). Cornwall allows members to pay for dues on credit. Cornwall's experience is that 40 percent of its members pay cash for the dues, 50 percent of the members pay the dues for a month in the next month, 5 percent in the second month after. The remainder is uncollectible. Additional washes are payable in cash.…arrow_forwardCornwall Mobile Detailing (CMD) is a service that washes and details a customer's vehicle at their home or office. It operates on a membership basis. Members pay $200 dues per month, which entitle them to a complete wash and detail service monthly. Members may also order additional car washes during the month at a fee of $75. Additional washes are common in both summer and winter months. The number of members also varies with the season. The number of members and the average number of additional washes by members for the months of interest follow: Members Additional Washes (Average per Member) January 360 0.8 February 420 1.1 March 980 0.7 April 1,120 0.6 May 1,150 0.9 June 1,300 1.4 Cornwall allows members to pay for dues on credit. Cornwall's experience is that 40 percent of its members pay cash for the dues, 50 percent of the members pay the dues for a month in the next month, 5 percent in the second month after. The remainder is uncollectible. Additional…arrow_forward
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