Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 3, Problem 11EA
To determine
Compute the amount of cash to be paid for insurance and wages also the cash received for fees during the period of 2014.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Based on Green's account balances, the amount of Net Income that would be shown on the Income Statement for December 2017 would be:
Based on Green's account balances, the Retained Earnings amount that would be shown on the Balance Sheet as of December 31, 2017 would be:
The following selected account balances were taken from the records of XYZ Company for the year 2021: Required: Prepare a statement of comprehensive income in one statement format for XYZ Company for the year ended December 31, 2021. Use the function of expense method with supporting notes.
The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019:
1. Prepare a multiple-step income statement.2. Prepare a statement of owner’s equity.3. Prepare a balance sheet, assuming that the current portion of the note payable is$7,000.4. Briefly explain how multiple-step and single-step income statements differ.
Chapter 3 Solutions
Principles of Accounting
Ch. 3 - Prob. 1DQCh. 3 - Will the carrying value of a long-term asset...Ch. 3 - If, at the end of the accounting period, you were...Ch. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Match the concepts of accrual accounting that...Ch. 3 - The Prepaid Insurance account began the year with...Ch. 3 - The Supplies account began the year with a balance...Ch. 3 - Prob. 4SE
Ch. 3 - Prob. 5SECh. 3 - During the month of August, deposits in the amount...Ch. 3 - Prob. 7SECh. 3 - Malesherbes Companys adjusted trial balance on...Ch. 3 - Prob. 9SECh. 3 - Prob. 10SECh. 3 - Carlos Companys accountant makes the assumptions...Ch. 3 - Four conditions must be met before revenue should...Ch. 3 - Prob. 3EACh. 3 - Prob. 4EACh. 3 - Prob. 5EACh. 3 - Prob. 6EACh. 3 - Prob. 7EACh. 3 - Prob. 8EACh. 3 - Prepare year-end adjusting entries for each of the...Ch. 3 - Prob. 10EACh. 3 - Prob. 11EACh. 3 - Wipro Companys income statement included the...Ch. 3 - At the end of the first three months of operation,...Ch. 3 - On November 30, the end of the current fiscal...Ch. 3 - Kinokawa Consultants Companys trial balance on...Ch. 3 - Hertz Limo Service was organized to provide...Ch. 3 - At the end of its fiscal year, Berwyn Cleaners...Ch. 3 - Brave Advisors Services trial balance on December...Ch. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9APCh. 3 - On March 31, the end of the current fiscal year,...Ch. 3 - Lee Technology Corporations trial balance on...Ch. 3 - Prob. 12APCh. 3 - Prob. 13APCh. 3 - Scoop Consulting Services trial balance on...Ch. 3 - Prob. 15APCh. 3 - Prob. 16APCh. 3 - Never Flake Company provided a rust-prevention...Ch. 3 - Prob. 2CCh. 3 - Prob. 3CCh. 3 - Prob. 4CCh. 3 - Prob. 5CCh. 3 - Prob. 6C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year then ended. Accounts receivable Depreciation expense Land Cost of goods sold Retained earnings Cash Equipment Supplies Accounts payable Service revenue Interest expense Common stock Income tax expense Accumulated depreciation Long-term debt Supplies expense Merchandise inventory $ 30,600 10,500 25,000 86,500 60,600 9,900 68,500 5,200 21,900 21,600 1,500 5,000 18,768 42,000 35,000 13,900 25,300 169,000 Sales revenue Calculate the total current assets at December 31, 2016.arrow_forwardThe financial information below presents operating revenue and expenses for 2020 as well as the starting and ending balances for relevant asset and liability accounts that changed during the year: Sales revenue $909,272 Depreciation expense $3,206 Cost of goods sold 445,563 Selling, general and administrative expenses 91,316 Interest expense 12,402 Income tax expense 143,126 Accounts receivable 12/31/19 65,305 Accounts receivable 12/31/20 67,810 Accounts payable 12/31/19 16,540 Accounts payable 12/31/20 17,261 Prepaid expenses 12/31/19 4,107 Prepaid expenses 12/31/20 3,875 Inventory 12/31/19 7,852 Inventory 12/31/20 6,491 Prepare the Operating section of the Cash Flow Statement using the indirect approach.arrow_forwardThe financial statement columns of the worksheet for Booer Company as of December 31, 2016 are as follows: BOOER COMPANY Worksheet For the Year Ended December 31, 2016 Balance Sheet Credit Income Statement Accounts Debit Credit Debit Cash .. 10,000 Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Patents 26,000 4,500 7,000 41,000 4,800 7,500 Accounts Payable Notes Payable (due 2018) Owner's Capital Owner's Drawings 22,200 20,000 45,300 4,200 Service Revenue 26,400 Salaries and Wages Expense Depreciation Expense Insurance Expense Interest Expense 5,200 4,800 5,000 3,500 Totals 18,500 26,400 100,200 92,300 Net Income 7.900 26.400 7.900 100,200 26.400 100,200 Instructions 1. Calculate the balance of Owner's Capital that would appear on a balance sheet at December 31, 2016. 2. Prepare a balance sheet for Booer Company, assuming the note payable is a long-term liabilityarrow_forward
- The following information was obtained from a review of the ledger and other records of 2Moons Company at the close of the current fiscal year ending December 31, 2017. Write the adjusting entry and computation as description. a. The office supplies expense account has a debit balance of P38,610. The inventory of office supplies on hand as of December 31, totals P14,760. b. The rent expense account has a debit balance of P74,400 composed of the following: (1) January 1 balance of P16,800 representing rent for January through April 2017; and (2) debit balance of P57,600 representing payment for a one-year beginning May 2017. c. The prepaid insurance account has a debit balance of P62,640 at December 31. Details of the policies acquired during the past year are as follows: Type of Policy Premium Paid Date Started Fire Insurance P 12,960 January 2 Accident Insurance 24,480 March 1 Car Insurance 9,360 June 1 Life Insurance 15,840 August 1 d. The balance of the commissions income account…arrow_forwardThe following account balances were taken from the 2016 adjusted trial balance of the Bowler Corporation: sales revenue, $325,000; cost of goods sold, $168,000; salaries expense; $45,000; rent expense, $20,000; depreciation expense, $30,000; and miscellaneous expense, $12,000. Prepare an income statement for 2016.arrow_forwardThe adjusted trial balance of Pacific Scientific Corporation on December 31, 2016, the end of the company’s fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,106; cost of goods sold, $1,240; selling expenses, $126; general and administrative expenses, $105; interest expense, $35; and gain on sale of investments, $45. Income tax expense has not yet been recorded. The income tax rate is 40%. Prepare a single-step income statement for 2016. Ignore EPS disclosures.arrow_forward
- The adjusted trial balance of Pacific Scientific Corporation on December 31, 2016, the end of the company’s fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,106; cost of goods sold, $1,240; selling expenses, $126; general and administrative expenses, $105; interest expense, $35; and gain on sale of investments, $45. Income tax expense has not yet been recorded. The income tax rate is 40%. If the company’s accountant prepared a multiple-step income statement, what amount would appear in that statement for (a) operating income and (b) nonoperating income?arrow_forwardThe adjusted trial balance of Pacific Scientific Corporation on December 31, 2016, the end of the company’s fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,106; cost of goods sold, $1,240; selling expenses, $126; general and administrative expenses, $105; interest expense, $35; and gain on sale of investments, $45. Income tax expense has not yet been recorded. The income tax rate is 40%.Prepare a multiple-step income statement for 2016. Ignore EPS disclosures.arrow_forwardThe following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.arrow_forward
- Based on the data given, Determine the Net Income in 2017 You discovered the following errors in connect ion with your examination of the financial statements of the ABC Corporat.iion: 1. Accrued interest expense of P15,000 was not recorded at the end of 2017. 2. Accrued rent receivable of P20,000 was not recorded at the end of 2017. 3. The company paid one-year insurance premium of P36,000 effective March 1,2017. The entire amount was debited to expense account and no adjustment was made at the end of 2017. 4. The company leased a portion of its building for P30, 000. The term of the lease is one year ending April 1, 2018. Collection of rent was credited to rent revenue account. At the end of 2017, no entry was made to take up the unearned portion of the amount collected. The following data were extracted from the financial statements of ABC Corporation 2017 2018 Net income 200,000 160, 000 Working capital 180,000 260,000 RE, end of the year 200, 000 360, 000arrow_forwardBargain Deal, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January 28, 2017, are shown below. Current assets: Cash and cash equivalents Short-term investments Accounts receivable (net) Inventory Other current assets Total current assets. Long-term assets Total assets Bargain Deal, Inc. Balance Sheet At January 28, 2017 ($ in millions) Assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity Bargain Deal, Inc. Income Statement For the Year Ended January 28, 2017 ($ in millions) Revenues Costs and expenses Operating income Other income (expense)* Income before income taxes Income tax expense Net income Current ratio 1-a. 1-b. Acid-test ratio 1-c. Debt to equity ratio 1-d. $39,618 38,171 1,447 Times interest earned ratio $ (83) 1,364…arrow_forwardThe current sections of Teal Mountain Inc.’s balance sheets at December 31, 2016 and 2017, are presented here. Teal Mountain Inc.’s net income for 2017 was $156,366. Depreciation expense was $27,594. 2017 2016Current assets Cash $107,310 $ 101,178Accounts receivable 81,760 90,958Inventory 171,696 175,784Prepaid expenses 27,594 22,484Total current assets $388,360 $390,404Current liabilities Accrued expenses payable $ 15,330 $ 5,110Accounts payable 86,870 94,024Total current liabilities $102,200 $ 99,134 Prepare the net cash provided (used) by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License