Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 3, Problem 8P
1 and 2
To determine
Prepare T accounts for
3.
To determine
Prepare an adjusted trial balance, an income statement, a statement of owner’s equity, and a balance sheet of Company “S” for the year ended December 31, 2014.
4.
To determine
State the reason for not showing the effects of the given transaction on the statement of
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Cruz Company has gathered the information needed to complete its Form 941 for the quarter ended September 30, 20--. They are a monthly depositor with the following monthly tax liabilities for this quarter:
July
$7,193.10
August
7,000.95
September
7,577.78
The company does not use a third-party designee, the tax returns are signed by the president, Carlos Cruz (Phone: 916-555-9739), and the date filed is October 31, 20--.
Complete Parts 2, 4, and 5 of Form 941 for Cruz Company for the third quarter of 20--.
Marvin’s Tax Service had earned—but not yet recorded—the following client service revenue atthe end of the current accounting period:
Billable HourlyAccount Number Hours Billing RateAccount #4067 10 $85Account #3940 14 $75Account #1852 16 $90
Prepare the necessary adjusting entry to record Marvin’s unbilled client service revenue
Below are four independent cases (a to d) affecting Wong Auto Repair Inc. (WARI) in 2019.a. Each Friday, WARI pays employees for the current week’s work. The amount of the payroll is$6,000 for a five-day week. The current accounting period ends on Monday.b. WARI has received notes receivable from some clients for services. During the current year, WARIhas earned accrued interest revenue of $3,250, which will be received next year.c. The beginning balance of supplies was $15,500. During the year, then entity purchased suppliescosting $55,400, and at December 31 the inventory of supplies on hand is $12,650.d. WARI is conducting test of new hinges to be used in the rebuilding of a dump truck, and the clientpaid WARI $15,000 at the start of the project. WARI recorded this amount as Unearned ServiceRevenue. The tests will take several months to complete. WARI executives estimate that thecompany has earned two-thirds of the total fee during the current year.RequiredJournalize the adjusting…
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
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- Kenneth Noll’s gross earnings for the week were $2,600, his federal income tax withholding was $468, and his FICA total was $199. There were no state income taxes. What was Noll’s net pay for the week? Net pay $enter Net pay in dollars eTextbook and Media List of Accounts Journalize the entry for the recording of his pay in the general journal. (Note: Use Salaries and Wages Payable, not Cash.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount eTextbook and Media List of Accounts…arrow_forwardBelow are four independent cases (a to d) affecting Wong Auto Repair Inc. (WARI) in 2019. a. Each Friday, WARI pays employees for the current week's work. The amount of the payroll is $6,000 for a five-day week. The current accounting period ends on Monday. b. WARI has received notes receivable from some clients for services. During the current year, WARI has earned accrued interest revenue of $3,250, which will be received next year. c. The beginning balance of supplies was $15,500. During the year, then entity purchased supplies costing $55,400, and at December 31 the inventory of supplies on hand is $12,650. d. WARI is conducting test of new hinges to be used in the rebuilding of a dump truck, and the client paid WARI $15,000 at the start of the project. WARI recorded this amount as Unearned Service Revenue. The tests will take several months to complete. WARI executives estimate that the company has earned two-thirds of the total fee during the current year. Required Journalize the…arrow_forwardMason, Durant, and Santos (MDS) is a tax services firm. The firm is located in Oklahoma City and employs 15 professionals and eight staff. The firm does tax work for small businesses and well-to-do individuals. The following data are provided for the last fiscal year. (The Mason, Durant, and Santos fiscal year runs from July 1 through June 30.) Returns processed 3,000 Returns in process, beginning of year 43,000 Returns in process, end of year 12,000 Cost of services sold $1,575,000 Beginning direct materials inventory 20,000 Purchases, direct materials 40,000 Direct labor 1,400,000 Overhead 100,000 Administrative expenses 258,000 Selling expenses 65,000 I JUST NEED TO KNOW HOW TO GET DIRECT MATERIALS Please don't provide answer in image format thank youarrow_forward
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