FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 4, Problem 17E
Exercise 4-17APreparing reversing entries P4
The following two events occurred for Trey Co. on October 31, the end of its fiscal year.
a. Trey rents a building from its owner for $2,800 per month. By a prearrangement the company delayed paying October's rent until November 5. On this date, the company paid the rent for both October and November.
b. Trey rents space in a building it owns to a tenant for $850 per month. By prearrangement, the tenant delayed paying the October rent until
November 8. On this date, the tenant paid the rent for both October and November.
Required
- Prepare
adjusting entries that the company must record for these events as of October 31. - Assuming Trey does not use reversing entries, prepare
journal entries to record Trey's payment of rent on November 5 and the collection of the tenant s rent on November 8. - Assuming that the company uses reversing entries, prepare reversing entries on November 1 and the journal entries to record Trey's payment of rent on November 5 and the collection of the tenant s rent on November 8.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
11:04
< Вack
Week 6 HW.docx
Q1. The balance in the unearned rent account for Jones Co. as of
December 31 is $1,200. If Jones Co. failed to record the
adjusting entry for $600 of rent earned during December, the
effect on the balance sheet and income statement for December
would be:
A. Assets understated by $600; net income overstated by
$600.
B. Liabilities understated by $600; net income understated by
$600.
C. Liabilities overstated by $600; net income understated by
$600.
D. Liabilities overstated by $600; net income overstated by
$600.
Q2. Would AT&T (T) and Microsoft (MSFT) use the cash basis
or the accrual basis of accounting? Explain.
Q3. Why are adjustments needed at the end of an accounting
period?
Q4. Describe the nature of the assets that compose the following
sections of a balance sheet:
a. Balance
Sheet:
b. Property, Plant, and
Equipment:
12
000
00
Dashboard
Calendar
To Do
Notifications
Inbox
Required information
Exercise 5-22 (Algo) Prepaid expenses-rent LO 5-10
[The following information applies to the questions displayed below]
On November 1, 2022, Wenger Company paid its landlord $3,780 in cash as an advance rent payment on its store
location. The six-month lease period ends on April 30, 2023, at which time the contract may be renewed.
Exercise 5-22 (Algo) Part d
d. If the advance payment made on November 1, 2022, had covered an 18-month lease period at the same amount of rent per month,
how should Wenger Company report the prepaid amount on its December 31, 2022, balance sheet?
Non-current asset
Current asset
$
$
840
2,520
Ch E HW 3
Employee Earnings Record
eBook
Mary's Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 8-4 in the text. The payroll data for each employee for the week ended March 22, 20-, are given. Employees are paid 1½ times the regular rate for working over 40 hours a week.
No. of Marital
Name
Total Hours
Allowances Status Worked Mar. 16-22
Total Earnings
Rate
Jan. 1-Mar. 15
Bacon, Andrea
4
M
44
$14.00
$6,300.00
Cole, Andrew
1
S
40
15.00
6,150.00
Hicks, Melvin
3
M
44
13.50
5,805.00
Leung, Cara
1
S
36
Melling, Melissa
2
M
40
14.00
14.50
5,600.00
5,945.00
Social Security tax is withheld from the first $128,400 of earnings at the rate of 6.2%. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of 1%, both applied to gross pay. Bacon and Leung have $15 withheld and Cole and Hicks have $10 withheld for health
insurance. Bacon and Leung have $20 withheld to be invested in the travel agency's credit union. Cole has $38.75 withheld…
Chapter 4 Solutions
FUND.ACCT.PRIN.
Ch. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Computing ending capital balance using work sheet...Ch. 4 - Preparing a partial work sheet P1 The ledger of...Ch. 4 - Explaining temporary and permanent accounts Choose...Ch. 4 - Preparing closing entries from the ledger P2 The...Ch. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Prob. 9QSCh. 4 - Prob. 10QS
Ch. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Prob. 13QSCh. 4 - Prob. 14QSCh. 4 - Prob. 15QSCh. 4 - Prob. 16QSCh. 4 - Prob. 17QSCh. 4 - Prob. 18QSCh. 4 - Prob. 19QSCh. 4 - Prob. 20QSCh. 4 - Exercise 4-1 Extending adjusted account balances...Ch. 4 - Exercise 4-2 Extending accounts in a work sheet Pl...Ch. 4 - Exercise 4-3 Preparing adjusting entries from a...Ch. 4 - Exercise 4-4 Preparing unadjusted and adjusted...Ch. 4 - Exercise 4-5 Determining effects of closing...Ch. 4 - Exercise 4-6 Completing the income statement...Ch. 4 - Exercise 4-7 Preparing a work sheet and recording...Ch. 4 - Exercise 4-8
Preparing and posting closing...Ch. 4 - Exercise 4-9 Preparing closing entries and a...Ch. 4 - Exercise 4-10 Preparing closing entries and a...Ch. 4 - Prob. 11ECh. 4 - Exercise 4-12 Preparing a classified balance sheet...Ch. 4 - Exercise 4-13 Computing the current ratio A1 Use...Ch. 4 - Exercise 4-14 Preparing closing entries P2...Ch. 4 - Exercise 4-15 Computing and analysing the current...Ch. 4 - Exercise 4.16A Preparing reversing entries P4 Hawk...Ch. 4 - Exercise 4-17APreparing reversing entries P4 The...Ch. 4 - Problem 4-1A Applying the accounting cycle C2 P2...Ch. 4 - Problem 4-2A Preparing a work sheet, adjusting and...Ch. 4 - Problem 4-3A Determining balance sheet...Ch. 4 - Problem 4-4A Preparing closing entries, financial...Ch. 4 - Problem 4-5A Preparing trial balances, closing...Ch. 4 - Problem 4-6AA Preparing adjusting, reversing, and...Ch. 4 - Problem 4-1B Applying the accounting cycle C2 P2...Ch. 4 - Prob. 2PSBCh. 4 - Problem 4-3B Determining balance sheet...Ch. 4 - Prob. 4PSBCh. 4 - Problem 4-5B Preparing trial balances, closing...Ch. 4 - Problem 4-6BAPreparing adjusting, reversing, and...Ch. 4 - The December 31. 2019= adjusted trial balance of...Ch. 4 - Transactions from the Fast Forward illustration in...Ch. 4 - Prob. 2GLPCh. 4 - Prob. 3GLPCh. 4 - Based on Problem 4-6ACh. 4 - Prob. 5GLPCh. 4 - Refer to Apple' s financial statements in Appendix...Ch. 4 - Prob. 2AACh. 4 - Prob. 3AACh. 4 - Prob. 1DQCh. 4 - That accounts are affected by closing entries?...Ch. 4 - Prob. 3DQCh. 4 - What is the purpose of the Income Summary account?Ch. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Why are the debit and credit entries in the...Ch. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - How is unearned revenue classified on the balance...Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 1BTNCh. 4 - Prob. 2BTNCh. 4 - Prob. 3BTNCh. 4 - The unadjusted trial balance and information for...
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
- Rent Receivable Hudson Corp. has extra space in its warehouse and agrees to rent it out to Stillwater Company at the rate of $2,000 per month. The space was made available to Stillwater beginning on September 1. Under the terms of the agreement, Stillwater pays the months rent on the fifth day after the end of the month. Assume that Hudson prepares adjusting entries at the end of each month. Required How much revenue should Hudson record in September? How much revenue should Hudson record in October? Prepare the necessary entries on Hudsons books during the month of October.arrow_forwardAccounting Scenario 1 Clara Tate an employee of Harrow's Accounting Firm, worked 44 hours during the week of June 8 through 12. Her rate of pay is $15 per hour and she receives time-and-a-half for work in excess of 40 hours per week. She is married and claims two allowances on her W-4 form. Her wages are subject to the following deductions: Federal income tax (use the table in the link below). Social Security tax at 6.2 percent. Medicare tax at 1.45 percent. Union dues, $30.00 What you must do: Compute Clara’s: regular pay overtime pay gross pay net pay Submission Format To help you calculate the amounts to be withheld for Clara, use the attached 2016 Withholding Table (Word.doc).arrow_forwardRequired information Exercise 9-13A (Static) Computation of net pay and payroll expense LO 9-5 [The following information applies to the questions displayed below] The following information is available for the employees of Webber Packing Company for the first week of January, Year t 1. Kayla earns $28 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 52 hours the first week in January, Kayla's federal income tax withholding is equal to 15 percent of her gross pay. Webber pays medical insurance of $50 per week for Kayla and contributes $50 per week to a retirement plan for her. 2. Paula earns a weekly salary of $1,600, Paula's federal income tax withholding is 18 percent of her gross pay. Webber pays medical insurance of $80 per week for Paula and contributes $100 per week to a retirement plan for her. 3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $60 per week for Paula. Assume the Social Security…arrow_forward
- PSb 6-3 Record Quarterly FUTA & Voluntary Deduction Journal Entries Alton's Arboreal Association is a monthly depositor whose 4th quarter FUTA taxes and 4th quarter voluntary deductions are displayed below. Record one journal entry to account for the payment of federal unemployment taxes, and one journal entry to account for the payment of the voluntary deductions. Assume that each voluntary deduction is remitted to the respective organization on a quarterly basis, on the last day of the first month after the end of the quarter. All tax payments are made in a timely manner, on the payment due date (which, for this quarter, is not impacted by a weekend or holiday). Chart of Accounts Notes: • Enter the transaction date on the first line only (if multiple transactions are required, enter the date on the first line of each transaction). Enter all debits within the transaction prior to entering any credits. Omit journal entry explanations. • See the Chart of Accounts provided for the proper…arrow_forwardWeek Eleven Discussion Board-Chapter 10 125125 unread replies.126126 replies. Click on "Week Eleven Discussion Board ". Follow directions. They are as follows: (required) To start, click on "Week Eleven Discussion Board " and then click on "Reply". Take the time to answer the following question: To match revenues and expenses properly, should the expense for employee vacation pay be recorded in the period during which the vacation privilege is earned or during the period in which the vacation is taken? Explain. Discuss with your fellow classmates.arrow_forwardWeek 7 Discussion question Accounting for Assets: Receivables Johnson company’s financial year ended on December 31, 2010. All the transactions related to the company’s uncollectible accounts are can be found below: January 15 Wrote of $440 account of Miller Company as uncollectible April 2nd Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier July 31 Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible August 15 Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 September 26 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible October 16 Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible December 31 Estimated uncollectible…arrow_forward
- A company receives rent for subletting part of its office block. Rent, receivable quarterly in advance, is received as follows: Date of receipt Period covered $ 1 October 20X1 3 months to 31 December 20X1 7,500 30 December 20X1 3 months to 31 March 20X2 7,500 4 April 20X2 3 months to 30 June 20X2 9,000 1 July 20X2 3 months to 30 September 20X2 9,000 1 October 20X2 3 months to 31 December 20X2 9,000 What figures, based on these receipts, should appear in the company's financial statements for the year ended 30 November 20X2?arrow_forwardQS 11-13 (Algo) Recording warranty repairs LO P4 On December 1, Home Store sells a mower (that costs $320) for $620 cash with a one-year warranty that covers parts. Warranty expense is estimated at 8% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $43 in materials taken from the Parts Inventory. Prepare the December 1 entry to record the mower sale (and cost of sale), the December 31 adjusting entry for estimated warranty liability, and the January 24 entry to record the warranty repairs. (Round your answers to 2 decimal places.)arrow_forwardProblem AI-4B Journal entries for payroll transactions LO2, 3, Q 4 A company has three employees, each of whom has been employed since January 1, earns $3,000 per month, and is paid on the last day of each month. On March 1, the following accounts and balances appeared in its ledger. a. Employees' Income Taxes Payable, $1,298.25 (liability for February). b. EI Payable, $358.56 (liability for February). c. CPP Payable, $804.36 (liability for February). d. Employees' Medical Insurance Payable, $1,380.00 (liability for January and February). During March and April, the company completed the following related to payroll: Mar. 17 Issued cheque #635 payable to the Receiver General for Canada. The cheque was in payment of the February employee income taxes, EI, and CPP amounts due. 31 Prepared a general journal entry to record the March payroll register, which had the following column totals: Office Shop Salaries Salaries $3,000 $6,000 31 Recorded the employer's $345.00 liability for its 50%…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Accounting Basics Explained Through a Story; Author: Leila Gharani;https://www.youtube.com/watch?v=VYNTBWBqncU;License: Standard Youtube License