DoItForYou Concierge Services experienced the following selected transactions during October: Required 1. Show how each transaction would
Question:
DoItForYou Concierge Services experienced the following selected transactions during October:
Required
1. Show how each transaction would be accounted for using the accrual basis of accounting. Use the format below for your answer and show your computations. Give the amount of revenue or expense for October. Journal entries are not required.
2. Compute October net income or net loss under the accrual basis of accounting.
3. Why is the accrual basis of accounting preferable to the cash basis?
Oct. 1 4 5 9 12 14 28 31 31 31 Paid for insurance for October through December, $9,000. Paid utility invoice with cash, $1,200. Performed services on account, $8,000. Purchased office equipment for cash, $7,000. Received cash for services performed, $4,400. Purchased office equipment on account, $2,400. Collected $3,000 on account from October 5. Paid salaries expense, $4,500 cash. Paid account payable from October 14. Recorded adjusting entry for October insurance expense (see October 1).
Step by Step Answer:
ANSWER Account for each transaction using the accrual basis of accounting Date Amount of Revenue or Expense for October RevenueExpense Amount Oct 1 In...View the full answer
Horngrens Accounting Volume 1
ISBN: 9780136889373
12th Canadian Edition
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Business questions
-
Rajeesh Skin Clinic experienced the following selected transactions during October: Oct. 1 Paid for insurance for October through December, $9,000. The payment was recorded in an asset account. 4...
-
Kandi's Office Design had the following transactions during January: Jan. 1 Paid for insurance for January through March, $2,400. It is company policy to record this sort of transaction in an asset...
-
Alberton Counselling Service has the following selected transaction during october. Oct. 1 Prepaid insurance for October through December $450. 4. Purchased Office equipment for cash $800 5....
-
Which of the following is true about a statement of cash flows? The statement of cash flows is prepared at the option of management. The statement of cash flows is required by generally-accepted...
-
The rowboats Randy purchased are a Class 7 asset, so they have a CCA rate of 15 percent. Determine the amount of the capital cost allowance for each of the five years the boats will be used.
-
Solve the system X - 6x3 = 16 2 + 2x2 + X3 X3 = 14 X2 + 4x3 = -4
-
Three different instrument panel configurations were tested by placing airline pilots in flight simulators and testing their reaction time to simulated flight emergencies. Eight pilots were assigned...
-
This problem is based on the information about the Murphy County General Fund budgeted and actual transactions and events described in Problem 4-2. In Problem 4-2, The Murphy County Commissioners...
-
In 1916, Great Britain and the United States agreed that certain species of birds were tremendously valuable to the environment but were at risk of becoming extinct. If you are curious why Great...
-
Hanigan Manufacturing (a fictional company) had 1,800,000 shares of common stock outstanding as of January 1, 20X1, and 900,000 shares of 10% noncumulative (nonconvertible) preferred stock...
-
During the year ended February 28, 2021, Aritzia Inc. (Aritzia) recorded numerous accruals and deferrals. As a long-term employee of Aritzias accounting and finance staff, it is your job to explain...
-
How often are financial statements prepared? What is a fiscal year? What is an interim period?
-
Refer to the Journal of Accounting Education (Vol. 25, 2007) study on homework assistance for accounting students, Exercise 8.18. Recall that students were randomly assigned different levels of...
-
From each according to his ability, to each according to his need is a familiar Marxist slogan. Is the NFLs revenue-sharing policy incompatible with a market economy?
-
In your opinion, does the Eighth Amendment guarantee the right to pretrial release on bail in a felony case? What about a misdemeanor case? Did the Supreme Court decide the Salerno case correctly?...
-
In a substantial number of criminal appeals, some state appellate courts routinely issue decisions merely stating Judgment Affirmed. When an appellate court rejects a defendants issues on appeal,...
-
Why does the law require more formal proceedings in cases of indirect contempt than in cases of direct criminal contempt?
-
After studying briefs submitted by counsel and hearing oral arguments in a proceeding open to the public, appellate judges retire to privately discuss and decide the merits of criminal appeals....
-
Is marketing tobacco products to younger consumers unethical?
-
Marc Company assembles products from a group of interconnecting parts. The company produces some of the parts and buys some from outside vendors. The vendor for Part X has just increased its price by...
-
You would like to start a cellular telephone equipment service business. You are considering organizing the business as a sole proprietorship. Identify the advantages and disadvantages of owning a...
-
Consider the following accounts: a. Accounts Payable b. Cash c. Common Stock d. Accounts Receivable e. Rent Expense f. Service Revenue g. Office Supplies h. Dividends i. Land j. Salaries Expense...
-
Consider the following accounts: a. Accounts Payable b. Cash c. Common Stock d. Accounts Receivable e. Rent Expense f. Service Revenue g. Office Supplies h. Dividends i. Land j. Salaries Expense...
-
Upon further investigation it is found that there is a significant chance that the expected sales volume of 20,000 units per year will not be achieved. The sales manager of Umunat Inc suggests that...
-
You buy a 7 percent semi-annual coupon, 20-year maturity bond today. The bond has a par value of $1,000. The YTM on the bond is 15 percent. What is the price of the bond? Is this a premium or a...
-
The prices of the three US Treasury zero-coupon bonds that mature in 6, 12 and 18 months are: Time to Maturity 6 months 12 months 18 months Price $999 $997.53 $991 What is the price of the 18-month,...
Study smarter with the SolutionInn App