ABC company had the following information prior to any adjusting and closing entries for the YEAR...
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ABC company had the following information prior to any adjusting and closing entries for the YEAR ended December 31, 2022: ABC paid cash for rent covering the period July 1, 2022 to June 30, 2024. The total cost was $18,000. The amount was put into Prepaid rent on July 1, 2022 when the cash was paid. ABC purchased insurance for the period covering January 1, 2022 to December 31, 2024. The total cost of t insurance was $36,000. The amount was put into prepaid insurance on January 1, 2022 when the cash was ABC purchased a new company vehicle for cash on September 30, 2022. The cost of the vehicle was $36,00 The depreciation on the vehicle is $1,000 per month. No depreciation expense has been taken yet on this vehicle. ABC has seven employees on its payroll. The employees are paid every two weeks. The total cash paid to th employees every two weeks is $10,000 (this is the TOTAL, not per employee). Since the last pay, 25% of the weeks has elapsed. ABC's total revenue for the year was $125,000. Total expenses (including any expenses related to the adjust entries above) were $110,000. Prior to any closing entry, the retained earnings for ABC was $400,000. For all questions, please answer as follows: If the number is a positive number or the account is increasing (e.g., $4,525), please enter 4525 If the number is a negative number or the account is decreasing (e.g., -$4,525), please enter -4525 (be sure to incl the minus sign). If the number is zero or there is no impact on the account, please enter 0 (the number zero). Question 1 What should the balance in Prepaid Rent be after any adjusting entries on December 31, 2022? Question 2 What is the total rent expense for the year ended December 31, 2022? Question 3 What should be the balance in prepaid insurance on December 31, 2022? Question 4 What should be the insurance expense for the year ended December 31, 2022? Question 5 What should be the depreciation expense for the new equipment for the year ended December 31, 2022? Question 6 What should the balance in Accumulated Depreciation be on December 31, 2023? Question 7 What should be the accrued payroll liability as of December 31, 2022? 2 pts 2 pts 2 pts 2 pts 2 pts 2 pts 2 pts ABC company had the following information prior to any adjusting and closing entries for the YEAR ended December 31, 2022: ABC paid cash for rent covering the period July 1, 2022 to June 30, 2024. The total cost was $18,000. The amount was put into Prepaid rent on July 1, 2022 when the cash was paid. ABC purchased insurance for the period covering January 1, 2022 to December 31, 2024. The total cost of t insurance was $36,000. The amount was put into prepaid insurance on January 1, 2022 when the cash was ABC purchased a new company vehicle for cash on September 30, 2022. The cost of the vehicle was $36,00 The depreciation on the vehicle is $1,000 per month. No depreciation expense has been taken yet on this vehicle. ABC has seven employees on its payroll. The employees are paid every two weeks. The total cash paid to th employees every two weeks is $10,000 (this is the TOTAL, not per employee). Since the last pay, 25% of the weeks has elapsed. ABC's total revenue for the year was $125,000. Total expenses (including any expenses related to the adjust entries above) were $110,000. Prior to any closing entry, the retained earnings for ABC was $400,000. For all questions, please answer as follows: If the number is a positive number or the account is increasing (e.g., $4,525), please enter 4525 If the number is a negative number or the account is decreasing (e.g., -$4,525), please enter -4525 (be sure to incl the minus sign). If the number is zero or there is no impact on the account, please enter 0 (the number zero). Question 1 What should the balance in Prepaid Rent be after any adjusting entries on December 31, 2022? Question 2 What is the total rent expense for the year ended December 31, 2022? Question 3 What should be the balance in prepaid insurance on December 31, 2022? Question 4 What should be the insurance expense for the year ended December 31, 2022? Question 5 What should be the depreciation expense for the new equipment for the year ended December 31, 2022? Question 6 What should the balance in Accumulated Depreciation be on December 31, 2023? Question 7 What should be the accrued payroll liability as of December 31, 2022? 2 pts 2 pts 2 pts 2 pts 2 pts 2 pts 2 pts
Expert Answer:
Answer rating: 100% (QA)
ANSWER Lets calculate each value based on the provided information Prepaid Rent on December 31 2022 Rent was prepaid for two years from July 1 2022 to June 30 2024 for 1000 As of December 31 2022 six ... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
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