- Required Information The Following Information Applies To The Questions Displayed Below A Company Makes A Payment O 1 (68.67 KiB) Viewed 11 times
! Required information [The following information applies to the questions displayed below.] A company makes a payment of $3,600 towards one-year insurance premium on March 1. Calculate the amount of prepaid insurance that should be reported on the August 31 balance sheet with respect to this policy. Prepaid insurance
Required information [The following information applies to the questions displayed below.] On November 1, 2013, Wenger Co. paid its landlord $4,020 in cash as an advance rent payment on its store location. The six-month lease period ends on April 30, 2014, at which time the contract may be renewed. Required: a.1 Prepare the horizontal model to record the six-month advance rent payment on November 1, 2013. (+ for increase and for decrease). Assets Prepaid rent +4020 Cash -4020 Cash +4020 Prepaid rent -4020 Prepaid rent +4020 Balance Sheet Liabilities Stockholders' Equity + Net Income = = = Income Statement Revenues Expenses
Required information [The following information applies to the questions displayed below.] On November 1, 2013, Wenger Co. paid its landlord $4,020 in cash as an advance rent payment on its store location. The six-month lease period ends on April 30, 2014, at which time the contract may be renewed. b.2 Prepare the adjusting entry that will be made at the end of every month to show the amount of rent "used" during the month. View transaction list No 1 Event 1 View journal entry worksheet Rent expense General Journal Debit 670 Credit 670 ........ Ⓒ
Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases only one column may be affected because all of the specific accounts affected by the transaction are included in that category. a. Accrued interest income of $15 on a note receivable. b. Determined that the Allowance for Bad Debts account balance should be increased by $2,450. c. Recognized bank service charges of $23 for the month. d. Received $25 cash for interest accrued in a prior month. e. Purchased 5 units of a new item of inventory on account at a cost of $39 each. Perpetual inventory is maintained. f. Purchased 12 more units on account of the same item at a cost of $44 each. Perpetual inventory is maintained. g. Sold 9 of the items purchased (in e and f) and recognized the cost of goods sold using the FIFO cost flow assumption. Perpetual inventory is maintained. Transaction a. b. C. d. e. f. g. Current Asset Interest receivable +15 Allowance for bad debts -2450 Cash -23 Cash +25 Interest receivable -25 Inventory +195 Inventory +528 Inventory -371 Current Liabilities Accounts payable +195 Accounts payable +528 Stockholders' Equity Net Income Interest income +15 Bad debts expense -2450 Cash -23 Cost of goods sold -371