Questions
Which of the following would require an adjusting entryat the end of the current year?...

Which of the following would require an adjusting entry at the end of the current year?


a.

Unpaid salaries at the end of the year.


b.

Estimated bad debts in the following year


c.

Cash received from customers for services to be performed next year


d.

All of the above


e.

A and B

Timberline Co. generally provides services for $1,200, but offers a $200 discount to senior citizens. When providing a service on account to a senior citizen for $1,000, Timberline would record the following:


a.

Credit Service Revenue for $1,000


b.

Debit Sales Discounts for $200


c.

Credit Accounts Receivable for $1,200


d.

Credit Service Revenue for $1,200


e.

Debit Accounts Receivable for $1,200

The accounting group responsibility for the establishment of worldwide financial accounting rules is:


a.

The International Accounting Standards Board


b.

United Way


c.

International Organization of Securities Commissions


d.

The World Bank


e.

The Financial Accounting Standards Board

Hayes Corporation issues 100 shares of its $1 par value common stock for $15 per share. The entry to record the issuance will include a:


a.

Debit to Cash $1,500.


b.

Credit to Additional Paid-In Capital $1,400.


c.

Credit to Common Stock of $100.


d.

Debit Dividends for $1,500


e.

Three of the above answers are correct..

The net increase/decrease in cash reported in the Statement of Cash Flows equals:


a.

Net income reported in the Income Statement


b.

The change in stockholders’ equity reported in the Statement of Stockholders’ Equity


c.

Stockholders’ Equity reported in the Balance Sheet


d.

The change in the balance of the Cash account reported in the Balance Sheet


e.

The amount of revenues less expenses and dividends during the year


In: Accounting

Edgar needs to close out $670 in the dividends account at the end of the year....

Edgar needs to close out $670 in the dividends account at the end of the year. What closing entry will he use? a. Income summary (debit) 670; dividends (credit) 670 b. Retained earnings (debit) 670; dividends (credit) 670 c. Dividends (debit) 670; income summary (credit) 670 d. Revenue (debit) 670; dividends (credit) 670 e. Cash (debit) 670 ;dividends (credit) 670

In: Accounting

When the last day of the year falls on Tuesday, the entry for accrued wages is...

When the last day of the year falls on Tuesday, the entry for accrued wages is a debit to Wages Expense and a credit to Wages payable for,  2. When the last day of the year falls on Friday, the entry for accrued wages is a debit to Wages Expense and a credit to Wages payable for, 3. When the last day of the year falls on Monday, the entry for the payment of wages is a debit to Wages Expense for,  a debit to Wages Payable for, and a credit to Cash for,  4. In every version, wages for the last week of December are per day.

In: Accounting

ON APRIL 1, THERE WAS $5,000 OF PREPAID INSURANCE DURING THE YEAR, A TOTAL OF $12,000...

ON APRIL 1, THERE WAS $5,000 OF PREPAID INSURANCE

DURING THE YEAR, A TOTAL OF $12,000 WAS PAID OUT IN INSURANCE PREMIUMS.

ON MAY 31, THE PREPAID INSURANCE WAS $6,000

  • CALCULATE THE INSURANCE EXPENSE FOR THE YEAR
  • IF YOU ARE TOLD THAT THE CORPORATION HAS RECEIVED $5,000 FOR AN INSURANCE CLAIM DURING THE YEAR, WHAT WOULD BE THE CHANGE IN THE INSURANCE EXPENSE?

In: Accounting

This year Zach was injured in an auto accident. As a result, he received the following...

This year Zach was injured in an auto accident. As a result, he received the following payments.

Zach received $18,000 of disability pay. Zach has disability insurance provided by his employer as a nontaxable fringe benefit. Zach's employer paid $4,300 in disability premiums for Zach this year.

Zach's hospital bills totaled $4,500 and were paid by his health insurance. Zach has health insurance provided by his employer as a nontaxable fringe benefit. Zach's employer paid $6,250 in health insurance premiums for Zach this year.

What amount must Zach include in his gross income?

A.

$4,500

B.

Zero - None of these benefits is included in gross income.

C.

$10,550

D.

$22,500

E.

$18,000

In: Accounting

An individual's demand for physician office visits in a given year is given by, Q =...

An individual's demand for physician office visits in a given year is given by, Q = 10 - 0.04P, where Q is the number of office visits and P is the out-of-pocket price paid by the individual for each visit. Assume the market price of an office visit is $180.

a) Suppose the individual has insurance and pays only $40 a copayment for each visit. How many office visits will the individual make in one year?

b) What is the moral hazard and deadweight loss associated with having insurance?

In: Economics

You will make deposits of $1,000 at the end of each year for 40 years in...

  1. You will make deposits of $1,000 at the end of each year for 40 years in your investment account. After the 40th deposit, you will immediately withdraw all money from the account to buy a retirement annuity for 35 years with equal annual payments (paid at year-end) from a life insurance company. If the annual rate of return over the entire period (75 years) is 5%, how much is the annual payment from the insurance company?
  2. The amount of your 25-year mortgage loan is $500,000, and the interest rate is 6% p.a. How much is your monthly loan payment? How much interest will you pay for the 3rd year?

In: Finance

After the year end a substantial quantity of inventory wasdestroyed in a fire. The loss...

After the year end a substantial quantity of inventory was destroyed in a fire. The loss was not adequately covered by insurance. This event is likely n the ability to threat of the business to continue as a going concern. Discuss the matters to be considered in making a decision under IAS 10.

In: Accounting

On August 1, 2012, Lincoln Services was started and at the end of the year December...

On August 1, 2012, Lincoln Services was started and at the end of the year December 31, 2012, had the following unadjusted trial balance. please prepare the year-end adjusting and closing entries. please record the transactions in the General Journal provided.

Account Title Debit Credit
Cash 17,500
Supplies 8,900
Prepaid Insurance 6200
Equipment 131000
Accumulated Depreciation Equipment 25250
Account Payable 5800
Interest Payable 0
rent payable 0
wages payable 0
property tax payable 0
notes payable 24000
common Stock 77600
dividends 30000
construction fees earned 134000
depreciation expense 0
wage expense 45860
interest expense 2640
insurance expense 0
rent expense 13200
supply expense 0
property tax expense 4600
repair expense 2810
utility expense 4000
totals 266710 26710

Data for ajusting and closing Entries

1. Supplies available at year-end amount $3200

2. Expired prepaid insurance at year end amounted $3900

3.Depriciation on the equiment $ 8500

4. The december utility expense of $550 has not yet been recorded.

5. At year end employees had accrued wages owed of $1600

6. The accrued rent expense for december is $200

7. Property taxes assessed not yet paid amount to $900

8. Interest on the Note Payable for December amouts to $240

In: Accounting

Unified Airlines is being sued by Northeast Airlines for $5,000,000. At the end of the year,...

Unified Airlines is being sued by Northeast Airlines for $5,000,000. At the end of the year, Unified feels it is probable that it will pay $5,000,000 at some point in the following year. What should Unified and Northeast record at the end of the year concerning the lawsuit? Unified does not record any contingent loss; Northeast records $5,000,000 contingent gain. Unified records $5,000,000 contingent loss; Northeast does not record any contingent gain. Unified records $5,000,000 contingent loss; Northeast records $5,000,000 contingent gain. Neither company records a contingent loss or gain.

In: Accounting