E 2.19 – Haskins & Jones
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
They give you collections, expenses, and increases and decreases in various accounts and ask you to fill out a grid and for accrual basis net income.
They give you collections, expenses, and increases and decreases in various accounts and ask you to fill out a grid and for accrual basis net income.
With the given information on revenues, sales, merchandise purchases, salaries, insurance, and tax rate… find revenue in the first year.
With the given information on sales, assets, end of year cash, stockholder’s equity, gross profit, net increase cash, operating expense, operating cash flow, and other incomes… find the beginning of year cash balance.
With the given information on revenue, merchandise purchased, salaries, interest, and insurance… find the net income for the first year.
Tells you the company received money for advanced rent. Asks how to record the transaction with debit and credit.
Tells you the company sold merchandise on account. Asks how to record the transaction with debits and credits.
Tells you the balance in the prepaid insurance account at the end of the previous year, how much was paid for insurance, and the ending balance. Asks for insurance expenses.
Tells you the balance expensed for the year, how much the account decreased throughout the year, and the ending balance. Asks for the cost of supplies purchased.
Tells you the supplies purchased for the year, how much the account increased throughout the year, and the ending balance. Asks for supplies expense.
Tells you that a 2-year insurance policy was purchased in August and asks how much should be recorded for the entries at the end of the year.