Reference no: EM131146409
A review of the ledger of Felipe Company at December 31, 2012, produces the following data pertaining to the preparation of annual adjusting entries.
1. Salaries and Wages Payable $0: There are eight salaried employees. Salaries are paid every Friday for the current week. Six employees receive a salary of $800 each per week, and two employees earn $600 each per week.
Assume December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December.
2. Unearned Rent Revenue $300,000: The company began subleasing office space in its new building on November
1. Each tenant is required to make a $5,000 security deposit that is not refundable until occupancy is terminated. At December 31 the company had the following rental contracts that are paid in full for the entire term of the lease.
-1.PNG)
3. Prepaid Advertising $13,200: This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as follows.
-2.PNG)
The first advertisement runs in the month in which the contract is signed.
4. Notes Payable $80,000: This balance consists of a note for 1 year at an annual interest rate of 8%, dated April 1, 2012.
Instructions
Prepare the adjusting entries at December 31, 2012. Show all computations.
|
How much is the overall deductible amount of his itemized
: During the taxable year, the feed for the cattle cost $1,500. The income from the sale of cattle was $1,400. (a) Under the hobby loss rule, to what extent is the expense of $1,500 deductible? (b) Under the two-percent-of-adjusted-gross-income limitat..
|
|
Turnover and its causes
: Answers the question given below related to the topic "Turnover and Its Causes".
|
|
Percentage improvement is needed in supply chain strategy
: Han Lee Furniture, Inc, spends 45% of its sales dollars in the supply chain and finds its current profit of $30,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. What percentage im..
|
|
A review of the ledger of felipe company at december
: A review of the ledger of Felipe Company at December 31, 2012, produces the following data pertaining to the preparation of annual adjusting entries.
|
|
Discuss ways to discourage or prevent myopic behavior
: If budget performance is overemphasized, myopic behavior can occur where a manager takes actions that improve budgetary performance in the short run but cause long run harm to the firm. Give at least two examples of myopic behavior that might be enco..
|
|
Think organizations should conduct performance reviews
: Over my years of teaching I often ask the class, "How many of you think organizations should conduct performance reviews?" Typically, about 80% think we should. However, I follow by asking "How many of you agree that your organization accurately meas..
|
|
Customer equity
: Customer equity is: a. a high-tech firm's most valuable resource b. primarily determined by the cost to acquire new customers c. almost impossible to calculate. d. most appropriately calculated at the market segment level e. the net present value of ..
|
|
Determine the effect on income if the company increases ads
: The projected income statement was based upon sales of 20,000 units. Fox has the capacity to produce 25,000 units during the year.Determine breakeven point in units. Determine the effect on income if the company increases advertising expenditures.
|