Reference no: EM132770058
Questions -
Q1. On December 31, 2021, a company reported pretax income of $120,000 prior to recording the following adjusting entries for:
Depreciation expense: $31,000.
Accrued service revenues: $29,000.
Accrued expenses: $12,000.
Used insurance: $9,000; the insurance was initially recorded as prepaid.
Rent revenue earned: $7,000; the rent was initially prepaid by the tenant and credited to deferred rent revenue.
How much is the company's pretax income after adjusting entries?
$128,000
$104,000.
$113,000.
$106,000.
Q2. What is the effect on the financial statements when a company fails to adjust the deferred revenue account for revenues earned at year-end that were pre-paid?
Revenues are understated and liabilities are understated.
Net income is understated and assets are understated.
Net income is understated and liabilities are overstated.
Revenues are understated and stockholders' equity is overstated.
Q3. Which of the following situation will not likely result in an end of the period adjustment?
Asset purchased in advance of the use of this asset in operations.
A bill is received for expenses for the current month and is due next month.
Cash is received in advance of a delivery of a good or service.
Expenses are incurred and paid for in the current month.
Find the carrying amount of biological assets on December
: Gain arising from changes in fair value less costs to sell attributable to price changes 60,000. Find the carrying amount of the biological assets on December
|
Value sensitive design of complex product systems
: Value Sensitive Design of Complex Product Systems: According to Ligtvoet, van de Kaa, Fens, van Beers, Herder, and van den Hoven,
|
What direct material purchases budget for may
: What direct material purchases budget for May-? The company's policy to maintain clay mix at the end of each month equal to 20% of the next month
|
How much debt was outstanding for brookman inc
: The firm finances using only debt and common equity and its total assets equal total invested capital. How much debt was outstanding?
|
How much is the company pretax income
: Used insurance: $9,000; the insurance was initially recorded as prepaid. How much is the company's pretax income after adjusting entries
|
Analyse and evaluate the market structure
: Analyse and evaluate the market structure of the insurance company industry. In your analysis, determine whether the current market is concentrated or not
|
Analysis of various tools useful in policy making
: Chapter 7 presents a comparative analysis of various tools useful in policy making.
|
What is the budgeted manufacturing rate for xx products
: What is the Budgeted Manufacturing Rate? The total number of direct labour hours estimated to be used by the company for the year 2015
|
How much Baltimore Company should report for its investment
: Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018
|