Reference no: EM132578337
Question - Dittman's Variety Store is completing the accounting process for the year just ended, December 31, 2011. The transactions during 2011 have been journalized and posted. The following data with respect to adjusting entries are available:
a. Wages earned by employees during December 2011, unpaid and unrecorded at December 31, 2011, amounted to $2,700. The last payroll was December 28; the next payroll will be January 6, 2012.
b. Office supplies on hand at January 1, 2011, totalled $450. Office supplies purchased and debited to Office Supplies during the year amounted to $500. The year-end count showed $275 of supplies on hand.
c. One-fourth of the basement space is rented to Heald's Specialty Shop for $560 per month, payable monthly. On December 31, 2011, the rent for November and December 2011 had not been collected or recorded. Collection is expected January 10, 2012.
d. The store used delivery equipment that cost $60,500; $12,100 was the estimated depreciation for 2011.
e. On July 1, 2011, a two-year insurance premium amounting to $2,400 was paid in cash and debited in full to Prepaid Insurance. Coverage began on July 1, 2011.
f. The remaining basement of the store is rented for $1,600 per month to another merchant, M. Carlos, Inc. Carlos sells compatible, but not competitive, merchandise. On November 1, 2011, the store collected six months' rent in the amount of $9,600 in advance from Carlos; it was credited in full to Unearned Rent Revenue when collected.
g. Dittman's Variety Store operates a repair shop to meet its own needs. The shop also does repairs for M. Carlos. At the end of December 31, 2011, Carlos had not paid $800 for completed repairs. This amount has not yet been recorded as Repair Shop Revenue. Collection is expected during January2012.
Required -
1. Identify each of these transactions as a deferred revenue, deferred expense, accrued revenue, or accrued expense.
2. Prepare the adjusting entries that should be recorded for Dittman's Variety Store at December 31, 2011.
|
Explain how to measure deferred tax assets and liabilities
: Explain how to measure deferred tax assets and liabilities. Explain how to measure deferred income tax expense or benefit. Identify objectives of accounting
|
|
Describe at least two bases of differentiation
: The Ritz-Carlton , Dell , National Bicycle Industrial Company, Gucci, Fuddruckers and Allen Edmonds men's dress shoes
|
|
How to determine what is the current bond price
: iPad, Inc., has 6 percent coupon bonds, The bonds make semi-annual payments. If the YTM on these bonds is 12 percent, what is the current bond price?
|
|
What can be done to assist professionals in the health care
: What can be done to assist professionals in the health care professions to handle these challenges.
|
|
Prepare the adjusting entries that should be recorded
: Wages earned by employees during December 2011, Prepare the adjusting entries that should be recorded for Dittman's Variety Store at December 31, 2011
|
|
Determine the cost of each capital component
: Determine the cost of each capital component. New preferred stock with a dividend of $11 can be sold to the public at a price of $95 per share.
|
|
Describe specific motivational techniques
: Describe specific motivational techniques that could be used within an organization.
|
|
Ethical issues in business
: Read the article titled, "Recognition, Reification, and Practices of Forgetting: Ethical Implications of Human Resource Management
|
|
Demonstrate what value would place on the stock
: Kai Zen Motors currently pays a dividend of $2 per share, What value would you place on the stock if a 16 percent rate of return were required?
|