Salaries and wages payable 0 there are eight salaried

Assignment Help Accounting Basics
Reference no: EM13481136


Problem 3-4A
A review of the ledger of D. J. Moore 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. Five employees receive a salary of $950each per week, and three employees earn $680each 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 $224,676. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.


Date

Term
(in months)


Monthly Rent

Number of
Leases
Nov. 1
6
$5,184
4
Dec. 1
6
$8,355
2

3. Prepaid Advertising $16,301. 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.



Contract



Date



Amount

Number of
Magazine
Issues
A650
May 1
$7,124
13
B974
Oct. 1
9,177
21

The first advertisement runs in the month in which the contract is signed.

4. Notes Payable $122,000. This balance consists of a note for one year at an annual interest rate of9%, dated June 1.

No. Date Account Titles and Explanation Debit Credit
1. Dec. 31


2. Dec. 31


3. Dec. 31


4. Dec. 31







Reference no: EM13481136

Questions Cloud

What is the difference between accrual-basis accounting and : on numerous occasions proposals have surfaced to put the federal government on the accruals basis of accounting. this
Describe the three major activities the statement of cash : describe the three major activities the statement of cash flows reports. cite examples of cash flows for each
In our discussion of how we perceive people we have : in our discussion of how we perceive people we have examined the concept of the halo effect. this is the idea that
Investment alternatives including diversified asset mix : assume that you recently graduated with a major in finance and you landed a job as a financial planner with a large
Salaries and wages payable 0 there are eight salaried : problem 3-4aa review of the ledger of d. j. moore company at december 31 2012 produces the following data pertaining to
What information can a user of financial statements obtain : what information can a user of financial statements obtain from the statement of cash
You work in the finance department of a government mbs : you work in the finance department of a government mbs issuer. your boss just asked you and the other members of the
Why would a profitable firm ever need to file for : why would a profitable firm ever need to file for bankruptcy?what 2 key issues does working capital policy involve?is
What is the meaning of the term cash flow why is this term : what is the meaning of the term cash flow? why is this term subject to confusion and

Reviews

Write a Review

Accounting Basics Questions & Answers

  Journal entry-sales allowances

On September 11, the customer who had been billed on August 18 complained about being overcharged and was granted a credit of $350.

  Do you think the sarbanes-oxley act has made a difference

respond to the capstone discussion question. identify situations that might lead to unethical practices and behavior in

  Interest income and investment

GRP Corporation has $500,000 in a bank account paying 0.35% annual interest. As an alternative to leaving the money in the account, the company is considering investing the entire amount for five years. possible investments have been identified as..

  Problem regarding estimated inventory

Data for the first six months of 2011 include: beginning inventory at cost and retail were $55,000 and $100,000, net purchases at cost and retail were $785,000 and $1,300,000, and sales during the first six months totaled $800,000. The estimated i..

  Determine the total cost to redecorate the mayor offices

Overhead is applied to contracts by using a predetermined overhead rate that is based on direct professional labor cost. Actual professional labor during the year was $655,000 and actual overhead was $793,000.

  Complete the consolidation working papers

Koel corporation acquired all the voting stock of Rain company for $500,000 on January 1, 2005 when Rain had capital stock of $300,000 and retained earnings of $150,000.

  Equivalent units of production for materials

For the month of January, there were no units in the beginning work in process inventory; 60,000 units were started into production in January; and there were 15,000 units that were 40% complete in the ending work in process inventory at the end o..

  The fasb asc paragraph 810-10-45-16 states

the fasb asc paragraph 810-10-45-16 states acirceurooeligthe noncontrolling interest shall be reported in the

  Global business management-how to write business plan

What are the critical components of a business plan? Consider any changes which would be required if the plan were to be used in the foreign country.

  Problem on accounting recognition

The management of Ortiz estimates that this recall would cost $800,000. What accounting recognition, if any, should be accorded this situation?

  What is the budgeted cash balance

Finally, Giovanni estimates that he needs to withdraw $55,000 from the business (as dividends) to cover his own personal living expenses this year. Will Giovanni have enough cash to get through the year? What is his budgeted cash balance on Decemb..

  Company break-even point in dollar sales

Scott Company's variable expenses are 70% of sales. The company's break-even point in dollar sales is $2,420,000. If sales are $53,000 below the break-even point, the company would report a:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd