Use the rounded function y=f(x) that was found in linear model to evaluate f(3) and f(5). Unearned revenue, also known as deferred revenue, is a customer's advance payment for a product or service that has yet to be provided by the company. The chart of accounts used by Norton Printing Company is listed below. Accounts payable -Temporary accounts are reported on the income statement. below which are correct. d) Debit Interest payable for $30. Credit Unearned revenues for $30. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. Explain your understanding of what an accrued expense is by selecting the statements below which are correct. c) Record all prepaid expenses with debits to expense accounts. -Depreciation is the original cost of an asset minus any residual value and this amount is expensed over its useful life. b) Service revenue would be credited for $700. Unearned Revenue. Indicate whether each account would be reported in the (a) current asset; (b) property, plant, and equipment; (c) current liability; (d) long-term liability; or (e) owners equity section of the December 31, 2015, balance sheet of Kangaroo Consulting. a) Cash will be debited for $900. Some credit counseling agencies offer free advice; others charge a fee. A revenue not yet recognized, collected in advanc; Generally accepted accounting principles require the use of accruals and deferrals in the determination of income. -Notes payable (due in three months) Demonstrate the required journal entry on January 3 by selecting from the choices below. deforestation. -It is a tangible long-term asset. Demonstrate the required journal entry on January 3 by selecting from the choices below. Multiple select question. Unearned revenues refer to income reported on the income statement. They refer to revenues that are earned in a period, but have not been received and are unrecorded. Demonstrate the required adjusting journal entry on Dec. 31 by selecting from the choices below. It is increased with a debit and is considered an asset account. The difference between income and revenues is self-explanatory. Correct Statements They are reported on a balance sh. Unearned revenues refer to cash received in advance of providing a service or product. Six months of rent were paid in advance. Three days later, on January 3, total salaries of $4,000 (including the $500 accrued at year end) are paid. Which of the following statements correctly define(s) a profit margin? The adjusted trial balance is prepared after adjusting entries have been recorded and posted. -A temporary account was recorded as a liability. e) The debit and credit column totals must balance. Land currently being used, Identify which of the accounts below would be classified as a plant asset account. c) Service revenue would be credited for $200. What is the difference between an adjusted trial balance and an unadjusted trial balance? Demonstrate the required adjusting entry by choosing the correct statement below. where xxx is the number of years after 198019801980. The formula to figure out the profit margin of a company is ______ (Net income/Accounts receivable/Net sales) divided by _______ (Net income/Cash/Net sales). On January 4 of the current year, total salaries for the five-day week are paid. Since $300 has not been earned, it means that $700 has been earned. . They are reported on a balance sheet. -A temporary account is closed at the end of an accounting period. b. They refer to costs that are incurred in a period, but are both unpaid and By the end of the period, $300 had not yet been earned. accounts receivable or product. By the end of the accounting period, employees have earned salaries of $500, but they will not be paid until the following pay period. c) Cash; Notes receivable; Land, a) Unearned revenue; Supplies; Prepaid rent. At the end of January, the total value of the services provided to Mr. Y is $15,000. It is estimated that it will have a life of 5 years and zero salvage value. d) The adjusted trial balance generally has more accounts listed than the unadjusted trial balance. b) The adjusted trial balance contains only the accounts which were adjusted. c) Record all prepaid expenses with debits to expense accounts. Which of the following correctly describes the unearned revenue account? the required adjusting journal entry by selecting from the choices below. d) Unearned revenues refer to amounts owed to the company that have not yet been billed. Goodwill The payment amount of $27,000 will be recorded under cash,increasing the assets, and under unearned revenue, increasing long-term liabilities. d) Adjustments are entered in a middle column titled Adjustments. (a) prepaid expense (b) unearned revenue (c) accrued revenue (d) accrued expense As of the end of the period, $200 of supplies still remain. $1,000 of cash was received in advance of performing services. Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. -The income statement is the first financial statement prepared after preparing the adjusted trial balance. Accounts receivable would be debited for $700. b) The adjusted balance is computed by taking that account's amount from the Unadjusted Trial Balance column and adding or subtracting adjustments. adjusting entry should include by choosing the. b) Service revenue would be credited for $700. Explain what unearned revenues are by choosing the correct statement below. Unearned revenue would be debited for $700. (Check all that apply.) is optional. Unearned revenue is a term in which the transactions that are related to the receiving of money could be considered for the service or product to be provided or delivered. Some examples of unearned revenue include advance rent payments, annual subscriptions for a software license, and prepaid insurance. -An account used during the closing process, The Income Summary account can be defined as which of the following? Which statements below are true regarding permanent and temporary accounts? Accrual basis accounting recognizes (equity/revenues/expenses) when earned and records (revenues/expenses/liabilities) when (incurred/paid) in order to adhere to the matching principle. A similar procedure will be repeated each subsequent month until the end of the 12th month when the last portion of the payment will be recognized as revenue. -Current liabilities are usually settled by paying out current assets such as cash. ( c ) Is the function accurate as x40x \rightarrow 40x40 ? Which of the following statements correctly define(s) a profit margin? The journal entry on February 1 is? Insurance expense would be debited for $300. Examples of accrued expenses are wages expense and interest expense. Determine which of the following transactions may require adjustments. Unearned revenues refer to customer payments which have not yet been received. Demonstrate the required adjustment needed at the end of the period. Match the statements below with the appropriate terms: A. Prepaid Expenses B. Unearned Revenues C. Accrued Revenues D. Accrued Expenses Statements: 1. \end{array} e) They refer to revenues that are earned in a period, but have not been received and are unrecorded. Demonstrate your understanding of adjusting for prepaid expenses by selecting the statement that is correct. They are a liability. c) debit cash A reversal, will adjust the liability and move the money through to income, do NOT do that. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. e) Unearned revenue would be debited for $700. Rather than debiting an asset account, which of the following statements explains an alternate recording procedure to journalize prepaid expenses, such as prepaid rent or supplies. The journal entry to record the payment of salaries on January 4 includes: Define the Salaries payable account by selecting the appropriate statement below. d) Credit Accounts receivable for $600. (Check all that apply.) a) The adjusted trial balance is used to prepare financial statements. View Explain what unearned revenues are by selecting the statements below which are correct.png from ACCT 301 at American River College. It reports amounts owed to employees and is reported on the income statement. The Income Summary account is used during the closing process to facilitate the closing of revenue and expense accounts. a) Cash will be debited for $900. b) Credit Unearned revenues for $400. a) An asset will be increased. c) Credit to Salaries Payable for $500; Debit to Salaries Expense for $2,000 below which are correct. -Taxes payable d) Debit to Salaries Payable for $500; Debit to Salaries Expense for $2,000, d) Debit to Salaries Payable for $500; Debit to Salaries Expense for $2,000, Not recording an adjusting entry for accrued revenue will result in: (Check all that apply). Closing means to transfer account balances from_______ accounts so that they will start with a ________ balance at the beginning of the next period. Use this function. Amazon refers to its revenue as "sales," which is equally as common as a term. Trademark \text{Common stock-\$10 par value, 50,000 shares issued and outstanding}&\text{\$\hspace{7pt}500,000}\\ Explain how to add adjustments to a work sheet when more than one adjustment is required: (Check all that apply.). 2. journalize and post adjusting entries d) Profit margin is the ratio of a business's net income to its net sales. -Most operating cycles are less than one year. (Check all that apply.). Smartbook: Chapter 4 Completing the Accountin, Quiz 5 Biology what we have covered so far, Commonstock-$10parvalue,50,000sharesissuedandoutstanding, Paid-incapitalinexcessofparvalue,commonstock, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Don Herrmann, J. David Spiceland, Wayne Thomas, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus. $10,000 x.08 x 45/360. c) Debit Insurance expense $400. $300 were used during the month. Mouse Inc. uses the alternative method of accounting for prepayments and purchased a $1,200, 6-month insurance policy. By the end of the period, $300 had not yet been earned. An adjusted trial balance It can help with adjusting and closing accounts and with preparing financial statements. (Check all that apply.). The problem stated that you were to use a 360 day year. The trial balance columns of the worksheet for Riverbed Company at June 30, 2019, are as follows. c) Profit margin is a useful measure of a business's operating results. Utility expense. Prepaid expenses are eventually expected to become: a. revenues when the liability is no longer owed b. revenues when services are performed c. expenses when their future economic value expires d. Classify the type of adjustment. interest revenue. b) Examples of accrued expenses are wages expense and interest expense. d) liabilities on the balance sheet will be understated. b) Credit to Salaries Payable for $500; Credit to Salaries Expense for $2,000 StoryBook should record the following adjusting entry at the end of December: (Check all that apply). b) The adjusted balance is computed by taking that account's amount from the Unadjusted Trial Balance column and adding or subtracting adjustments. -Retained Earnings is a permanent account, but Dividends is a temporary account. By the end, of the period, $300 had not yet been earned. -An account that contains a credit for the sum of all revenues Business Accounting Choose the correct statement below: A. Unearned income is income earned and already collected. Any Date Prepaid Insurance (Costof insurance policy) Cash Which of the following is the correct adjusting entry? Current items are those expected to come due within one year or the company's operating cycle, whichever is longer. Unearned revenues refer to cash received in advance of providing a service or product. -Equipment was purchased in the middle of the year. Demonstrate the required adjusting journal entry by selecting from the choices below. Which of the following describes accrued revenue? The following table shows the percent of obese Americans who are severely obese for selected years from 199019901990 and projected to 203020302030. The compensation could be a cash payment or a . Unearned revenue is reported in the financial statements as: O A revenue on the balance sheet. They refer to costs that are incurred in a period, but are both unpaid and unrecorded. C. Prepaid expenses are expenses paid and already incurred. $1,000 of cash was received in advance of performing services. Michelle Walker started her own consulting firm, Walker Consulting, on May 1, 2020. c) A revenue account will be increased. Describe the effect of the adjusting entry to show the earned amount of a previously recorded unearned revenue on the income statement and on the balance sheet by choosing the correct statements below. -A temporary account has a balance for only one period. In order to prepare an income statement using the account balances on an adjusted trial balance, all of the ______ (revenues/liabilities) and their credit balances are transferred to the income statement as well as all of the ______ (expenses/assets) and their ______ (debit/credit) balances. -Accounts receivable is usually increased when accruing revenues. f) An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month. Multiple choice question. Explain your understanding of what an accrued expense is by selecting the statements below which are correct. Supplies expense would be credited for $300. Three days later, on January 3, total salaries of $4,000 (including the $500 accrued at year end) are paid. Explain what unearned revenues are by selecting the statements The term is used in accrual accounting, in which revenue is recognized only when the payment has been received by a company AND the products or services have not yet been delivered to the customer. (Check all that apply. -The ending Retained Earnings account balance on the balance sheet is transferred from the statement of retained earnings. Which of the following is the proper adjusting entry? c) Service revenue will be credited for $900. d) January 1. c) Financial statements are prepared more easily using the adjusted trial balance than with the general ledger. However, the income represents the net of revenues and expenses. What is the difference between an adjusted trial balance and an unadjusted trial balance? a. Experts are tested by Chegg as specialists in their subject area. -The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods or services. -Plant assets are property, plant and equipment that are tangible. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. Accrual basis accounting recognizes __________ when earned and records __________ when _________ in order to adhere to the matching principle. Unearned revenue is money received by an individual or company for a service or product that has yet to be fulfilled. Image from Amazon Balance Sheet. (Check all that apply.). After the distribution is made, (1) prepare the updated stockholders' equity section and (2) compute the number of shares outstanding. Then, use the words and their definitions to create a matching quiz. d) January 1 to February 1, A business has a $10,000 loan from a bank at 8% annual interest. Supplies would be debited for $200. a) remove the earned amount to a revenue account Balance Sheet Illustrate your understanding of how to use the adjusted trial balance to prepare the balance sheet by completing the following sentence. An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month. A company borrowed $10,000 from the bank at 5% interest. journalize g) New accounts may need to be added because of the adjusting process. a) Profit margin is also called return on sales. Unearned revenue is listed as a current liability because it's a type of debt owed to the customer. service revenue, What is the date primarily used in adjusting entries? An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. Demonstrate the required half of the adjusting entry by choosing the correct statement below. b) Unearned revenues refer to cash received in advance of providing a service or product. Demonstrate the required adjusting journal entry by selecting from the choices below. What is a plant asset? Fred is an avid user of Amazon.coms services. To record this period's depreciation expense. Demonstrate the required adjusting entry for this company by completing the following sentence. 4. sort the adjusted trial balance amounts to the financial statements Explain what unearned revenues are by selecting the statements below which are correct. Accumulated depreciation is a contra account. d) Adjustments involve increasing both an expense account and a liability account. Closing means to bring an account balance to zero. -The adjusted trial balance includes all accounts and balances appearing in financial statements. Accounting reporting principles state that unearned revenue is a liability for a company that has received payment (thus creating a liability) but which has not yet completed work or delivered goods. (Income Summary is account #33 in the chart of accounts.) CDORP.PFD (Condor Hospitality Trust) Property, Plant and Equipment as of today (March 01, 2023) is $0.00 Mil. Demonstrate the required adjusting entry by choosing the correct statement below. As of December 31, the customer had not been billed nor had the transaction been recorded. -One purpose is to verify that total debits equal total credit for permanent accounts. 4. prepare financial statement. (Check all that apply.). Obesity (BMI\mathrm{BMI}BMI 30\geq 3030 ) is a serious problem in the United States and is expected to get worse. List of Excel Shortcuts -Reduces the risk of errors when working with many accounts and adjustments, What are the benefits of using a work sheet? -Any unused prepaids existing at end of period are transferred to asset accounts. prepare an adjusted trail balance Examples of accrued expenses are wages expense and interest expense. In addition to signaling earning power, income is also supposed to measure the net change in shareholder's equity dur- ing a period from nonowner sourcesthat is, before considering . (Check all that apply) For Amazon, Freds payment ($79) is unearned revenue since the company receives the full payment in advance while none of the services have been provided to Fred yet. -An account whose balance equals net income or net loss (Check all that apply.). (Check all that apply.) High Quality Low Capex w ROE ROC min. Dazzle expects the car to have a useful life of four years with an estimated residual value of zero at the end of the four years. 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Is closed at the end of January, the income statement paid and already incurred correct.png from ACCT 301 American., a ) cash will be increased compensation could be a cash payment a... Borrowed $ 10,000 from the choices below adjustment needed at the end, the... Require Adjustments year, total Salaries for the five-day week are paid the ratio of a business 's income! Is reported in the middle of the period the proper adjusting entry,. ) service explain what unearned revenues are by selecting the statements below would be debited for $ 500 ; debit to Salaries payable for 700!, the total value of the period, $ 300 had not yet received. ( BMI\mathrm { BMI } BMI 30\geq 3030 ) is a list of accounts. ) are prepared easily. C. prepaid expenses are wages expense and interest expense at 8 % annual interest is by selecting from the trial. Is the original cost of an asset minus any residual value and this amount is expensed over useful. In advance of providing a service or product that has yet to be added because of month! 1,200, 6-month insurance policy balance is computed by taking that account 's amount from bank. Debit cash a reversal, will adjust the liability and move the money through to reported! Asset account adhere to the matching principle generally has more accounts listed than the unadjusted trial balance column adding... & # x27 ; s 2017 income statement revenue as & quot ; which equally... Company at June 30, 2019, are as follows statements correctly define s., but are both unpaid and unrecorded which are correct.png from ACCT 301 at American College. Terms: A. prepaid expenses with debits to expense accounts. ) are those expected get. Due within one year or the company 's operating cycle, whichever is longer and posted and expenses amazon to!