ACCT 1202 Chapter Notes - Chapter 1-3: Gross Profit, Common Stock, Asset Turnover

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indigotiger646

9 Nov 2017

School

Northeastern University

Department

Accounting

Course

ACCT 1202

Professor

Anthony Russo

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Document Summary

*accounts for (payables, receivables) cash is received, and . When recognized in the books before something is paid for. G/s sold or completed but not yet billed to customer (interest receivable, accounts receivable) Unearned revenue; prepayment accepted but g/s not yet fully delivered or performed (gift cards sold to customers) G/s received and delivered but has not been paid yet (interest payable, accounts payable) Prepaid expenses; g/s paid for already but not yet fully received or completed (prepaid insurance expense, subscription to newspapers) (stockholders" equity: accounts receivable , cash/cash equivalents , net sales , debt due within a yr , taxes payable , retained earnings , cost of products sold , selling, general and admin expense . Gross profit - operating, admin, misc expenses = income before tax. Ibt - income tax/interest expense = net income. Net profit margin ratio = net income/net sales (operating revenues) Asset turnover ratio = sales revenue/ave. total assets.

Related Questions

NEED ANSWERS ASAP

Question 23

If a resource has been consumed but a bill hasnot been received at the end of the accountingperiod, then

		an expense should be recorded when the bill is received.
		an expense should be recorded when the cash is paid out.
		an adjusting entry should be made recognizing the expense.
		it is optional whether to record the expense before the bill isreceived.

3 points

Question 24

Prepaid expenses are

		paid and recorded in an asset account before they are used orconsumed.
		paid and recorded in an asset account after they are used orconsumed.
		incurred but not yet paid or recorded.
		incurred and already paid or recorded.

3 points

Question 25

If a business has received cash in advance of services performedand credits a liability account, the adjusting entry needed afterthe services are performed will be

		debit Unearned Service Revenue and credit Cash.
		debit Unearned Service Revenue and credit Service Revenue.
		debit Unearned Service Revenue and credit Prepaid Expense.
		debit Unearned Service Revenue and credit AccountsReceivable.

3 points

Question 26

The preparation of adjusting entries is

		straight forward because the accounts that need adjustment willbe out of balance.
		often an involved process requiring the skills of aprofessional.
		only required for accounts that do not have a normalbalance.
		optional when financial statements are prepared.

3 points

Question 27

On January 1 of the current year, Doolittle Company purchasedfurniture for $7,560. The company expects to use the furniture for3 years. The asset has no salvage value. The book value of thefurniture at December 31of this year is

		$0.
		$2,520.
		$5,040.
		$7,560.

3 points

Question 28

Husker Du Supplies Inc. purchased a 12-month insurance policy onMarch 1 of the current year for $1,800. At March 31, the adjustingjournal entry to record expiration of this asset will include a

		debit to Prepaid Insurance and a credit to Cash for $1,800.
		debit to Prepaid Insurance and a credit to Insurance Expense for$200.
		debit to Insurance Expense and a credit to Prepaid Insurance for$150.
		debit to Insurance Expense and a credit to Cash for $150.

On December 31 adjusting entries for the following transactions.1. Fees accrued but not billed, $6,300. 2. The Supplies accountbalance on December 31, $4,750; Supplies on hand, $960. 3. Wagesaccrued but not paid, $2,700. 4. Depreciation of office equipment,$1,650. 5. Rent expired during year, $10,800.

CHARTOF ACCOUNTS

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Rent
16	Office Equipment
17	Accumulated Depreciation

	LIABILITIES
21	Accounts Payable
22	Notes Payable
23	Unearned Revenues
24	Wages Payable
25	Interest Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Advertising Expense
52	Insurance Expense
53	Interest Expense
54	Wages Expense
55	Supplies Expense
56	Utilities Expense
57	Depreciation Expense
58	Rent Expense
59	Miscellaneous Expense

CHARTOF ACCOUNTS

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Rent
16	Office Equipment
17	Accumulated Depreciation

	LIABILITIES
21	Accounts Payable
22	Notes Payable
23	Unearned Revenues
24	Wages Payable
25	Interest Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Advertising Expense
52	Insurance Expense
53	Interest Expense
54	Wages Expense
55	Supplies Expense
56	Utilities Expense
57	Depreciation Expense
58	Rent Expense
59	Miscellaneous Expense

General Journal

Prepare the December 31 adjusting entries for each transactions.Refer to the Chart of Accounts for exact wording of accounttitles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST.REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10					need help with a general journal

magentaweasel639

Hart Corporation encounters the following situations:

Identify what type of adjusting entry (prepaid expense, unearnedrevenue, accrued expense, or accrued revenue) is needed in eachsituation at December 31, 2015.

-A.B.C.D.	Hart collects $1,300 from a customer in 2015 for services to beperformed in 2016.
-A.B.C.D.	Hart incurs utility expense which is not yet paid in cash orrecorded.
-A.B.C.D.	Hart's employees worked 3 days in 2015 but will not be paiduntil 2016.
-A.B.C.D.	Hart performs services for customers but has not yet receivedcash or recorded the transaction.
-A.B.C.D.	Hart paid $2,400 rent on December 1 for the 4 months startingDecember 1.
-A.B.C.D.	Hart received cash for future services and recorded a liabilityuntil the service was performed.
-A.B.C.D.	Hart performed consulting services for a client in December2015. On December 31, it had not billed the client for servicesperformed of $1,200.
-A.B.C.D.	Hart paid cash for an expense and recorded an asset until theitem was used up.
-A.B.C.D.	Hart purchased $900 of supplies in 2015; at year-end, $400 ofsupplies remain unused.
-A.B.C.D.	Hart purchased equipment on January 1, 2015; the equipment willbe used for 5 years.
-A.B.C.D.	Hart borrowed $10,000 on October 1, 2015, signing an 8% one-yearnote payable.

A.	Unearned Revenue
B.	Accrued Expense
C.	Accrued Revenue
D.	Prepaid Expenses

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ACCT 1202 Chapter Notes - Chapter 1-3: Gross Profit, Common Stock, Asset Turnover

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