Dresser Company’s weekly payroll, paid on Fridays, totals $8,000.
Employees work a 5-day week. Prepare Dresser’s adjusting entry on
Wednesday, December 31, and the journal entry to record the
$8,000 cash payment on Friday, January 2
Side Kicks has year-end account balances of Sales Revenue
$808,900; Interest Revenue $13,500; Cost of Goods Sold $556,200;
Administrative Expenses $189,000; Income Tax Expense $35,100;
and Dividends $18,900. Prepare the year-end closing entrie
To convert cash receipts from customers to revenue on an accrual
basis, the following adjustments are made:
Cash receipts from customers
Subtract beginning A/R
Add ending A/R
Add beginning Unearned Service Revenue
Subtract ending Unearned Service Revenue
At the time a company prepays a cost
Starr Co. had sales revenue of $540,000 in 2014. Other items
recorded during the year were
Portman Corporation has retained earnings of $675,000 at January 1,
2014. Net income during 2014 was $1,400,000, and cash dividends
declared and paid during 2014 totaled $75,000. Prepare
On January 1, 2014, Richards Inc. had cash and common stock of
$60,000. At that date, the company had no other asset, liability, or
equity balances. On January 2, 2014, it purchased for cash $20,000 of
equity securities that it classified as available-for-sale. It received
cash dividends of $3,000 during the year on these securities.
Harding Corporation has the following accounts included in its
December 31, 2014, trial balance: Accounts Receivable $110,000;