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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;
Inventory $290,000; Allowance for Doubtful Accounts $8,000; Patents
$72,000; Prepaid Insurance $9,500; Accounts Payable $77,000; Cash
$30,000.
Patrick Corporation’s adjusted trial balance contained the following
asset accounts at December 31, 2014: Prepaid Rent $12,000; Goodwill