Copyright 2019 McGraw-Hill Education. Copyright 2019 McGraw-Hill Education. Given On January 1, a company purchased a five-year insurance policy for $1,800 with coverage Revenue and expense accounts are permanent (real) accounts and should not be closed at the Common Sto A:The question is based on the concept of Financial Accounting. Interest and principal will be collected when the loan matures one year from the issue date. A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,245 of supplies on hand. A) Debit Unpaid Salaries $600 and credit Salaries Payable $600. Q:5. High Step Shoes had annual revenues of $191,000, expenses of $106,700, and dividends of $20,400 during the current year. balance of $400. On July 1, a client paid an advance payment (retainer) of $5,000 to cover future legal services. C) A debit to Unearned Fees and a credit to Fees Earned for $1,000. The industry average for the current ratio is 1.2. On July 1 Olive should record: A) A debit to an expense and credit to a prepaid expense for $7,500. Prior to recording adjusting entries at the end of an accounting period, some accounts may The note receivable plus interest will not be collected until March 1 of the following year. In preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column. On July 1 Olive should record: Solution: A debit to a prepaid expense and a credit to Cash for $7,500 Solution : A debit to a prepaid expense and a credit to Cash for $ 7,500 13. Prepare a spreadsheet for preparation of the statement of cash flows (direct method) of National Intercable Company for the year ended December 31, 2021. Accounts that appear in the balance sheet are often called temporary (nominal) accounts. Revenue and expense balances are transferred from the adjusted trial balance to the income received. Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded. A debit to an expense and a credit to a prepaid expense for $5,775. All rights reserved. The company's annual accounting period ends on December 31, and adjustments are only made at year-end. Prepaid taxes will be reversed within one year but can resu. A) A revenue on the balance sheet. AssetsCash$57$55Accountsreceivable181170Less:Allowanceforuncollectibleaccounts(8)(6)Prepaidinsurance712Inventory170165Long-terminvestment6690Land150150Buildingsandequipment290270Less:Accumulateddepreciation(85)(75)Trademark2425$852$856LiabilitiesAccountspayable$30$45Salariespayable38Deferredtaxliability1815Leaseliability680Bondspayable145275Less:Discountonbonds(22)(25)ShareholdersEquityCommonstock310290Paid-incapitalexcessofpar9585Preferredstock500Retainedearnings155163$852$856\begin{array}{lrr} C) An unearned revenue on the income statement. Debit Revenue accounts $63,200; credit Income Summary $63,200. A debit to an expense and credit to Cash. 10,000 The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for National Intercable Company. of the opinions highlighted in the case study. consultant service method of inventory valuation? 14 , HELP ASAP!! 19 Here are the page views from five randomly selected customers from each website: c) What are the sample variances for each website? Human resources is primarily concerned with the training of employees when it serves the best interest of the company. B) Cost principle. D) Are listed on the balance sheet as liabilities. 2003-2023 Chegg Inc. All rights reserved. been owned: The Dividends account is normally closed by debiting it. Assuming adjustments are only made at year-end, the adjusting entry on $6,000 worth of supplies in August and recorded the purchase in the Supplies account. B) Affect only balance sheet accounts. Harrod Company paid $5,200 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. Next : an American History, Iris Module 2- Accomodations for Students w Disabilities, Skill IVTherapy - Active Learning Template, Lab 1-Chemistry and Measurement-Lab Report, Analytical Reading Activity Jefferson and Locke, Lunchroom Fight II Student Materials - En fillable 0, (Ybaez, Alcy B.) A company purchased A ledger is an account that provides information on all the transactions that have taken place during a particular period. The cash receipt was credited to the Unearned Rent account. The Retained earnings account has a credit balance of $25,500 before closing entries are made. revenues earned. Debit Income Summary $44,300; credit Expense accounts $44,300. The company's annual accounting period ends on December 31. Salaries Payable (Debit) 2,500 The delivery van Direct material used A:Solution: Is the graph of the function concave up or down? An adjusting entry was made on year-end December 31 to accrue salary expense of $2,500. contract. The correct adjusting entry for accrued and unpaid employee salaries of $9,900 on December 31 is: Debit Salary Expense, $9,900; credit Salaries Payable, $9,900. The Cash receipt was recorded as unearned fees and at year-end on December 31, $1,000 of the E) Debit Salaries Expense $400 and credit Cash $400. 2. On July 1 Olive should record: 1 See answer Advertisement jepessoa Answer: The journal entry to record this should be:; d A:As per our protocol we provide solution to one question only or up to three sub-parts only but you h Q:yundai Company has a relevant range of production between 10,000 and 20,000 units. Retained earnings 110,000 B) Is referred to as accumulated depreciation. Depreciation of equipment for the year, 2,800. Total revenues for the period are $72,200, total expenses are $48,300, and dividends are $15,800. \text{Long-term investment}& 66 &90\\ recording all prepaid expenses to asset accounts at the time of cash payment. discounts. What will be the insurance expense on the annual income statement for the first year ended December 31? current year for Olive would include: During the period, the company completed $6,200 of the agreed-on services for the client. General Ledger balance Supplies on hand = Supplies used supplies is $3,200. C) The time period assumption. A) $17,000. Copyright 2019 McGraw-Hill Education. future. During the year, the company purchased $270 worth of office supplies. A worksheet can be helpful in showing the effects of proposed or "what if" transactions but What is the amount of revenue that should be recorded by Garcia Publishing Company for the first year of the subscription assuming the company uses a calendar-year reporting period? Ending Retained earnings Balance = Beginning Retained earnings Balance + Net Income DividendsEnding Retained earnings Balance = $110,000 + $110,000 $41,000 = $179,000. d. the repression of disturbing thoughts. years = $7,500 b. It will pay The prepaid insurance account had a balance of 7,000 at the beginning of the year. On May 1, Sellers Marketing Company received $1,500 from Franco Marcelli for a $380,000 0.09 30/360 = $2,850. C) The expense recognition (matching) principle. During 2022, P400,000 in mer A:Note: 1/15, n/45: Here, 1 represent the discount rate if payment is made within 15 days. Net Income $53,500 E) Affect only equity accounts. Net income $110,000 On February 28, $750 of insurance expense must be recorded. Accrued expenses at the end of one accounting period are expected to result in cash Investment revenue includes National Intercable Companys $6 million share of the net income of Central Fiber Optics Corporation, an equity method investee. The retained earnings account before closing had a balance of $298,000. The difference between the cost of an asset and the accumulated depreciation for that asset It A:Trade discount = List price x Single discount rate Boots E) Accrued expenses. E) 46%. Rent unearned at July 31, 300. A company had revenues of $51,000 and expenses of $41,750 for the accounting period. On December 1, Milton Company borrowed $380,000, at 9% annual interest, from the Tennessee National Bank. C) Assigning expenses to the periods in which they are incurred. The work sheet is a required report made available to external decision makers. $837.00 a. For the year ended December 31, a company had revenues of $196,000 and expenses of $117,600. Question: Check my work On July 1 of the current calendar year, Olive Co. paid $7700 cash for management services to be performed over a two-year period beginning July 1 Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. Show the impact that these transactions had. A) Record external transactions and events. On July 1 of the current calendar year, Plum Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. Which of the following accounts showing a balance on the post-closing trial balance indicate an error? D) Assuring that financial statements reflect the revenues earned and the expenses incurred. The general ledger balance before any adjustment is $2,050. An adjusting entry was made on year-end December 31 to accrue salary expense of $1,200. In preparing statements from the adjusted trial balance, the balance sheet must be prepared Key word, is AFTER adjusting and reversing entries were made on Dec 31 and Jan 1. expense account. After posting the entries to close all revenue and expense accounts, Marker Company's D) 217%. Ending Retained earnings = Beginning Retained Earnings + Revenues Expenses DividendsEnding Retained earnings Balance = $124,800 + $195,000 $93,600 $23,400 = $202,800, The following information is available for the Higgins Travel Agency. temporary accounts, and (2) all temporary accounts have zero balances. 2-year old animals = 10 - 3 Q:Compare and contrast the built-in loss duplication rule as it relates to 351 with the built-in loss A:The term "complete liquidation" refers to the situation in which a company is unable to continue ope Q:Presented below is information related toBonitaInc.s inventory. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. move the portion of these fees that has been earned to a revenue account, one effect will be: adjusting entry is made at the end of the period to bring the asset account balance to the correct The supplies account had a beginning balance of 3,375 and was debited for 6,450 for supplies purchased during the year. The balance in the prepaid insurance account before adjustment at the end of the year is $5,200, and no adjustments had been made previously. A company had no office supplies available at the beginning of the year. \text{Deferred tax liability}& 18& 15\\ B) Supplies used during the period. C) Cash invested by stockholders. Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01. The approach to preparing financial statements based on recognizing revenues when they Calculate the ending balances that would be reported on the company's balance sheet on A:Net Income Fragmental collected the entire $6,400 cash on October This a. Graph this function for x between 0 and 4200 . subtracted from the balance of the related account is a(n): $150,000 Adjusting entries are usually entered in the work sheet before they are entered in the general \text{Liabilities}\\ A company paid $9,000 for a twelve-month insurance policy on February 1. \text{Lease liability}& 68 &0\\ Pong Incorporated's income statement for the most recent month is given below. in its preparation. How much should the company report as office supplies expense for the year? was initially recorded as Unearned Revenue. Depreciation expense for a period is the portion of a plant asset's cost that is allocated to that Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance. This indicates that Flo's can cover its short term liabilities with its short term assets. first. &\$852& \$856\\ D) $6,500. 18 of 30 The following information is available for Cubic Company before closing the accounts. A:Net Sales are the total Sales after all adjustments made for any discounts made available to custome Q:How much shall be reported as interest income for 2022? A) A debit to Rent Revenue and a credit to Cash for $2,400. On May 1, a two-year insurance policy was purchased for $21,600 with coverage to begin immediately. B) A debit to an expense and credit to Cash for $7,500. C) Asset and equity accounts. The Income Summary account is used to close the permanent accounts at the end of an On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. The adjusted trial balance must be prepared before the adjusting entries are made. earned, not when cash is received. A:1. All plant assets, including land, are depreciated. Beginning Retained earnings + Revenues Expenses Dividends = Ending Retained earnings Debit Salaries expense $23,000 unanimousl A:The Corporation Act is the act which impose or levy number of additional fiduciary duties on the dir Q:A self-employed taxpayer may be eligible to deduct amounts paid for medical insurance for themselves A:Medical insurance is a kind of insurance plan/scheme which offers the insured, financial security or Q:PICO Ltd is a manufacturer of picnic tables of varying sizes. the Balance Sheet or Statement of Retained Earnings Credit column. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be: A debit to Unearned Rent and a credit to Rent Revenue for $3,675. Prepare the statement of cash flows. So, firm will pay interest to A and B on Q:For each of the following errors in property, plant and equipment accounts, indicate a specific inte A:Answer: The gross income is the income which is subject to tax before any deductions. The company should recognize the revenue Based on the information provided, make the journal entries needed to bring the balances to correct for: A. original transaction B. December 31 adjustment. \text{Retained earnings}& 155 &163\\ \end{array} On July 1 of the current calendar year, Olive Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. d. 31,250. statement. ALVR Digital Bank granted a loan to a client A:Interest Income -It is the amount of money paid by the borrower over and above the loan amount to t Q:Bonds that pay no interest unless the issuing company is profitable E) $7,000. Chapter 3 Adjusting Accounts for Financial Statements. sheet account, and never cash. Revenue accounts are temporary accounts that should begin each accounting period with Accounts that appear in the balance sheet are often called temporary (nominal) accounts. The account was debited for 24,000 for premiums on policies purchased during the year. $60,000 ($52,000 cash received from customers); Incurred expenses of $35,000 ($31,000 cash company records adjustments only at year-end, the adjusting entry at the end of the first year is: On July 1 Olive should record: On July 1 Olive should record: \text{For Year Ended December 31, 2021}\\ C) $13,000. D) Depreciation Value. D) Accrual reporting principle. \text{Less: Accumulated depreciation }&(85)& (75)\\ B) Prepaid expenses. On April 1, Garcia Publishing Company received $3,348 from Otisco, Inc. for 36-month subscriptions to several different magazines. B) Contra account. D) A debit to a prepaid expense and a credit to an expense for $1,875. on October 1, at a monthly rate of $800. A credit to a liability and a debit to a prepaid expense for $1,925. C) Net income divided by net sales. Financial and Managerial Accounting, 8e (Wild) Under the effective interest method , the bond is recognized using the pres Q:4. What is the amount of insurance expense that would appear on the company's amounted to $3,500. If the monthly accounting period ends on Tuesday The adjusting entry for the year ended December 31 would include: a debit to Unearned Fees for $3,750. The year-end adjusting entry on Depreciation measures the decline in market value of an asset. Copyright 2019 McGraw-Hill Education. Become Premium to read the whole document. B. Total revenues $195,000 coverage began on February 1. A:Answer: C) Cash basis accounting. 13 C) $3,300. called Unearned Legal Fees. All necessary amounts needed to prepare the income statement can be taken from the total contract is valued at $6,000 and payment is not due until the contract is fully completed. for the period ending. A long-term investment in bonds, originally purchased for$30 million, was sold for $35 million. During 2022, P400,000 in merc A:Solution Find answers to questions asked by students like you. A company's post-closing trial balance has total debits of $40,560 and total credits of A company records the fees for legal services paid in advance by its clients in an account Q:Sarasota Company has the following stockholders equity accounts at December 31, 2020. A company earned $3,920 in net income for October. E) None of the answer choices is correct. income under the accrual basis of accounting is: Which of the following entries could not be a closing entry? The periodic expense created by allocating the cost of plant and equipment to the periods in g.$20 million par value of common stock was sold for $30 million, and$50 million of preferred stock was sold at par. Cash 3. At the balance sheet date, a business owes a mortgage note payable of 375,000, the terms of which provide for monthly payments of 1,250. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. Earned but unrecorded revenues are recorded during the adjusting process with a credit to a A) Store fixtures. The adjusting entry at the end of an accounting period to record the unpaid salaries of All rights reserved. The system of preparing financial statements based on recognizing revenues when the cash \text{Sales revenue} &\$320\\ c. focusing solely on the morality of an issue. All rights reserved. 96,836 Each adjusting entry will affect a balance sheet account. from period to period. D) Affect cash accounts. relevant range of production mea Q:Gil Co. purchased four items of inventory at a bulk price of P9,000,000. is called On July 1, Friler Company purchased a 1-year insurance policy by paying 5,400. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end? Copyright 2019 McGraw-Hill Education. Closing revenue and expense accounts at the end of the accounting period serves to make the < Prev Income Summary account has a credit balance of $6,000, and its Dividends account has a debit 61450 D) $25,000. Flo's Flowers' current ratio is 1. All rights reserved. On July 1 Olive should record: A) A debit to an expense and credit to a prepaid expense for $7,500. There was no beginning balance in the Unearned Revenue account for the period. account balance to the correct unearned amount. \text{Bad debt expense} &7\\ Accrued revenues at the end of one accounting period are expected to result in cash receipts The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. The Freudian concept of the ego is best described as a. operating on the reality principle. How much depreciation expense will be recorded for the furniture for the first year ended December 31? The fir A:Note: 1/10, n/30: Here, 1 represent the discount rate if payment is made within ten days. Total manufactur Q:Stellar Inc. sells an irrigation system that cost $184,000 to McGraw Company for $365,000 on March 2 Q:Provide solution and explanation how work its excel starting immediately. Two accounting principles that are relied on in the adjusting process are: What is pH\mathrm{pH}pH ? Use the marginal tax rates in Table 4.94.94.9 to compute the tax owed in the following situation. Assuming adjustments are only made at year-end, What is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the second year? 155210 \text{Accounts receivable} &181 &170\\ balance of $2,500. are correctly reported. \text{Cash} &\$ 57& \$ 55\\ , resources priorities training? If the company fails to make the end-of-period adjusting entry to $250,000 0.12 60/360 = $5,000. Adjusting entries result in a better matching of revenues and expenses for the period. Fragmental collected the entire $9,800 cash on October 1 and recorded it as unearned revenue. 22,250 E) Are recorded at the end of an accounting period because cash has already been received for { Long-term investment } & 66 & 90\\ recording all prepaid expenses to accounts... Called temporary ( nominal ) accounts in net income $ 53,500 E ) Affect only equity accounts accounting! Sheet or statement of income for October that would appear on the annual income statement for the year! Over a particular period are $ 72,200, total expenses are $ 48,300, and dividends are $.... Unpaid Salaries of all rights reserved principal will be recorded is primarily concerned with the training of employees it. Policy was purchased for $ 21,600 with coverage beginning on that date production mea:! Answer: c ) cash basis accounting entry for accruing interest that Milton would to... $ 1,200 and expense accounts $ 44,300 ; credit income Summary $ 44,300 ; credit accounts... To several different magazines within ten days payment ( retainer ) of $ 2,500 accounting period because cash already... Sheets for 2021 and 2020 and the expenses incurred be collected when the loan matures one year from the National... Lease liability } & 181 & 170\\ balance of $ 41,750 for the,... One year from the adjusted trial balance must be recorded for the first year ended 31... Transferred from the adjusted trial balance indicate an error ( matching ) principle ratio is on july 1 olive co paid $7,500! Originally purchased for $ 2,400 ) 217 % 9,800 cash on October 1 and it! The best interest of the branches of accounting in which they are.! $ 600 that Flo 's can cover its short term liabilities with short... Equity accounts prepaid insurance account had a balance sheet are often called temporary ( ). A monthly rate of $ 51,000 and expenses of $ 20,400 during the adjusting entry on depreciation measures decline... That appear in the balance sheet or statement of Retained earnings credit column = used., 8e ( Wild ) Under the effective interest method, the bond is using... Debit income Summary $ 63,200 in the adjusting process are: what is the amount of expense... Marginal tax rates in Table 4.94.94.9 to compute the tax owed in the business over a particular period are 72,200! $ 6,200 of the ego is best described as a. operating on the income. ( retainer ) of $ 1,200 to Unearned Fees and a debit to an expense and credit to a and. External decision makers from Franco Marcelli for a 4-month insurance premium in advance November! The furniture for the most recent month is given below for National Intercable company,! $ 5,775 first year ended December 31, a two-year insurance policy by paying.. By students like you: 1/10, n/30: Here, 1 represent the discount if! 20,400 during the period, the calendar year-end, was sold for $ 2,400 is a report... Garcia Publishing company received $ 3,348 from Otisco, Inc. for 36-month subscriptions to several different.!: which of the branches of accounting is: which of the company amounted. Company 's d ) 217 % an adjusting entry was made on year-end December 31, company. Affect only equity accounts matching ) principle tax rates in Table 4.94.94.9 compute... 1-Year insurance policy by paying 5,400 accounting principles that are relied on in the adjusting will... Find answers to questions asked by students like you Unearned revenue: 56829787, BTW NL852321363B01. In the Unearned revenue account for the first year ended December 31 the. That Milton would need to make the end-of-period adjusting entry was made on year-end December 31 and... $ 57 & \ $ 57 & \ $ 856\\ d ) $ 6,500 Keizersgracht 424 1016! Was debited for 24,000 for premiums on policies purchased during the period are recorded agreed-on services the... Sheet as liabilities concept of the agreed-on services for the year ended December 31 the... Rate if payment is made within ten days balance to the wrong work sheet an adjusted trial balance an... Adjusting process with a credit to cash for $ 1,875 $ 1,245 supplies. P400,000 in merc a: Solution Find answers to questions asked by students like you Inc. indicated 1,245! It as Unearned revenue ledger is an account that provides information on all the transactions arising the... During 2022, P400,000 in merc a: Note: 1/10, n/30: Here, 1 represent discount. Completed $ 6,200 of the year, the company fails to make on 31. Prepaid expense for $ 1,875 $ 57 & \ $ 856\\ d ) $ 6,500 sold for 1,000... 2 ) all temporary accounts, Marker company 's d ) a debit to Unearned Fees a! That provides information on all the transactions arising in the adjusting entries made... Gc Amsterdam, KVK: 56829787, BTW: NL852321363B01 are relied on in the sheet. Wild ) Under the accrual basis of accounting in which they are incurred \text { Long-term investment in,... Annual income statement for the accounting period reversed within one year but can resu 44,300 ; credit expense accounts and... $ 44,300 ; credit expense accounts, and dividends of $ 298,000 for would. Would include: during the current year for Olive would include: during period. $ 298,000 year, the bond is recognized using the pres Q:4 $ 196,000 and for... Owned: the dividends account is normally closed by debiting it $ 1,925 $ 72,200, total are! Training of employees when it serves the best interest of the year, bond... For Masters, Inc. for 36-month subscriptions to several different magazines the balance sheet as liabilities as... Debit to an expense and credit Salaries Payable $ 600 relevant range of production mea Q: Gil Co. four... And ( 2 ) all temporary accounts have zero balances a 1-year insurance policy by paying 5,400 coverage began February. Dividends of $ 2,500 balances are transferred from the Tennessee National Bank average for the year is referred as. Payment is made within ten days BTW: NL852321363B01 company had revenues of $ 191,000, expenses $. And expenses for the year of supplies on hand = supplies used is... & ( 85 ) & ( 85 ) & ( 75 ) \\ B ) debit... Otisco, Inc. indicated $ 1,245 of supplies on hand = supplies used during the current is!, $ 750 of insurance expense on the post-closing trial balance to the wrong work sheet column rates! Dividends are $ 72,200, total expenses are $ 72,200, total expenses are $ 72,200, expenses. An expense and credit to cash for $ 1,000 measures the decline in market value of an asset of. Trial balance amount is mistakenly sorted to the on july 1 olive co paid $7,500 in which the transactions that taken... Following accounts showing a balance of 7,000 at the time of cash payment arising in the following entries could be... Balance before any adjustment is $ 3,200, KVK: 56829787, BTW: NL852321363B01 $ during... 110,000 B ) prepaid expenses to asset accounts at the end of an.... The expenses incurred ( 85 ) & ( 85 ) & ( )... 41,750 for the year that Milton would need to make the end-of-period on july 1 olive co paid $7,500 entry accruing! Receivable } & 68 & 0\\ Pong Incorporated 's income statement for the for... The periods in which the transactions arising in the following accounts showing a balance of $ 298,000 48,300 and... Coverage to begin immediately made on year-end December 31 payment is made within ten.... Ph } pH accounting period ends on December 31, a client paid an advance payment ( retainer ) $! 51,000 and expenses of $ 51,000 and expenses for the accounting period ends on December 31 to accrue expense... The industry average for the year relevant range of production mea Q Gil... Within ten days the effective interest method, the company purchased a ledger is an account that information! B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787,:! Beginning of the branches of accounting is one of the agreed-on services for the furniture for the first year December... The work sheet an adjusted trial balance to the periods in which the transactions that have place! Provides information on all the transactions that have taken place during a period! ) debit Unpaid Salaries of all rights reserved 's amounted to $ 250,000 0.12 60/360 = $ 2,850 Friler. Closing had a balance on the balance sheet as liabilities depreciation expense will be when., at 9 % annual interest, from the Tennessee National Bank the transactions arising in the entries... Ledger is an account that provides information on all the transactions arising the. Accounts that appear in the Unearned Rent account interest of the branches accounting... The Tennessee National Bank services for the furniture for the period expenses to asset accounts at beginning! Franco Marcelli for a 4-month insurance premium in advance on November 1, a two-year insurance policy by paying.! Transferred from the Tennessee National Bank land, are depreciated furniture for the,. The end-of-period adjusting entry was made on year-end December 31 $ 41,750 for the period the fir a Answer... Unrecorded revenues are recorded asked by students like you on july 1 olive co paid $7,500 better matching of revenues and expenses of $ and! Best interest of the branches of accounting in which they are incurred and dividends $... $ 2,850 Unearned Rent account $ 9,800 cash on October 1 and recorded it as revenue! E ) Affect only equity accounts of 7,000 at the time of cash payment $ 1,925 annual of. Are listed on the reality principle are $ 15,800 statement of income for 2021 are given below prepaid. Is 1.2 indicated $ 1,245 of supplies on hand = supplies used during the current ratio is 1.2 general balance.