Questions from Financial Accounting

Q: Carnival Corporation & PLC is one of the world’s largest cruise line

Carnival Corporation & PLC is one of the world’s largest cruise line companies. Its printing costs for brochures are initially recorded as Prepaid Advertising and are later charged to Advertising Expe...

Q: The geological consulting firm of Gilbert, Marsh, & Kester prepares

The geological consulting firm of Gilbert, Marsh, & Kester prepares adjusting entries on a monthly basis. Among the items requiring adjustment on December 31, year 2, are the following. 1. The compan...

Q: When Delta Airlines sells tickets for future flights, it debits Cash

When Delta Airlines sells tickets for future flights, it debits Cash and credits an account entitled Air Traffic Liability (as opposed to crediting Passenger Revenue Earned). This account, reported re...

Q: Sweeney & Allen, a large marketing firm, adjusts its accounts

Sweeney & Allen, a large marketing firm, adjusts its accounts at the end of each month. The following information is available for the year ending December 31. 1. A bank loan had been obtained on Dec...

Q: List various accounts in the balance sheet that represent deferred expenses

List various accounts in the balance sheet that represent deferred expenses

Q: Jesse Company adjusts its accounts monthly and closes its accounts on December

Jesse Company adjusts its accounts monthly and closes its accounts on December 31. On October 31, year 1, Jesse Company signed a note payable and borrowed $150,000 from a bank for a period of six mont...

Q: Jasper’s unadjusted trial balance reports Unearned Client Revenue of $4,

Jasper’s unadjusted trial balance reports Unearned Client Revenue of $4,000 and Client Revenue Earned of $30,000. An examination of client records reveals that $2,500 of previously unearned revenue ha...

Q: Milford Corporation pays its employees on the 15th of each month.

Milford Corporation pays its employees on the 15th of each month. Accrued, but unpaid, salaries on December 31, year 1, totaled $210,000. Salaries earned by Milford’s employees from January 1 through...

Q: Jump Corporation borrowed $60,000 on December 1, year

Jump Corporation borrowed $60,000 on December 1, year 1, by issuing a 2-month, 4 percent note payable to Service One Credit Union. The entire amount of the loan, plus interest, is due February 1, year...

Q: Hunter’s unadjusted trial balance dated December 31, year 1, reports

Hunter’s unadjusted trial balance dated December 31, year 1, reports Income Taxes Expense of $70,000, and Income Taxes Payable of $20,000. The company’s accountant estimates that income taxes expense...