Questions from Intermediate Accounting

Q: Using the information provided in BE4-11, prepare the t

Using the information provided in BE4-11, prepare the t-accounts for Rent Expense and Prepaid Rent for Barnard and Associates as of December 31 after adjusting journal entries.

Q: Gerhard News collects payments from customers for newspaper subscriptions on a yearly

Gerhard News collects payments from customers for newspaper subscriptions on a yearly basis (specifically, in one-year subscriptions). Each month, Gerhard must record an adjusting entry to recognize t...

Q: When are expenses recognized under U.S. GAAP?

When are expenses recognized under U.S. GAAP?

Q: Using the information provided in BE4-13, prepare the t

Using the information provided in BE4-13, prepare the t-accounts for Subscription Revenue and Unearned Subscription Revenue for Gerhard News as of March 31, before and after preparing the adjusting en...

Q: Pat’s Auto Dealership purchased a building on January 15 for $300

Pat’s Auto Dealership purchased a building on January 15 for $300,000 to be used for the business. The residual value on the building is $0 and its expected useful life is 30 years. Prepare the adjust...

Q: Using the information provided in BE4-10, prepare the necessary

Using the information provided in BE4-10, prepare the necessary year-end closing entries for Medical Supplies, Inc. Omit explanations.

Q: At year-end, Nelson’s Nursery, Inc. had account

At year-end, Nelson’s Nursery, Inc. had account balances as follows: Sales Revenue of $220,000; Wage Expense of $74,000; Administrative Expense of $12,000; Utility Expense of $6,000; and Rent Expense...

Q: Readers, Inc., an online bookstore, had the following account

Readers, Inc., an online bookstore, had the following account balances at year-end: Sales Revenue of $420,000; Cost of Goods Sold of $240,000; Salary Expense of $120,000; Insurance Expense of $5,000....

Q: Barnard and Associates, a law firm, paid $18,

Barnard and Associates, a law firm, paid $18,000 for twelve months’ rent in advance on October 1 of the current year. Barnard recorded the full amount as rent expense. The company’s fiscal year-end is...

Q: Florence’s Floral Arrangements, Inc. had the following transactions in the

Florence’s Floral Arrangements, Inc. had the following transactions in the month of January: The owners invested $100,000 (the par value of the stock) for 20,000 shares of common stock; the company pu...