Answer:
July 9 Accounts Receivable 12,000
Fees Earned 12,000
Showing posts with label Accounts Receivable. Show all posts
Showing posts with label Accounts Receivable. Show all posts
Friday, 22 July 2016
Prepare a journal entry on July 9 for fees earned on account, $12,000.
Prepare a journal entry on July 9 for fees earned on account, $12,000.
Answer:
July 9 Accounts Receivable 12,000
Fees Earned 12,000
Answer:
July 9 Accounts Receivable 12,000
Fees Earned 12,000
Saturday, 2 July 2016
At the end of the current year, $8,450 of fees have been earned but have not been billed to clients.
At the end of the current year, $8,450 of fees have been earned but have not been billed to clients.
a. Journalize the adjusting entry to record the accrued fees.
b. If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary? Explain.
Answer:
a. Accounts Receivable 8,450 Fees Earned 8,450 Accrued fees
b. No. If the cash basis of accounting is used, revenues are recognized only when the cash is received. Therefore, earned but unbilled revenues would not be recognized in the accounts, and no adjusting entry would be necessary.
a. Journalize the adjusting entry to record the accrued fees.
b. If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary? Explain.
Answer:
a. Accounts Receivable 8,450 Fees Earned 8,450 Accrued fees
b. No. If the cash basis of accounting is used, revenues are recognized only when the cash is received. Therefore, earned but unbilled revenues would not be recognized in the accounts, and no adjusting entry would be necessary.
Sunday, 19 June 2016
A fee of $21,000 earned and due from a client was not debited to Accounts Receivable or credited to a revenue account
Indicate which of the following errors, each considered individually, would cause the trial balance totals to be unequal:
a. A fee of $21,000 earned and due from a client was not debited to Accounts Receivable or credited to a revenue account, because the cash had not been received.
b. A receipt of $11,300 from an account receivable was journalized and posted as a debit of $11,300 to Cash and a credit of $11,300 to Fees Earned.
c. A payment of $4,950 to a creditor was posted as a debit of $4,950 to Accounts Payable and a debit of $4,950 to Cash.
d. A payment of $5,000 for equipment purchased was posted as a debit of $500 to Equipment and a credit of $500 to Cash.
e. Payment of a cash withdrawal of $19,000 was journalized and posted as a debit of $1,900 to Salary Expense and a credit of $19,000 to Cash.
Indicate which of the preceding errors would require a correcting entry.
Answer:
Inequality of trial balance totals would be caused by errors described in (c) and (e). For (c), the debit total would exceed the credit total by $9,900 ($4,950 + $4,950). For (e), the credit total would exceed the debit total by $17,100 ($19,000 – $1,900).
Errors (b), (d), and (e) would require correcting entries. Although it is not a correcting entry, the entry that was not made in (a) should also be entered in the journal.
a. A fee of $21,000 earned and due from a client was not debited to Accounts Receivable or credited to a revenue account, because the cash had not been received.
b. A receipt of $11,300 from an account receivable was journalized and posted as a debit of $11,300 to Cash and a credit of $11,300 to Fees Earned.
c. A payment of $4,950 to a creditor was posted as a debit of $4,950 to Accounts Payable and a debit of $4,950 to Cash.
d. A payment of $5,000 for equipment purchased was posted as a debit of $500 to Equipment and a credit of $500 to Cash.
e. Payment of a cash withdrawal of $19,000 was journalized and posted as a debit of $1,900 to Salary Expense and a credit of $19,000 to Cash.
Indicate which of the preceding errors would require a correcting entry.
Answer:
Inequality of trial balance totals would be caused by errors described in (c) and (e). For (c), the debit total would exceed the credit total by $9,900 ($4,950 + $4,950). For (e), the credit total would exceed the debit total by $17,100 ($19,000 – $1,900).
Errors (b), (d), and (e) would require correcting entries. Although it is not a correcting entry, the entry that was not made in (a) should also be entered in the journal.
Subscribe to:
Posts (Atom)