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Q1) General Journal Entries Following are the Dec...




Q1) General Journal Entries Following are the December transactions of Cerullo Electrical Contractors. Dec. 1 Purchased supplies for $300. Dec. 3 Paid $250 electricity bill for November that had been properly recorded with an adjusting entry on November 30. Dec. 9 Paid employee salaries for first week of December, $1,200. No salaries had been previously accrued. Dec. 16 Received $600 for interest that had been earned in November on a bank account. An appropriate adjusting journal entry had been recorded for this item on November 30. Dec. 22 Received $1,700 from customer in payment account receivable. Dec. 26 Paid January rent on leased office space, $400. Dec 30 Received $2,500 advance payment from a customer for work to be performed in January. Dec. 31 Purchased wwquipment on credit for $3,000. Required: (a) prepare general journal entries for these transactions. (b) Identify which accounts affected by the journal entries prepared in part (a) are deferred expenses, deferred revenues, accrued assets, or accrued liabilities. Q2) Trial Blance Following are the general ledger account balances of Balcones Company, Inc (BCI), as of September 30, 2009: Cash $50,000 Account Receivable 300,000 Inventory 250,000 Equipment 450,000 Accumulated Depreciation-Equipment 110,000 Account Payable 350,000 Income Taxes Payable 50,000 Common Stock 95,000 Retained Earnings 100,000 Sales Revenue 600,000 Operating Expenses 255,000 Required: (a) Prepare a trial balance for BCI as of sptember 30, 2009. (b) Even if a trial balance is in balance, one or more general ledger accounts of a business may contain errors. Provide three examples of accounting errors that would not cause a business's trail balance to be out-of-balance. (c) What steps could the management of BCI take to help ensure that its accounts are error free? Write a brief memo to the company's management listing your recommendations. Q3) Adjusting Journal Entries The following information pertains to the operations of Wilke Investogating, a private detective agency, for December 2009. - Wilke's employees earn $420 of salary collectively each day. The employees work Monday through Friday and are paid each Friday for the week just worked. December 31 falls on a Tuesday. -On December 31, the owner estimated that December's electricity bill will be $240. -The owner also estimates that the firm will have income tax expense of $800 for December. This amount will be paid in March 2010. -On December 1, Wilke received and recorded a $300 payment from a customer for services to be rendered by Wilke evenly durning December, January, and February. Wilke's principal revenue account is Fees Revenue. -Wilke received $680 cash from a new client on December 28; this amount was properly recorded. No. services had been provided to this client as of December 31. -Bonocher, Inc. owes Wilke $1,400 for services provided during December. No entry pertaining to these services has been recorded in Wilke's accounting records. Required: (a) For each bulleted item, prepare any necessary adjusting journal entry as of December 31 in Wilke's accounting records. (b) Suppose that Wilke investigating uses the cash basis of accounting instead of the accrual basis. Analyze each bulleted item and determine how Wilke's revenues and expenses for December would be affected by using the cash rather than accrual basis of accounting. (c) Write a brief memo indicating whether the cash basis or accrual basis of accounting provides a more appropiate measure of Wilke's net income each accounting period. Thank you, I know I this will not be free.


Paper#3587 | Written in 18-Jul-2015

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