David uses the following accounts in South West Airlines Service:

1 answer:

4 0

1. Cash at Bank account - Asset
2. Cash in Hand account Asset
3. David Capital account - Owner's equity
4. David Withdrawals account - Owner's equity contra account used for proprietorships.
5. Airlines account - Expense account on the income statement, not a balance sheet account.
6. Flying Fees account - Expense account on the income statement, not a balance sheet account.
7. Accounts Receivable account - Asset
8. Advertisement account - Expense account on the income statement, not a balance sheet account.
9. Fuel Oil account - Expense account on the income statement, not a balance sheet account.
10. Repairs account - Expense account on the income statement, not a balance sheet account
11. Food Expenses account - Expense account on the income statement, not a balance sheet account
12. Accounts Payable account - liability.

You listed a expense items on the income statement. They would only be on the balance sheet if they were accrued liabilities.

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The adjusting entry to record accrued revenue a.differs from the journal entry to record revenue on account. b.includes a debit

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Answer:

Explanation:

To accrue means to grow or to accumulate over time. In accrual accounting, if the revenue recognition criteria are met in the current period, revenue will need to be accrued in the current accounting period even if cash will not been received until a later accounting period.

Accrued revenues is a type of account that require adjustment, to register the unrecorded revenues that have been earned and for which cash has not yet to be received.

The accrual journal entry to record the sale involves a debit to the accounts receivable account and a credit to sales revenue. If the sale is for cash, debit cash instead. The revenue earned will be reported as part of sales revenue in the income statement for the current accounting period.

It is the same for accrued revenue and for revenue on account.

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3 years ago

Marigold Corp. self-insures its property for fire and storm damage. If the company were to obtain insurance on the property, it

DENIUS [597]

Answer:

loss on fire and storms 710,000

insurance expense zero as the firm didn't acquire any

Explanation:

Notice it state <u><em>"if the company were to obtain insurance"</em></u> Which means it currently has none insurance.

If the firm had an insurance the amount of losses would be deducted from the insurance policy but there is none so we disclosure the entire loss as a result of the period.

Hence, we should recognize the entire loss on fire and storm damage of 710,000 during the year and no insurance expense.

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2 years ago

Justin’s plan doesn’t cover his costs completely. What are his options for covering the rest of his costs? Select all that apply

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Available Options:

He could try to save more money.

He could get a student loan for the extra amount he

needs.

TO He could apply for a scholarship

He could ask his friends to loan him money.

He could ask his family to contribute.

Answer:

All of the above

Explanation:

The best option is to be self reliant which means that Justin must apply for scholarships, save money now and during the program execution and if still there are any expenses due then he can ask his family to contribute to meet his exense and still if there are unpaid expenses then he can borrow from his friends if he thinks that he can repay the loan to his friends in the mutually agreed time. If Justin can not pay its amount borrowed then he must consider long term loan option to fund his studies.

The order of finance is given as under: