Answer:
1. The prepaid insurance account shows a debit of $5,280, representing the cost of a 2-year fire insurance policy dated August 1 of the current year.
- Dr Insurance expense 1,100 (= $5,280 x 5/24 months)
- Cr Prepaid insurance 1,100
Five months of insurance expense must be recorded for August - December.
2. On November 1, Rent Revenue was credited for $1,800, representing revenue from a subrental for a 3-month period beginning on that date.
- Dr Rent revenue 600 (= $1,800 x 1/3 months)
- Cr Unearned revenue 600
Rent revenue corresponding to January cannot be recorded as earned yet, so it must be recorded as unearned revenue (liability).
3. Purchase of advertising materials for $800 during the year was recorded in the Advertising Expense account. On December 31, advertising materials of $290 are on hand.
- Dr Advertising supplies (or materials) 290
- Cr Advertising expense 290
Unused advertising material is considered an asset that can be used during the next period, the same as any other supplies.
4. Interest of $770 has accrued on notes payable.
- Dr Interest expense 770
- Cr Interest payable on notes payable 770
Accrued interest must be recorded as an expense during the period in which it occurs (accrual principle).
Answer:
option D ( ii, iii and iv )
Explanation:
Required financial statements that should be issued by governmental funds and by proprietary funds include the following among others:
- statement of revenues, expenditures and changes in fund balances,
These among others are expected to reflect/ be included in Financial statement issued by Governmental funds and proprietary funds.
Answer:
Record date
Explanation:
Record Date is the date set by the company on which the Investors should hold the shares to be eligible to receive dividend, share split, bonus, rights issue or other gains. It is the date decided by the company to decide which investors are eligible to receive dividends, bonus or rights issue.
Therefore, The November 30 2017 is referred to as the record date.
Answer:
It is a Restrictive Indorsement
Explanation:
Restrictive Indorsement is when an instruction is given on a cheque that restricts its use.
In the case given above, Interstate Trucking is only to be paid if they deliver the lumber by May 1, 2010.
Use of the cheque outside this scenario is not possible.
A common example of this is 'For deposit only'. The customer will not be able to withdraw cash, but must deposit the cheque.