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Wewaii [24]
2 years ago
7

For each separate case, record the necessary adjusting entry. On July 1, Lopez Company paid $1,200 for six months of insurance c

overage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. Zim Company has a Supplies account balance of $5,000 at the beginning of the year. During the year, it purchased $2,000 of supplies. As of December 31, a physical count of supplies shows $800 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31.
Business
1 answer:
kenny6666 [7]2 years ago
5 0

Answer:

Explanation:

The adjusting entries are shown below:

1. Insurance expense A/c Dr $1,200

         To Prepaid insurance A/c             $1,200

(Being prepaid insurance is adjusted)

2. Supplies expense A/c Dr $6,200

        To supplies A/c                             $6,200

(Being supplies adjusted)

The supplies at the end of the year is computed below:

= Supplies account balance + purchase of supplies - available  supplies

= $5,000 + $2,000 - $800

= $6,200

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Sussman Co. prepared cash-basis financial statements for the month ended January 31. A summary of Sussman's January activities f
coldgirl [10]

Answer:

An increase of $2,500

Explanation:

During cash-basis accounting method, all income and expenses that results to ACTUAL CASH INFLOW and OUTFLOW will be recorded. Thus, those income and expenses that applies for the period will not be recorded yet as long as there is no actual cash outflow. And all income made on account for the period will not be recognized unless there is an actual collection. Based on the stated facts, Sussman Co.,recorded $1,900 sales instead of the actual sales of $5,600 using accrual basis and has never been recorded the expenses incurred in the accrued salaries.

So, $5,600 less $1,900 cash collection which already have recorded on cash basis method, there will be an additional sales to be recorded at $3,700 less the salaries expense already incurred but not yet paid of $1,200. There will be an additional income of $2,500 after restatement.

5 0
3 years ago
Seamus dropped out of school as a 16-year-old and needs to support himself, though he has few skills. He is a part-time employee
Norma-Jean [14]

Answer:

B) physiological needs

Explanation:

According to the Maslow's hierarchy of needs, Physiological Needs are the fundamental needs that deals with the essential maintenance of humans, physically, emotionally and mentally and it include survival needs such as the need for food, reproduction, sleep, and air.

Physiological needs are non-negotiable as we all need them for human survival.

Hence, Seamus is having trouble meeting his physiological needs.

3 0
3 years ago
On December 1, 20X4, Line Corp. received a donation of 2,000 shares of its $5 par value common stock from a stockholder. On that
Brrunno [24]

Answer:

$0

Explanation:

The shares that are donated is treated as the treasury shares. The treasury stock and the gain or the revneue account rise the stock market value. If there is an increase in the treasury stock so it reduced the stockholder equity but on the other hand the gain or revenue increase the owner equity

So overall there is no net effect

hence, the amount should be $0

7 0
2 years ago
grwoth is the key to better consumption possibilities and one key to better consumption possibilities is
mash [69]

Answer:

Trade

Explanation:

The consumption possibility can be gotten from three different factors, it could be gotten from opportunity for trade, production set and also from consumption behavior.

Involving in trade would reduce the prices of goods for consumers, especially in a country that is involved in importation. It creates gains for consumers. Therefore it can be said that trade is a key to better consumption possibilities.

4 0
3 years ago
Gordon Company sold 2,000 more units than budgeted of its only product. How will total fixed cost be affected
Aleks04 [339]

Answer: b. Remain constant

Explanation:

Fixed costs as the term implies, do not change depending on the units produced or sold but rather remain constant over the period. If the company sells 2,000 or 5,000 more units, the fixed costs will remain constant.

For instance, if the rent of the selling warehouse is $4,000 per month and the company stores and then sells any number of units, they will still pay $4,000 regardless.

4 0
3 years ago
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