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3 years ago

Making adjustments to general ledger accounts is an application of the Matching Expenses with Revenue accounting concept.

Business

1 answer:

svetoff [14.1K]3 years ago

6 0

Answer:

A. True

Explanation:

This two principles i.e matching principle and the revenue recognition principle are interrelated to each other

The matching principle is that the principle in which the expenses of a particular period and the revenues incurred of a particular year should be matched.

Whereas the revenue recognition principle stated that whenever the revenue is earned it should be recorded whether cash is received or not

So for recording the adjusting entries, these two principles are required

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Oriole Company made the following journal entry in late 2021 for rent on property it leases to Danford Corporation. Cash 153000

Morgarella [4.7K]

Answer:

$277,125

Explanation:

The calculation of income tax expense is shown below:-

Income tax expense = Income taxes payable at the end of 2022 + (Rent revenue ÷ 2) × Tax rate

= $258,000 + (($153,000 ÷ 2) × 0.25)

= $258,000 + $76,500 × 0.25

= $258,000 + $19,125

= $277,125

Therefore for computing the income tax revenue we simply applied the above formula.

6 0

3 years ago

The adjusted trial balance for China Tea Company at December 31, 2021, is presented below:

olchik [2.2K]

Answer:

Kindly check attached picture

Explanation:

Given the details below

Accounts Debit Credit

Cash $16,000

Accounts receivable 162,000

Prepaid rent 10,000

Supplies 31,000

Equipment 370,000

Accumulated depreciation $129,000

Accounts payable 11,000

Salaries payable 3,500

Interest payable 1,900

Notes payable (due in two years) 37,000

Common stock 210,000

Retained earnings 176,100

Dividends 27,000

Service revenue 360,000

Salaries expense 150,000

Advertising expense 75,000

Rent expense 18,000

Depreciation expense 32,000

Interest expense 2,500

Utilities expense 35,000

Totals $928,500 $928,500

Prepare an income statement for China Tea Company for the year ended December 31, 2021

Kindly check attached picture

8 0

3 years ago

5 things that make you a borrower

brilliants [131]

Company, Customers, Competitors, Collaborators, and Climate.

8 0

3 years ago

What is one reason that a hotel owner might consider hiring a hotel management company?

Allushta [10]

Improved hotel management effectiveness is one reason that a hotel owner might consider hiring a hotel management company.

What function does a hotel management business serve?

The management firm oversees the hotel operations and makes sure they are profitable.
They are in charge of every aspect of the business, from hiring and training employees to procuring supplies, cleaning rooms, renting out meeting space, and entertaining visitors.
The General Manager is accountable to both the hotel management business AND the original owner who engaged the hotel management firm.
The general manager's job is to manage the hotel in a way that generates income for the owner.

To be clear, the hotel owner could be a person, a business, or a trust fund or real estate. These will change based on the market and the kind of hotel.

To learn more about hotel management visit:brainly.com/question/10979252

#SPJ4

6 0

1 year ago

Whispering Incorporated factored $164,900 of accounts receivable with Metlock Factors Inc. on a without-recourse basis. Metlock

GuDViN [60]

Answer:

The journal entries are as follows:

In the books of Whispering:

Cash A/c Dr. $151,708

Due from Metlock Ac Dr. $9,894

Loss on sale of receivable A/c Dr. $3,298

To Accounts receivable $164,900

(To record factoring of accounts receivable on without recourse)

Working notes:

Due from Metlock = $164,900 × 6%

= $9,894

Loss on sale of receivable:

= $164,900 × 2%

= $3,298

In the books of Metlock Factors:

Accounts receivable A/c Dr. $164,900

To Due to Whispering $9,894

To Financing revenue $3,298

To Cash $151,708

(To record the accounts receivable)

5 0

3 years ago