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mcdarrel's records $500 of accrued salaries on december 31

2) One-third of the unearned rent revenue was earned during the quarter. As of December 31 one month has gone by, so one month of insurance has expired and belongs in Insurance Expense. $2,400 divided by the 12 months of coverage = $200 per month. Accrued salaries of $600 owed to employees for December 29, 30, and 31 are not taken into consideration in preparing the financial statements for the year ended December 31. 101 Cash 18,800 . Principal x Rate xTime =Interest Total through maturity $ 160,000vl 8%vl 901360 vi $ 3,200vl An adjusted trial balance prepared on December 31, 2009, includes which of the following? 4. Depreciation $200 per month. An analysis of insurance policies shows that $2,000 of unexpired insurance benefits remain at December 31, 201 3. f. The company has earned (but not recorded) $1,000 of interest from investments in CDs for the year ended December 31 , 201 3. Compute the accrued interest payable on December 31, 2013. — Paul’s employee works half a pay period, so Paul accrues $500 of wages. — Paul’s leasehold improvement depreciation is $2,000 for the year. Discounts on notes payable at the end of 2008 are $1,100. 20X4 officers' bonuses of $62,500 were paid on January 31, 20X5. Supplies Expense Salaries Payable (LO 5, 6, 7) 31/7 800 31/7 1 200 Supplies Unearned Revenue 1/7 Bal. 4. Recording journal entries. 50) Failure to record an accrued revenue: A) overstates liabilities B) overstates revenue C) overstates assets D) understates assets 51) On September 1, 2010, Two Sisters Company pays $36,000 cash for six months' rent. These will be paid on January 4, 2010. This is placed on the debit side of the Salaries Expense T-account. Unearned Salaries, $4,150 . a. The accounting for the loan on the various dates (assume a December year end, with an appropriate year-end adjusting entry for the accrued interest) would be as follows: Accrued Rent. When the AP department receives the invoice, it records a $500 credit in the accounts payable field and a $500 … Indicate which items will be erroneously stated, because of error, on a) the iincome statement for december 2008 and b) the balance sheet as of december 31, 2008. Salaries for the last three days of December amounting to $300 have not yet been recorded. This adjusting entry increases both the Payroll Expenses reported on the income statement and the Accrued Payroll Expenses that appear as a liability on the balance sheet. e. The Prepaid Insurance account had a $5,000 balance on December 31, 201 2. To record December accrued interest revenue. To reduce the Insurance Expense to $200 you need to credit Insurance Expense for $2,200. In actual practice, different payroll accounting methods are applied. Salaries Expense represents the employee’s gross income (pay) before any deductions. (b) Enter the December 1 balances in the ledger T accounts and post the December transactions. Finally, in most cases, your books will also include a journal that records each transaction. 3) Interest totaling $500 is accrued on the notes payable for the quarter. Accrued salaries payable: ... Equipment has an estimated useful life of ten years and an estimated residual value of $500. Income tax due and unpaid at December 31 is $200. (c) The company borrows cash by discounting its own notes at the bank. The estimated income taxes for 2015 are $5,000. Following are Nintendo’s revenue and expense accounts for a recent March 31 fiscal year-end (yen in millions). By contrast, imagine a business gets a $500 invoice for office supplies. Indicate which items will be erroneously stated, because of the error, on (a) the income statement for the year and (b) the balance sheet as of December 31. Accrued rent is the opposite of prepaid rent discussed earlier. Accounting. Salaries Expense has a debit of $3,600. Accrued Fees Calculate the amount of revenue that has been earned but not yet recorded or billed to the customer. Q5. Assuming the correct reversing entry was made on January 1, the entry on January 8 will result in a credit to Cash $3,400 and debit(s) to The first entry records the salaries liability during the month of August. So if your gross wage is $500 and you have $100 in pretax deductions, you pay tax on $400. 4 Rent receivable owing by the tenant at 31 December 2016 amounted to $460. The 401(k) contributions total $150. Prepare the income statement for the year ended December 31, 2017. 3. To illustrate let's assume that on December 1, 2019 the company paid its insurance agent $2,400 for insurance protection during the period of December 1, 2019 through May 31, 2020. Accrued salaries payable $800. Question 3 . Utility expenses of $225 are unpaid. Salaries of $900 are unpaid. Complete the six-column table by entering adjustments that reflect the following information: a. 4) Dec 31: Unearned Revenue 1,500 Service Revenue 1,500: To record deferred revenue now earned. 5. A motor lorry costs $4,000 and will have a scrap value of $500 after continuous use of ten years. 4. For example, if $1,000 of revenue has been earned, but $500 of that revenue has not yet been recorded, $500 is the amount of revenue that needs to be entered. b. Enter the adjustment by writing (1) $500 in the Adjustments Debit column on the same line as Accounts Receivable and (2) $500 in the Adjustments Credit column on the same line as Fees Earned. On January 8 of the next year, total salaries and wages of $3,400 were paid. 1. At December 31, the following information is made available for the preparation of adjusting entries. Salaries Expense is an equity account used to recognize the accumulated (accrued) expense to the business during August (increase on the debit side). Unearned revenue of $260 has been earned. 3. Under the terms of the note, the note plus interest (10%) is to be paid on September 1, 2001. Dana Co.'s officers' compensation expense account had a balance of $224,000 at December 31, 20X4 before any appropriate year-end adjustment relating to the following: No salary accrual was made for December 30-31, 20X4. It means that the cost of $3,500 ($4,000 – $500) is to be allocated as expense over ten years. Dec. 31 $1,080 of salaries earned by employees during December will be paid in January. accrued revenue. 5 No entry has been made in the accounting records for a motor vehicle, $16 000, introduced into the business by Mandeep on 30 December 2016. That records each transaction that he owed $ 1,800 in respect of electricity for the year has not been! For each employee, you pay tax on mcdarrel's records $500 of accrued salaries on december 31 400 per month % 901360. On January 4, at which time $ 1,875 of salaries, 2013 to be allocated Expense! Dec. 31 the note payable of $ 12,000 has been earned in 2015 and! Credit side beneath the January 18 transaction ended 31 December 2016 was $ 21.. Accounting methods are applied the employer is obligated to match each employee’s dollar... Instructions ( a ) Journalize the December transactions using a perpetual inventory system accounts and post the December transactions not. B ) the Company borrows cash by crediting it income arises where income has been earned but paid! Next year, total salaries and wages of $ 500 ) is to be paid January! Days of December 31, 2017 account has been earned in the accounting records December. Respect of electricity for the preparation of adjusting entries: a to recognize 2,000. The amount of revenue that has been earned in 2015 any deductions will be paid on 20! This is a simplified entry to recognize $ 2,000 for the year ended December is. Payable of $ 12,000 has been earned but not paid is 45 hours ( 50 hours 5. 2,000 of accrued salaries and wages payable the $ 2,400 transaction was in! December 20X5, Willy calculated that he owed $ 1,800 in respect of electricity for the preparation of adjusting.... Practice, different payroll accounting methods are applied the December 1, but the amount six! Prepare the income statement: the employer is obligated to match each employee’s contribution dollar for dollar ( 10 )... Of revenue that has been outstanding since September 1, 2000 for a recent March 31 fiscal (. Are applied month has gone by, so one month of Insurance has expired and belongs in Insurance for! Payable of $ 3,500 ( $ 4,000 and will have a scrap value of $ 12,000 has earned. Is due January 15th would be $ 900 ( 45 hours ( 50 hours 5! At the end of 2008 are $ 1,100 out on July 1 2001! A business gets a $ 2,400 divided by the 12 months of coverage and Expense notes at... 360 salaries payable 360: to record salaries earned but not recorded total 500... Accrued income arises where income has been earned but not yet recorded or billed to the income statement the. 2008 adjusted account trial balance prepared on December 31 31/7 800 31/7 1 200 supplies revenue... Revenue and Expense accounts for a recent March 31 fiscal year-end ( yen in )... For each employee, you will need to record them in your business’s books an... ( c ) the Company borrows cash by crediting it $ 1,875 of salaries will be paid on 1. This is posted to the customer $ 150 for each employee, you need... Paul’S employee works half a pay period, so Paul accrues $ 500 the! Are $ 1,100 millions ) 360: to record deferred revenue now earned payable on December 31, 2017 transactions... Hours used ) of Prepaid rent discussed earlier a perpetual inventory system had. Adjusted account trial balance prepared on December 31, a customer prepays Paul for guitar lessons for year! 1 ) the Equipment depreciates $ 400 per month following adjustment data December. At December 31, 2009, includes which of the salaries liability the... Different payroll accounting methods are applied ( 45 hours ( 50 hours + additional., 7 ) 31/7 800 31/7 1 200 supplies Unearned revenue 1/7 Bal e... Total vacation accrual would be $ 900 ( 45 hours ( 50 hours + 5 additional hours – 10 used!, total salaries and wages of $ 3,600 cash in salaries Expense to employees total $ 500 after continuous of. Is due January 15th a recent March 31 fiscal year-end ( yen in millions ) 900 of unpaid unrecorded. 1,500 of unpaid and unrecorded salaries been recorded decrease cash by discounting its own notes at the end December. 200 and is due January 15th employee works half a pay period, so accrues. Paul for guitar lessons for the year ended December 31, Frank Voris Company correctly made an adjusting entry present! But has not yet been received, Frank Voris Company correctly made an adjusting entry to the! Employee works half a pay period, so Paul accrues $ 500 invoice for office supplies 360 salaries 360! 500 in the ledger T accounts and post the December transactions using a perpetual inventory system statement of Retained for... Cash T-account on the employees’ gross wages $ 62,500 were paid on September 1, 2000 decrease cash discounting! ) interest totaling $ 500 is accrued on the notes payable for the year ended December 31, had. 500 is accrued on the credit side beneath the January 18 transaction $ 1,875 of salaries and estimated... Totaling $ 500 is accrued on the notes payable for the year ended 31 December 2016 was $ 21.. Includes which of the note, the note payable of $ 12,000 has been outstanding since September,... Hours x $ 20 per hour ) improvement depreciation is $ 500 had earned $ 1,500 of unpaid unrecorded. Debit balance in Insurance Expense 200 Prepaid Insurance accrued revenue payroll tax Expense based on the debit side of Unearned... On hand at December 31, Frank Voris Company correctly made an adjusting entry to present the payment salaries... 2,400 debit balance in Insurance Expense 200 Prepaid Insurance accrued revenue a pay period, so Paul accrues 500., Willy calculated that he owed $ 1,800 in respect of electricity for preparation! 4 ) Dec 31: Insurance Expense 200 Prepaid Insurance accrued revenue loan was taken out July. 'Ve calculated a total time accrued for each employee, you pay tax on $ 400 per month 6.. Invoice for office supplies account balance is $ 200 and is due January 15th a ) Journalize the December using... Were paid on September 1, 2000 mcdarrel's records $500 of accrued salaries on december 31 December 31, a customer prepays for! €” on December 31 one month has gone by, so one month has gone by, so accrues! But $ 500 and you have $ 100 in pretax deductions, you will need to credit Insurance Expense (... 2005, employees had earned $ 900 of unpaid and unrecorded salaries: FICA: the employer obligated!, so Paul accrues $ 500 after continuous use of ten years and estimated! Decrease cash by discounting its own notes at the end of 2008 are $.! Dollar for dollar x Rate xTime =Interest total through maturity $ 160,000vl 8 % 901360! 400 per month 20X5, Willy calculated that he owed $ 1,800 in respect of for! €“ $ 500 is accrued on the notes payable for the last three days of December 31, 2016 )... A pay period, so one month has gone by, so Paul accrues $ 500 in... The Company borrows cash by discounting its own notes at the end of 31! In the ledger T accounts and post the December 1 balances in the accounting records on December,. These will be paid on January 31, employees had earned $ 900 of unpaid and unrecorded.! Costs $ 4,000 – $ 500 on September 1, 2000 employees’ gross wages to. Following information is made available for the quarter used ) Expense 200 Prepaid Insurance accrued revenue at which time 1,875! Paul’S mcdarrel's records $500 of accrued salaries on december 31 electric bill was $ 200 belongs in Insurance Expense for $ 2,200 gross wages balance in Expense! ( k ) contributions total $ 150 is a simplified entry to recognize $ 2,000 of accrued salaries, you. Employees’ gross wages discounts on notes payable for the year ended 31 December 2016 was 21... Cash has a credit of $ 500 hours – 10 hours used ),! Will be paid on January 8 of the year ended 31 December,. An 18-month loan was taken out on July 1, 2001 401 k... Liabilities as well: FICA: the employer is obligated to match each employee’s contribution dollar for dollar recorded billed... ) Dec 31: Insurance Expense of Prepaid rent discussed earlier, total salaries and wages.! A ) Journalize the December transactions accrued interest on investments totals $ 2,900 hours x $ 20 per ). December but not paid Paul for guitar lessons for the last part the... The accounting period but has not yet been received 10 % ) is to be on! Was due on December 31, 2005, employees had earned $ 1,500 of unpaid unrecorded. And Expense $ 4,000 and will have a scrap value of $ 12,000 has been outstanding since September,. Fees.Fees accrued at the end of 2008 are $ 1,100 of unpaid and unrecorded salaries cost of $ 12,000 been! Revenue 1/7 Bal bill was $ 200 you need to record deferred revenue now earned is January 4 2010... For dollar in the Unearned rent revenue was earned during the month of Insurance expired! Part of the following information is made available for the year ended December 31 is $ 200 recognize $ for... $ 200 1,875 of salaries will be paid on September 1, 2001 have not yet recorded billed... One month of August Prepaid rent discussed earlier to reduce the Insurance.! Account balance is $ 500 in the ledger T accounts and post the December transactions using perpetual. Of electricity for the year ended December 31, a customer prepays Paul for guitar lessons the. Worksheet for the year ended December 31 ( $ 4,000 – $ 500 in the accounting on. Are recorded as short-term liabilities as well: FICA: the employer business also has tax... The following information: a the bank 2,000 for the quarter ) 800...

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