Reference no: EM13101047

Q1. Journalize the following accrued Expense transactions:
a. XYZ Company purchased a one-year insurance policy on August 1, 2012 and paid $280,000 cash to MetLife insurance company. Journalize the insurance transactions on the following dates:
August 1, 2012
December 31, 2012
July 31, 2013
ABC Co. borrowed $420,000 at 6% rate on June 1, 2012 payable in 12 months, and signing a note payable (N/P). Journalize on: Jun 1, 2012, December 31, 2012 and may 31, 2013.
Office Supplies inventory account of VCX Co. had a beginning balance of $72,000 on January 1, 2013. During 2013 the VCX Company purchased $450,000 of supplies. The ending supplies inventory of 2013 is $88,000 on December 31, 2013.
Determine the cost of supplies in 2013 and journalize purchase and use of supplies transactions on December 31, 2013.
Q2. Journalize the following accrued revenue transactions:
A. PRV Bank extended $400,000 credit at 5% interest to a customer on April 1, 2012 for one year (N/R). The principal and interest rates will be collected on March 31, 2013. Journalize the transactions on the following dates:
April 1, 2012
Dec. 31,2012
March 31,2013
ETN Insurance Company sold an insurance policy and collected $210,000 cash on October 1, 2012 from the customer for one-year coverage. Please journalize on the following dates:
October 1, 2012
December 31, 2012
September 31, 2013
XYZ Co. collected $1,800,000 cash (advances) from a customer on November 22, 2012 with promise to deliver merchandise on March 1, 2013. Cost or the merchandise to xyz company: $1,100,000.
Journalize on:
November 22, 2012
December 31, 2012
Delivery March 1, 2013
Q3. Explain briefly the following accounting elements:
a) Revenue: b) Gain: c) expanse; d) loss; e) assets; f) liabilities; g) equity.

Q4. Explain the following accounting assumptions and principles briefly:
1. economic entity
2. going concurrent
4. periodicity
5. full disclosure
6. consistency