Reference no: EM13877171
Under accrual basis accounting, expenses are recognized when incurred. The following transactions occurred in January:
a. American Express paid its salespersons $ 3,500 in commissions related to December sales of financial advisory services. Answer from American Express's standpoint.
b. On January 31, American Express determined that it will pay its salespersons $ 4,200 in com-missions related to January sales. The payment will be made in early February. Answer from American Express's standpoint.
c. The city of Omaha hired Waste Management, Inc., to provide trash collection services beginning January 1. The city paid $ 12 million for the entire year. Answer from the city's standpoint.
d. The University of Florida paid $ 10,000 in advance for refundable airline tickets to fly the baseball team to a tournament in California. The first game will be played in March. Answer from the university's standpoint.
e. A Houston Community College employee worked eight hours, at $ 15 per hour, on January 31; payday is not until February 3. Answer from the college's point of view.
f. Wang Company paid $ 3,600 for a fire insurance policy on January 1. The policy covers 12 months beginning on January 1. Answer from Wang's point of view.
g. Ziegler Company, a farm equipment company, received a phone bill for $ 230 of January calls. The bill has not been paid to date.
Required:
For each of the transactions, if an expense is to be recognized in January, indicate the amount. If an expense is not to be recognized in January, indicate why.
|
A programmer is having difficulty debugging
: A programmer is having difficulty debugging the following C program. In theory, on an "ideal" machine with infinite memory, this program would run forever. (In practice, this program crashes because it runs out of memory, as extra space is required e..
|
|
Prepare journal entries to record all transactions
: Prepare journal entries to record all transactions including the variances in requirement 1. Compute for November: The labor efficiency variance and The labor rate variance.
|
|
What is the probability that the project will be completed
: Assuming the project begins now, what is the probability that the project will be completed before: Graduation time
|
|
Find linear approximation of the market equilibrium price
: Use the Taylor expansion and find the first degree or linear approximation of the market equilibrium price and quantity.
|
|
Why an expense is not to be recognized in january indicate
: For each of the transactions, if an expense is to be recognized in January, indicate the amount. If an expense is not to be recognized in January, indicate why.
|
|
Determine the companys preliminary net income
: For each of the transactions, complete the table below, indicating the account, amount, and direction of the effect (+ for increase and - for decrease) of each transaction under the accrual basis. Write NE if there is no effect. Include revenues and ..
|
|
Discuss the advantages of immediately revising the standards
: Discuss the advantages of immediately revising the standards and of retaining the current standards and expanding the analysis of variances.
|
|
Determine the equilibrium price and quantity
: Assume the following market supply and demand functions Qs = 10 e0.1 P - 20, Qd = 150 e-0.2 P -Determine the equilibrium price and quantity.
|
|
Compute length of time required for average
: (a) From Figure, compute the length of time required for the average grain diameter to increase from 0.01 to 0.1 mm at 500oC for this brass material. (b) Repeat the calculation at 600°C.
|