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Accounting Questions

Any help you can give me with the attached problems is much appreciated. Thanks!

Rent received in advance and credited to a rent revenue account which is still unearned at the end of the period, will require an adjusting entry crediting a liability account for the amount still unearned.
a. True b. False

A furniture factory's employees work overtime to finish an order that is sold on February 28. The office sends a statement to the customer in early March and payment is received by mid-March. The overtime wages should be expensed in
a. February.
b. March.
c. the period when the workers receive their checks.
d. either in February or March depending on when the pay period ends.

When a customer returns merchandise previously purchased on credit, the entry to record the return requires a debit to the __________________ account and a credit to the ____________ account.

Given the following information, determine the adjusted cash balance
per books from the following information:

a. Balance per books as of June 30, $7,600.
b. Outstanding checks, $600.
c. NSF check returned with bank statement, $120.
d. Deposit mailed the afternoon of June 30, $300.
e. Check printing charges, $15.
f. Interest earned on checking account, $40.

Compute the cost to be assigned to ending inventory for each of the
methods indicated, given the following information about purchases
and sales during the year.
Unit Total
Units Cost Cost
????? ???? ??????
January 1 Beginning inventory 150 @ $3 = $ 450
May 1 Purchase 450 @ $6 = 2,700
??? ??????
Total 600 $3,150
Total sales 400
???
December 31 Ending inventory 200

a. Cost assigned on an average cost basis $___________

b. Cost assigned on a FIFO basis $___________

c. Cost assigned on a LIFO basis $___________

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Rent received in advance and credited to a rent revenue account
which is still unearned at the end of the period, will require an
adjusting entry crediting a liability account for the amount still
unearned.
a. True b. False

Rent received in advance is not revenue. It will become revenue once the rental period is over. Therefore for the period which is still to run, the rent received in advance will not be taken as revenue. Rather it will be recorded as unearned rent which is a liability account.
In this problem, the initial entry is
Cash Dr
Rent Revenue Cr
For the rent which is unearned, the entry would be
Rent Revenue Dr
Unearned Rent Cr

A furniture factory's employees work overtime to finish an order
that is sold on February 28. The office sends a statement to the
customer in early March and payment is received by mid-March. The
overtime wages should be expensed in
a. February.
b. March.
c. the period when the workers receive their checks.
d. either in February or March depending on when the pay period
ends.

Under the ...

Solution Summary

The solution explains various accounting questions.

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