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    Please format your answer as follows: Yes, $1 revenue or exp

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    Here are five different transactions for March that may be revenue or an expense on the income statement. Please review the scenario and identify whether it will be revenue or an expense item during the current period and the amount. Please format your answer as follows: Yes, $1 revenue or expense or No.

    1. Here are five different transactions for March that may be revenue or an expense on the income statement. Please review the scenario and identify whether it will be revenue or an expense item during the current period and the amount. Please format your answer as follows: Yes, $1 revenue or expense or No.
    a. Wages were paid for $1,000 during March. $600 of that was for wages incurred in March, $400 was to pay off the wages payable account for February.
    b. A telephone book advertising bill was received in March, for $3,000 that covered March 1, through June 30, 2009. It will not be paid until April 1.
    c. Rent for April was paid on March 20 with a check for $1,500
    d. Insurance was paid for in March for $2,000 that will be put into effect on April 12, 2011
    e. Office supplies that were paid for in February were used up in March for $750
    f. Sales of $8,000 were performed but the client won't pay for these services until April.

    2. On December 31, 2008, Tie One On reported net income for the year of $265,000 and the following account balances:

    Cash $175,000
    Accounts Receivable $ 21,000
    Prepaid Rent $ 6,000
    Equipment and furnishings $ 230,000
    Accumulated Depreciation- Equipment and furnishings $ (43,000)
    Accounts Payable $ 39,000
    Wages Payable $ 13,000
    Owner's Equity (including net income of $265,000) $ 337,000
    After this information was prepared the bookkeeper discovered that they failed to prepare two adjusting entries. These were not reflected in the balance shown. Here is the information on these two entries:

    1. The prepaid rent account on April 1, 2008, for one year for $60,000. The account has not been adjusted since.
    2. A bill received in January 2009 for utilities incurred in December 2008 for $1,400 was mistakenly not entered into the system.
    Please calculate the year- end corrected balances for the following three accounts: assets, liability, and equity. Enter answer as below example:

    Assets= $X (show work in parenthesis, numbers only no titles necessary)
    Liabilities = $X (show work in parenthesis, numbers only no titles necessary)
    Equity (retained earnings) = $X (show work in parenthesis, numbers only no titles necessary)

    3. On December 31, 2008 Kings Bait and Tackle had the following ending account balances after all adjusting entries were complete:
    Cash $ 35,000
    Inventory $ 29,000
    Supplies $ 8,500
    Prepaid Rent $ 7,000
    Equipment $ 83,900
    Accumulated Depreciation ($ 17,400)
    Accounts Payable $ 41,220
    Wages Payable $ 10,500
    Owner's Equity $ 50,000
    Sales Revenue $ 99,000
    Cost of goods sold $ 21,000
    Wage expense $ 15.000
    Utility expense $ 1,020
    Depreciation expense $ 3,000
    Insurance expense $ 1,000
    Supply Expense $ 1, 500
    Rent expense $ 12,000
    A .Please posts both closing entries that will be done at the end of the year.
    B. What is the ending owner's equity balance?
    Please use the following format when recording your closing entries:
    Debit account name $X
    Credit account name $X

    4. Connection Station, an internet café hade the following operating activities during the month of May
    1. Bought $800 in jump drives and disks, which are available for resale from Office Depot on credit
    2. Paid $900 dollars in utilities for the month of May
    3. Paid $2,000 rent for the month of May
    4. Sold jump drives and other inventory to customers for 4,000 on credit which cost the company $500
    5. Collected $2500 of the 4,000 that was sold on credit
    6. Paid cash for $2200 for goods for resale from Staples, Inc
    7. Paid employee wages for work they did in May of $2,000
    8. Collected internet usage fees from customers in cash totaling $12,500 for the month
    9. Paid $5,000 for a one- year insurance policy beginning June 1
    10. Employees earned an additional $1,000 of wages but would not be paid until June 1
    Please prepare an accrual basis income statement and enter it as your answer. You can left-align all of the heading to keep the formatting less confusing.

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    Solution Preview

    1. Here are five different transactions for March that may be revenue or an expense on the income statement. Please review the scenario and identify whether it will be revenue or an expense item during the current period and the amount. Please format your answer as follows: Yes, $1 revenue or expense or No.
    a. Wages were paid for $1,000 during March. $600 of that was for wages incurred in March, $400 was to pay off the wages payable account for February.
    Yes - $600 expense
    b. A telephone book advertising bill was received in March, for $3,000 that covered March 1, through June 30, 2009. It will not be paid until April 1.
    Yes - $750 expense
    c. Rent for April was paid on March 20 with a check for $1,500
    No.
    d. Insurance was paid for in March for $2,000 that will be put into effect on April 12, 2011
    No.
    e. Office supplies that were paid for in February were used up in March for $750
    Yes - $750 expense
    f. Sales of $8,000 were performed but the client won't pay for these services until April.
    Yes - $8,000 revenue

    2. On December 31, 2008, Tie One On reported net income for the year of $265,000 and the following account balances:

    Cash $175,000
    Accounts Receivable $ 21,000
    Prepaid Rent $ 6,000
    Equipment and furnishings $ 230,000
    Accumulated Depreciation- Equipment and furnishings $ (43,000)
    Accounts Payable $ 39,000
    Wages Payable $ 13,000
    Owner's Equity (including net income of $265,000) $ ...

    Solution Summary

    Here are five different transactions for March that may be revenue or an expense on the income statement. Please review the scenario and identify whether it will be revenue or an expense item during the current period and the amount. Please format your answer as follows: Yes, $1 revenue or expense or No.

    $2.19