1)

2)

3)

4)

In September, a customer signed a contract to have his house painted and paid for the job in October. The painting company bought the paint in August on account and paid for it in September. The painting company painted the house in November. According to the revenue and matching principles, the painting company should record: O none of the above the revenues in November and the expenses in September the revenues and the expenses in September. the revenues September and the expenses in August. O the revenues and the expenses in November A company pays wages every two weeks. Wages amount to $100 a day. On March 31, the company pays wages for the two weeks ending March 24. At the end of the month, the related adjusting journal entry will include a none of the above O debit to Retained Earnings for $700 and a credit to Wages Payable for $700. O debit to Wage Expense for $700 and a credit to Wages Payable for $700. O debit to Retained Earnings for $700 and a credit to Cash for $700. O debit to Wages Payable for $700 and a credit to Cash for $700. The following financial statements were prepared at the end of the month of May: TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May Revenue $2.540 Expenses: Rent Expense $500 Advertising Expense $500 Wages Expense $200 $1,200 Net Income $1,340 TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY Owner's Equity at May 1 SO plus: Investment 12.000 plus: Net Income 11.340 ess: Withdrawals 0 Owner's Equity at May 31$3,340 TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31 ASSETS LIABILITES AND OWNER'S EQUITY Current Assets: Current Liabilities: Cash $1,380 Accounts Payable $300 Accounts Receivable $1,500 Advertising Payable $500 Prepaid Rent $ 500 Advances from Customers $200 Prepaid Advertising $ 500 Supplies $ 100 $3,9801 Equipment |$ 360 Owner's Equity $3,340 Total Assets $4,340 Total Liabilities & OE $4,3401 During June the following transactions occurred: 1) Paid the helper the $1,000 owed from works done in May (the amount owed is in Accounts Payable). 2) Completed the job for which the customer paid $200 in May. Tops in Topiary collected $2000 in cash once finished. 3) Paid $500 for the rent of July. 4) At the end of June notices that there are no supplies left. Makes a note to buy some in July 5) At the end of June notices that there are few flyers left (used for advertising) worth $200 and decides to order some for July. Before ordering, the printer (supplier of flyers) asks to be paid $600 of the amount owed for the flyers done in May. Tops in Topiary pays $600. 6) In June collected in cash $3,000 for 3 jobs are done for a total of $4,500, the rest is owed in account by the customers. 7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years. 8) In June 23rd Edward Scissorhands withdrew some cash for personal reasons ($2,000). Prepare "T" Accounts in ACCRUAL Basis for the period ended on June 30th and then answer the questions. At the end of the accounting period (June 30th, T account after AJE), what is the balance Equipment (Gross value as reported in the balance sheet)? $340 O None of the others alternatives are correct $0 O $360 During June the following transactions occurred: Paid the helper the $200 owed from works done May (the amount owed is in Accounts Payable). Completed the job for which the customer paid $200 in May. Tops in Topiary collected $1000 in cash once finished. Paid $500 for the rent of July. At the end of June notices that there are no supplies left. Makes a note to buy some in July. At the end of June notices that there are few flyers left (used for advertising) worth $100 and decides to order some for July. Before ordering the printer (supplier of flyers) asks to be paid $500 of the amount owed for the flyers done in May. Tops in Toplary pays $500, In June collected in cash $3,000 for 3 jobs are done for a total of $4,200, the rest is owed in account by the customers. In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years. In June 23rd Edward Scissorhands withdrew some cash for personal reasons ($3,000). Prepare "T" Accounts in ACCRUAL Basis for the period ended on June 30th and then answer the question. At the end of the accounting period (June 30th, T account after AJE), what is the balance of Equipment net of depreciation? $360 $340 O None of the others alternatives are correct $350