BE4-2 Blindleia Care Corporation had the following selected transactions in September: 1. Collected $200 cash from customers for services performed in August. 2. Collected $500 cash from customers for services performed in September. 3. Billed customers $600 for services performed in September. 4. Performed $100 of services to customers who paid in advance in August. 5. Received $100 from customers in advance for services to be performed in October (a) Calculate revenue for the month of September using the accrual basis of accounting (b) Calculate revenue for the month of September using the cash basis of accounting Calculate revenue on accrual and cash bases (L01) BE4-3 Sain Advertising Lid's opening trial balance on January 1 shows Supplies $1.500. On January 11, the company Prepare and post purchased additional supplies for $1,800 on account. On January 31, there are $1,100 of supplies on hand. (a) Prepare the journal entry to record the purchase of supplies on lanuary 11. (b) Calculate the amount of supplies used during the month. (c) Prepare the adjusting entry required at January 31, assuming adjusting entries are prepared monthly. (d) Using T accounts, enter the opening balances in the affected accounts, post the journal entries in parts (a) and (c). and indicate the adjusted balance in each account. BE4-4 On January 2, 2018, Claymore Corporation purchased a vehicle for $50,000 cash. The company uses straight-line depreciation and estimates that the vehicle will have a five-year useful life. The company has a December 31 year end and adjusts its accounts annually. (a) Prepare the journal entry to record the purchase of the vehicle on January 2 (b) Prepare the adjusting entries required on December 31, 2018, and 2019. (c) Indicate the statement of financial position presentation of the vehicle at December 31, 2018 and 2019. BE4-5 On June 1, 2018, Bere Ltd, pays $6,000 to Safety Insurance Corp, for a one-year insurance policy. Both companies have fiscal years ending December 31 and adjust their accounts annually. (a) Record the June 1 transaction on the books of (1) Bere and (2) Safety (b) Calculate the amount of insurance that expired during 2018 and the unexpired cost at December 31. (c) Prepare the adjusting entry required on December 31 by (1) Bere and (2) Safety (d) Post the above entries and indicate the adjusted balance in each account. BE4-6 The total weekly payroll for Classic Auto Repairs Ltd. is $5,000 ($1,000 per day). The payroll is paid every Satur- day for employee salaries earned during the same five-day workweek (Monday through Friday, inclusive). Salaries were last paid on Saturday, October 27. This year the company's year end, October 31, falls on a Wednesday Salaries will be paid next on Saturday, November 3. Prepare the journal entries to record each of the following (a) Payment of the salaries on October 27 (b) The adjustment to accrue salaries at October 31 (c) Payment of the salaries on November 3 BE4-7 Zieborg Maintenance Corp, has a $375 monthly contract with Crispy Treat Inc. for general maintenance services. Zieborg invoices Crispy on the first of the month for services that it performed in the previous month. Crispy must then pay for these services by the 10th of the following month. Zacborg has a November 30 year end and prepares adjusting entries monthly (a) Prepare any adjusting entry required on November 30 by Zieborg. (b) Given your entry in part (a), will Zieborg also need to record a journal entry on December 1 when it invoices Crispy for services performed in November? Why or why not? (c) Zieborg receives $375 from Crispy on January 10 for services performed in November. Prepare Zieborg's journal entry BE4-8 On July 1, 2018, Nakhooda Limited received an 18-month loan for $40,000 from a bank at 6% and with these funds and another $10,000 cash, purchased a vehicle for $50,000. Prepare the journal entries to record each of the following on Nakhooda's books (a) The purchase of the vehicle on July 1, 2018 transaction and adjusting entries for supplies (102) Prepare transaction and adjusting entries for depreciation show statement presentation (102) Prepare and post transaction and adjusting entries for insurance. (L02,3) Prepare transaction and adjusting entries for salaries (203) Prepare adjusting and subsequent entries for accrued revenue 203) Prepare adjusting and subsequent entries for Interest expense (L03) (b) The accrual of interest at Nakhooda's year end, December 31, 2018 and 2019, assuming adjusting entries are recorded annually and interest is due at maturity (c) Repayment of the interest and the loan on January 1, 2020 BE4-9 On July 1, 2018, the Canada Bank lent $40,000 to Nakhooda Limited. The 18-month loan bears interest at 6% Prepare adjusting and Prepare the journal entries to record each of the following on the Canada Bank's books (a) The issue of the bank loan on July 1, 2018 subsequent entries for Interest revenue (b) The accrual of interest at the Canada Bank's year end, December 31, 2018 and 2019, assuming adjusting entries are (103) recorded annually and interest is collected at maturity (c) Collection of the interest and the loan on January 1, 2020 (d) If you completed BE4-8, compare your answers for Nahkooda and the Canada Bank BE4-2 Blindleia Care Corporation had the following selected transactions in September: 1. Collected $200 cash from customers for services performed in August. 2. Collected $500 cash from customers for services performed in September. 3. Billed customers $600 for services performed in September. 4. Performed $100 of services to customers who paid in advance in August. 5. Received $100 from customers in advance for services to be performed in October (a) Calculate revenue for the month of September using the accrual basis of accounting (b) Calculate revenue for the month of September using the cash basis of accounting Calculate revenue on accrual and cash bases (L01) BE4-3 Sain Advertising Lid's opening trial balance on January 1 shows Supplies $1.500. On January 11, the company Prepare and post purchased additional supplies for $1,800 on account. On January 31, there are $1,100 of supplies on hand. (a) Prepare the journal entry to record the purchase of supplies on lanuary 11. (b) Calculate the amount of supplies used during the month. (c) Prepare the adjusting entry required at January 31, assuming adjusting entries are prepared monthly. (d) Using T accounts, enter the opening balances in the affected accounts, post the journal entries in parts (a) and (c). and indicate the adjusted balance in each account. BE4-4 On January 2, 2018, Claymore Corporation purchased a vehicle for $50,000 cash. The company uses straight-line depreciation and estimates that the vehicle will have a five-year useful life. The company has a December 31 year end and adjusts its accounts annually. (a) Prepare the journal entry to record the purchase of the vehicle on January 2 (b) Prepare the adjusting entries required on December 31, 2018, and 2019. (c) Indicate the statement of financial position presentation of the vehicle at December 31, 2018 and 2019. BE4-5 On June 1, 2018, Bere Ltd, pays $6,000 to Safety Insurance Corp, for a one-year insurance policy. Both companies have fiscal years ending December 31 and adjust their accounts annually. (a) Record the June 1 transaction on the books of (1) Bere and (2) Safety (b) Calculate the amount of insurance that expired during 2018 and the unexpired cost at December 31. (c) Prepare the adjusting entry required on December 31 by (1) Bere and (2) Safety (d) Post the above entries and indicate the adjusted balance in each account. BE4-6 The total weekly payroll for Classic Auto Repairs Ltd. is $5,000 ($1,000 per day). The payroll is paid every Satur- day for employee salaries earned during the same five-day workweek (Monday through Friday, inclusive). Salaries were last paid on Saturday, October 27. This year the company's year end, October 31, falls on a Wednesday Salaries will be paid next on Saturday, November 3. Prepare the journal entries to record each of the following (a) Payment of the salaries on October 27 (b) The adjustment to accrue salaries at October 31 (c) Payment of the salaries on November 3 BE4-7 Zieborg Maintenance Corp, has a $375 monthly contract with Crispy Treat Inc. for general maintenance services. Zieborg invoices Crispy on the first of the month for services that it performed in the previous month. Crispy must then pay for these services by the 10th of the following month. Zacborg has a November 30 year end and prepares adjusting entries monthly (a) Prepare any adjusting entry required on November 30 by Zieborg. (b) Given your entry in part (a), will Zieborg also need to record a journal entry on December 1 when it invoices Crispy for services performed in November? Why or why not? (c) Zieborg receives $375 from Crispy on January 10 for services performed in November. Prepare Zieborg's journal entry BE4-8 On July 1, 2018, Nakhooda Limited received an 18-month loan for $40,000 from a bank at 6% and with these funds and another $10,000 cash, purchased a vehicle for $50,000. Prepare the journal entries to record each of the following on Nakhooda's books (a) The purchase of the vehicle on July 1, 2018 transaction and adjusting entries for supplies (102) Prepare transaction and adjusting entries for depreciation show statement presentation (102) Prepare and post transaction and adjusting entries for insurance. (L02,3) Prepare transaction and adjusting entries for salaries (203) Prepare adjusting and subsequent entries for accrued revenue 203) Prepare adjusting and subsequent entries for Interest expense (L03) (b) The accrual of interest at Nakhooda's year end, December 31, 2018 and 2019, assuming adjusting entries are recorded annually and interest is due at maturity (c) Repayment of the interest and the loan on January 1, 2020 BE4-9 On July 1, 2018, the Canada Bank lent $40,000 to Nakhooda Limited. The 18-month loan bears interest at 6% Prepare adjusting and Prepare the journal entries to record each of the following on the Canada Bank's books (a) The issue of the bank loan on July 1, 2018 subsequent entries for Interest revenue (b) The accrual of interest at the Canada Bank's year end, December 31, 2018 and 2019, assuming adjusting entries are (103) recorded annually and interest is collected at maturity (c) Collection of the interest and the loan on January 1, 2020 (d) If you completed BE4-8, compare your answers for Nahkooda and the Canada Bank