Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2019 for The Home Depot runs from February 4, 2019, to

image text in transcribed

Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2019 for The Home Depot runs from February 4, 2019, to February 2, 2020. As with many retail companies, The Home Depot labels the period "Fiscal 2019" even though it ends in the 2020 calendar year. The label "Fiscal 2019" is appropriate because Fiscal 2019 includes 11 months from the 2019 calendar year. The Home Depot explains its choice of fiscal period in Note 1 to its financial statements.) Required: 1. How much did The Home Depot owe for salaries and related expenses at February 2, 2020? Was this an increase or decrease from the previous year? O $1,506 million (Decrease) O $1,506 million (Increase) O $1,494 million (Increase) O $1,494 million (Decrease) 2. Refer to the Net Sales in the Summary of Significant Accounting Policies that follows The Home Depot's statements of cash flows. How does the company account for customer payments received in advance of providing merchandise or services? The funds are deposited in the bank account and no entry is recorded. O Record the prepayment as revenue. The funds are not deposited in the bank account and no entry is recorded. The revenue is deferred until the goods or services are provided to the customer. 3. What adjusting journal entry must The Home Depot make when it provides services paid by gift card? O debit Cash, credit Deferred Revenue O debit Deferred Revenue, credit Cash O debit Deferred Revenue, credit Net Sales Revenue O debit Net Sales Revenue, credit Deferred Revenue Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2019 for The Home Depot runs from February 4, 2019, to February 2, 2020. As with many retail companies, The Home Depot labels the period "Fiscal 2019" even though it ends in the 2020 calendar year. The label "Fiscal 2019" is appropriate because Fiscal 2019 includes 11 months from the 2019 calendar year. The Home Depot explains its choice of fiscal period in Note 1 to its financial statements.) Required: 1. How much did The Home Depot owe for salaries and related expenses at February 2, 2020? Was this an increase or decrease from the previous year? O $1,506 million (Decrease) O $1,506 million (Increase) O $1,494 million (Increase) O $1,494 million (Decrease) 2. Refer to the Net Sales in the Summary of Significant Accounting Policies that follows The Home Depot's statements of cash flows. How does the company account for customer payments received in advance of providing merchandise or services? The funds are deposited in the bank account and no entry is recorded. O Record the prepayment as revenue. The funds are not deposited in the bank account and no entry is recorded. The revenue is deferred until the goods or services are provided to the customer. 3. What adjusting journal entry must The Home Depot make when it provides services paid by gift card? O debit Cash, credit Deferred Revenue O debit Deferred Revenue, credit Cash O debit Deferred Revenue, credit Net Sales Revenue O debit Net Sales Revenue, credit Deferred Revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools for business decision making

Authors: kimmel, weygandt, kieso

4th Edition

978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461

More Books

Students also viewed these Accounting questions

Question

5. How would you describe your typical day at work?

Answered: 1 week ago

Question

7. What qualities do you see as necessary for your line of work?

Answered: 1 week ago