Used prepaid insurance of $1,930. The Prepaid Insurance unadjusted balance as of December 31 is $9,600. Completed services that were paid for six months earlier, $1,700. The Service Revenue unadjusted balance as of December 31 is $9,300. The Unearned Revenue balance as of December 31 is $11,300. Identify whether each account would appear on the Balance Sheet or the Income Statement. Interest Expense Truck Land Prepaid Insurance Supplies Expense Repairs and Maintenance Expense Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Blue Nile Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $3,510 for six months of advertising. Blue Nile Law Firm recorded $3,510 in the Prepaid Advertising account. If Blue Nile Law Firm had recorded their expenses using the other method, how much advertising expensi would they have recorded for the two months ending February 28 ? Enter this value as a positive number. Safe Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the year, Safe Home has collected $2,080 from cash-paying customers. Safe Home's remaining customers owe the business $3,620. Safe Home recorded $2,080 of service revenue for the year. Splendid Occasions received $560 for services to be performed for the next 8 months on March 31 and recorded this transaction using the Unearned Revenue account. If Splendid Occasions had recorded their service revenue using the other method, how much service revenue would they have recorded for the year? Sweet Catering completed the following selected transactions during May 2016: - May 1: Prepaid rent for three months, $1,200 - May 5: Received and paid electricity bill, $200 - May 9: Received cash for meals served to customers, $3,170 - May 14: Paid cash for kitchen equipment, $2,660 - May 23: Served a banquet on account, $2,120 - May 31: Made the adjusting entry for rent (from May 1). - May 31: Accrued salary expense, $710 - May 31: Recorded depreciation for May on kitchen equipment, $70 If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign. eet Catering completed the following selected transactions during May 2016: - May 1: Prepaid rent for three months, $1,200 - May 5: Received and paid electricity bill, $200 - May 9: Received cash for meals served to customers, \$3,170 - May 14: Paid cash for kitchen equipment, $2,660 - May 23: Served a banquet on account, $2,120 - May 31: Made the adjusting entry for rent (from May 1). - May 31: Accrued salary expense, $710 - May 31: Recorded depreciation for May on kitchen equipment, \$70 If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign. If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign. Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account. Journalize the adjusting entry needed at December 31 for each situation. Use the Chart of Accounts to review account names! A two year insurance poicy for $10,560 was purchased on Nowember 1 of the current Year. Record the transaction for the year ended December 31. two year insurance policy for $10,560 was purchased on November 1 of the current year. Record the transaction for the ear ended December 31. The unadjusted balance of Office Supplies at Dec, 31 is $4,800 and at year end the office supplies on hand totaled $1,700
