Garcia Company had the following selected transactions during the year. (A partial chart of accounts follows: Cash; Accounts Receivable; Prepaid Insurance; Wages Payable; Unearned Revenue; Revenue; Wages Expense; Insurance Expense; Depreciation Expense.)
Jan. 1 The company paid $6,000 cash for 12 months of insurance coverage beginning immediately for the calendar year.
Aug. 1 The company received $2,400 cash in advance for 6 months of contracted services beginning on August I and ending on January 31.
Dec. 31 The company prepared any necessary year-end adjusting entries related to insurance coverage and services rendered.
Required:
a. Record journal entries for these transactions assuming Garcia follows the usual practice of recording a prepayment of an expense in an asset account and recording a prepayment of revenue received in a liability account.
b. Record journal entries for these transactions assuming Garcia follows the alternative practice of recording a prepayment of an expense in an expense account and recording a prepayment of revenue received in a revenue account.
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 13:10, KillerSteamcar
A4-year project has an annual operating cash flow of $59,000. at the beginning of the project, $5,000 in net working capital was required, which will be recovered at the end of the project. the firm also spent $23,900 on equipment to start the project. this equipment will have a book value of $5,260 at the end of the project, but can be sold for $6,120. the tax rate is 35 percent. what is the year 4 cash flow?
Answers: 2
Business, 22.06.2019 17:00, justyne2004
Afinancing project has an initial cash inflow of $42,000 and cash flows of −$15,600, −$22,200, and −$18,000 for years 1 to 3, respectively. the required rate of return is 13 percent. what is the internal rate of return? should the project be accepted?
Answers: 1
Business, 22.06.2019 21:50, Chloe0095
Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.
Answers: 3
Business, 23.06.2019 02:10, musicfrk2207
Which of the following best describes what production accomplishes? a. efficient use of natural resources. b. a reduction in the size of the labor force. c. an increase in supply that lowers prices. d. value added to resources that already exist.
Answers: 1
You know the right answer?
Garcia Company had the following selected transactions during the year. (A partial chart of accounts...
Questions in other subjects:
History, 03.07.2019 10:20
History, 03.07.2019 10:20
History, 03.07.2019 10:20
History, 03.07.2019 10:20
