Question 12During June, Thuy Bui's business performed services for a specific customer for which the fee was $5,000. Payment was received inthe following month July.Required:1. Was the revenue earned in June or July? How is profit determined under the cash basis of accounting and the accrual basis ofaccounting?2. What journal entries should be recorded under accrual accounting in June and July3. What journal entries should be recorded under cash accounting in June and July?

Under the accrual basis of accounting, revenue is recorded as and when the goods are sold or…

Answered: Question 12 During June, Thuy Bui's…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter8: Receivables

Section: Chapter Questions

Problem 21E: Entries for notes receivable The series of five transactions, (a) through (e), recorded in the...

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Using the accrual basis, in which month should revenue be recorded?a. In the month that cash is collected from the customerb. In the month that goods are ordered by the customerc. In the month that goods are shipped to the customerd. In the month that the invoice is mailed to the customer
Using the accrual basis, in which month should revenue be recorded? OA. In the month that goods are ordered by the customer B. In the month that goods are shipped to the customer C. In the month that the invoice is mailed to the customer D. In the month that cash is collected from the customer
FINANCIAL RATIOS Use the work sheet and financial statements prepared in Problem 15-8B. All sales are credit sales. The Accounts Receivable balance on January 1 was 38,200. REQUIRED Prepare the following financial ratios: (a)Working capital (b)Current ratio (c)Quick ratio (d)Return on owners equity (e)Accounts receivable turnover and the average number of days required to collect receivables (f)Inventory turnover and the average number of days required to sell inventory
Entries for notes receivable The series of five transactions, (a) through (e), recorded in the following T accounts were related to a sale to a customer on account and the receipt of the amount owed. Briefly describe each transaction.
Week 6 Fiona Sporty uses a purchases journal, a cash payments journal, a sales journal, a cash receipts journal and a general journal. Indicate in which journals the following transactions are most likely to be recorded. a) Purchased inventories on credit ( b) Sales of inventory on credit c) Received payment of a customer's account d) Payment of monthly rent by cheque e) End of period dosing entries
Question: Record the disposal of Machine A. Transaction General Journal Debit Credit January 1
At Homeland Arts, gross sales for the month included: Sales on account (1/10, r/30) Credit card sales (4 % credit card fee) $200,000 $160,000 Date (a) Requirement 1. Journalize the sales on account, the credit card sales, and the cash payments on account received during the month. (Use the gross method to record the sales transactions Record debits first, then credits Exclude explanations from any joumal entries.) First, record the sales on account Journal Entry Accounts Debit Half of the sales on account were paid within the discount period, the other accounts were paid in full by the end of the month Read the requirements Credit
For journal entries 1through 12, indicate the explanation that most closely describes it. You can use explanations more than once. A. To record receipt of unearned revenue. B. To record this period's earning of prior unearned revenue. C. To record payment of an accrued expense. D. To record receipt of an accrued revenue. E. To record an accrued expense. F. To record an accrued revenue. G. To record this period's use of a prepaid expense. H. To record payment of a prepaid expense. 1. To record this period's depreciation expense.
Question 28 The sum of customers' unpaid balances that is compared to the general ledger comes from: the total of sales invoices a total of shipping orders the sales journal the accounts receivable trial balance
Which of the following will be the Correct source document assuming that your business issued invoices to customers each day? a. Debit note b. Receipt c. Purchase invoice d. Sales invoice
35-Assuming that the business received an invoice from Supplier for OMR 10,000. Which of the following books of prime entry will record the above transaction? a. Purchase ledger b. Purchase journal c. Sales journal d. Sales ledger
Transactions related to revenue and cash receipts completed by Sterling Engineering Services during the period June 230 are as follows: Instructions 1. Insert the following balances in the general ledger as of June 1: 2. Insert the following balances in the accounts receivable subsidiary ledger as of June 1: 3. Prepare a single-column revenue journal (p. 40) and a cash receipts journal (p. 36). Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. The Fees Earned column is used to record cash fees. Insert a check mark () in the Post. Ref. column when recording cash fees. 4. Using the two special journals and the two-column general journal (p. 1), journalize the transactions for June. Post to the accounts receivable subsidiary ledger and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customers account before recording a cash receipt. 5. Total each of the columns of the special journals and post the individual entries and totals to the general ledger. Insert account balances after the last posting. 6. Determine that the sum of the customer accounts agrees with the accounts receivable controlling account in the general ledger. 7. Why would an automated system omit postings to a control account as performed in step 5 for Accounts Receivable?

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