6.Ohio Company, a corporation, began operations on December 1, 2010. During January of 2011, the following transactions occurred:
Billed customers $12,000 for services performed during January.
Received payment from customers in the amount of $6,000 for services performed and billed in December.
Received cash of $7,000 for services performed during January for customers who paid cash immediately. (No bills were mailed.)
A.How much total
Revenue
should Ohio Company report for January, 2011?
B.Determine the increase in cash during January of 2011 as a result of these transactions.
7.During the first year of business, office supplies were purchased for cash in the amount of $2,000 and the amount was debited to supplies expense. At the end of the first year, the physical count indicated that $500 of supplies was unused. How much should be reported on the income statement at year end for office supplies expense? On the balance sheet for office supplies?
8.Total assets, liabilities, and shareholders’ equity are $4,000, $1,000, and $3,000 before current period wages of $200 are paid. What are the new amounts of assets, liabilities, and shareholders' equity after this event?
9.Wages Payable on January 1 equals $12,000. By the end of the current year, Wage Expense equals $420,000, and cash payments for wages were $424,000. What is the balance in the T-account,
Wages Payable, on December 31?
When a landlord records rent received in advance from a tenant in a revenue account, the adjusting entry required at yearend to allocate the rent to the proper periods has an impact on financial statement elements. What effect (increase, decrease, no effect) does the required adjustment have on each of the following elements?
Assets
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Revenues
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Liabilities
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Expenses
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Shareholders’ equity
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