Accounting Question Help?
5. The Accumulated Depreciation's account balance is the sum of depreciation expense recorded in past periods. T 21. Supplies are recorded as assets when purchased. Therefore, the credit to supplies in the adjusting entry is for the amount of supplies: c. used 22. Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year? c. Income Summary 26. At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements is true? a. Total assets will be understated at the end of the current year. 30. Which of the following accounts ordinarily appears in the post-closing trial balance? d. Unearned Rent 31.The type of account and normal balance of Unearned Rent is: c. liability, credit 35. Balance sheet accounts: b. are called real accounts 41. The net income reported on the income statement is $90,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,700 and accrued salaries of $1,300. Net income, as corrected, is: a. $87,300 26. An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a b. debit to Bad Debts Expense for $2,800. 30. A 90-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is b. $10,300
What is the difference between accumulated depreciation and provision for depreciation?
First let’s see what’s depreciation. Depreciation is the reduction in the value of an asset due to the wear and tear. So, in accounting, the asset value is recorded in the balance sheet after treating the depreciation in order to maintain accuracy in the value of assets. There are two methods to treat depreciation in the Balance Sheet. One is Written Down Value Method and the other one is Historical Cost Method. So, if you treat depreciation normally, i.e., deducting the current year’s depreciation from the asset value, then it is Written Down Value Method. If at all, you maintain the Accumulated Depreciation, then it is Historical Cost Method. So, let’s see how this accumulated depreciation is treated. Every year, the amount of depreciation is transferred to the Accumulated Depreciation account by passing the following entry:Provision for Depreciation A/c Dr.To Accumulated Depreciation A/cSo, the asset will be shown on the Balance Sheet at the cost incurred on its purchase. And the depreciation is shown on liabilities side,under the head, Accumulated Depreciation. So, the accumulated depreciation contains the whole value of depreciation that should be treated to the asset in its lifetime. Once, the Accumulated Depreciation and the cost of asset gets equal, then it’s the end of the lifetime of the asset. So, now the doubt raises, how do you treat the Provision for Depreciation. The Provision for depreciation is entered in the Income Statement as an expenditure and added to the Accumulated Depreciation in the Balance Sheet.This is how Depreciation, Provision for Depreciation and Accumulated Depreciation are treated.All the Best.
Is provision for bad debt allowed in income statements?
Provision for bad debts can only appear in the income statement if there is an increase in provision. It hence appears as an expense. If the provision reduces, then it iw recognised as an income. If it remains the same, then it only affects the balance sheet on the Accounts Receivable.
1) Hahn Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales?
Copy and paste this link to get the answers for ACC/291 Final Exam: http://studentoffortune.com/question/1555580/tutorial