2. if rent is collected in advance know how to adjust rental income to reflect t

Question

2. if rent is collected in advance know how to adjust rental income to reflect th uneu wat does it prove? amount of income earned for the period. 3. If you issue a Note Payable know to prepare an adjusting entry to payable. accrue interest 4. Know in what order financial statements should be prepared i.e. which statement is prepared first, then second etc 5. Know how to record the issuance of stock with a par value 6. Know how to adjust office supplies to reflect how much was used up. 7. Know what is the correct order in which current assets should be listed on the balance sheet. 8. Know what Contributed Capital means 9. Know how to calculate: current ratio, quick ratio (also called acid test ratio). 10. Under the rules of accrual basis accounting know when revenues and expenses should be recorded. 11. Know what a subsequent event is. 12. Know how Treasury stock should be reported on the balance sheet 13. Know how to calculate and record straight-line depreciation expense. 14. Know how to calculate and record bad debt expense using the percent of sales method. 15. Know how to adjust prepaid expenses (insurance or rent) to show how much was used up 16. Know how to compute the total amount of stockholder's equity on a balance sheet. aw account. 17. Know how to prepare closing entries including: closing revenues, closing expenses, closing the income summary account and closing the dividends or dr

Explanation / Answer

Solution 2:

If rent is collected in advance then to adjust rental income to reflect the correct amout of income earned, "Rent revenue is debited and unearned rent revenue is credited"

Solution 3:

Therefore interest expense is debited and interest payable is credited to accrue interest on notes payable.

Solution 4:

Order of preparing financial statemennts:

1. Income Statement

2. Statement of retained earnings

3. Balance Sheet

4. Statement of cash flows

Solution 5:

To record issuance of stock at par value, cash is debited and common stock is credited with par value.

Solution 6:

To adjust office supplies, supplies expense is debited and office supplies is credit for the amount for which supplies used during the period.

Note: As mulitple questions are posted, i have answered more than required questions as per chegg policy, kindly post separate question for answer of remaining questions.

Adjusting Entry Particulars Debit Credit Interest Expense Dr           To Interest Payable

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