4. Recognition of concepts. Ron Carroll operates a small company that books ente

Question

4. Recognition of concepts. Ron Carroll operates a small company that books entertainers for theaters, parties, conventions, and so forth. The company's fiscal year ends on June 30 Consider the items that follow and classify each as either (1) prepaid expense, (2) unearned revenue, (3} accrued expense, (4) accrued revenue, or (5) none of the foregoing. a. Amounts paid on June 30 for a one-year insurance policy. b. Professional fees earned but not billed as of June 30. c. Repairs to the firm's copy machine, incurred and paid in June. d. An advance payment from a client for a performance next month at a convention. e. The payment in item (d) from the client's point of view. f. Interest owed on the company's bank loan, to be paid in early July. g. The bank loan payable in item (f). h. Office supplies on hand at year-end. i. Bank reconciliations: Missing amounts j. The following independent cases relate to bank reconciliations. Compute the missing amounts, assuming that no other reconciling items exist. Case A Case B Case C Balance per bank $6,000 $4,000 $ ? Outstanding checks $500 2,100 1,400 Deposits in transit $2,000 7 1,000 Balance per company records ? 8,000 450

Explanation / Answer

a. Prepaid expense b. Accrued revenue c. None of the foregoing d. Unearned revenue e. Prepaid expense f. Accrued expense g. None of the foregoing h. Prepaid expense i. None of the foregoing j. Bank A: Balance in Records 7500 Bank B: Deposit in Transit 6100 Bank C: Balance 850

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.