On January 1, 2009, the law firm of Taylor and Thomas was formed with a contribu

Question

On January 1, 2009, the law firm of Taylor and Thomas was formed with a contribution from each of the partners or $40,000. On February 1, 2009, the company received 529,000 from clients in advance for services to be performed monthly during the next 16 months beginning in February and recorded the full amount as uneaned revenue. During the year, the fim incurred and paid expenses of $7,100. Is the adjustment to recognize the proper amount of service revenue related to an accrual or defemal? Assuming that these were the only transactons complated in 2009, prepare the firm's income statement, statement of cash ows, tatement of retained erningsfor the year ended Decamber 31, 2009, and balance sheet at December 31, 2009 Is the adjustment to recognize the proper amount of service reveeelated to an accrual or daferral? This is an adjustment for because cash was exchanged the revenue was earned. So ourn Company purchased oquipment on November 1, 2010, and gave a threo-month 15% note with a aco blaniks in the folowing chart: (Round your answers to the nearest whale amaunit. Camplete all answer boxes.) alue of $15,000. On matu ty, January 31, 2011, te note plus interest wil be paid to the bank. Fill in the Interest expense Cash paid for interest for the month ended) dring the month ended) November 30, 2010 December 31, 2010 January 31, 2011 Suppose afim had sales of $250,0C0 and net income of $25,000 for the year. What is the profit margin on sales ratio? Calculate the profit margin an sales ratio. Bcgin by sclecting thefrmula you wil usc to calculate the profit margin on sales ratio. Then enter the amounts in the farmula and calculate the ratio. (Round the ratio to two decimal places.) 100 Profit margin on sales ratio = The KC Company collects all service revenue in advance. The company showed a $10,500 iability on its December 31, 2011, balance sheet for uneamed service revenue. During 2012, custcmers paid $62,000 for future services, and the incoma statement for the year ended December 31, 2012, reported service revenue of $55,000. What amount for the liability uneamed service revenue wll appeeronthe balanoa sheet at December 31, 2012? what arnaunt or the labn r une med service revenue wil appear on he a ano sheet al December 31. 2012 31. 2012. Then enler the amcunts and calculate the balance. elect the formu a ou wil use to calculate the unearned ser ce revenue account balance a ecernber Decamber 31, 2012 balance Timely Acccunting pays all salaried emplayees biweekly. Overtime pay, however, is paid in the next biweekly pericd. Timely accrues salary experise anly at its December 31 year end. Information atout salaries earned n December 2009 is as folows: (Cick the loon to infomation.) Using a five-day workweek, what will Timely's balance sheet show as salarias payable on December 31, 2009? Acccunting's balance sheet wil so as salaries payatle on December 31, 2009.

Explanation / Answer

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This is an adjustment for accrual because cash was exchanged and revenue was earned

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