90.2K

Verified Solution

Link Copied!

14 is No. 4

On June 1, 2020 Yellow Company purchased a new piece of equipment for $180,000 cash. On June 1 Yellow recorded the equipment purchase with a Debit to the Equipment account and a Credit to the Cash account. Yellow estimates that the equipment will last 6 years. Yellow also estimates that at the end of 6 years the equipment will have no future value and will be scrapped. Yellow uses the straight-line depreciation method. Yellow Company operates on a monthly accounting period. Select the adjusting entry Yellow should make as of June 30, 2020 for the depreciation of the equipment: Account Name Debit Credit ng policy related to supplies is to Debit all purchases of supplies to the Supplies account (an asset account). The following two purchases of supplies were made during the month of June of 2020: June 10 purchased $9,700 June 18 purchased $11,100 Other than the above two purchases - there were no other entries made to the Supplies accou during June of 2020. On June 1, 2020 the beginning balance in Yellow's Supplies account was $8,000. On June 30, 2020 Yellow counted the office supplies and determined there were $10,000 of supplies remaining at the end of June. Select the Supplies adjusting entry Yellow should make as of June 30, 2020: Account Name Debit Credit Yellow's employees are paid in cash each Friday for that week's work and the cash payment of the payroll is recorded in the accounting system. The last payday of June was on Friday, June 27, 2020. The employees worked on Saturday June 28th, Sunday June 29th, and Monday June 30th. On June 28 the employees earned $1,800. On June 29 the employees earned $1,600. On June 30 the employees earned $1,100. On June 1, 2020 the beginning balance in Yellow's Wages Payable account was $0. Select the adjusting entry related to wages that Yellow should make as of June 30, 2020: Debit Credit Account Name On June 1, 2020 Yellow Company received an advance payment of $56,000 from a customer. The payment was for four months of services Yellow Company would perform for the customer at the rate of $14,000 per month. Yellow started providing the service on June 1, 2020. On June 1, 2020 Yellow made an entry in its accounting system debiting Cash for $56,000 and crediting Unearned Service Revenue for $56,000. This is the only entry that has been made related to this transaction. Select the adjusting entry Yellow should make prior to preparing financial statements on June 30, 2020 Account Name Debit Credit Using the information given in 14. above - select the adjusting entry Yellow should make prior to preparing financial statements on July 31, 2020. Prior to this July 31, 2020 adjusting entry, Yellow has made only two entries in their accounting system related to this advance payment - the June 1, 2020 entry to record the receipt of the $56,000 cash and the June 30, 2020 adjusting entry. Account Name Debit Credit Using the information given in 14. above, and assuming that all the required adjusting entries have been correctly made - what should be the amount shown on Yellow's August 31, 2020 Balance Sheet for Unearned Service Revenue? $56,000 O $42,000 O $28,000 $14,000 None of the above, On June 1, 2020 Yellow Company purchased a new piece of equipment for $180,000 cash. On June 1 Yellow recorded the equipment purchase with a Debit to the Equipment account and a Credit to the Cash account. Yellow estimates that the equipment will last 6 years. Yellow also estimates that at the end of 6 years the equipment will have no future value and will be scrapped. Yellow uses the straight-line depreciation method. Yellow Company operates on a monthly accounting period. Select the adjusting entry Yellow should make as of June 30, 2020 for the depreciation of the equipment: Account Name Debit Credit ng policy related to supplies is to Debit all purchases of supplies to the Supplies account (an asset account). The following two purchases of supplies were made during the month of June of 2020: June 10 purchased $9,700 June 18 purchased $11,100 Other than the above two purchases - there were no other entries made to the Supplies accou during June of 2020. On June 1, 2020 the beginning balance in Yellow's Supplies account was $8,000. On June 30, 2020 Yellow counted the office supplies and determined there were $10,000 of supplies remaining at the end of June. Select the Supplies adjusting entry Yellow should make as of June 30, 2020: Account Name Debit Credit Yellow's employees are paid in cash each Friday for that week's work and the cash payment of the payroll is recorded in the accounting system. The last payday of June was on Friday, June 27, 2020. The employees worked on Saturday June 28th, Sunday June 29th, and Monday June 30th. On June 28 the employees earned $1,800. On June 29 the employees earned $1,600. On June 30 the employees earned $1,100. On June 1, 2020 the beginning balance in Yellow's Wages Payable account was $0. Select the adjusting entry related to wages that Yellow should make as of June 30, 2020: Debit Credit Account Name On June 1, 2020 Yellow Company received an advance payment of $56,000 from a customer. The payment was for four months of services Yellow Company would perform for the customer at the rate of $14,000 per month. Yellow started providing the service on June 1, 2020. On June 1, 2020 Yellow made an entry in its accounting system debiting Cash for $56,000 and crediting Unearned Service Revenue for $56,000. This is the only entry that has been made related to this transaction. Select the adjusting entry Yellow should make prior to preparing financial statements on June 30, 2020 Account Name Debit Credit Using the information given in 14. above - select the adjusting entry Yellow should make prior to preparing financial statements on July 31, 2020. Prior to this July 31, 2020 adjusting entry, Yellow has made only two entries in their accounting system related to this advance payment - the June 1, 2020 entry to record the receipt of the $56,000 cash and the June 30, 2020 adjusting entry. Account Name Debit Credit Using the information given in 14. above, and assuming that all the required adjusting entries have been correctly made - what should be the amount shown on Yellow's August 31, 2020 Balance Sheet for Unearned Service Revenue? $56,000 O $42,000 O $28,000 $14,000 None of the above

Answer & Explanation Solved by verified expert

See Answer