Question

Mountain View Apartments (MVA), Inc.’s records show the following information as of December 31, the end...

Mountain View Apartments (MVA), Inc.’s records show the following information as of December 31, the end of the current year:

Rent

  1. MVA collected $500,000 rent in cash from tenants during the current year for occupancy during the current year.
  2. $10,000 of tenants’ current-year December rent will be collected in January of next year.
  3. Some tenants prepaid their January rent in December of the current year, in the amount of $14,000.

Salaries

  1. In January of the current year, MVA paid employees $6,000 for work done in the prior year.
  2. During the current year, MVA paid employees $70,000 for work done in the current year.
  3. At the end of the current year, MVA owed employees $3,000 for work performed in December that will be paid in January of next year.

Supplies

  1. MVA keeps certain maintenance supplies on hand. The amount of supplies on hand on January 1 of the current year was $7,000, and an additional $8,000 of supplies were purchased during the current year.
  2. At the end of the current year, $2,000 of supplies remained on hand.

Requirements

  1. Calculate the December 31 balances for the accounts shown in the table below and insert them in the table. The December 31 balances are the final balances for the year, after adjusting entries but before closing entries (as you would see them in the adjusted trial balance). Below the table, show your calculations and briefly explain them.
  2. In the same table, indicate with a Y (Yes) or N (No) if the account balance would be reported in the income statement or balance sheet.
  3. Calculate the cash flows shown in the second table and enter the amounts in the table. Show cash inflows as positive amounts and cash outflows as negative amounts. Again, show your calculations and briefly explain them.

Account

December 31 Balance

Reported on Income Statement?

Reported on Balance Sheet?

Rent Receivable

Maintenance Supplies

Unearned Rent Revenue

Salaries Payable

Rent Revenue

Salaries Expense

Maintenance Supplies Expense

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Decide with a (Yes) or (No) if the account balance would be reported in the income...
Decide with a (Yes) or (No) if the account balance would be reported in the income statement or balance sheet for each option (1,2,3,4,5,6,7,8)? 1. Rent Receivable= reported in the income statement or balance sheet? 2. Maintenance Supplies= reported in the income statement or balance sheet 3. Unearned Rent Revenue= reported in the income statement or balance sheet 4. Salaries Payable= reported in the income statement or balance sheet 5. Rent Revenue= reported in the income statement or balance sheet...
Grasshopper Lawn Service provides general lawn maintenance to customers. The company’s fiscal year-end is December 31....
Grasshopper Lawn Service provides general lawn maintenance to customers. The company’s fiscal year-end is December 31. Information necessary to prepare the year-end adjusting entries appears below. On October 1, 2021, Grasshopper lent $65,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022. On November 1, 2021, the company paid its landlord $9,000 representing rent for the months of November through January. Prepaid Rent was debited for the entire amount. On...
As of December 31, 2017, Armani Company’s financial records show the following items and amounts. Cash...
As of December 31, 2017, Armani Company’s financial records show the following items and amounts. Cash $ 10,000 Accounts receivable 9,000 Supplies 6,000 Equipment 5,000 Accounts payable 11,000 Common stock 13,000 Retained earnings, Dec. 31, 2016 4,000 Retained earnings, Dec. 31, 2017 6,000 Dividends 13,000 Consulting revenue 33,000 Rental revenue 22,000 Salaries expense 20,000 Rent expense 12,000 Selling and administrative expenses 8,000 Required: Prepare a year-end statement of retained earnings for Armani Company. Required: Prepare a year-end balance sheet for...
8) Zoom Inc.’s year-end is December 31. Give Zoom’s adjusting entries on that date for the...
8) Zoom Inc.’s year-end is December 31. Give Zoom’s adjusting entries on that date for the following transactions: Zoom employees have a 5-day work week (Monday through Friday). Weekly salary for all employees (in total) is $9,500. December 31 this year falls on a Monday. Zoom earned $2,000 of consulting revenue in December, but the customer will not make payment on this amount until February. On July 31, Zoom paid for 8 months of insurance coverage, $12,000, in advance. No...
Nickleby’s Ski Store is completing the accounting process for its first year ended December 31, 2017....
Nickleby’s Ski Store is completing the accounting process for its first year ended December 31, 2017. The transactions during 2017 have been journalized and posted. The following data are available to determine adjusting journal entries: The unadjusted balance in Office Supplies was $1,150 at December 31, 2017. The unadjusted balance in Supplies Expense was $0 at December 31, 2017. A year-end count showed $160 of supplies on hand. Wages earned by employees during December 2017, unpaid and unrecorded at December...
Prepare adjusting entries at the end of the year on December 31, 2011, based on the...
Prepare adjusting entries at the end of the year on December 31, 2011, based on the following data. 1. Depreciation on office equipment for the year is $1,300. 2. The balance in Supplies before adjustment is $1,900. A physical count reveals $300 of supplies on hand on December 31, 2011. 3. A two-year insurance policy costing $1,800 was purchased on Sept. 30, 2011. Assume that the purchase was properly recorded on Sept. 30 by debiting Prepaid Insurance and crediting Cash;...
Waddell Company had the following balances in its accounting records as of December 31, 2018: Assets...
Waddell Company had the following balances in its accounting records as of December 31, 2018: Assets Liabilities and Equity Cash $ 53,000 Accounts Payable $ 30,000 Accounts Receivable 42,000 Common Stock 77,000 Land 27,000 Retained Earnings 15,000 Totals $ 122,000 $ 122,000 The following accounting events apply to Waddell Company’s 2019 fiscal year: Jan. 1 Acquired $48,000 cash from the issue of common stock. Feb. 1 Paid $5,700 cash in advance for a one-year lease for office space. Mar. 1...
SEC, Inc. Trial Balance before Adjustments December 31, 2012 Debit Credits Cash $12,600 Accounts Receivable 13,400...
SEC, Inc. Trial Balance before Adjustments December 31, 2012 Debit Credits Cash $12,600 Accounts Receivable 13,400 Supplies 2,400 Equipment 38,500 Accumulated Depreciation $7,700 Accounts Payable 8,500 Unearned Service Revenue 9,900 Common Stock 18,000 Retained Earnings 11,500 Dividends 600 Service Revenue 35,000 Rent Expense 1,500 Salaries Expense 19,200 Utilities Expense 2,400 Total $90,600 $90,600 Additional Information 1. The equipment was purchased on January 1, 2011. The useful life is estimated to be 5 years, with no salvage value, 2. A count...
Jaworski’s Ski Store is completing the accounting process for its first year ended December 31, 2015....
Jaworski’s Ski Store is completing the accounting process for its first year ended December 31, 2015. The transactions during 2015 have been journalized and posted. The following data are available to determine adjusting journal entries: a. The unadjusted balance in Supplies was $880 at December 31, 2015. The unadjusted balance in Supplies Expense was $0 at December 31, 2015. A year-end count showed $100 of supplies on hand. b. Wages earned by employees during December 2015, unpaid and unrecorded at...
The Abigail Company had the following adjustments at December 31, 2019, the end of the accounting...
The Abigail Company had the following adjustments at December 31, 2019, the end of the accounting period: The company signed a $15,000, 6%, one-year note payable on September 1st. Record the accrual on 12/31. On November 1, 2019, the Abigail Company paid $3,000 for six months of rent in advance. The rental period is November 1, 2019 through April 30, 2020. Prepare the adjustment on 12/31.    On August 1, 2019, the company collected $24,000 in advance for a consulting contract,...