Question

1.) The income summary account of Myles Garrett industries had debits totaling $125,00 and credits totaling $138,000 on December 31st, 2018. Myles Garett industies is on a calander year. This indicates that Myles Garrett industries...

2.) The accoounting principal(s) that best describe why adjusting journal entries are recorded prior to the preperation of financial statements is...

3.) If you start your own business today by investing $25,000 cash in exchange for capital stock in the company, immeditately after that transaction the balance sheet equation what would the journal entry be..

4.) Browns draft Bust company recieved their utility bill in the amount of $6,000 for the month of Jan. on Feb 7th. On that date they recorded the bill. They paid the billl on Feb 25. The journal entry to record the payment of the bill will be...

5.) On Feb 20, 2017 Quarterbacls-R-Us Company recieved their utility bill for the month of January, 2017, in the amount of $3,500. They recieved the bill on Feb 20th. On Feb 28th, 2017, when they paid the bill the journal entry will be to

6.) Bow and Books purchased a piece of equiptment to be used in their business operations. The equipment cost $120,000 will be depreciated using the straight-line method, and has a useful life of 10 years. Bow aand books paid cash on the date they acquired the equipment Jan 1st, 2017. Bow and Books is on a calander year and prepares quarterly financial statements. When preparing adjusting journal entrirs for the quarter ending Oct. 31st, 2017 what is the journal entry being made...

7.) After posting, the cash account in the general ledger of the Brady Bunch Co accounted to $1,000, normal balance. This amount also appeared on the trial balance. This indicated what..

8.)plow drive way offers snow plowing services. customers pay three hundred dollars to have their driveways ploweded for the period december 1st - febuary 28. To be a customer of plow driveway customers must pay the 300 dollars by november 30th. As of december 1st, plow driveway recived a total of 15,000 dollars. Plow driveway prepares finacial statements monthly. On feburary 1st the balance on the unearned revenue account was 5,000 dollars. The febuary 28th adjusted journal entery would be...

Answer 1

1. It means myles garrett earned a profit of 13000 (138000-125000) in current calender year.because debits indicate expenses and credit indicate earnings in income statement.

2. Accrual basis of accounting which states that all income expense accounts should be recorder in the period they actually belong whether actually paid or not.

3. entry would be

cash a/c dr 25000

to common stock a/c 25000

4. expense was already recorded on 7th feb. now we are just paying to the brown draft hence entry would be

account payable dr 6000

To cash a/c 6000

5. same as 4

account payable dr 3500

To cash a/c 3500

6. Deprecialtion a/c dr. 3000

to equipment a/c 3000

( DEP FOR 3 MONTHS)

7. It indicates that there is a closing balance of cash and it is a asset for us.so it will be shown on the debit side of trial balance and then will be trs to balance sheet.