Question

Gary did a job last week that he will be paid $10,000 in the next calendar...

Gary did a job last week that he will be paid $10,000 in the next calendar year. Which financial statement should we record the $10,000 on for Ermias?

a

Income and Expense Statement

b

Budget

c

Balance Sheet

d

Statement of Mandatory Billings

Homework Answers

Answer #1

Option C is correct: Balance Sheet

Ermias is liable to pay $10,000 to Gary in the next calendar year. So, Ermias should record this under liability section of the balance sheet.

Option a is incorrect because if the $10,000 is already paid to Gary, then Ermias would record this in Income and Expense Statement

Option b is incorrect because in Budget statement only the expenses that Ermias might incur in future is recorded

Option d is incorrect because the Statement of Mandatory Billings is for customers

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
- On June 30 of the current calendar year, Apricot Co. paid $9,500 cash for management...
- On June 30 of the current calendar year, Apricot Co. paid $9,500 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to expense accounts at the time of cash payment. Required: 1- Prepare the adjusting entry on December 31 for Apricot Co. 2- Show the effect of the adjusting entry on Income statement and balance sheet at the end of the     Current calendar year                                             
Larry uses an accrual method of accounting and a calendar year. On December 30, 2016, he...
Larry uses an accrual method of accounting and a calendar year. On December 30, 2016, he completed work for a client and submitted his bill. The client had no dispute with the work done or the amount of the bill. The client paid Larry's bill in 2017. In which year should he report the income from this project? A.) He should report the income in 2017 B.) He may choose to report the income in either 2016 or 2017 C.)...
Anthony has an income of $10,000 this year, and he expects an income of $5,000 next...
Anthony has an income of $10,000 this year, and he expects an income of $5,000 next year. He can borrow and lend money at an interest rate of 10%. Consumption goods cost $1 per unit this year and there is no inflation. a. What is the present value of his endowment? b. What is the future value of his endowment? c. Write an equation to represent his budget set. Graph his budget set? Label it well. d. If his utility...
Morbeck Corporation's net income last year was $56,000. The company paid a cash dividend of $31,000...
Morbeck Corporation's net income last year was $56,000. The company paid a cash dividend of $31,000 and did not sell or retire any property, plant, and equipment last year. Changes in selected balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Accounts receivable ($8,000) Inventory ($6,000) Prepaid expenses $12,000 Accumulated depreciation $23,000 Liability Accounts: Accounts payable ($10,000) Accrued liabilities $7,000 Income taxes payable $5,000 Bonds payable $40,000 Based solely on this information, the net cash...
During 20x7, Advance Limited paid a total of $180,000 for rent, covering the period from 1...
During 20x7, Advance Limited paid a total of $180,000 for rent, covering the period from 1 October 20x6 to 31 March 20x8. Which of the following should appear in the company’s financial statements for the year ended 31 December 20x7? Income statement Balance sheet Group of answer choices $150,000 expense / Accrual $45,000 $150,000 expense/ Accrual $30,000 $120,000 expense/ Prepayment $30,000 $120,000 expense/ Prepayment $45,000 $120,000 expense / Accrual $30,000
Financial data for Guyer Corporation, for last year follow: Guyer Corporation Balance Sheet Beginning Balance Ending...
Financial data for Guyer Corporation, for last year follow: Guyer Corporation Balance Sheet Beginning Balance Ending Balance Assets Cash $ 140,000 $ 120,000 Accounts receivable 450,000 530,000 Inventory 320,000 380,000 Plant and equipment, net 680,000 640,000 Investment in ABC, Inc. 250,000 280,000 Land (undeveloped) 180,000 170,000 Total assets $ 2,020,000 $ 2,120,000 Liabilities and Stockholders' Equity Accounts payable $ 360,000 $ 310,000 Long-term debt 1,500,000 1,500,000 Stockholders' equity 160,000 310,000 Total liabilities and stockholders' equity $ 2,020,000 $ 2,120,000 Guyer...
Financial data for Guyer Corporation, for last year follow: Guyer Corporation Balance Sheet Beginning Balance Ending...
Financial data for Guyer Corporation, for last year follow: Guyer Corporation Balance Sheet Beginning Balance Ending Balance Assets Cash $ 140,000 $ 120,000 Accounts receivable 450,000 530,000 Inventory 320,000 380,000 Plant and equipment, net 680,000 680,000 Investment in ABC, Inc. 250,000 280,000 Land (undeveloped) 180,000 170,000 Total assets $ 2,020,000 $ 2,160,000 Liabilities and Stockholders' Equity Accounts payable $ 360,000 $ 310,000 Long-term debt 1,500,000 1,500,000 Stockholders' equity 160,000 350,000 Total liabilities and stockholders' equity $ 2,020,000 $ 2,160,000 Guyer...
Financial data for Guyer Corporation, for last year follow: Guyer Corporation Balance Sheet Beginning Balance Ending...
Financial data for Guyer Corporation, for last year follow: Guyer Corporation Balance Sheet Beginning Balance Ending Balance Assets Cash $ 140,000 $ 120,000 Accounts receivable 450,000 530,000 Inventory 320,000 380,000 Plant and equipment, net 680,000 660,000 Investment in ABC, Inc. 250,000 280,000 Land (undeveloped) 180,000 170,000 Total assets $ 2,020,000 $ 2,140,000 Liabilities and Stockholders' Equity Accounts payable $ 360,000 $ 310,000 Long-term debt 1,500,000 1,500,000 Stockholders' equity 160,000 330,000 Total liabilities and stockholders' equity $ 2,020,000 $ 2,140,000 Guyer...
1) Which budget is the starting point in preparing financial budgets? Group of answer choices A)...
1) Which budget is the starting point in preparing financial budgets? Group of answer choices A) the budgeted balance sheet B) the capital expense budget C) the budgeted income statement D) the cash receipts budget 2) The direct materials budget is prepared using which budget's information? Group of answer choices A) raw materials budget B) cash receipts budget C) cash payments budget D) production budget 3. Which of the following includes only financial budgets? Group of answer choices A) budgeted...
Financial data for Skylar and banks Corporation, for last year follow: Skylar and banks Corporation Balance...
Financial data for Skylar and banks Corporation, for last year follow: Skylar and banks Corporation Balance Sheet Beginning Balance Ending Balance Assets Cash $ 140,000 $ 120,000 Accounts receivable 450,000 530,000 Inventory 320,000 380,000 Plant and equipment, net 680,000 640,000 Investment in ABC, Inc. 250,000 280,000 Land (undeveloped) 180,000 170,000 Total assets $ 2,020,000 $ 2,120,000 Liabilities and Stockholders' Equity Accounts payable $ 360,000 $ 310,000 Long-term debt 1,500,000 1,500,000 Stockholders' equity 160,000 310,000 Total liabilities and stockholders' equity $...