Harriets Hats Essay

1. A year-end physical count of office supplies on hand reveals supplies worth $1,800. The symmetry sheet reflected a balance in the office supplies note of $3,700 forward any year-end adjustments were made. What is the amount of supplies put down that give be included on the cur roue year income statement?2. On declination 1, 20Y1, Nelson collected rent of $7,200 (for December, January, and February rent) from a tenant renting some lacuna in its warehouse and credited Unearned Rent Revenue for the constitutional amount. What is the balance sheet pry of Unearned Rent Revenue on 12/31/Y1?3. On July 31, 20Y1, Smith Company paid $10,200 to rent warehouse space for the period 7/31/Y1 to 7/31/Y2. This warehouse space was also rented from 7/31/Y0 to 7/31/Y1. Smiths 1/1/Y1 balance sheet reflected a balance in the Prepaid Rent account relating to this warehouse of $5,775. keep an eye on the amount of rent expense that would appear on Smiths 20Y1 income statement.EXAM 1 REVIEW PAG E 1Reporting excess Income ItemsPlush Textiles had a beginning balance in its retained salary account of $580,000 on January 1, 20Y1. Income from Continuing Operations (before- measure) was $225,000 for 20Y1. The communitys tax rate is 30% for all years presented. Following is a propensity of special items that have not been considered in the amounts above. All amounts are before taxesExtraordinary gainCorrection of a 20Y0 revenue understatementLoss from operations of a discontinued textiles theatrical roleGain on sale of the textiles divisionOmission of depreciation charges from January and February 20Y1$31,000$50,000$22,000$60,000$10,000Prepare a fond(p) income statement for 20Y1 head start with Income From Continuing Operations before Taxes.What is the 12/31/Y1 balance in the Retained Earnings account?Change in Accounting normalTom Zuluaga Company began operations in 20Y1. In 20Y1 and 20Y2, the company estimated its tough debt expense by using the dowery of credit sales method. During 20Y3, the companys focus decided to variety to the aging-ofreceivables method for determining negative debt expense. Yearly bad debt expense using the two methods is presented below. Tom Zuluaga has a 35% tax rate.20Y120Y220Y3% of Credit Sales$450,000$300,000$320,000Aging-of-Receivables$380,000$270,000$290,000How much bad debt expense will be reported on the 20Y3 Income Statement? What is the dollar value (if any) of the 20Y3 adjustment to the beginning balance of Retained Earnings to reflect this change in accounting principle?DebitCreditWhat Balance rag week account other than Taxes Payable and Retained Earnings needs to be adjusted in 20Y3? By how much? AccountChange in Accounting Estimate$DebitCreditTom Zuluaga Company lay an asset in service on January 2, 20Y1. Its cost was $1,350,000 with an estimated service animateness of 6 years. Salvage value was estimated to be $90,000. During 20Y3 the companys management determined, due to technological obsolescence , the assets remaining useful behavior is 2 years, and the salvage value is estimated to be $45,000. The company uses the straight-line method of depreciation. fag a 35% tax rate. How much depreciation expense will be reported on the 20Y3 Income Statement?How much depreciation expense will be reported as an adjustment to the beginning balance of Retained Earnings? $DebitLong-Term ContractsOn July 1, 20Y1, kindred twist Company Inc. start outed to build an office building for Moser Corp. for a wide contract price of $2,500,000. On July 1, Tribe Construction estimated that it would take mingled with 3 and 4 years to bump off the building. On December 31, 20Y4, the building was completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Moser for 20Y1 20Y4.Contract costs incurred to dateEstimated costs to complete the contractBillings to Moser to dateCollections to dateAt 12/31/Y1$ 250,0001,750,000325,000 200,000At 12/31/Y2$ 1,300,0001,100,0002,000,0001,800,000At 12/31/Y3$ 1,800,000750,0002,300,0002,000,000At 12/31/Y4$ 2,650,000-02,500,0002,500,000Complete the following information regarding the amount of profit/loss Tribe will recognize each year of the contract At 12/31/YIAt 12/31/Y2At 12/31/Y3At 12/31/Y4Percent Complete Method absolute Contract MethodPrepare a 12/31/Y2 partial balance sheet related to the above contract, assuming Tribe uses the percentage of completion method.