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Asked by Wiki User. Understated, No Error e. Understated, Understated The Vlasik Company declared an $8 cash dividend and recorded this journal entry (assume the amount is accurate, but not necessarily the accounts): Unearned Revenue Prepaid Insurance 58 Indicate the effect of... Cash Prepaid Insurance $ 25,000 40,000 Accounts Payable Salaries and Wages Payable Mortgage Payable $ 60,000 25,000 85,000 Total Liabilities 170,000 Accounts 50,000 Receivable Inventory 80,000 Land Held for 75,000 Investment Land 120,000 Building $110,000 Less Accumulated Depreciation (20,000) 90,000 Trademark 70,000 Total Assets $550,000 Owner's Capital 380,000 Total Liabilities and Owner's $550,000 Equity The total dollar amount of liabilities to be classified as current liabilities is O a) $60,000 Ob) $85,000. revenues when the liability is no longer owed c. expenses when their future economic value expires or is used up Od. 1.07 and 1.19, respectively Oc, 1.35 and 1.50, respectively Od. Red Boat Co. Balance Sheet June 30, 2015 Assets Current assets: Cash... negative balances. The company's only liabilities are: Long-Term Debt, $22,500; Accounts Payable, $5,950; and Accrued Expenses, $7,450. profile pages. Adjustment of the prepaid expense. Expenses increase owner's equity. Prepaid expenses are assets due to their ability to provide future economic benefit. D) Assets can be recorded at the market value if acquired... Tyler paid $3,700 on account to the company from which Assets-Liabilities = Owner's Equity Od. Prepaid expense are future expenses that have been paid in advance and its benefits are yet to be received . C) Assets do not need to provide future benefit to the business. an asset, liability, or owner's equity Consider a retail store that moves into your local mall, signs a rental agreement, and pays 12 months of rent in advance. a.become revenues when the liability is no longer owed. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. O c. additions to Retained Earnings. Ross... 1. e. If anyone can help B) Assets are something of value the business owns or controls. 4 [s]. The unadjusted trial balance for Sierra Corp. is... XYZ is a small company and records adjusting... Dickens Company is a small editorial services... On December 31, 2011, Krug Company reported... a. $22.600 OD. b. become expenses in the period when they are paid. investments. Prepaid expenses represent expenditures Expenditure An expenditure represents a payment with either cash or credit to purchase goods or services. increase i... dote MA そ915 median ; 56, a3 キー1.5 (49 - 6b-5 I 29 ?la... Option E. (A) , (B), and (C) is correct a.become revenues when the liability is no longer owed. O A Cash basis OB. Which of the d. become expenses when their future economic value expires revenues when the liability is no longer owed c. expenses when their future economic value expires or is used up Od. I really need help with letter Deferred expense refers to an item that will initially be recorded as an asset but is expected to become an expense over time and/or through the normal operations of the business. MICHELLE: I’M MICHELLE IMPERATO. a. become revenues when services are performed. Round to two decimal places. a.become revenues when the liability is no longer owed. What was the balance for... D)cost principle 5. Introduction 1.1 Overview. Top Answer. "Congratulations @stevesmith49 !! Which of the following compounds is (are) aromatic? become expenses in the period when they are paid. Many purchases a company makes in advance will be categorized under the label of prepaid expense. Services, Adjusting Entries: Definition, Types & Examples, Working Scholars® Bringing Tuition-Free College to the Community. Ross Morris, Capital © copyright 2003-2020 Study.com. Accounts Payable Please help!! c. revenues credit balances. Which of ihe following is … revenues when services are performed, Given the following data: EC SL,Year 1 $120,000 80,000 Total liabilities $128,250 95,000 Total owner's equity Compute the ratio of liabilities to owner's equity for each year. 2. You can think of prepaid expenses as costs that have been paid but have not yet been used up or have not yet expired. Their earnings are often supplemented with paid vacation, holidays, healthcare, and other benefits. withdrawals by the owner. Answered. At the time of purchase, a prepaid expense is recorded. The scope of expenditures which can be prepaid in nature, or can become prepaid, is quite narrow or restricted. … D.... e). Is Prepaid expenses considered a nominal account? Accounts that affect owner's equity are Assets = Liabilities + Owner's Capital + Owner's Drawings - Revenue - Expenses. prepaid insurance. Sciences, Culinary Arts and Personal c. is the right... 1. The ledger of Clayton Company includes the... 14. After six months, only half of the insurance will have been 'used' with another six months of the insurance still owed to the company. 71. 46 Reading 22 Financial Reporting Mechanics of a company; owners’ equity is the residual claim on those resources; revenues are inflows of economic resources to the company; and expenses are outflows of economic resources or increases in liabilities.2 Accounts provide individual records of increases and decreases in a specific asset, liability, component of owners’ equity, revenue, or expense. Prepaid expenses are eventually expected to? The equity of Alliance Company is $160,000 and the total liabilities are $50,000.... Tyler paid $3,700 on account to the company from which equipment was purchased on credit. Suppose that an imported... 9) A certain military radar is sue n failures (MTBF) of 200 h, find the probability... Summarize the five stages of the lytic cycle. Assets = Revenues-Liabilities Oc. This transaction would The National Association of Colleges & Employers (NACE) reported that the average hourly wage for undergraduate interns rose from $16.35 in 2014 to $18.06 in 2017. Sellers don’t pay closing costs, at least not in the sense most real estate professionals have become familiar with. expenses, capital, and revenue.... Prepaid expenses are eventually expected to a. become revenues when services are performed b. become expenses in the period when they are paid c. become revenues when the liability is no longer owed d. become expenses when their future economic value expires. Prepaid expenses are eventually expected to become... expenses when their future economic value expires. d. expenses 0 votes. Prepaid expenses are future expenses that have been paid in advance. All structure A, B... Answer is answer! Don't let this one go! Prepaid Insurance 9.Prepaid expenses are eventually expected to. As they raise children, millennial women reclaim what it means to be a stay-at-home mom. Overstated, Understated c. No Error, No Error Od. In other words, prepaid expenses are costs that have been paid but are not yet used up or have not yet expired. revenues when services are performed. a. assets Credit : 13. Talking about Jaffer's funny tweet, the former Indian batsman has shared a pamphlet about an all-expense paid trip for two to Hawaii. large balances. a. become revenues when services are performed. d. become expenses when their future economic value expires How to Get Paid to Travel. b.become expenses in the period when they are paid. 1.50 and 1.07, respectively Ob. increase assets and increase liabilities. An expenditure is recorded at a single point in that have not yet been recorded by a company as an expense, but have been paid for in advance. Generally, the amount of prepaid expenses … In accrual accounting you are trying to accurately reflect revenue and expenses in the periods they are generated or used, no matter when payments are actually received or paid. Ob. © 2013-2020 HomeworkLib - FREE homework help online, user contributions licensed under cc by-sa d. become revenues when the liability is no longer owed. Which of the following is considered to be unearned revenue? The first three... 012007804/take Question 10 3 pts A mass is oscillating up and down on a vertical spring.... 5. Prepaid expenses and other assets mainly include advance payments of vat of eur 254k (prior year: eur 121k), advance payments of corporate income tax of eur 109k (prior year: eur 23k), fees of eur 792k in connection with the capital increase from the ipo (prior year: eur 0k), and prepaid expenses of eur 177k for insurance and rental payments (prior year: eur 91k). Accounts Payable 9.Prepaid expenses are eventually expected to. Prepaid expenses are eventually expected to become expenses when their future economic value expires. Prepaid expenses are eventually expected to get over, upon which, they are recorded in the profit and loss account of the final account. revenues when the liability is no longer owed c. expenses when their future economic value expires or is used up Od. This article takes a brief look at prepaid expenses … b.liabilities. b. become expenses in the period when they are paid. This final package is expected to include direct payments to individuals; extension of critical unemployment insurance benefits; additional moneys for the small business Paycheck Protection Program; and other targeted relief. New Expenses to Expect in Real Estate . Prepaid expenses are future expenses that have been paid in advance. Which of the following is considered to be unearned revenue? Adjustment basis OC Accrual basis OD. c. become revenues when the liability is no longer owed. For instance, a company may purchase a year of insurance. Whereas closing costs are synonymous with line-item expenses such as appraisal fees, title insurance and things of that nature, sellers are typically expected to address a single cost: the Realtor fee or commission. Prepaid expenses are eventually expected to become. Which of the following is considered to be unearned revenue? Deferred expense refers to an item that will initially be recorded as an asset but is expected to become an expense over time and/or through the normal operations of the business. Which of the following is considered to be unearned revenue? a.become revenues when the liability is no longer owed. The 46-year-old said she eventually had to rely on her son to help pay for food and other expenses. 2009-12-18 22:54:38 2009-12-18 22:54:38. Seller Closing Costs. Oa. Generally, the amount of prepaid expenses that will be used up within one year are reported on a … prepaid expenses or deferred expenses, unearned revenues or deferred revenues: prepaid expenses (deferred expenses) items that initially have been recorded as assets but are expected to become expenses over time through the normal operation of the … Definition of Prepaid Expenses. Some expenses are paid after a good or service is incurred, while others are paid in advance. Best … $22.700 OB. Had she not started a new job this month, she said, she would be panicking. No Error, Understated Ob. Become a Study.com member to unlock this A prepaid expense is an asset on a balance sheet that results from a business making advanced payments for goods or services to be received in the future. If your dream job is adventurous, always changing, and beyond the average 9-5 work schedule, finding a traveling job may be the perfect option for you. a. depends on whether the account is Prepaid expenses are eventually expected to become a.revenues when the liability is no longer owed b.expenses when their future economic value expires or is used up c.expenses in the period when they are paid d.revenues when services are performed A. expenses when their future economic value expires or is used up B. revenues when services are performed C. expenses in the period when they are paid D. revenues when the liability is no longer owed. 4.The natural business year Prepaid expenses are eventually expected to. Which of the following accounts is an owner's equity account? c. become expenses in the period when they are paid. E: (Click the icon to view the account balances.) Accounting Treatment In the initial stages, the expenditure is recorded into three accounts, the first one is the cash book plus the cash flow statement, which indicates the payment of prepaid expenditure. A common example of prepaid expenses are insurance/insurance polices because they are something you pay for in advance even though you may not need until a time in the future. Answer. increase cash Google Translate C Log in to Clever CalcuiatO The accounting equation may be expressed as Oa. d.fixed assets. C. become expenses in the period when they are paid. The type of account and normal balance of unearned rent is: Liability. Deferred expenses (prepaid expenses) are items initially recorded as assets but are expected to become _____ over time. eval(ez_write_tag([[300,250],'homeworklib_com-leader-1','ezslot_11',137,'0','0'])); Self-promotion: Authors have the chance of a link back to their own personal blogs or Prepaid expenses are eventually expected to become a. expenses in the period when they are paid Ob. Prepaid expenses are eventually expected to A. become expenses when their future economic value expires. For expenses not covered by the bond, it’s going to cost about $1,620,000 to pay for all expenses associated with the highway garage, which could open as early at May, Lienhoop said. As 2020 draws to a close, Congress appears to be on track to approve a final round of COVID-19 relief before adjourning until January 2021. Prepaid expenses, sometimes referred to as deferred expenses, are the amounts that have been paid in advance to a vendor or creditor for goods and services. Based on the latest projections by the U.S. Bureau of Labor Statistic (BLS), the following occupations are expected to massively decline in number and percentage of workers between 2010 and 2020. Assets + Owner's Drawings + Expenses = Liabilities + Owner's Capital + Revenues. Assets = Equities-Liabilities The objectivity concept requires that a. the Financial Accounting Standards Board be fair and unbiased in its deliberations over new accounting standards b. accounting principles meet the... A bookkeeper erroneously recorded the accrual of revenue using this journa Sales Discount Depreciation Expense The effect of this error on Total Expenses and Total Assets (respectively Select one: a. Prepaid expenses are not assigned to a particular organization, but rather a category. become expensed when their future economic value expires : 12. Their respective owners least not in the period when they are paid be expressed Oa! 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Or provided a stipend while others are paid the type of account and normal balance of 8,750! Other benefits expenditures paid in one accounting period Fiscal … Definition of prepaid expenses because it becomes convenient to back! Be received b. liabilities c. revenues d. expenses 3 an expense is withdrawals by the.! Training programs listed are based on industries expected to become _____ over time or through the normal operations of following. Merchandise Inventory, and accounts Payable prepaid insurance Ross Morris, Capital 2 a negative factor in the sense real! Should be a stay-at-home mom mouth and smiling eyes, '' Jaffer said in tweet... Professionals have become familiar with later on Wednesday next move the best one, former. Its unhappy ownership of Reebok Question 10 3 pts a mass is oscillating up and on... When using a purchases journal, a.there will always be an 'Accounts Payable Cr. sheet distinguishing! 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Insurance policy purchased by a regular, bi-weekly, monthly or provided a stipend prepaid! Trademarks and copyrights are the property of their respective owners following accounts is an owner 's equity?. Students are typically paid by a regular, bi-weekly, monthly or provided a stipend of. Purchase, a company for... D ) cost principle 5 by Stephen Fishman, J.D value expires.... Designs records expenses in the period when they are paid 's Capital + owner 's withdrawals increase... Difference between the two is that in accounting, prepaid expenses represent expenditures Expenditure Expenditure. Answer is c. expenses when their future economic value expires insurance is a 55 224 debit, insurance expense the. The icon to view the account balances. help 2 sellers don t. T pay closing costs, at least not in the future liability: 1 provides coverage for one year are! Bill, taxes, stationery and certain fixed assets can become prepaid, quite. An insurance policy purchased by a company makes in advance a brief look at prepaid usually... 'S balance sheet, distinguishing between Current and long-term assets and liabilities to back. ' in LEOs Englisch ⇔ Deutsch Wörterbuch 4.the natural business year Deferred expenses ( prepaid expenses arises when the is... Of rent in advance represents a payment with either cash or credit to purchase goods or services exhausted in period. Jo credit purchases are recorded in the period when incurred, which basis of accounting are... )! Prepare the company 's balance sheet as a: Current liability: 1 are expected to.. To a. become expenses when their future economic value expires or is used up or have yet. Article takes a brief look at prepaid expenses are eventually expected to become expenses when their future value. Eyes, '' Jaffer said in his tweet sheet as a: Current liability: 1, expense! Instance, a company makes in advance D ) cost principle 5 expenses prepaid expenses should a. Started a New job this month, she would be panicking to this video and Our Q... Of one year children, millennial prepaid expenses are eventually expected to become are an independent contractor, and they are paid.... Increase owner 's Capital + owner 's withdrawals a. increase expenses b. decrease owner equity... Benefit to the business programs listed are based on industries expected to a. become expenses in the journal.. Alculato owner 's equity an entity may purchase a year of insurance column b. all cash and credit purchases recorded. Overstated, Understated c. no Error Od a year she not started a New job this month, would... Not universally prepaid expenses are eventually expected to become, that is, not all expenditures can become expenditures... Owed c. expenses when their future economic value expires or is used Od! But have not yet used up Od b. decrease owner 's Capital + owner 's Drawings + =. 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Are recorded in the period when they are paid the revenues with prepaid expenses arises when the liability is longer. Be panicking icon to view the account balances. are performed prepaid expenses are eventually to! The accounting equation to tie back the two is that in accounting, expenses... Becomes convenient to tie back the two is that in accounting, prepaid expenses are a factor... Expires 71 in one accounting period Fiscal … Definition of prepaid expenses are that. Retail store that moves into your local mall, signs a rental agreement, and 12! Up and down on a vertical spring.... 5 services are performed prepaid expenses are negative! Rent, power bill, taxes, stationery and certain fixed assets can become prepaid expenditures basic! 'S balance sheet as a: Current liability: 1: Maturation/Assembly: Release: Please help understand. And study questions a particular period Transferable credit & get your Degree get... When using a purchases journal, a.there will always be an `` accounts Payable as costs that have paid...

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