Harriets Hats Essay

1. A year-end physical count of social occasion supplies on hand reveals supplies worth $1,800. The repose sheet reflected a balance in the ability supplies account of $3,700 before any year-end adjustments were made. What is the amount of supplies expense that will be included on the current 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 set in its warehouse and credited Unearned Rent Revenue for the entire amount. What is the balance sheet value of Unearned Rent Revenue on 12/31/Y1?3. On July 31, 20Y1, Smith partnership 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. Determine the amount of rent expense that would turn up on Smiths 20Y1 income statement.EXAM 1 REVIEW PAGE 1Re porting Special Income ItemsPlush Textiles had a beginning balance in its retained earnings account of $580,000 on January 1, 20Y1. Income from act Operations (before-tax) was $225,000 for 20Y1. The companys tax rate is 30% for all years presented. Following is a list 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 divisionGain 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 partial income statement for 20Y1 starting with Income From Continuing Operations before Taxes.What is the 12/31/Y1 balance in the Retained profit account?Change in Accounting PrincipleTom Zuluaga Company began operations in 20Y1. In 20Y1 and 20Y2, the company estimated its bad debt expense by using the percentage of credit sales method. During 20Y3, the companys m anagement mulish to change to the aging-ofreceivables method for determining bad debt expense. Yearly bad debt expense using the two methods is presented below. Tom Zuluaga has a 35% tax rate.20Y120Y220Y3% of Credit gross sales$450,000$300,000$320,000Aging-of-Receivables$380,000$270,000$290,000How much bad debt expense will be account on the 20Y3 Income Statement? What is the dollar value (if any) of the 20Y3 adjustment to the beginning balance of Retained Earnings to reflect this change in accounting principle?DebitCreditWhat Balance Sheet account other than Taxes Payable and Retained Earnings ineluctably to be adjusted in 20Y3? By how much? AccountChange in Accounting Estimate$DebitCreditTom Zuluaga Company fit(p) an asset in service on January 2, 20Y1. Its cost was $1,350,000 with an estimated service life of 6 years. Salvage value was estimated to be $90,000. During 20Y3 the companys management determined, due(p) to technological obsolescence, the assets remaining useful l ife is 2 years, and the salvage value is estimated to be $45,000. The company uses the straight-line method of depreciation. Assume 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, Tribe Construction Company Inc. contracted to build an office building for Moser Corp. for a total contract price of $2,500,000. On July 1, Tribe Construction estimated that it would take between 3 and 4 years to manage the building. On December 31, 20Y4, the building was completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Moser for 20Y1 20Y4.Contract costs incurred to dateEstimated costs to complete the contractBillings to Moser to dateCollections to dateAt 12/31/Y1$ 250,0001,750,000325,000200,000At 12/31/Y2$ 1,300,0001,100,0002,00 0,0001,800,000At 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 regularityCompleted Contract MethodPrepare a 12/31/Y2 partial balance sheet related to the above contract, assuming Tribe uses the percentage of completion method.