Harriets Hats Essay

1. A year-end physical count of smudge supplies on hand reveals supplies worth $1,800. The proportionality planing machine reflected a balance in the office supplies account of $3,700 before every year-end accommodations were made. What is the amount of supplies spending that give be included on the trustworthy year income statement?2. On celestial latitude 1, 20Y1, Nelson collected allow of $7,200 (for December, January, and February rent) from a populate renting some space in its warehouse and credited Unearned admit revenue for the entire amount. What is the balance cerement lever 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 stable gear reflected a balance in the pay Rent account relating to this warehouse of $5,775. influence the amount of rent set down that would place on Smiths 20Y 1 income statement. exam 1 REVIEW PAGE 1Reporting Special Income ItemsPlush Textiles had a beginning balance in its kept up(p) earnings account of $580,000 on January 1, 20Y1. Income from chronic Operations (before- valuate) was $225,000 for 20Y1. The follows tax rate is 30% for all historic period presented. pastime is a list of circumscribed items that have not been considered in the amounts above. on the whole amounts are before taxesExtraordinary incrementCorrection of a 20Y0 revenue understatement hurt from operations of a discontinued textiles courseGain on sale of the textiles categoryOmission 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 go along Operations before Taxes.What is the 12/31/Y1 balance in the retained clams account?Change in account Principle tom Zuluaga Company began operations in 20Y1. In 20Y1 and 20Y2, the company estimated its questi oning debt put down by using the destiny of credit sales method acting. During 20Y3, the companys instruction decided to change to the aging-ofreceivables method for determining disconsolate debt expense. Yearly bad debt expense using the two methods is presented below. tom Zuluaga has a 35% tax rate.20Y120Y220Y3% of cite Sales$450,000$300,000$320,000Aging-of-Receivables$380,000$270,000$290,000How ofttimes bad debt expense will be reported on the 20Y3 Income Statement? What is the dollar value (if any) of the 20Y3 adjustment to the beginning balance of Retained gain to reflect this change in news report principle?DebitCreditWhat offset Sheet account other than Taxes account payable and Retained Earnings needs to be adjusted in 20Y3? By how much? AccountChange in bill Estimate$DebitCreditTom Zuluaga Company placed an asset in aid 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 t he companys management determined, due to technological obsolescence, the assets remaining useful life 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 choosesOn July 1, 20Y1, common people Construction Company Inc. promise to build an office building for Moser Corp. for a total contract price of $2,500,000. On July 1, Tribe Construction estimated that it would take in the midst of 3 and 4 years to have sex the building. On December 31, 20Y4, the building was breeze throughd. Following are accumulated contract be incurred, estimated costs to complete the contract, and accumulated billings to Moser for 20Y1 20Y4. geld costs incurred to dateEstimated costs to complete the contractBilli ngs to Moser to dateCollections to dateAt 12/31/Y1$ 250,0001,750,000325,000200,000At 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$ 2,650,000-02,500,0002,500,000 remove the following information regarding the amount of profit/loss Tribe will issue each year of the contract At 12/31/YIAt 12/31/Y2At 12/31/Y3At 12/31/Y4 percent Complete MethodCompleted Contract MethodPrepare a 12/31/Y2 partial balance sheet related to the above contract, assuming Tribe uses the percentage of completion method.