Mr. Tee ordered two computers which he is going to receive after 1 month. He is going to pay for the computers after their arrival. Besides, one of this computer is for his personal use at home. Should Mr. Tee record this transaction in the accounting book of the business? Give your explanations. Which accounting principle or assumptions should we apply here?

Mr. Tee ordered two computers which he is going to receive after 1 month. He is going to pay for the computers after their arrival. Besides, one of this computer is for his personal use at home. Should Mr. Tee record this transaction in the accounting book of the business? Give your explanations. Which accounting principle or assumptions should we apply here?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter3: The General Journal And The General Ledger

Section: Chapter Questions

Problem 2A: What Would You Say? You are the new bookkeeper for a small business. The bookkeeper whose job you...

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Mr. Tee ordered two computers which he is going to receive after 1 month. He is going to pay for the computers after their arrival. Besides, one of this computer is for his personal use at home. Should Mr. Tee record this transaction in the accounting book of the business? Give your explanations. Which accounting principle or assumptions should we apply here?
On June 1, 2021, Alan Harper buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will a .make a compound entry. b make a simple entry. c use two journal entries. d list the credit entries first, which is proper form for this type of transaction.
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On June 7, 2022 your mother visits Jewel to purchase purchase shampoo, paper towels, toothpaste, and laundry detergent. She finds all of the items on her list and pays the cashier $40 in cash (including taxes) for her purchases. Your mother returns home to find you studying for Acc. 350 and you comment that she had a contract with Jewel. She states that she paid in cash ... no legal document was signed. Eplain why a contract existed between your mother and Jewel on June 7, 2022?
Real Life Situation: You are a company owner and you decide to sell your own personal computer to your own business for $1,200. From now on, that computer will be used only for business purposes. How would you record the related transactions regarding the above decision in your company accounting books?
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Suppose you started your own landscaping business. A customer paid you $120 in advance to mow his lawn while he was on vacation. You also performed landscaping services for a local business, but the business hasn't paid you the $390 fee yet. In addition, a customer paid you $130 cash for landscaping services. Answer the following questions about the correct way to account for your revenue under accrual accounting: 1. Name the accounts used to record these events. 2. Prepare the journal entries to record the three transactions. 1. Name the accounts used to record these events. (Leave unused cells blank.) 10
What Would You Say? You are the new bookkeeper for a small business. The bookkeeper whose job you are taking is training you on the businesss manual system. As he journalizes, he writes the account number in the Post. Ref. column because he believes its easier. His thinking is that, when he posts, he wont be bothered writing the account numbers. How would you explain why he should not write the account number in the Post. Ref. column immediately and instead should enter the account number after he has posted the amount to the ledger?
Swift Company is a merchandising business organized in 2020. It is located in J. Hernandez Avenue, Naga City, with telephone number 1989-1213, and website tswiftmerchandising.com You were asked by the owner, Ms. T. Swift, to create a simple computerized accounting system for her business which they will use for records keeping, preparation of financial statements, and as substantiation for regulatory requirements. The December 31, 2021 post-closing trial balance for the Swift Company follows: Swift Company Post-Closing Trial Balance December 31, 2021 110 Cash ₱ 240,000 120 Accounts Receivable 210,000 130 Merchandise Inventory 730,000 140 Prepaid Rent 90,000 150 Office Supplies 160,000 160 Office Equipment 1,000,000 165 Accumulated Depreciation ₱…
Your uncle owns a small sole proprietorship. He does his own bookkeeping, although he didn't finish the chapter on closing entries before he opened his business. He mentions that closing entries look like they take a long time. He wonders why he should bother to do them, because all he looks at is the checkbook. What would you say to convince him that closing entries are necessary?
Peter the Plumber comes to you to ask your expert accounting advice. Peter has been researching about Bad Debts on the internet and has decided to do his own accounting. Peter has chosen to use the 'Direct Writeoff' method when accounting for his Bad Debts, because it appears simple and easy to record. Can you advise Peter whether this is a good idea? If yes, explain why you think it is a good idea. If no, explain why, and provide Peter with an alternative method or approach to account for his Bad Debts.
Delia Alvarez, the owner of Delia's Lawn Service, wants to borrow money to buy new lawn equipment. A local bank has asked for financial statements. Alvarez has asked you to prepare financial statements for the year ended December 31. You have been given the unadjusted trial balance on page 175, and you suspect that Alvarez expects you to base your statements on this information. You are concerned, however, that some of the account balances may need to be adjusted. In your post, write how you would explain to Alvarez what additional information you need before preparing the financial statements. Alvarez is not familiar with accounting issues. Therefore, explain why you need this information, the potential impact of this information on the financial statements, and the importance of making these adjustments before approaching the bank for a loan.