Prepare the general journal entry to record this transaction. If a husband and wife purchased two vehicles at one time from the same dealer, and the dealer received a total of $10,200 in cash, the dealer can view the transaction as a single transaction or two related transactions. Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file a Form 8300. Do Not Sell My Personal Information (California). A company provided $3,200 of accounting services to a customer on account. as the services being performed and invoice being issued to customer. -a credit to Utilities expense. During the month, a company uses up $4,000 of supplies. the cash is received, the company records the following journal entry: 26. Credit terms of 3/10, n/30 mean that a(n). Prepare the general journal entry to record this transaction. A company billed a customer $4,800 for services performed. -ensure that revenues and expenses are recognized conservatively during the period hey are paid. $10,000, Question 1: Answers: Option (D) Debit cash $10,000, credit unearned revenue $10,000 . A company received $35,000 cash from sales to customers. Those who file many forms may find the batch e-filing option helpful. document.getElementById( "ak_js_3" ).setAttribute( "value", ( new Date() ).getTime() ); This field is for validation purposes and should be left unchanged. A company made a $200 payment on account for supplies that had been previously purchased. invoice to the customer. , this problem (X,Y)? Using the accrual method, what's the correct entry to record the transaction? d Prepare the general journal entry to record this transaction. Prepare the general journal entry to record this transaction. select all applyblood glucose monitorscontinous Kathy is 60 years of age and self-employed. Prepare the general journal entry to record this transaction. -increasing assets and decreasing expenses or increasing liabilities and decreasing revenues. Prepare the general journal entry to record this transaction. (0,100) c Financial exchanges that occur over a time period that exceeds 24-hours can still be considered related if the recipient knows, or has reason to know, that each transaction is on a series of connected transactions. NexGen Energy is a Canadian company focused on delivering clean energy fuel for the future. Prepare the general journal entry to record this transaction. The BSA E-Filing System includes batch processing functionality in XML format. Form 8300 must be filed for each separate transaction that exceeds the $10,000 in cash limit. -ensure that all estimates of future activities are eliminated from consideration. -Prepaid insurance. Which of the following statements regarding the effect of a net loss on the closing process is true? Once you reach the $500 cap for earning 5 percent back on your top spending category, you'll keep earning 1 percent back on those purchases in the same category until a new . At the time. The person on whose behalf this transaction was conducted: If you are a business owner and one of your employees handles the transaction, you are required to give detailed information such as their name and employee ID. Each person engaged in a trade or business who, in the course of that trade or business, receives more than $10,000 in cash in one transaction or in two or more related transactions, must file Form 8300. -Adjustments help the financial statements to present the best picture of whether the company's activities were profitable for the period. A company performed $1,250 of services on account. A company performed $3,750 worth of services that had previously been paid for by a customer. -The total credits recorded in revenue accounts must equal the total debits recorded in expense accounts. E-filing is a free, quick, and secure method for filing Forms 8300. Amena Company collected $1,246 cash as payment for an account receivable for services previously provided to a customer. -Debit Prepaid Expense $10,000 and credit Cash $10,000. The customer paid cash immediately. Suppose for example, the business provides services to a customer and receives immediate payment for cash for the amount of 500, then the journal entries will be as follows. Prepare the general journal entry to record this transaction. d. earned and already received and recorded. Prepare the general journal entry to record this transaction. The technical storage or access that is used exclusively for statistical purposes. The December 31, 2013, adjusted trial balance of a company, where all accounts have normal balances is: Cash $ 1,620 Supplies 3,120 Service revenue 6,600 Retained earnings, January 1 560 Accounts Payable 460 Dividends declared 2,120 Unearned revenue 3,000 Wages expense 3,200 Supplies expense 560 Given this information, after all closing entries are made, the balance in the retained earnings account is: Which of the following statements regarding the need for adjustments is not true? -Debits reduce expenses. A company purchased $1,200 of supplies on account. A company earned $15,000 in revenue from a customer who purchased services on credit. Any transaction in which the person knows the payer is trying to avoid the reporting requirement. The card earns 1 percent back thereafter. -provide an opportunity to manipulate the numbers to the best effect. Cash 10,000 Accounts Receivable 10,000 c. Cash 10,000Unearned Revenue 10,000 d. Accounts Receivable 10,000Service Revenue 10, c . 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Page Last Reviewed or Updated: 18-Oct-2022, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, Electronic Federal Tax Payment System (EFTPS), Fact Sheets for Frequently Asked Questions, Forms 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, Publication 526, Charitable Contributions, Publication 1544, Reporting Cash Payments of Over $10,000, Guidance for the Insurance Industry on Filing Form 8300, Form 8300 and Reporting Cash Payments of Over $10,000, FAQs for Indian Tribal Governments regarding Non-Casino Cash Transactions Over $10,000 - Form 8300, Treasury Inspector General for Tax Administration, Understand how to report large cash transactions. -debit to Wages Payable for $700 and a credit to Cash for $700. As part of a single transaction or two or more related transactions within a 12 month period. Regardless of whether you file electronically or on paper, you must timely file a complete and accurate form. You have created 2 folders. Prepare the general journal entry to record this transaction. Prepare the general journal entry to record this transaction. A company bought equipment on account for $2,000. Option A is correct because we have to Debit tools expense and credit cash. Make some quick cash by posting a classified ad on the best local shopping marketplace. FinCEN's announcement of XML batch processing for FinCEN Form 8300. One way the IRS makes sure that businesses stay honest is by requiring Form 8300. (A) Debit cash$10,000, credit accounts receivable $10,000 (B) Debit cash$10,000, credit sales revenue$1 0,000 (C) Debit sales revenue$10,000, credit cash $10,000 Prepare the general journal entry to record this transaction. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Form 8300. If the person is unable to obtain the payer's TIN, the they should file Form 8300 anyway and include an explanation why the form doesn't have the TIN. a. Prepare the general journal entry to record this transaction. Using the cash basis of accounting the December income statement will report $0 revenues and expenses of $1,500 for a net loss of $8,500 even though I had earned $10,000 in accounting fees. Repairs and Maintenance Expense24,800DEBITCash24,800 CREDIT. Using the accrual method, what's the correct entry to record the transaction? NAIROBI, Kenya, May 1 President William Ruto has announced plans to increase the Hustler Fund credit facility to a maximum of Sh200,000 beginning June. Prepare the general journal entry to record this transaction. $40,000$10,000$30,000$20,000 Question From a broader viewpoint, an investment can be defined as "to tailor the pattern of expenditure and receipt of resources to optimise the desirable patterns of these flows". Please select the correct language below. Organize your finances and make sure you can access your money once you arrive in Canada. Prepare the general journal entry to record this transaction. Minimize 20X + 30Y Two major cash outflows are the retirement of debt ($31,375) and the dividend payment ($62,125), which together represent 127% of net income. A company performed services for a client and received $10,000 cash. This applies to payments from persons who have been arrested or anticipate arrest. A designated reporting transaction is the retail sale of tangible personal property that's generally suited for personal use, expected to last at least one year and has a sales price of more than $10,000. -debit of $4,500 to Accounts Payable and a credit of $4,500 to Stockholders' Equity. (A) Debit cash $10,000, credit accounts receivable $10,000 (B) Debit cash $10,000, credit sales revenue$1 0,000 (C) Debit sales revenue $10,000, credit cash $10,000 A company received $2,000 cash for its services to be performed later. Prepare the general journal entry to record this transaction. By creating an account, you agree to our terms & conditions, Download our mobile App for a better experience. This month, the company should: -Debit Cash $10,000 and credit Service Revenue $10,000. Softbyte Corporation collected $2,800 from a client for services previously provided on account. We'll bring you back here when you are done. The inventory records for Radford Co. reflected the following Beginning inventory @ May 1 100 Unearned revenues are a. received and recorded as liabilities before they are earned. The practice of dividing the life of the business into months and years. b. Prepare the general journal entry to record this transaction. -Adjusting entries are intended to change the operating results to reflect management's objectives for operating performance. Prepare the general journal entry to record this transaction. Which of the following is not true about the Income Statement? Get access to this video and our entire Q&A library, The Differences Between Accrual & Cash-Basis Accounting. select all applyblood glucose monitorscontinous glucose monitorsnebulizersflu vaccincesall of the above. Cash Basis Using the cash basis method of accounting, you would take the $2,000 cash received minus the $100 you paid for company purchases, and your accounting spreadsheet would show that your company currently has $1,900 profit. A company receives $10,000 cash for performing landscaping services. A company collected $4,000 from a customer who had previously purchased services on account. Further, the Company announces a non-brokered private placement financing of up to 9,090,910 units of the Company (the "Units") at a price of 0.11 per Unit for aggregate gross proceeds of up to . Prepare the general journal entry to record this transaction. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); Community Tax, LLC It's also the sale of travel and entertainment, if the total price of all items for the same trip or entertainment event is more than $10,000. This site is using cookies under cookie policy . -a decrease in an asset and an equal increase in expenses. Description of the transaction and method of payment: This section will ask for the exact amount and the method used for a payment. 4 likes, 0 comments - Global Investment Broker K. Harvey (@kattian_harvey__) on Instagram: " A new day with another Satisfied Client , Do You Wanna Be The Next . You must file Form 8300 with the IRS if any part of the transaction occurs within any of the 50 states, the District of Columbia or a U.S. possession or territory (American Samoa, The Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico and the U.S. Virgin Islands). 16. A company received $2,000 from a client for services it had previously performed. -a credit to Accounts payable for $3,500. By entering your phone number and clicking the Get Started button, you provide your electronic signature and consent for Community Tax LLC or its service providers to contact you with information and offers at the phone number provided using an automated system, pre-recorded messages, and/or text messages. The payment would be recorded in January as a:-debit of $4,500 to Cash, a credit of $1,500 to Advertising Expense, and a credit of $3,000 to Prepaid Advertising. The calculation and explanation is as shown below: The unearned revenue ismoney received by an individual or company for a service or product that has yet to be provided or delivered. Prepare the general journal entry to record this transaction. A recipient of cash may be fined up to $500,000 (in case of corporation) or sentenced to up to five years in prison, or both, plus the cost of prosecution for willful failure to file Form 8300 or willful failure to include complete and correct information on Form 8300. A company paid $193 for office supplies that had been previously purchased on account. what's the cored entry to record the transactions? A company receives $10 000 in cash for services yet to be performed using the accrual method. Supplies16,800 DEBITAccounts Payable16,800 CREDIT. A company purchased $1,000 of office supplies for cash. Per company policy, tools with a purchase price greater than $1,000 .