Pierce Company was founded in Year 1 and engaged in the following transactions:1. Issued common stock for cash2. Paid rent in advance for three months at a time3. Purchased supplies on account4. Collected cash from a customer for services to be provided over a period of one year5. Paid a cash dividend to stockholders6. Purchased a two-year fire insurance policy7. Provided services to customers on account8. Collected cash from customers in partial settlement of accounts receivable9. Paid cash for various operating expensesRequired:a) Identify the transactions from the list above that will require adjusting entries at year end.b) Explain why adjusting entries are required before financial statements can be prepared.
What will be an ideal response?
a) Adjusting entries are required for transactions 2, 3, 4, and 6
b) Adjusting entries are required at the end of an accounting period to properly match expenses with revenues. Transactions that involve deferrals and accruals often require adjusting entries to bring account balances up to date.
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Harper is originally from Lithuania but has begun a new job in Spain. Her time in the Spanish culture has led her to undergo a gradual process of changes in her individual behavior, identity, values, and attitudes. This process is known as ______.
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Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $240,300 and 4690 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $243,000 and actual direct labor-hours were 4640.The predetermined overhead rate for the year was closest to:
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Howard Company provided the following selected information about its consumer products division for the current year: Desired ROI 10?%Net income$249,000? Residual income$190,000? Based on this information, the division's investment amount was:
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