Applying the time-period concept

consider the following situations:

a. business receives $2,000 on january 1 for 10-month service contract for the period january 1 through october 31.

b. total salary for all employees is $3,000 per month. employees are paid on the 1st and 15th of the month.

c. work performed but not yet billed to customers for the month is $900.

d. the company pays interest on its $10,000, 6% note payable of $50 on the first day of each month.

requirement

1. assume the company records adjusting entries monthly. calculate the amount of each adjustment

4. the condition requires that only one of the selected criteria be true for a record to be displayed.

Jordan, inc. sells fireworks. the company’s marketing director developed the following cost of goods sold budget for april, may, june, and july. april may june july budgeted cost of goods sold $62,000 $72,000 $82,000 $88,000 jordan had a beginning inventory balance of $3,000 on april 1 and a beginning balance in accounts payable of $14,600. the company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. jordan makes all purchases on account. the company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. required prepare an inventory purchases budget for april, may, and june. determine the amount of ending inventory jordan will report on the end-of-quarter pro forma balance sheet. prepare a schedule of cash payments for inventory for april, may, and june. determine the balance in accounts payable jordan will report on the end-of-quarter pro forma balance sheet.

Experienced problem solvers always consider both the value and units of their answer to a problem. why?