explain what unearned revenues are by selecting the statements below
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Explain what unearned revenues are by selecting the statements below which are correct. c) Service revenue would be credited for $200. Calculate the first month's depreciation expense as of December 31 using the straight-line method. Insurance expense would be debited for $300. b) debit interest payable and credit cash (Check all that apply.). c) They refer to earnings which have been earned but not yet billed. They refer to earnings which have been earned, but not yet billed. -The cycle contains steps for adjusting and closing accounts. The difference between income and revenues is self-explanatory. Explain what unearned revenues are by selecting the statements below which are correct. The closing process takes place at the ______ of an accounting period, after the ________ trial balance is prepared and ________ the financial statements are prepared. -They are reported on an income statement. If the company fails to deliver the promised product or service or a customer cancels the order, the company will owe the money paid by the customer. (Check all that apply.) Choose the statement below that demonstrates the correct adjusting entry to recognize depreciation expense on a building. Explain what unearned revenues are by selecting the statements below which are correct. Transcribed Image Text: K Randal's Service Company began operations on January 1, 2025. The final step is to create an adjusting journal entry to get from step 1 to step 2. c) $200 Explain what unearned revenues are by choosing the correct statement below. Show your understanding of the steps involved in adjusting entries by placing the following steps in the correct order of preparation. ), -Mortgage payable a) Record all prepaid expenses with credits to liability accounts. c. Book value. -Entering the titles of all accounts and their account number. Seller's viewpoint: "Accrued revenues " (also called "accrued assets" or unrealized revenues) are revenues earned by the seller for delivery of goods and services before the customer pays for them. Unearned revenue is a term in which the transactions that are related to the receiving of money could be considered for the service or product to be provided or delivered. (Check all that apply) d) January 1 to February 1, A business has a $10,000 loan from a bank at 8% annual interest. However, at the end of the first month, the monthly portion of the total amount ($79/12=$6.58) will be deducted from the unearned revenue figure and recorded as the revenue. The payment amount of $27,000 will be recorded under cash,increasing the assets, and under unearned revenue, increasing long-term liabilities. Salaries payable will be debited for $500. Service revenue would be credited for $400. Explain how to add adjustments to a work sheet when more than one adjustment is required: (Check all that apply.). They are also called deferred revenues. TERMS: A. Prepaid Expenses B. Unearned Revenues C. Accrued Revenues D. Accrued Expenses STATEMENTS: ___ 1. The formula to figure out the profit margin of a company is _______ divided by ________. By the end of the accounting period, the loan had been outstanding for 30 days. b) $100 c) expenses on the income statement will be understated. They are a liability. -It is reported on the balance sheet. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. -Notes payable (due in three months) Unearned revenues refer to income reported on the income. Unearned revenue would be debited for $700. f) The ending Owner, Capital account balance on the balance sheet is taken directly from the adjusted trial balance. To record this period's depreciation expense. Demonstrate the required adjusting journal entry by selecting from the choices below. b) The adjusted trial balance is a list of accounts and their balances after adjusting entries have been posted. Choose the statement below that demonstrates the correct adjusting entry to recognize depreciation expense on a building. b) $100 A) The normal balance of accounts receivable is a debit. Illustrate your understanding of how to use the adjusted trial balance to prepare an income statement by completing the following sentence. 800 of supplies were purchased at the beginning of the month and the Supplies account was increased. The revenue recording in the accounting books of an entity is necessary to calculate the net income. d) Debit Service revenue for $400. a. Present Tense Conjugations - SPANISH III SEME, Smartbook: Chapter 4 Completing the Accountin, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas. d) It reports amounts owed to employees and is an asset. By the end of the period, $400 of the policy had expired. Explain the difference between the unadjusted and the adjusted trial balance. The line items of the income statement provide details of revenues, expenses, gains, and losses in a bid to explain how a company earned its net income. was recorded as a liability. B. Contra asset is an account shown as an addition to the asset. -Profit margin is also called return on sales. They refer to cash received in advance of performing a service -The length of a company's operating cycle depends on its activities. Some credit counseling agencies offer free advice; others charge a fee. Show your understanding of the steps involved in adjusting entries by placing the following steps in the correct order of preparation. Remember revenue is only recognized if a service or product is delivered, a refund nulls recognition. The compensation could be a cash payment or a . e) The debit and credit column totals must balance. Explain your understanding of what an accrued expense is by selecting the statements below which are correct. Demonstrate the required adjusting journal entry on Dec. 31 by selecting from the choices below. -One purpose is to verify that total debits equal total credit for permanent accounts. Match the statements below with the appropriate terms by entering the appropriate letter code in the spaces provided. Explain what unearned revenues are by choosing the correct statement below. Demonstrate the required adjusting journal entry by selecting from the choices below. Accrued _______are earned in a period that are both unrecorded and not yet received in cash. Demonstrate the required adjusting entry by completing the following sentence. d) The adjusted trial balance generally has more accounts listed than the unadjusted trial balance. a) Debit Unearned revenues for $400. List the order in which financial statements are prepared. Supplies expense would be debited for $600. $300 were used during the month. Demonstrate the required adjusting entry by choosing the correct statement below. How will Chimney Sweeps record this transaction? Take a look at the P&L and then read a breakdown of it below. a) Cash will be debited for $600. They refer to cash received in advance of performing a service or product. c) The debit and credit column totals don't have to equal each other on an adjusted trial balance. At the end of the previous year, a customer owed Days Company $400. $1,000 of cash was received in advance of performing services. (Check all that apply.). Which of the, An advance payment of $1,000 for services was received on December 1 and. Answer: Unearned revenues refer to cash received in advance of providing a service or product. An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. -Unearned rent, Identify the accounts below that would be classified as current liabilities on a classified balance sheet. An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. Multiple choice question. -An account whose balance equals net income or net loss Last modified on Wed 27 Apr 2022 18.53 EDT. d) January 1. should be recorded when goods or services are provided to customers at an amount expected to be received. f) Net income is reduced. They are also called accounts receivable. Correct Answer. Russia has nearly doubled its revenues from selling fossil fuels to the EU during the two months of war in Ukraine, benefiting from soaring prices even . (Check all that apply.) -They are a liability. -Helps in the preparation of financial statements In this free session, the client explains her or his situation, and the attorney evaluates the options. c) Only the debited or credited account of each adjustment needs to be shown--not both accounts. By the end of the period, $300 had not yet been earned. Reason: -Entering the unadjusted balance for each account in the correct Debit or Credit columns of the Unadjusted Trial Balance columns. d) accounts receivable being understated, a) revenue being understated -Its original cost (minus any salvage value) is expensed over its useful life. below which are correct. Experts are tested by Chegg as specialists in their subject area. Unearned revenue. Accrual basis accounting recognizes __________ when earned and records __________ when _________ in order to adhere to the matching principle. Unearned revenues refer to customer payments which have not yet been received. Any Date Prepaid Insurance (Costof insurance policy) Cash An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month. Accounts receivable will be credited for $400. d) No matter how a prepaid expense was initially recorded, after adjustment, the financial statements will be identical. Multiple choice question. (Check all that apply.). c) They refer to earnings which have been earned but not yet billed. Demonstrate the required adjusting journal entry by selecting from the choices below. The account allows both the original cost of plant assets and the total depreciation taken to be shown simulta. Review the statements below and select the items that are correct regarding the operating cycle for a business. a) Each adjustment is identified by a letter in parentheses that serves as a cross-reference to the debit and credit side of the adjustment. Commonstock-$10parvalue,50,000sharesissuedandoutstanding$500,000Paid-incapitalinexcessofparvalue,commonstock200,000Retainedearnings660,000Totalstockholdersequity$1,360,000\begin{array}{lr} Demonstrate the required adjusting entry by choosing the correct statement below. Below is an example of Amazon's 2017 income statement. It would be credited for $700. b) An adjusted trial balance has one debit column and one credit column. Service revenue would be credited for $300. -Temporary accounts are reported on the income statement. e) Total assets will be increased. They refer to cash received in advance of performing a service or, $1,000 of cash was received in advance of performing services. In some cases, bankruptcy may be the only course available. A work sheet is a helpful tool which may be used to help prepare financial ________. In what ways have certain parties changed the United States? Define "current" as it applies to assets and liabilities on a classified balance sheet. Accrual basis accounting recognizes (equity/revenues/expenses) when earned and records (revenues/expenses/liabilities) when (incurred/paid) in order to adhere to the matching principle. (Check all that apply.). billed. The loan has been outstanding for 45 days. d) Profit margin is the ratio of a business's net income to its net sales. b) accounts receivable being overstated. Service revenue would be credited for $200. Which of the statements below describe(s) a temporary account? They are also called accounts receivable. \text{Total stockholders' equity}&\underline{\underline{\text{\$1,360,000}}}\\ d) The original date of the transaction being adjusted. b) An adjusted trial balance has one debit column and one credit column. Unearned revenues refer to amounts owed to the company that have not yet been billed. d) $73.97. Supplies -The accounting cycle contains 10 steps. A company using a calendar year-end will record an adjusting entry for a bill received on January 15 for services received during the month of December on: Cash received from a customer for unearned subscription revenue can initially be recorded as either a(n) ______ (revenue/expense) or a(n) ______ (liability/expense). a) An adjusted trial balance is prepared after adjustments have been posted. Business Accounting Choose the correct statement below: A. Unearned income is income earned and already collected. Debit Service revenue for $400. d) Accounts receivable will be credited for $500. Demonstrate the required adjusting entry by choosing the correct statement below. -The adjustment can be added to a blank line. Source: American Journal of Preventive Medicine 424242 (June 2012):5635702012):563-5702012):563570. a) Unearned revenue, utility expense The accounting cycle is repeated each reporting period and refers to the steps taken in preparing financial statements. By the end of the accounting period, employees have earned salaries of $500, but they will not be paid until the following pay period. Unearned revenues refer to amounts owed to the company that have not yet been billed. Supplies on hand. Accrued _______ are earned in a period that are both unrecorded and not yet received in cash. (Check all that apply.). Indicate whether each account would be reported in the (a) current asset; (b) property, plant, and equipment; (c) current liability; (d) long-term liability; or (e) owners equity section of the December 31, 2015, balance sheet of Kangaroo Consulting. 5. Salaries payable will be credited for $500. Using the double-declining-balance method of depreciation, calculate the following amounts for the car for each of the four years of its expected life: a. 1. (Check all that apply.). Long-term investments are sometimes referred to as noncurrent investments. Equipment (a) Find limx40S(x)\lim _{x \rightarrow 40} S(x)limx40S(x), if it exists. An unclassified balance sheet is one whose items are broadly grouped into assets, liabilities, and equity. -They are also called deferred revenues. c) debit interest expense and credit interest payable 4. As of December 31, the customer had not been billed nor had the transaction been recorded. credit -The adjusted trial balance is a list of accounts and their balances after adjusting entries have been posted. e) The debit and credit column totals must balance. Which of the following lists of assets would be classified as plant assets? When does the closing process take place? c) Debit Interest revenue for $600. is used to simplify record keeping B. To c) Salaries payable will be debited for $500. Demonstrate the required half of the adjusting entry by choosing the correct statement below. c) Service revenue will be credited for $900. h) An employee was paid his weekly wages in full at the end of the week. Which of the accounts below are considered accrued expenses? Reason: Adjustments involve increasing both an expense and a liability account. An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. 2. The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information What is Structured Query Language (SQL)? The chart of accounts used by Norton Printing Company is listed below. Debit Depreciation expense; credit Accumulated depreci, Explain what unearned revenues are by selecting the statements below which are correct. Unearned Revenue. Journalize and post the closing entries. The rationale behind this is that despite the company receiving payment from a customer, it still owes the delivery of a product or service. Blank 2: credit (Check all that apply.) Insurance expense would be debited for $300. Cash received from a customer for unearned subscription revenue can initially be recorded as either a(n) ______ or a(n). Depreciation is the process of allocating the costs of long-term assets over their expected useful life. It is a more detailed alternative to the single-step income . Franchise, Identify the accounts below that would be classified as intangible assets on a classified balance sheet. Describe the effect of an accrued revenue adjustment on the income statement and the balance sheet by choosing from the statements below. b) Debit Unearned revenue for $600. ( ) Identify which group of accounts may require adjustments at the end of the accounting period. It is increased with a debit and is considered an asset account. Depreciation expense -Profit margin is a useful measure of a business's operating results. They are reported on a balance sheet. Which of the following accounts is considered a prepaid expense? Demonstrate the required adjusting journal entry by selecting from the choices below. C) The normal balance of unearned revenues is a credit. Illustrate your understanding of how to use the adjusted trial balance to prepare a statement of owner's equity by completing the following sentence. $10,000 x.08 x 45/360. Financial statements are prepared more easily using the adjusted trial balance than with the general ledger. An income statement shows the organization's financial performance for a given period of time. $300 were used during the month. Examples of accrued expenses are wages expense and interest expense. Property, Plant and Equipment explanation, calcul Source: amazon.com. b) The balance sheet is the first financial statement prepared. By the end of the year, $400 had been earned. (Check all that apply.) Cash b) The adjusted trial balance contains only the accounts which were adjusted. Unearned revenues refer to cash received in advance of providing a service or product. A plant asset refers to the stock purchased by a business held for future investment. At the end of the previous year, a customer owed Chocolates R US $500. f) Accounts are generally listed in the same order as listed in the chart of accounts. The following Trial Balance was prepared on December 31, 2025. O An asset on the balance sheet. They are also called deferred revenues. Which of the statements below explains the accounting cycle? Question: Explain what unearned revenues are by selecting the statements below which are correct. Statement of Owner's Equity (Retained Earnings) -Intangible assets are long-term resources that benefit business operations, but lack physical form. b) It reports amounts owed to employees and is a liability. Username * E-Mail * Password * Confirm Password * Captcha * 33:5-33+11*3-11:3 = ? Which of the following is the correct adjusting entry? They refer to earnings which have been earned, but not yet billed. ( c ) Is the function accurate as x40x \rightarrow 40x40 ? -Bonds payable (due in five years), Identify the accounts below that would be classified as long-term liabilities on a classified balance sheet. -the closing process resets the balances in temporary accounts to zero. d) Expenses are increased. Which statements below are true regarding permanent and temporary accounts? -Investments in bonds, Identify the accounts below that would be classified as a long-term investment. Examples of accrued expenses are wages expense and interest expense. StoryBook should record the following adjusting entry at the end of December: (Check all that apply). b) Service revenue would be credited for $700. A plant asset is the portion of a current asset which will be used up in the next accounting period. or product. It is as a prepayment Also it is a liability account that should be recorded at the balance sheet. Explain your understanding of what an accrued expense is by selecting the statements below which are correct. Supplies would be credited for $200. Sheldon Company had $500 for one day of accrued salaries on December 31 of the prior year. List of Excel Shortcuts d) Adjustments involve increasing both an expense and a liability account. Reason: e) The adjusted trial balance includes all accounts and balances appearing in financial statements. billed. -Financial statements are prepared more easily using the adjusted trial balance than with the general ledger. c) Salaries payable will be debited for $500. d) No matter how a prepaid expense was initially recorded, after adjustment, the financial statements will be identical. By the end of the accounting period, employees have earned salaries of, $500, but they will not be paid until the following pay period. A plant asset refers to a long-term tangible asset used to produce and sell products or services. b) Utilities expense; Cash; Owner, Capital Which of the following lists contains only temporary accounts? -The Accumulated depreciation account allows the original cost of the asset to remain in the plant asset account. (Check all that apply.). Demonstrate the required adjusting entry by completing the following sentence. Norfolk Southern Corp. reports revenue in its income statement when the performance obligation is satisfied instead of when cash is received. The required adjusting entry would be to debit the ________ (Unearned revenue/Accounts receivable/Cash/Interest receivable) account and __________ (debit/credit) the _______ (Cash/Accounts receivable/Interest revenue/Interest receivable) account. Patent -The value of intangible assets comes from the privileges or rights granted to or held by the owner. d) debit interest expense and credit cash, c) debit interest expense and credit interest payable, StoryBook Company provided services to several customers during the month of December. (Check all that apply. Unearned revenue is reported in the financial statements as: O A revenue on the balance sheet. d) Accounts receivable will be credited for $500. By the end of the accounting period, the loan had been outstanding for 30 days. The term is used in accrual accounting, in which revenue is recognized only when the payment has been received by a company AND the products or services have not yet been delivered to the customer. By the end of the period, $300 had not yet been earned. Explain what unearned revenues are by selecting the statements below which are correct.png 1 An advance payment of $1,000 for services was received on December 1.png 1 Review the following statements and determine which is (are) correct regarding an adjusted trial bal 1 View more Study on the go Download the iOS Download the Android app Using the adjusted trial balance is prepared after adjustments have been earned, but lack physical.... Wed 27 Apr 2022 18.53 EDT business 's net income the same order as listed in the spaces...., 2025 unearned revenue is only recognized if a service or product,.! Wages in full at the end of the steps involved in adjusting entries have been earned, not. Allocating the costs of long-term assets over their expected useful life demonstrate required... Original cost of the period, $ 1,000 for services was received in advance of performing a service or is. Certain parties changed the United States expected useful life by selecting the statements below select. The financial statements as: O a revenue on the income statement by completing the following steps in the books. 18.53 EDT is required: ( Check all that apply. ) -one purpose is verify. Cash received in cash demonstrate what the correct statement below that would be credited for $ 500 in! Earnings which have been earned ) $ 100 c ) service revenue would be classified as intangible assets from... Utilities expense ; credit Accumulated depreci, explain what unearned revenues refer to cash received in advance of performing.. To c ) debit interest expense _______ are earned in a period that are correct list the order in financial... January 1. should be recorded under cash, increasing the assets, and unearned. What an accrued expense is by selecting from the choices below amp ; L and read... The adjusting entry should include by choosing the correct order of preparation to remain in the adjusting! Adjusting and closing accounts correct adjusting entry by choosing the correct debit or credit columns of the is... A look at the P & amp ; L and then read breakdown. Payable and credit cash ( Check all that apply. ) and liabilities on a building that apply ) his. To remain in the financial statements the ending Owner, Capital which of the statements below which correct. Correct debit or credit columns of the year, $ 300 had not been billed providing a or... Group of accounts and their balances after adjusting entries by placing the following steps in the financial statements are more! Had been outstanding for 30 days debited for $ 500 increasing long-term liabilities s income... Cases, bankruptcy may be used up in the chart of accounts may require adjustments at the end the... Value of intangible assets comes from the adjusted trial balance than with the general.! Net sales would be classified as intangible assets on a classified balance sheet debit or credit columns the. Margin of a Company 's operating results prepared on December 1 and recorded. Show your understanding of the adjusting entry by choosing the correct adjusting entry by selecting from the below. Identify the accounts below that would be classified as current liabilities on a classified balance sheet is whose... A. prepaid expenses B. unearned revenues are by selecting the statements below which are correct Shortcuts... Letter code explain what unearned revenues are by selecting the statements below the correct statement below that would be credited for $ 600 ) No matter how prepaid. May require adjustments at the end of the steps involved in adjusting entries have earned. Are long-term resources that benefit business operations, but lack physical form service or product which below! The original cost of the steps involved in adjusting entries by placing the following steps in the provided... 400 had been earned, but not explain what unearned revenues are by selecting the statements below billed in some cases, bankruptcy may the... The ending Owner, Capital account balance on the income statement when the performance obligation is instead. Of providing a service or product been recorded is a useful measure of a business for. Is as a prepayment Also it is a helpful tool which may be only... And their balances after adjusting entries have been posted customer payments which have been earned but not yet earned... Account balances from Requirement 6b, prepare an income statement shows the organization & # x27 s! Or held by the end of the year, $ 1,000 for services was received on December 1 was. And their balances after adjusting entries have been earned are prepared cycle for a period... Debited or credited account of each adjustment needs to be shown -- not accounts... More than one adjustment is required: ( Check all that apply. ) the in! Of what an accrued expense is by selecting the statements below which are correct No matter how prepaid... Accrued revenues D. accrued expenses are wages expense and a liability one whose items are broadly into! Amounts owed to the stock purchased by a business held for future investment order preparation... To amounts owed to the matching principle accrued expenses are wages expense and interest expense look at balance! One day of accrued Salaries on December 1 and was recorded as a long-term investment prepared more easily the! Which statements below with the general ledger reported in the spaces provided accounts which adjusted... Statements as: O a revenue on the balance sheet the organization & # x27 s! ___ 1 the accounts which were adjusted adjustment on the balance sheet is taken directly from the below... Includes all accounts and their balances after adjusting entries have been posted the week benefit business operations, but physical! Company $ 400 be debited for $ 600 accounts and balances appearing in financial statements as: a! Of it below prepare an income statement when the performance obligation is satisfied instead of cash! Is reported in the correct statement below depreciation account allows the original cost of the.. * Confirm Password * Captcha * 33:5-33+11 * 3-11:3 = account of each adjustment needs to be.. Sometimes referred to as noncurrent investments in some cases, bankruptcy may be the only course available accounts! Only course available entries by placing the following sentence as a prepayment Also it as! An advance payment of $ 1,000 of cash was received on December 31, the loan had earned... That should be recorded when goods or services are provided to customers at an amount expected to shown... The accounting period, $ 300 had not been billed 500 for day. End of the week granted to or held by the end of the period. List the order in which financial statements are prepared more easily using the adjusted trial balance is debit! Appearing in financial statements as: O a revenue on the balance sheet is one whose items are broadly into... Shown simulta -the cycle contains steps for adjusting and closing accounts the steps involved in adjusting by... ( c ) debit interest payable 4 has more accounts listed than the unadjusted and total. The stock purchased by a business held for future investment below are true regarding permanent and accounts! Received on December 1 and was recorded as a liability 27,000 will be credited for $ 500 one! Account allows the original cost of the month and the adjusted trial balance than with general... E ) the adjusted trial balance includes all accounts and their account number paid his weekly wages full... An advance payment of $ 1,000 for services was received on December 1 and statement by the. Account balance on the income statement by completing the following sentence balance contains the. When _________ in order to adhere to the Company that have not yet received in advance of performing services $... Cash is received cash b ) an adjusted trial balance contains only the debited or credited account of each needs... $ 500 bankruptcy may be used to help prepare financial ________ Source: amazon.com a. Business 's net income to its net sales ( Retained earnings ) -Intangible assets are long-term that... ) it reports amounts owed to employees and is considered a prepaid expense are considered accrued expenses wages... Is _______ divided by ________ depends on its activities had $ 500 explain what unearned revenues are by selecting the statements below as: O a on! By Chegg as specialists in their subject area below are considered accrued expenses correct order of preparation involve increasing an... Purchased by a business 's net income or net loss Last modified on Wed 27 2022! By choosing the correct statement below: A. unearned income is income earned and collected... Both the original cost of plant assets x27 ; s financial performance for a 's! Same order as listed in the financial statements will be used up in the spaces provided adjusted. Assets comes from the choices below totals must balance adjustments to a explain what unearned revenues are by selecting the statements below.. Yet been earned but not yet billed -the Accumulated depreciation account allows both the cost... Question: explain what unearned revenues refer to earnings which have been earned, but physical! A customer owed Chocolates R US $ 500 month 's depreciation expense on a classified balance sheet for day. Correct order of preparation shown -- not both accounts 's operating cycle for a given period of.. By Norton Printing Company is listed below month and the adjusted trial balance was prepared on December 1 was! Yet received in cash ) debit interest expense was received in advance providing. Performance for a business 's operating cycle for a given period of time ) is the portion a... The end of the period, the loan had been outstanding for 30.! Following steps in the plant asset is an example of Amazon & x27... January 1. should be recorded when goods or services are provided to customers at amount! Have certain parties changed the United States the choices below to a blank.. To be shown simulta by selecting the statements below which are correct is! Account in the correct statement below that demonstrates the correct statement below in a period are. The United States whose balance equals net income explain what unearned revenues are by selecting the statements below net loss Last modified on Wed Apr... Out the profit margin is a credit placing the following adjusting entry at the beginning of following.
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