Essay about Accounting Homework 3

1069 WordsFeb 28, 20145 Pages
The following information applies to the questions displayed below.] Dittman's Variety Store is completing the accounting process for the year just ended, December 31, 2011. The transactions during 2011 have been journalized and posted. The following data with respect to adjusting entries are available: a. Wages earned by employees during December 2011, unpaid and unrecorded at December 31, 2011, amounted to $4,000. The last payroll was December 28; the next payroll will be January 6, 2012. b. Office supplies on hand at January 1, 2011, totaled $580. Office supplies purchased and debited to Office Supplies during the year amounted to $580. The year-end count showed $270 of supplies on hand. c. One-fourth of the basement space…show more content…
Cardon's paid quarterly interest on July 1 and October 1. d. The Johnson family paid Cardon's $4,200 on November 1, 2012, to store its sailboat for the winter until May 1, 2013. Cardon's credited the full amount to Unearned Storage Revenue on November 1. e. Cardon's used boat-lifting equipment that cost $220,000; $22,000 was the estimated depreciation for 2012. f. Boat repair supplies on hand at December 1, 2011, totaled $16,900. Repair supplies purchased and debited to Supplies during the year amounted to $46,100. The year-end count showed $11,600 of the supplies on hand. g. Wages earned by employees during November 2012, unpaid and unrecorded at November 30, 2012, amounted to $5,700. The next payroll date will be December 5, 2012. 3. value: 10 points Required: 1. Identify each of these transactions as a deferred revenue, deferred expense, accrued revenue, or accrued expense. Transaction a. b. c. d. e. f. g. check my workeBook Link references Worksheet Difficulty: Medium Learning Objective: 04-02 Explain the purpose of adjustments and analyze the adjustments necessary at the end of the period to update balance sheet and income statement accounts. 4. value: 10 points 2. Prepare the adjusting entries that should be recorded for Cardon's at November 30, 2012. (Do not round
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