2. Explain the impact on the accounting equation (over/understated) if the following informatioi is not used to adjust the accounts. 1. Supplies consumed totaled $2,750. 2. Interest accrues on notes payable at the rate of $180 per month. 3. Insurance of $470 expired during the month. 4. Plant and equipment are depreciated at the rate of $1,450 per month.
Q: Prepare adjusting entries on december 31 for the following transection omit explanation. a.…
A: Accrual accounting is a system in which expenses and revenues are recorded at the time of the…
Q: The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $ 127,000…
A: Income statement refers to the total of income less expenses.
Q: Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After…
A: The income statement is an essential part of the financial statements of the company. It is prepared…
Q: As of December 31, the end of the current year, the ledger of Harris Company contained the following…
A: Closing entries: Closing entries are those journal entries, which are passed to transfer the final…
Q: E4-5 In its first year of operations, Ramirez Company recognized $28,000 in service revenue, $6,000…
A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…
Q: The accounting records of Marcus Service Company include the following selected, unadjusted balances…
A: Adjusting entries are prepared at the end of the year in order to allot revenue and the expense in…
Q: Journalize the closing entries necessary to close out all permanent accounts.
A: Closing entries Closing entries are recorded in order to close the temporary accounts such as…
Q: Best Company had the following items that require adjustment at year end. Cash for equipment…
A: Adjusting Entry – Adjusting Entries are the entries which make the accrual principle work for the…
Q: An analysis of the accounts shows the following. 1. The equipment depreciates $296 per month. 2.…
A: The General Journal for the 5 transactions can be found as an Image Attachment in Step 2 of the…
Q: As of January 1, Terrace Waters, Capital had a credit balance of $500,000. During the year,…
A: a.The balance of T's capital at the end of the year is calculated as follows:
Q: [The following information applies to the questions displayed below.] Tunstall, Inc., a small…
A: Balance Sheet is called the position statement of the company because it shows the standing balances…
Q: After preparing the trial balance, the accountant of Xing Trading prepared the financial statements…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: The accounting records of Mason Service Company include the following selected, unadjusted balances…
A: Adjusting journal entries are generally those journal entries which are made to record the…
Q: The following is the adjusted trial balance of Sierra Company. Sierra Company Adjusted Trial Balance…
A: The financial statements are prepared by the business entity to show the performance of the…
Q: Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of…
A: Step1: Preparing the income statement without recorded adjusted journal entries. We have,
Q: Prepare the following adjusting entries at August 31 for Walgreens.(a) Interest on notes payable of…
A: Required journal entries are: Date Particulars Debit ($) Credit ($) August 31 Interest Expense…
Q: A company had revenues of $58,500 and expenses of $45,500 for the accounting period. The owner…
A: In the context of the given question, we are required to find the correct option from the available…
Q: On May 3, it was discovered that the following errors took place in journalizing and posting…
A: Rectification of error is a method of correcting the errors in journal entries. It can be rectified…
Q: The accounting records of Mason Service Company include the following selected, unadjusted balances…
A: Journal entry is a process of recording a financial transaction in the books using debit and credit…
Q: After the accountant of Cindy Candy Pte Ltd prepared the financial statements for the year ended 30…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: On December 31, the end of the accounting period, Maricall Center has an outstanding Accounts…
A: Allowance for impairment loss means where we expect some debts to become bad in near future then we…
Q: The accounting records of Marcus Service Company include the following selected, unadjusted balances…
A: Adjusting entries journal entries that are passed at the conclusion of a financial year in order to…
Q: If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss)…
A: Income Statement Particulars Amount Revenues: Received cash for meals served to customers…
Q: Jones Supply Services paid $350 cash, the amount owed from the previous month, to a materials…
A: Answer) The correct option in the given question is (B) Accounts Payable
Q: Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of…
A: Step1: Preparation of adjusting journal entries. We have,
Q: Use the following account information, and also consider the adjustment data provided (assume…
A: Adjusted trial balance includes both temporary accounts and permanent accounts. All expenses,…
Q: Capri Company began the current period with a $20,000 credit balance in the K. Capri, Capital…
A: 1. Calculate the balance of the Income Summary account (net income): Hence, the balance of income…
Q: unstall, Inc., a small service company, keeps its records without the help of an accountant. After…
A: Balance sheet is the financial statement which is prepared for the purpose of analyzing the…
Q: A company had revenues of $75,000 and expenses of $62,000 for the accounting period. The owner…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: Selected account balances before adjustment for Atlantic Coast Realty at July 31, the end of the…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: Bennett Company paid balance due of $3,000 on equipment that had been previously purchased on…
A: For above transactions, following two accounts are affected Account Payable Cash Account Payable…
Q: On March 1, it was discovered that the following errors took place in journalizing and posting…
A:
Q: The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: Jones Supply Services paid $350 cash, the amount owed from the previous month, to a materials…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: When adjusting entries were made at the end of the year, the accountant for Parker Company did not…
A: a)Wages of $2,900 had been earned by employees but were unpaid. This error will understate expenses…
Q: The following is the adjusted trial balance of Sierra Company. Sierra Company Adjusted Trial Balance…
A: A balance sheet is a financial statement that shows the assets, liabilities, and shareholder equity…
Q: Capri Company began the current period with a $23,000 credit balance in the K. Capri, Capital…
A: Income Summary Account: At the conclusion of a given accounting period, all of the revenue and…
Q: Indicate (1) the type of adjustment (prepaid expense, accrued revenue, and so on) and (2) the status…
A: There are 5 type of adjustments : Accrued Revenue Accrued Expense Depreciation Prepaid Expense…
Q: Renue Spa had the following balances at December 31, Year 2: Cash of $12,000, Accounts Receivable of…
A: The accounts receivable means the amount that is not received. The amount of the accounts receivable…
Q: Prepare the following adjusting entries at August 31 for Nokia (FIN). a. Interest on notes payable…
A: Adjusting entries are those journal entries which are passed at the end of the period in order to…
Q: Present entries to record the following (a,b,c) for a business that uses the Allowance Method: a:…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Jones Supply Services paid $350 cash, the amount owed from the previous month, to a materials…
A: Goods purchase on credit increases the material supplies and also increases the current liability…
Q: Jones Supply Services paid $350 cash, the amount owed from the previous month, to a materials…
A: DATE ACCOUNTS DEBIT CREDIT Accounts Payable $350 Cash $350 (To record the…
Q: Capri Company began the current period with a $25,000 credit balance in the K. Capri, Capital…
A: Lets understand the basics. Income statement is prepared by closing income accounts and expense…
Q: a) Journalize the entries to record the following (1) Record the adjusting entry at December 31,…
A: Answer a) Journal entries:
Q: In a trial balance prepared on March 31, the total of the credit column is: * On March 31, the…
A:
Q: Please answer the following transactions and tell me what account they would be under for each debit…
A: Journal entries are shown below:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The balances of the ledger accounts of Beldren Home Center as of December 31, the end of its fiscal year, are as follows: Data for the adjustments are as follows: ab. Merchandise Inventory at December 31, 102,765. c. Wages accrued at December 31, 1,834. d. Supplies inventory (on hand) at December 31, 645. e. Depreciation of store equipment, 5,782. f. Depreciation of office equipment, 1,791. g. Insurance expired during the year, 845. h. Rent earned, 2,500. Required 1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL. 2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 16.The balances of the ledger accounts of Pelango Furniture as of December 31, the end of its fiscal year, are as follows: Data for the adjustments are as follows: ab. Merchandise Inventory at December 31, 104,565. c. Wages accrued at December 31, 934. d. Supplies inventory (on hand) at December 31, 755. e. Depreciation of store equipment, 4,982. f. Depreciation of office equipment, 1,531. g. Insurance expired during the year, 935. h. Rent earned, 2,450. Required 1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL. 2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 16.After all revenue and expenses have been closed at the end of the fiscal period ended December 31, Income Summary has a debit of 45,550 and a credit of 36,520. On the same date, D. Mau, Drawing has a debit balance of 12,000 and D. Mau, Capital had a beginning credit balance of 63,410. a. Journalize the entries to close the remaining temporary accounts. b. What is the new balance of D. Mau, Capital after closing the remaining temporary accounts? Show your calculations.
- At the end of April, the first month of operations, the following selected data were taken from the financial statements of Shelby Crawford, an attorney: In preparing the financial statements, adjustments for the following data were overlooked: Supplies used during April, 2,750. Unbilled fees earned at April 30, 23,700. Depreciation of equipment for April, 1,800. Accrued wages at April 30, 1,400. Instructions 1. Journalize the entries to record the omitted adjustments. 2. Determine the correct amount of net income for April and the total assets, liabilities, and owners equity at April 30. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table similar to the following. The adjustment for supplies used is presented as an example.Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services Co.s accounting clerk prepared the following unadjusted trial balance at July 31, 2016: The data needed to determine year-end adjustments are as follows: a. Depreciation of building for the year, 6,400. b. Depreciation of equipment for the year, 2,800. c. Accrued salaries and wages at July 31, 900. d. Unexpired insurance at July 31, 1,500. e. Fees earned but unbilled on July 31, 10,200. f. Supplies on hand at July 31, 615. g. Rent unearned at July 31, 300. Instructions 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation ExpenseBuilding; Depreciation ExpenseEquipment; and Supplies Expense. 2. Determine the balances of the accounts affected by the adjusting entries and preparean adjusted trial balance.At the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker Jacobs, an attorney: In preparing the financial statements, adjustments for the following data were overlooked: Unbilled fees earned at August 31, 31,900. Depreciation of equipment for August, 7,500. Accrued wages at August 31, 5,200. Supplies used during August, 3,000. Instructions 1. Journalize the entries to record the omitted adjustments. 2. Determine the correct amount of net income for August and the total assets, liabilities, and owners equity at August 31. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table similar to the following. The first adjustment is presented as an example.
- The unadjusted trial balance of La Mesa Laundry at August 31, 2016, the end of the fiscal year, follows: The data needed to determine year-end adjustments are as follows: a. Wages accrued but not paid at August 31 are 2,200. b. Depreciation of equipment during the year is 8,150. c. Laundry supplies on hand at August 31 are 2,000. d. Insurance premiums expired during the year are 5,300. Instructions 1. For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as Aug. 31 Bal. In addition, add T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, Insurance Expense, and Income Summary. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (1) as needed. 3. Journalize and post the adjusting entries. Identify the adjustments by Adj. and the new balances as Adj. Bal. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of owners equity (no additional investments were made during the year), and a balance sheet. 6. Journalize and post the closing entries. Identify the closing entries by Clos. 7. Prepare a post-closing trial balance.On September 1, a company received an advance rental payment of $12,000, to cover six months rent on an office building. There was no beginning balance in the Unearned Rent account for the period. Based on the information provided, A. Make the December 31 adjusting journal entry to bring the balances to correct. B. Show the impact that these transactions had.Prepare adjusting journal entries, as needed, considering the account balances excerpted from the unadjusted trial balance and the adjustment data. A. depreciation on buildings and equipment, $17,500 B. advertising still prepaid at year end, $2,200 C. interest due on notes payable, $4,300 D. unearned rental revenue, $6,900 E. interest receivable on notes receivable, $1,200
- Considering the following events, determine which month the revenue or expenses would be recorded using the accounting method specified. a. Gerber Company uses the cash basis of accounting. Gerber prepays cash in May for insurance that only covers the following month, (June). b. Matthews and Dudley Attorneys uses the accrual basis of accounting. Matthews and Dudley Attorneys receives cash from customers in June for services to be performed in July. c. Eckstein Company uses the accrual basis of accounting. Eckstein prepays cash in October for rent that covers the following month, (October). d. Gerbino Company uses the cash basis of accounting. Gerbino makes a sale to a customer in February but does not expect payment until March.On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700Prepare an adjusted trial balance from the following account information, and also considering the adjustment data provided (assume accounts have normal balances). Equipment was recently purchased, so there is neither depreciation expense nor accumulated depreciation. Adjustments needed: Remaining unpaid Salaries due to employees at the end of the period, $0 Accrued Interest Payable at the end of the period, $7,700