Cara, Inc. purchased supplies costing €7,500 on January 1, 2017 and recorded the transaction by debiting an expense. At the end of the year €3,000 of the supplies are still on hand. If Cara, Inc. does not make the appropriate adjusting entry, what is the impact on its statement of financial position at December 31, 2017? a. Assets understated by €4,500. b. Equity understated by €4,500. C. Equity overstated by €3,000. d. Assets understated by €3,000. O8 BT: AP Difficulty: Hard TOT: 4 pmin A4CER. Aneludi

Cara, Inc. purchased supplies costing €7,500 on January 1, 2017 and recorded the transaction by debiting an expense. At the end of the year €3,000 of the supplies are still on hand. If Cara, Inc. does not make the appropriate adjusting entry, what is the impact on its statement of financial position at December 31, 2017? a. Assets understated by €4,500. b. Equity understated by €4,500. C. Equity overstated by €3,000. d. Assets understated by €3,000. O8 BT: AP Difficulty: Hard TOT: 4 pmin A4CER. Aneludi

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 2PB: The balances of the ledger accounts of Pelango Furniture as of December 31, the end of its fiscal...

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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.
Worksheet Victoria Company has the following account balances on December 31, 2019, prior to any adjustments: Additional adjustment information: (a) depreciation on buildings, 1,100; on equipment, 600; (b) bad debts expense, 240; (c) interest accumulated but not paid: on note payable, 50; on mortgage payable, 530 (this interest is due during the next accounting period); (d) insurance expired, 175; (e) salaries accrued but not paid 370; (f) rent was collected in advance and the performance obligation is now satisfied, 800; (g) office supplies cm hand at year-end, 230 (expensed when originally purchased earlier in the year); and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2020. Required: 1. Transfer the account balances to a 10-column worksheet and prepare a trial balance. 2. Prepare the adjusting entries in the general journal and complete the worksheet. 3. Prepare the companys income statement, retained earnings statement, and balance sheet. 4. Prepare closing entries in the general journal.
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.
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.
Record the adjusting entries for each of these independent situations as of December 31, 2017 (unless otherwise specified in the problem). Assume no other entries were made during the year. Tate Company purchased equipment on November 1, 2017 and gave a 3-month, 9% note with a face value of $80,000. Garcia Corporation received cash of $60,000 on August 1, 2017 for one year's rent in advance and recorded the transaction with a credit to Rent Revenue. Gibson Company paid $24,000 on June 1, 2017 for a two-year insurance policy and recorded the entire amount as Insurance Expense. Wallstrom pays its employees are paid every Friday for the five-day week ending on that day. Salaries amount to $4,000 per week. December 31 falls on a Tuesday. Record the adjustments that would be made on December 31, 2017, the end of the fiscal year, assuming Bloom Company’s supplies inventory on January 1, 2017 was $9,350. Supplies costing $24,150 were acquired during the year and charged to the supplies…
Prepare the necessary adjusting entries at December 31, 2016, for the Microchip Company for each of the following situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. 1. On October 1, 2016, Microchip lent $90,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2017. 2. On November 1, 2016, the company paid its landlord $6,000 representing rent for the months of November through January. Prepaid rent was debited. 3. On August 1, 2016, collected $12,000 in advance rent from another company that is renting a portion of Microchip’s factory. The $12,000 represents one year’s rent and the entire amount was credited to rent revenue. 4. Depreciation on office equipment is $4,500 for the year. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. The company records vacation pay as salaries expense. 6. Microchip began the year…
Prepare the necessary adjusting entries at December 31, 2016, for the Microchip Company for each of the following situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. 1. On October 1, 2016, Microchip lent $90,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2017. 2. On November 1, 2016, the company paid its landlord $6,000 representing rent for the months of November through January. Prepaid rent was debited. 3. On August 1, 2016, collected $12,000 in advance rent from another company that is renting a portion of Microchip’s factory. The $12,000 represents one year’s rent and the entire amount was credited to rent revenue. 4. Depreciation on office equipment is $4,500 for the year. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. The company records vacation pay as salaries expense. 6. Microchip began the year…
Prepare the necessary adjusting entries at December 31, 2016, for the Microchip Company for each of the following situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. 1. On October 1, 2016, Microchip lent $90,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2017. 2. On November 1, 2016, the company paid its landlord $6,000 representing rent for the months of November through January. Prepaid rent was debited. 3. On August 1, 2016, collected $12,000 in advance rent from another company that is renting a portion of Microchip’s factory. The $12,000 represents one year’s rent and the entire amount was credited to rent revenue. 4. Depreciation on office equipment is $4,500 for the year. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. The company records vacation pay as salaries expense. 6. Microchip began the year…
The ledger of Muscat Company on January 31, 2017, includes the following selected accounts before adjusting entries. Account Debit Credit Prepaid Insurance OMR 2400 Supplies 1,500 Equipment 30,000 Accumulated Depreciation—Equipment 5000 Unearned Service Revenue 6000 Salaries Expense 10,000 An analysis of the accounts shows the following: Insurance expires at the rate of OMR 200 per month. Supplies on hand total OMR 500. The equipment depreciates OMR 150 per month. Half (1/2) of the unearned revenue was earned in January. Instructions: Prepare the adjusting entries for the month of January
Badger Bagels had the following separate situations occur during 2016.The company’s accountant is preparing the annual financial statements at December 31, 2016 and has asked you to record the adjusting entries for each situation in the journal entry form. a. The Unearned Revenue account has an unadjusted balance of $8,000 consisting of gift cards sold to customers. Redeemed gift cards that have not yet been recorded total $4,800. b. At the beginning of the year, the company purchased supplies worth $5000 and paid cash. At December 31, 2016, the supplies available are $2000. c. At December 31, 2016, employee wages of $9,200 have been incurred but not paid or recorded. d. Nine months ago, the company paid one year's advance rent of $1200 in cash. e. The company purchased equipment on January 1 by paying $ 100,000 cash. Unrecorded depreciation on equipment is $11,200.
Below is the unadjusted trial balance for Walton Anvils as of December 31, 2016, and the data for the adjustments. Walton Anvils Unadjusted Trial Balance December 31, 2016 Balance Account Title Debt Credit Cash $ 16,900.00 Accounts Receivable 17,500 Prepaid Rent 2,500 Office Supplies 1,900 Equipment 23,000 Accumulated Depreciation - Equipment $ 7,000.00 Accounts Payable 6,200.00 Salaries Payable Unearned Revenue 5,600.00 Common Stock 28,000.00 Retained Earnings 1,600.00 Dividends 4,500 Service Revenue 20,800.00 Salaries Expense 2,900 Rent Expense Depreciation Expense - Equipment Supplies Expense Total $ 69,200.00 $ 69,200.00 Adjustment Data a. Unearned revenue still unearned at December 31, 2016 $1,800 b. Prepaid rent still in…
Below is the unadjusted trial balance for Walton Anvils as of December 31, 2016, and the data for the adjustments. Walton Anvils Unadjusted Trial Balance December 31, 2016 Balance Account Title Debt Credit Cash $ 16,900.00 Accounts Receivable 17,500 Prepaid Rent 2,500 Office Supplies 1,900 Equipment 23,000 Accumulated Depreciation - Equipment $ 7,000.00 Accounts Payable 6,200.00 Salaries Payable Unearned Revenue 5,600.00 Common Stock 28,000.00 Retained Earnings 1,600.00 Dividends 4,500 Service Revenue 20,800.00 Salaries Expense 2,900 Rent Expense Depreciation Expense - Equipment Supplies Expense Total $ 69,200.00 $ 69,200.00 Adjustment Data a. Unearned revenue still unearned at December 31, 2016 $1,800 b. Prepaid rent still in…