QUESTION 2Using the information provided in Problem 3, provide the amount of Solstice Company's Rent Expense for the year.18000QUESTION 3Using the information provided in Problem 3, provide the ending balance of Solstice Company's Unearned Revenue.25000QUESTION 4Using the information provided in Problem 3, provide the amount of Solstice Company's Revenue at the END of the year.40000QUESTION 5Using the information provided in Problem 3, provide the ending balance in Solstice Company's Revenue T-account AFTER CLOSING ENTRIES have been made (remember the difference betweenadjusting entries and closing entries.) 3. At the beginning of the year, Solstice Company had the following account balances:• Cash: $10,000• Accounts Receivable: $4,000• Supplies: $5,000Land: $20,000• Accounts Payable: $5,000● Unearned Revenue: $6,000●Common Stock: $21,000●Retained Earnings: $7,000• Any other accounts not listed had a beginning balance of $0During the year Solstice Company had the following transactions:• 30-Jan: Issued additional shares of stock for $10,000•2-Feb: Purchased $4,000 of supplies on account● 1-Mar: Paid one years' worth of rent ahead of time. Rent is $1,500 a month.●● 5-Mar: Received $30,000 in cash from parents for a summer camp to be conducted overthe month of June. Of that, $5,000 is a nonrefundable application fee.7-Jul: Pay Salaries to camp counselors for the June summer camp in the amount of$5,000• 29-Jul: Billed customers $40,000 for a motivational speech workshop given at companyheadquarters.31-Oct: Received $15,000 payment from attendees of the motivational speechworkshop.• 14-Dec: Paid Dividends of $500●Other information:●The summer camp in June occurred as planned.4 employees spent the month of December preparing for next year's summer camp.Each employee has a monthly wage of $2,000. They will be paid on January 2.As of December 31, Supplies of $1,500 remain on hand

Name: QUESTION 2Using the information provided in Problem 3, provide the am
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Description: QUESTION 2Using the information provided in Problem 3, provide the amount of Solstice Company's Rent Expense for the year.18000QUESTION 3Using the information provided in Problem 3, provide the ending balance of Solstice Company's Unearned Revenue.2

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QUESTION 2 Using the information provided in Problem 3, provide the amount of Solstice Company's Rent Expense for the year. 18000 QUESTION 3 Using the information provided in Problem 3. provide the ending balance of Solstice Company's Unearned Revenue. 25000 QUESTION 4 Using the information provided in Problem 3. provide the amount of Solstice Company's Revenue at the END of the year. 40000

QUESTION 2 Using the information provided in Problem 3, provide the amount of Solstice Company's Rent Expense for the year. 18000 QUESTION 3 Using the information provided in Problem 3. provide the ending balance of Solstice Company's Unearned Revenue. 25000 QUESTION 4 Using the information provided in Problem 3. provide the amount of Solstice Company's Revenue at the END of the year. 40000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 17CE: Cornerstone Exercise 3-17 Accrued Revenue Adjusting Entries Powers Rental Service had the following...

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Exercise 3-61 Preparation of a Worksheet (Appendix 3A) Unadjusted account balances at December 31, 2019, for Rapisarda Company are as follows: The following data are not yet recorded: Depreciation on the equipment is $18,350. Unrecorded wages owed at December 31 , 2019: $4,680. Prepaid rent at December 3 1 , 2019: $9,240. Income taxes expense: $5,463. Required: Prepare a completed worksheet for Rapisarda Company.
Cornerstone Exercise 3-17 Accrued Revenue Adjusting Entries Powers Rental Service had the following items that require adjustment at year end. Earned $9,880 of revenue from the rental of equipment for which the customer had not yet paid. Interest of S650 on a note receivable has been earned but not yet received. Required: Prepare the adjusting entries needed at December 31. What is the effect on the financial statements if these adjusting entries are not made?
Adjustment for unearned revenue On June 1, 2018, Herbal Co. received 18,900 for the rent of land for 12 months. Journalize the adjusting entry required for unearned rent on December 31, 2018.
Cornerstone Exercise 3-20 Deferred Expense Adjusting Entries Best Company had the following items that require adjustment at year end. Cash for equipment rental in the amount of $3,800 was paid in advance. The $3,800 was debited to prepaid rent When paid. At year end, $2,950 Of the prepaid rent had expired. Cash for insurance in the amount of $8,200 was paid in advance. The $8,200 was debited to prepaid insurance when paid. At year end, $1,8SO of the prepaid insurance was still unused. Required: Prepare the adjusting journal entries needed at December 31. What is the effect on the financial statements if these adjusting entries are not made? What is the balance in prepaid equipment rent and insurance expense at December 31?
Case 2-68 Accounting for Partially Completed Events: 3 Prelude to Chapter 3 Ehrlich Smith. the owner of The Shoe Bone has asked you to help him understand the proper way to account for certain accounting items as he prepares his 2019 financial statements. Smith has provided the following information and observations: (Continued) a. A 3-year fire insurance policy was purchased on 2019, for $2,400. Smith believes that a part of the cost of the insurance policy should be allocated to each period that benefits from its coverage. b. The store building was purchased for 580,000 in January 2011. Smith expected then (as he does now) that the building will be serviceable as a shoe store for 20 years from the date of purchase. In 2011, Smith estimated that he could sell the property for $6,000 at the end of its serviceable life. He feels that each period should bear some portion of the cost of this long-lived asset that is slowly being consumed. c. The Shoe Box borrowed 520300 on a 1-year, 8% note that is due on September 1 next year) Smith notes that $21,600 cash will be required to repay the note at maturity. The $1,600 difference is, he feels, a cost of using the loaned funds and should be spread over the periods that benefit from the use of' the loan funds; Required: Explain what Smith is trying to accomplish with the three items. Are his objectives supported by the concepts that underlie accounting?
Adjustments for unearned and accrued fees The balance in the unearned fees account, before adjustment at the end of the year, is $900,000. Of these fees, $775,000 have been earned. In addition, $289,500 of fees have been earned hut not hilled to clients. What are the adjustments (a) to adjust the unearned fees account and (h) to record the accrued fees? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease.
Exercise 3-40 Revenue and Expense Recognition Electronic Repair Company repaired a high-definition television for Sarah Merrifield in December 2019. Sarah paid $80 at the time of the repair and agreed to pay Electronic Repair $80 each month for 5 months beginning on January 15, 2020. Electronic Repair used $120 of supplies, which were purchased in November 2020, to repair the television. Assume that Electronic Repair uses accrual-basis accounting. Required: In what month or months should revenue from this service be recorded by Electronic Repaid? In what month or months should the expense related to the repair of the television be recorded by Electronic Repair? CONCEPTUAL CONNECTION Describe the accounting principles used to answer the above questions.
Case 3-78 Interpreting Closing Entries Barnes Building Systems made the following closing entries at the end of a recent year: a. Income Summary ............................. 129,750 Retained Earnings ........................ 129,750 b. Retained Earnings ........................... 25,000 Dividends ..................................... 25.000 c. Sales Revenue .................................. 495,300 Income Summary ......................... 495,300 d. Income Summary ............................. 104,100 Interest Expense ........................... 104,100 Required: If the sales revenue identified in Entry c was Barness only revenue, what was the total amount of Barness expenses?
D2. Account On August 1, 2024, the company collected $12,840 in advance from another company that is renting a portion of the company’s factory. The $12,840 represents one year’s rent and the entire amount was credited to Deferred Revenue. Record the adjusting entry for deferred revenue at its year-end of