stany needed. E34 (LO 1,22), AP Leong Corporation encounters the following situations: 1. Luong collects $1,300 from a customer in 2022 for services to be performed in 2023. 2. Luong incurs utility expense which is not yet paid in cash or recorded 3. Luong's employees worked 3 days in 2022 but will not be paid until 2023. 4. Luong performs services for customers but has not yet received cash or recorded the transaction 5. Luong paid $2,800 rent on December 1 for the 4 months starting December 1. 6. Luong received cash for future services and recorded a liability until the service was performed. 7. Luong performed consulting services for a client in December 2022. On December 31, it had not billed the client for services provided of $1,200. 8. Luong paid cash for an expense and recorded an asset until the item was used up. 9. Luong purchased $900 of supplies in 2022; at year-end, $400 of supplies remain unused 10. Luong purchased equipment on January 1, 2022; the equipment will be used for 5 years 11. Luong borrowed $12,000 on October 1, 2022, signing an 8% one-year note payable. Both the interest and the note will be paid in 1 year Instructions Identify what type of adjusting entry (prepaid expense, uneamed revenue, accrued expense, or accrued revenac) is needed in each situation at December 31, 2022 Prepare adjusting entries from selected data.
stany needed. E34 (LO 1,22), AP Leong Corporation encounters the following situations: 1. Luong collects $1,300 from a customer in 2022 for services to be performed in 2023. 2. Luong incurs utility expense which is not yet paid in cash or recorded 3. Luong's employees worked 3 days in 2022 but will not be paid until 2023. 4. Luong performs services for customers but has not yet received cash or recorded the transaction 5. Luong paid $2,800 rent on December 1 for the 4 months starting December 1. 6. Luong received cash for future services and recorded a liability until the service was performed. 7. Luong performed consulting services for a client in December 2022. On December 31, it had not billed the client for services provided of $1,200. 8. Luong paid cash for an expense and recorded an asset until the item was used up. 9. Luong purchased $900 of supplies in 2022; at year-end, $400 of supplies remain unused 10. Luong purchased equipment on January 1, 2022; the equipment will be used for 5 years 11. Luong borrowed $12,000 on October 1, 2022, signing an 8% one-year note payable. Both the interest and the note will be paid in 1 year Instructions Identify what type of adjusting entry (prepaid expense, uneamed revenue, accrued expense, or accrued revenac) is needed in each situation at December 31, 2022 Prepare adjusting entries from selected data.
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 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...
Related questions
Question
Transcribed Image Text:834 (LO 1,2,2), AP Luong Corporation encounters the following situations:
1. Luong collects $1,300 from a customer in 2022 for services to be performed in 2023.
2. Luong incurs utility expense which is not yet paid in cash or recorded.
3. Luong's employees worked 3 days in 2022 but will not be paid until 2023.
4. Luong performs services for customers but has not yet received cash or recorded the transaction.
5. Luong paid $2,800 rent on December 1 for the 4 months starting December 1.
6. Luong received cash for future services and recorded a liability until the service was performed.
7. Luong performed consulting services for a client in December 2022. On December 31, it had not billed the client for services provided of $1,200.
8. Luong paid cash for an expense and recorded an asset until the item was used up
9. Luong purchased $900 of supplies in 2022; at year-end, $400 of supplies remain unused.
10. Luong purchased equipment on January 1, 2022, the equipment will be used for 5 years.
11. Luong borrowed $12,000 on October 1, 2022, signing an 8% one-year note payable. Both the interest and the note will be paid in I year.
Instructions
Identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, or accrued revenue) is needed in each situation at December 31, 2022
Prepare adjusting entries from selected data.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT