EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Consider the following situations for Bookfield Welding Services:
(Click the icon to view the situations.)
Journalize
the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
C
a. Depreciation for the current year includes Equipment, $2,000.
X
Accounts and Explanation
Debit
Cre
More info
Date
(a) Dec. 31
a. Depreciation for the current year includes equipment, $2,000.
b. Each Monday, Bookfield pays employees for the previous week's work. The
amount of weekly payroll is $1,400 for a seven-day workweek (Monday to
Sunday). This year, December 31 falls on Thursday.
c. The beginning balance of Office Supplies was $2,200. During the year,
Bookfield purchased office supplies for $2,700, and at December 31 the office
supplies on hand totaled $2,000.
d. Bookfield prepaid a two full years' insurance on October 1 of the current year,
$4,800.…
The following are some of the transactions made by Luigi Gomez Cleaners during 2020:
Apr. 1 Acquired cleaning supplies in the amount of P260,000. A count of the
supplies on Dec. 31, 2020
Aug. 1 Received P360,000 from Cebu Manpower for cleaning janitorial uniforms
over the next 3 years.
Nov. 1 Paid P240,000 for annual rent.
Required:
1. Assume that Gomez records these transactions using the following accounts,
record the adjusting entries on Dec. 31, 2020:
a. Office Supplies
b. Prepaid Rent
c. Unearned Cleaning Revenues
2. Now, assume that Gomez records these transactions using the following accounts,
what will be the adjusting entries on Dec. 31, 2020?
a. Office Supplies Expense
b. Rent Expense
c. Cleaning Revenues
3. If Gomez were to use reversing entries, which set of entries, (1) or (2), would have
to be reversed? Why?
following information applies to the questions displayed belo
Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called
Northland Physical Therapy, on January 1, 2020. The annual reporting period ends December 31. The
trial balance on January 1, 2021, was as follows (the amounts are rounded to thousands of dollars to
simplify):
Account Titles
Cash
Accounts Receivable
Supplies
Equipment
Accumulated Depreciation
Software
Accumulated Amortization
Accounts Payable
Notes Payable (short-term)
Salaries and Wages Payable
Interest Payable
Income Taxes Payable
Deferred Revenue
Common Stock
Retained Earnings
Service Revenue
Depreciation Expense
Amortization Expense
Salaries and Wages Expense
Supplies Expense
Interest Expense
Income Tax Expense
Totals
Debit
$ 6
229
7
0
0
0
0
0
0
$ 26
Credit
$2
2
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16
$26
Transactions during 2021 (summarized in thousands of dollars) follow:
a. Borrowed $23 cash on July 1, 2021, signing a six-month note payable.
b.…
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Similar questions
- Carmen Ramos started a business under the name of Perfect Cleaning. The following transactions occurred in January 2020: date transaction January 1 Invested $10,000 in cash to start the business. He bought a vehicle for the business for $12,000 of which $3,000 was in cash and the rest in credit. January 3 January 3 He purchased cleaning products for a total of $1,500. January 4|He paid a prepayment insurance policy for $2,000 effective Jan. 1. January 5 Performed a fee earned in the amount of $2,100. January Paid a subscription to the vehicle purchased for $500 10 January He paid employees salary of $1,800. 15 January He did a cleaning job in a building on credit for $3,000. 16 January He did housekeeping work in some offices and charged him in cash for $2,500. 18 January The client who was done the work on January 16 paid him $1,200. 20 January He paid $80 for the gasoline from the business vehicle. 21 January He did office cleaning work for $1,000 in cash. 22 January He paid $20 for…arrow_forwardFill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account. Depreciation for the current year includes Equipment, $600. The Accumulated Depreciation - Equipment unadjusted balance as of December 31 is $6,300.arrow_forwardAt December 31, the unadjusted trial balance of H&R Tacks reports Equipment of $25,500 and zero balances in Accumulated Depreciation and Depreciation Expense. Depreciation for the period is estimated to be $5,100. Required: 1. Prepare the adjusting journal entry on December 31. 2. Post the beginning balances and adjusting entries to the following T-accounts. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Post the beginning balances and adjusting entries to the following T-accounts. Accumulated Depreciation Beginning Balance Debit Ending Balance Credit Answer is not complete. 5,100 5,100 Beginning Balance Debit Ending Balance Creditarrow_forward
- At December 31, the unadjusted trial balance of H&R Tacks reports Equipment of $25,500 and zero balances in Accumulated Depreciation and Depreciation Expense. Depreciation for the period is estimated to be $5,100. Required: 1. Prepare the adjusting journal entry on December 31. 2. Post the beginning balances and adjusting entries to the following T-accounts. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Post the beginning balances and adjusting entries to the following T-accounts. Accumulated Depreciation Beginning Balance Debit Ending Balance Credit Answer is not complete. 5,100 5,100 Beginning Balance Debit Ending Balance Creditarrow_forwardI ( 9 K M O 2. O L H P command G + [arrow_forwardMonica's Cleaning Service completed the following transactions during December 2022: Dec. Monica's Cleaning Service began operations by receiving $30,000 cash and 1 cleaning equipment with a fair value of $10,000 from Monica. The business issued Monica capital in exchange for this contribution. Paid $1,200 cash for a six-month insurance policy. The policy begins December 1. Paid $1,000 cash for supplies. 1 4 12 Performed cleaning services for a customer and received $2,700 cash. 15 Completed a large cleaning job, billed the customer, $3,300, and received a promise to collect the $3,300 within one week. 18 Paid employee salary, $8,800. 20 Received $6,500 cash for performing cleaning services. 22 Collected $1,800 in advance for cleaning service to be performed later. 25 Collected $3,300 cash from customer on account. 27 Purchased soap for the cleaning equipment, paying $150 on account. (Debit Cleaning Expense) 28 Performed cleaning services on account, $2,900. 29 Paid office rent,…arrow_forward
- Horace Culpepper, CA, was retained by Pulsar Cable to prepare financial statements for April 2020. Horace accumulated all the ledger balances per Pulsar’s records and found the following. Analyze errors and prepare correcting entries and trial balance. Pulsar Cable Trial Balance April 30, 2020 Debit Credit Cash £ 4,100 Accounts Receivable 3,200 Supplies 800 Equipment 10,800 Accumulated Depreciation—Equip. £ 1,350 Accounts Payable 2,100 Salaries and Wages Payable 700 Unearned Service Revenue 890 Share Capital—Ordinary 10,100 Retained Earnings 2,800 Service Revenue 5,650 Salaries and Wages Expense 3,300 Advertising Expense 600 Miscellaneous Expense 290 Depreciation Expense 500 £23,590 £23,590 Horace Culpepper found the following errors. 1. Cash received from a customer on account was recorded as £950 instead of £590. 2. A payment of £75 for advertising expense was entered as a debit to Miscellaneous Expense £75 and a credit to Cash £75. 3. The first salary payment this month was…arrow_forwardFor each separate case below, follow the three-step process for adjusting the Accumulated Depreciation account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year. a. Accumulated Depreciation. The Krug Company’s Accumulated Depreciation account has a $13,500 balance to start the year. A review of depreciation schedules reveals that $14,600 of depreciation expense must be recorded for the year. b. Accumulated Depreciation. The company has only one fixed asset (truck) that it purchased at the start of this year. That asset had cost $44,000, had an estimated life of five years, and is expected to have zero value at the end of the five years. c. Accumulated Depreciation. The company has only one fixed asset (equipment) that it purchased at the start of this year. That…arrow_forwardBrothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) on January 1, 2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $ 3 Accounts Receivable 5 Supplies 12 Land 0 Equipment 63 Accumulated Depreciation $ 6 Software 18 Accumulated Amortization 8 Accounts Payable 5 Notes Payable (short-term) 0 Salaries and Wages Payable 0 Interest Payable 0 Income Tax Payable 0 Common Stock 74 Retained Earnings 8 Service Revenue 0 Salaries and Wages Expense 0 Depreciation Expense 0 Amortization Expense 0 Income Tax Expense 0 Interest Expense 0 Supplies Expense 0 Totals $ 101 $ 101 Transactions and events during 2021 (summarized in thousands of dollars) follow: Borrowed $12 cash on March 1 using a short-term…arrow_forward
- Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) on January 1, 2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $ 3 Accounts Receivable 5 Supplies 12 Land 0 Equipment 63 Accumulated Depreciation $ 6 Software 18 Accumulated Amortization 8 Accounts Payable 5 Notes Payable (short-term) 0 Salaries and Wages Payable 0 Interest Payable 0 Income Tax Payable 0 Common Stock 74 Retained Earnings 8 Service Revenue 0 Salaries and Wages Expense 0 Depreciation Expense 0 Amortization Expense 0 Income Tax Expense 0 Interest Expense 0 Supplies Expense 0 Totals $ 101 $ 101 Transactions and events during 2021 (summarized in thousands of dollars) follow: Borrowed $12 cash on March 1 using a short-term…arrow_forwardBrothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) on January 1, 2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $ 3 Accounts Receivable 5 Supplies 12 Land 0 Equipment 63 Accumulated Depreciation $ 6 Software 18 Accumulated Amortization 8 Accounts Payable 5 Notes Payable (short-term) 0 Salaries and Wages Payable 0 Interest Payable 0 Income Tax Payable 0 Common Stock 74 Retained Earnings 8 Service Revenue 0 Salaries and Wages Expense 0 Depreciation Expense 0 Amortization Expense 0 Income Tax Expense 0 Interest Expense 0 Supplies Expense 0 Totals $ 101 $ 101 Transactions and events during 2021 (summarized in thousands of dollars) follow: Borrowed $12 cash on March 1 using a short-term…arrow_forwardBrothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Incorporated) on January 1, 2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $ 3 Accounts Receivable 5 Supplies 12 Land 0 Equipment 63 Accumulated Depreciation $ 6 Software 18 Accumulated Amortization 8 Accounts Payable 5 Notes Payable (short-term) 0 Salaries and Wages Payable 0 Interest Payable 0 Income Tax Payable 0 Common Stock 74 Retained Earnings 8 Service Revenue 0 Salaries and Wages Expense 0 Depreciation Expense 0 Amortization Expense 0 Income Tax Expense 0 Interest Expense 0 Supplies Expense 0 Totals $ 101 $ 101 Transactions and events during 2021 (summarized in thousands of dollars) follow: Borrowed $12 cash on March 1 using a short-term…arrow_forward
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