FINANCIAL ACCOUNTING W/ACCESS >CI<
2nd Edition
ISBN: 9781259999024
Author: SPICELAND
Publisher: MCG CUSTOM
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Chapter 3, Problem 3.14E
Prepare an adjusted
The December 31, 2018, unadjusted trial balance for Demon Deacons Corporation is presented below.
| Accounts | Debit | Credit |
| Cash | $10,000 | |
| Accounts Receivable | 15,000 | |
| Prepaid Rent | 7,200 | |
| Supplies | 4,000 | |
| Deferred Revenue | $ 3,000 | |
| Common Stock | 11,000 | |
| 6,000 | ||
| Service Revenue | 51,200 | |
| Salaries Expense | 35,000 | |
| $71,200 | $71,200 |
At year-end, the following additional information is available:
a. The balance of Prepaid Rent, $7,200, represents payment on October 31, 2018, for rent from November 1, 2018, to April 30, 2019.
b. The balance of Deferred Revenue, $3,000, represents payment in advance from a customer. By the end of the year, $750 of the services have been provided.
c. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2019.
d. The balance of Supplies, $4,000, represents the amount of office supplies on hand at the beginning of the war of $1,700 plus an additional $2,300 purchased throughout 2018. By the end of 2018, only $800 of supplies remains.
Required:
1. Update account balances for the year-end information by recording any necessary
2. Prepare an adjusted trial balance as of December 31, 2018.
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The unadjusted trial balance for Flounder Corp. is shown below.
FLOUNDER CORP.Trial BalanceOctober 31, 2022
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$15,150
Supplies
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Prepaid Insurance
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Equipment
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Retained Earnings
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Dividends
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Service Revenue
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Salaries and Wages Expense
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Rent Expense
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$28,940
$28,940
Assume the following adjustment data.
1.
Supplies on hand at October 31 total $610.
2.
Expired insurance for the month is $115.
3.
Depreciation for the month is $95.
4.
As of October 31, services worth $940 related to the previously recorded unearned revenue had been performed.
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The following trial balance of Watteau Co. does not balance.
Watteau Co.Trial BalanceJune 30, 2020
Debit
Credit
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Accounts Receivable
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Supplies
800
Equipment
$ 3,800
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00000
$13,371
$16,916
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
2. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500.
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The unadjusted trial balance for Riverbed Corp. is shown below.
RIVERBED CORP.Trial BalanceOctober 31, 2022
Debit
Credit
Cash
$15,350
Supplies
2,990
Prepaid Insurance
750
Equipment
5,000
Notes Payable
$5,000
Accounts Payable
2,870
Unearned Service Revenue
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11,750
Retained Earnings
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Dividends
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Service Revenue
8,000
Salaries and Wages Expense
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$29,810
$29,810
Assume the following adjustment data.
1.
Supplies on hand at October 31 total $710.
2.
Expired insurance for the month is $125.
3.
Depreciation for the month is $55.
4.
As of October 31, services worth $840 related to the previously recorded unearned revenue had been performed.
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Chapter 3 Solutions
FINANCIAL ACCOUNTING W/ACCESS >CI<
Ch. 3 - Prob. 1RQCh. 3 - 2.Discuss the major principle that describes...Ch. 3 - 3.Samantha is a first-year accounting student. She...Ch. 3 - 4.Describe when revenues and expenses are...Ch. 3 - Rip Side of Question 7 5.Executive Lawn provides...Ch. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Consider the information in Question 7. Using...Ch. 3 - Prob. 9RQCh. 3 - There are two basic types of adjusting...
Ch. 3 - 11.Provide an example of a prepaid expense. The...Ch. 3 - Provide an example of a deferred revenue. The...Ch. 3 - 13.Provide an example of an accrued expense. The...Ch. 3 - Provide an example of an accrued revenue. The...Ch. 3 - Sequoya Printing purchases office supplies for 75...Ch. 3 - Jackson Rental receives its September utility bill...Ch. 3 - 17.Global Printing publishes several types of...Ch. 3 - At the end of May, Robertson Corporation has...Ch. 3 - Fill in the blank associated with each adjusting...Ch. 3 - Prob. 20RQCh. 3 - Prob. 21RQCh. 3 - Prob. 22RQCh. 3 - Prob. 23RQCh. 3 - Prob. 24RQCh. 3 - Describe the debits and credits for the three...Ch. 3 - In its first four years of operations, Chance...Ch. 3 - Prob. 27RQCh. 3 - Prob. 28RQCh. 3 - Determine revenues to be recognized (LO31) Below...Ch. 3 - Prob. 3.2BECh. 3 - Prob. 3.3BECh. 3 - Analyze the impact of transactions on the balance...Ch. 3 - Prob. 3.5BECh. 3 - At the beginning of May, Golden Gopher Company...Ch. 3 - Record the adjusting entry for prepaid rent (LO33)...Ch. 3 - Prob. 3.8BECh. 3 - Prob. 3.9BECh. 3 - Record the adjusting entry for deferred revenue...Ch. 3 - Prob. 3.11BECh. 3 - Midshipmen Company borrows 15,000 from Falcon...Ch. 3 - Prob. 3.13BECh. 3 - For each of the following accounts, indicate...Ch. 3 - Prob. 3.15BECh. 3 - Prob. 3.16BECh. 3 - Prob. 3.17BECh. 3 - The following account balances appear in the 2018...Ch. 3 - Prob. 3.19BECh. 3 - Prob. 3.20BECh. 3 - Consider the following situations: 1.American...Ch. 3 - Consider the following situations: 1.American...Ch. 3 - Refer to the situations discussed in E31....Ch. 3 - Differentiate cash-basis expenses from...Ch. 3 - Prob. 3.5ECh. 3 - Listed below are all the steps in the accounting...Ch. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Prob. 3.10ECh. 3 - Refer to the information in E310. Calculate the...Ch. 3 - Prob. 3.12ECh. 3 - Below are transactions for Hurricane Company...Ch. 3 - Prepare an adjusted trial balance (LO33, 34) The...Ch. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - On January 1, 2018, Red Flash Photography had the...Ch. 3 - Prob. 3.21ECh. 3 - Consider the following transactions. Required: For...Ch. 3 - Prob. 3.2APCh. 3 - Record adjusting entries (LO3-3) The information...Ch. 3 - Crimson Tide Music Academy offers lessons in...Ch. 3 - Prob. 3.5APCh. 3 - The year-end financial statements of Rattlers Tax...Ch. 3 - Complete the accounting cycle after adjusting...Ch. 3 - The general ledger of Red Storm Cleaners at...Ch. 3 - The general ledger of Zips Storage at January 1,...Ch. 3 - Consider the following transactions. Required: For...Ch. 3 - Prob. 3.2BPCh. 3 - Prob. 3.3BPCh. 3 - Prob. 3.4BPCh. 3 - Prob. 3.5BPCh. 3 - FIGHTING ILLINI Income Statement Service revenue...Ch. 3 - Prob. 3.7BPCh. 3 - The general ledger of Pipers Plumbing at January...Ch. 3 - The general ledger of Jackrabbit Rentals at...Ch. 3 - You may refer to the opening story of Tony and...Ch. 3 - Prob. 3.2APFACh. 3 - Prob. 3.3APFACh. 3 - Prob. 3.4APCACh. 3 - Prob. 3.5APECh. 3 - Prob. 3.7APWC
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