CengageNOWv2, 1 term Printed Access Card for Warren's Survey of Accounting, 8th
8th Edition
ISBN: 9781305961982
Author: Carl Warren
Publisher: Cengage Learning
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Question
Chapter 3, Problem 3.2P
To determine
The adjusting entries are recorded at the end to each accounting period to adjust the account as per the accrual concept of accounting. The adjusting entries include adjustment of
To Prepare:
The adjusting entries
Expert Solution & Answer
Answer to Problem 3.2P
The adjusting entries are as follows:
| San Mateo Care Inc. | |||
| Adjusting entries | |||
| # | Account Title | Debit | Credit |
| 1 | Insurance Expense | $ 900 | |
| Prepaid Insurance | $ 900 | ||
| 2 | Supplies Expense | $ 1,000 | |
| Supplies | $ 1,000 | ||
| 3 | Depreciation Expense- Building | $ 2,300 | |
| $ 2,300 | |||
| 4 | Unearned Service Revenue | $ 3,000 | |
| Service Revenue | $ 3,000 | ||
| 5 | Wages expense | $ 2,900 | |
| Wages payable | $ 2,900 | ||
| 6 | $ 5,000 | ||
| Service Revenue | $ 5,000 | ||
The adjusting entries are explained as follows:
| San Mateo Care Inc. | |||
| Adjusting entries | |||
| # | Account Title | Debit | Credit |
| 1 | Insurance Expense | $ 900 | |
| Prepaid Insurance | $ 900 | ||
| (Being adjustment made for prepaid Insurance) | |||
| 2 | Supplies Expense | $ 1,000 | |
| Supplies | $ 1,000 | ||
| (Being adjustment made for Supplies used) | |||
| 3 | Depreciation Expense- Building | $ 2,300 | |
| Accumulated Depreciation- Building | $ 2,300 | ||
| (Being adjustment made for depreciation) | |||
| 4 | Unearned Service Revenue | $ 3,000 | |
| Service Revenue | $ 3,000 | ||
| (Being adjustment made for revenue earned) | |||
| 5 | Wages expense | $ 2,900 | |
| Wages payable | $ 2,900 | ||
| (Being adjustment made for the wages accrued) | |||
| 6 | Accounts Receivables | $ 5,000 | |
| Service Revenue | $ 5,000 | ||
| (Being adjustment made for the revenue earned) | |||
Explanation of Solution
The adjusting entries are explained as follows:
| San Mateo Care Inc. | |||
| Adjusting entries | |||
| # | Account Title | Debit | Credit |
| 1 | Insurance Expense | $ 900 | |
| Prepaid Insurance | $ 900 | ||
| (Being adjustment made for prepaid Insurance) | |||
| 2 | Supplies Expense | $ 1,000 | |
| Supplies | $ 1,000 | ||
| (Being adjustment made for Supplies used) | |||
| 3 | Depreciation Expense- Building | $ 2,300 | |
| Accumulated Depreciation- Building | $ 2,300 | ||
| (Being adjustment made for depreciation) | |||
| 4 | Unearned Service Revenue | $ 3,000 | |
| Service Revenue | $ 3,000 | ||
| (Being adjustment made for revenue earned) | |||
| 5 | Wages expense | $ 2,900 | |
| Wages payable | $ 2,900 | ||
| (Being adjustment made for the wages accrued) | |||
| 6 | Accounts Receivables | $ 5,000 | |
| Service Revenue | $ 5,000 | ||
| (Being adjustment made for the revenue earned) | |||
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Chapter 3 Solutions
CengageNOWv2, 1 term Printed Access Card for Warren's Survey of Accounting, 8th
Ch. 3 - Assume that a lawyer bills her clients $15000 on...Ch. 3 - On January 24, 20Y8, Niche Consulting collected...Ch. 3 - Prob. 3SEQCh. 3 - If the supplies account indicated a balance of...Ch. 3 - The balance in the unearned rent account for Jones...Ch. 3 - Would AT&T and Microsoft Use the cash basis or the...Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Fees for services provided are billed to a...Ch. 3 - Employees performed services in 20Y8, but the...Ch. 3 - Prob. 5CDQ
Ch. 3 - Is the Land balance before the accounts have been...Ch. 3 - Is the Supplies balance before the accounts have...Ch. 3 - Prob. 8CDQCh. 3 - Prob. 9CDQCh. 3 - Prob. 10CDQCh. 3 - If the effect of an adjustment is to increase the...Ch. 3 - Prob. 12CDQCh. 3 - (a) Explain the purpose of the accounts...Ch. 3 - Prob. 14CDQCh. 3 - Transactions using accrual accounting Terry Mason...Ch. 3 - Adjustment process Using the data from Exercise...Ch. 3 - Financial statements Using the data from Exercises...Ch. 3 - Prob. 3.4ECh. 3 - Accrual basis of accounting Margie Van Epps...Ch. 3 - Classify accruals and deferrals Classify the...Ch. 3 - Classify adjustments The following accounts were...Ch. 3 - Adjustment for supplies Answer each of the...Ch. 3 - Adjustment for prepaid insurance The prepaid...Ch. 3 - Adjustment for unearned fees The balance in the...Ch. 3 - Adjustment for unearned revenue For a recent year....Ch. 3 - Effect of omitting adjustment At the end of...Ch. 3 - Adjustment for accrued salaries Laguna Realty Co....Ch. 3 - Determine wages paid The balances of the two...Ch. 3 - Effect of omitting adjustment Accrued salaries of...Ch. 3 - Effect of omitting adjustment Assume that the...Ch. 3 - Effects of errors on financial statements For a...Ch. 3 - Effects of errors on financial statements The...Ch. 3 - Effects of errors on financial statements If the...Ch. 3 - Adjustment for accrued fees At the end of the...Ch. 3 - Adjustments for unearned and accrued fees The...Ch. 3 - Effect on financial statements of omitting...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Adjustments Clean Air Company is a consulting firm...Ch. 3 - Book value of fixed assets For a recent year....Ch. 3 - Classify assets Identify each of the following as...Ch. 3 - Balance sheet classification At the balance sheet...Ch. 3 - Classified balance sheet Pounds-Away Services Co....Ch. 3 - Prob. 3.29ECh. 3 - Balance sheet List any errors you can find in the...Ch. 3 - Accrual basis accounting San Mateo Health Care...Ch. 3 - Prob. 3.2PCh. 3 - Financial statements Data for San Mateo Health...Ch. 3 - Statement of cash flows Data for San Mateo Health...Ch. 3 - Statement of cash flows Data for San Mateo Health...Ch. 3 - Adjustments and errors At the end of May, the...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Prob. 3.1MBACh. 3 - Prob. 3.2MBACh. 3 - Prob. 3.3MBACh. 3 - Prob. 3.4MBACh. 3 - Prob. 3.5.1MBACh. 3 - Prob. 3.5.2MBACh. 3 - Prob. 3.5.3MBACh. 3 - Prob. 3.5.4MBACh. 3 - Quick ratio The Gap Inc. (GPS)operates specialty...Ch. 3 - Prob. 3.6.2MBACh. 3 - Quick ratio The Gap Inc. (GPs)operates specialty...Ch. 3 - Quick ratio American Eagle Outfitters Inc. (AEO)...Ch. 3 - Quick ratio American Eagle Outfitters Inc. (AEO)...Ch. 3 - Prob. 3.7.3MBACh. 3 - Prob. 3.8MBACh. 3 - Prob. 3.9.1MBACh. 3 - Prob. 3.9.2MBACh. 3 - Prob. 3.9.3MBACh. 3 - Prob. 3.1CCh. 3 - Adjustments for financial statements Several years...Ch. 3 - Prob. 3.3.1CCh. 3 - Prob. 3.3.2CCh. 3 - Prob. 3.4.1CCh. 3 - Prob. 3.4.2CCh. 3 - Accrual versus cash net income. Cigna Corp. (CI)...Ch. 3 - Prob. 3.5.1CCh. 3 - Prob. 3.5.2C
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