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Concept Introduction: Adjusted
The
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Concept Introduction: Adjusted trial balance lists all accounts with their adjusted balances. These adjustments generally include prepayments and accruals and certain yearend adjustments like depreciation, prepared at the end of the year act as a basis for the preparation of financial statements.
The explanation for each adjustment entry.
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- Requirement:a. Give all the necessary entries to correct the account on December 31, 2022. Write your entriesin a columnar paper.b. Using a T-Account, show the corrected balance of the delivery equipment by posting youradjusting entries.arrow_forwardA select list of transactions for Anuradha's Goals follows: (Click the icon to view the transactions.) For each transaction, identify what type of adjusting entry would be needed. Select from the following four types of adjusting entries: deferred expense, deferred revenue, accrued expense, and accrued revenue. Apr. 1 Paid six months of rent, $4,800. Apr. 10 Received $1,200 from customer for six month service contract that began April 1. Apr. 15 Purchased a computer for $1,000. Apr. 18 Purchased $300 of office supplies on account. Apr. 30 Work performed but not yet billed to customer, $500 Apr. 30 Employees earned $600 in salaries that will be paid May 2. More Info Apr. 1 Paid six months of rent, $4,800. Apr. 10 Received $1,200 from customer for six-month service contract that began April 1. Apr. 15 Purchased a computer for $1,000. Apr. 18 Purchased $300 of office supplies on account. Apr. 30 Work performed but not yet billed to customer, $500. Apг. 30 Employees earned $600 in salaries…arrow_forwardFor each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on September 30, the end of the fiscal year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) On September 1, paid rent on the track facility for three months, $210,000. (b) On September 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $900,000. (c) On September 1, borrowed $350,000 from First National Bank by issuing a 9% note payable due in three months. (d) On September 5, programs for 20 racing days in September, 25 racing days in October, and 15 racing days in November were printed for $3,600. (e) The accountant for the concessions…arrow_forward
- Among the ledger accounts used by Glenwood Speedway are the following: Prepaid Rent, RentExpense, Unearned Admissions Revenue, Admissions Revenue, Prepaid Printing, PrintingExpense, Concessions Receivable, and Concessions Revenue. For each of the following items, provide the journal entry (if one is needed) to record the initial transaction and provide the adjust-ing entry, if any, required on May 31, the end of the fiscal year. a. On May 1, borrowed $300,000 cash from National Bank by issuing a 12 percent note payabledue in three months.b. On May 1, paid rent for six months beginning May 1 at $30,000 per month.c. On May 2, sold season tickets for a total of $910,000 cash. The season includes 70 racingdays: 20 in May, 25 in June, and 25 in July.d. On May 4, an agreement was reached with Snack-Bars, Inc., allowing that company to sellrefreshments at the track in return for 10 percent of the gross receipts from refreshment sales.arrow_forwardA select list of transactions for Anuradha's Goals follows: A (Click the icon to view the transactions. For each transaction, identify what type of adjusting entry would be needed. Select from the following four types of adjusting entries: deferred expense, deferred revenue, accrued expense, and accrued revenue. Apr. 1 Paid six months of rent, $4,800. Apг. 10 Received $1,200 from customer for six month service contract that began April 1. Apr. 15 Purchased a computer for $1,000. Apr. 18 Purchased $300 of office supplies on account. Apr. 30 Work performed but not yet billed to customer, $500 Apr. 30 Employees earned $600 in salaries that will be paid May 2. More Info Aprг. 1 Paid six months of rent, $4,800. Apr. 10 Received $1,200 from customer for six-month service contract that began April 1. Apr. 15 Purchased a computer for $1,00. Apr. 18 Purchased $300 of office supplies on account. Apr. 3 Work performed but not yet billed to customer, $500. Aprг. 30 Employees earned $600 in…arrow_forwardSam's Plumbing records monthly depreciation. The adjusting entry to record depreciation would include: a. a debit to Accumulated Depreciation. b. a debit to Equipment. c. a debit to Depreciation Expense. d. a credit to Depreciation Expense.arrow_forward
- Prepare adjusting journal entries, as needed, considering the account balances excerpted from the unadjusted trial balance and the adjustment data. depreciation on fixed assets, $8,500 unexpired prepaid rent, $12,500 remaining balance of unearned revenue, $555arrow_forwardWhat is the Income statement, statement of owners oquityAdjusted Trial Balance Adjusted Trial Balance: It is the last step before the financial statements are prepared. Adjusted trial balances involve all the accounts, temporary and permanent. It can be used directly for the preparation of the financial statements. After all the adjusting entries are recorded and posted to its ledger. The account balances of each account is computed and then the balances are recorded in the adjusted trial balance. The adjusted trial balance for the company M T is as under: In the books of M T Adjusted Trial Balance Particulars Debit $ Credit $ Cash $127,157.75 Notes Receivable $4,500.00 Accounts Receivable $12,132.40 Interest Receivable $40.00 Merchandise inventory $31,000.86 Estimated Returns Inventory $1,654.00 Office supplies $500.00 Store supplies $1,800.00 Prepaid Insurance $3,000.00 Land $55,000.00 Office Equipment $75,000.00…arrow_forwardThe ledger of Sandhill Rental Agency on March 31 of the current year includes the following selected accounts, before adjusting entries have been prepared. ...Prepare the adjusting entries at March 31, assuming that adjusting enteries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense.arrow_forward
- Jordan Carr is preparing a worksheet. Choose for Jordan and guide how he should extend the following adjusted trial balance accounts to the financial statement columns of the worksheet. Trial Balance accounts Financial Statement Column Service Revenue Notes Payable Owner's Capital Accounts Receivable Accumulated Depreciation Utilities Expense > > > > > > >arrow_forwardRecord the following in the adjustment journal template then post it to the T-accounts. additional information for adjustments for December 31, 2021. a. Unexpired prepaid rent is $1,000. b. The annual prepaid insurance was paid Nov. 1 $2,500. Record the expired portion. c. Cleaning supplies on hand, $3,200. d. Depreciation expense office equipment, $110. e. Cleaning Equipment original cost $12,000 with a residual value $800, useful life is 5 years. Record the annual depreciation expense. f. Record the vehicle depreciation expense $280. g. Accrued wages $ 950.arrow_forwardPrepare adjusting journal entries, as needed, considering the account balances excerpted fromthe unadjusted trial balance and the adjustment data. A. depreciation on fixed assets, $ 8,500B. unexpired prepaid rent, $12,500C. remaining balance of unearned revenue, $555arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College