Financial Accounting - Access
4th Edition
ISBN: 9781259958533
Author: SPICELAND
Publisher: MCG
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Chapter 3, Problem 3.3BP
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To Record: The necessary
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The information necessary for preparing the 2021 year-end adjusting entries for Gamecock Advertising Agency appears below. Gamecock’s fiscal year-end is December 31. 1. On July 1, 2021, Gamecock receives $6,000 from a customer for advertising services to be given evenly over the next 10 months. Gamecock credits Deferred Revenue. 2. At the beginning of the year, Gamecock’s depreciable equipment has a cost of $28,000, a four-year life, and no salvage value. The equipment is depreciated evenly (straight-line depreciation method) over the four years. 3. On May 1, 2021, the company pays $4,800 for a two-year fire and liability insurance policy and debits Prepaid Insurance. 4. On September 1, 2021, the company borrows $20,000 from a local bank and signs a note. Principal and interest at 12% will be paid on August 31, 2022. 5. At year-end there is a $2,700 debit balance in the Supplies (asset) account. Only $1,000 of supplies remains on hand.Required: Record the necessary adjusting entries on…
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On August 1, 2024, the company collected $12,840 in advance from another company that is renting a portion of the company’s factory. The $12,840 represents one year’s rent and the entire amount was credited to Deferred Revenue. Record the adjusting entry for deferred revenue at its year-end of
P3-4A A review of the ledger of Remina Company at December 31, 2017, produces the following data pertaining to the preparation of annual adjusting entries.1. Prepaid Insurance $10,440. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on April 1, 2016, for $7,920. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2017, for $4,500. This policy has a term of 2 years.2. Unearned Rent Revenue $429,000. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.Term Number of Date (in months) Monthly Rent LeasesNov. 1 9 $5,000 5Dec. 1 6 $8,500 4(c) Adj. trial balance $101,305(d) Net income $4,645Ending capital $46,025Total assets $93,075Prepare adjusting entries and financial statements.(b) Net income $4,475Ending capital $24,875Total…
Chapter 3 Solutions
Financial Accounting - Access
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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- On July 1, 2022, Ivanhoe Company pays $ 15,500 to Sandhill Co. for a 1-year insurance contract. Both companies have fiscal years ending December 31. (a1) Your Answer Correct Answer Correct answer icon Your answer is correct. Journalize the entry on July 1 and the adjusting entry on December 31 for Sandhill Co.. Sandhill uses the accounts Unearned Service Revenue and Service Revenue. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a…arrow_forwardPlease make the adjustments and adjusted trial balanceAdditional information for adjustments: a. On December 31, a physical count of the office supplies reveals that15,300 worth of supplies are available at the end of the month. b. On December 31, one month of the prepaid rent of P18,000 has been usedup. c. The office equipment purchased by Mr. M for P324,000 on December 2,2020 is expected to last six years with no residual value. d. On December 5, Mr. M signed a four-month contract to perform work for P7,500 per month with the entire contract price of P30,000 received in advance. e. At the close of business, December 30, 2020 the employee has worked one week during December for which salaries of P8,100 are not paid until January 2021. f. The two-year bank loan obtained by the company amounting to P360,000 has a 10% annual interest rate payable every November 30. g. On December 2, 2020, Mr. M entered into a one-year contract with a local company. Mr. M agreed to maintain the company’s…arrow_forwardH3.C12 The Unadjusted Trial Balance for Hawkeye Ranges as of December 31 is presented in requirement 1. The following additional Information relates to the required year-end adjustments. a. As of December 31, employees had earned $1,296 of unpaid and unrecorded salarles. The next payday is January 4, at which time $2.307 of salaries will be pald. b. Cost of supples still available at December 31 total Is $3,904. c. An Interest payment is made every three months. The amount of unrecorded accrued interest at December 31 is $1,275. The next Interest payment, at an amount of $1,530, Is due on January 15. d. Analysis of Unearned Revenue shows $8,099 remaining unearned at December 31. e. Accrues $13,040 of revenue for services provided. Payment will be collected on January 31. 1. Depreciation expense is $18,409. Required: 1. Complete the six-column table by entering adjustments that reflect the above information. 2. Prepare Journal entries for adjustments entered in the six-column table for…arrow_forward
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- The information necessary for preparing the 2021 year-end adjusting entries for Winter Storage appears below. Winter's fiscal year-end is December 31.Depreciation on the equipment for the year is $7,000.Salaries earned by employees (but not paid to them) from December 16 through December 31, 2021, are $3,400.On March 1, 2021, Winter lends an employee $12,000 and a note is signed requiring principal and interest at 6% to be paid on February 28, 2022.On April 1, 2021, Winter pays an insurance company $15,000 for a one-year fire insurance policy. The entire $15,000 is debited to prepaid insurance at the time of the purchase.$1,500 of supplies are used in 2021.A customer pays Winter $4,200 on October 31, 2021, for six months of storage to begin November 1, 2021. Winter credits deferred revenue at the time of cash receipt.On December 1, 2021, $4,000 rent is paid to a local storage facility. The payment represents storage for December 2021 through March 2022, at $1,000 per month. Prepaid…arrow_forwardPrepare the necessary adjusting entries at December 31, 2021, for the Microchip Company for each of the following situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.1. On October 1, 2021, Microchip lent $90,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022.2. On November 1, 2021, the company paid its landlord $6,000 representing rent for the months of November through January. Prepaid rent was debited.3. On August 1, 2021, collected $12,000 in advance rent from another company that is renting a portion of Microchip’s factory. The $12,000 represents one year’s rent and the entire amount was credited to deferredrent revenue.4. Depreciation on office equipment is $4,500 for the year.5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. The company records vacation pay as salaries expense.6. Microchip began the year…arrow_forwardThe information necessary for preparing the 2024 year-end adjusting entries for Whiteclaw Training Academy appears below. Whiteclaw’s fiscal year-end is December 31. At the end of the year, the academy calculated that it owed $6,300 in income taxes. Those taxes won’t be paid until next April 15. Salaries earned (but not paid) from December 16 through December 31, 2024, are $3,300. On March 1, 2024, Whiteclaw lends an employee $16,500. The employee signs a note requiring principal and interest at 8% to be paid on February 28, 2025. On April 1, 2024, Whiteclaw pays an insurance company $12,360 for a two-year fire insurance policy. The entire $12,360 is debited to Prepaid Insurance at the time of the purchase. Whiteclaw uses $1,350 of supplies in 2024. A customer pays Whiteclaw $2,490 on October 31, 2024, for three months of personal training to begin November 1, 2024. Whiteclaw credits Deferred Revenue at the time of cash receipt. On December 1, 2024, Whiteclaw pays $4,950 rent to the…arrow_forward
- Record the necessary adjusting entries at December 31, 2021. No prior adjustments have been made during 2021. The information necessary for preparing the 2021 year-end adjusting entries for Bear Cat Personal Training Academy appears below. Bear Cat’s fiscal year-end is Dec. 31. Depreciation on the equipment for the year is $7,000. Salaries earned (but not paid) from Dec. 16 through Dec. 31, 2021, are $ 4,000. On March 1, 2021, Bearcat lends an employee $20,000. The employee signs a note requiring principal and interest at 9% to be paid on Feb. 28, 2022. Calculate the correct amount. On April 1, 2021, Bearcat pays an insurance company $13,200 for a two-year fire insurance policy. The entire $ 13,200 is debited to Prepaid Insurance at the time of the purchase. Calculate the correct amount.arrow_forwardFor each item, determine the accounts to be adjusted on December 31, 2024, the amount of the adjustment, and the ending balance. Assume no adjustments were previously made during the year. On December 1, 2024, Wolverine received $4,000 cash from a company renting office space from Wolverine. The payment, representants rent for December and January was recorded to Deferred Revenue on December Revenue for other rentals totaled $125,000. My question is this: does the "revenue for other rentals totaled $125,000" have any relevance on answering the question. Or is jut "filler"? Thank you!arrow_forward4. Prepare adjusting entries based on the following information at the end of March 31,2020: a. The equipment has useful life of 5 years with a salvage value of $5000. b. $5000 of the office supplies has been used. c. Prepaid insurance expired for 3 months. d. 50% of the unearned sales revenue has been earned. e. Interest accrued on bank loan. f. Salaries accrued for $2000, but not paid. List of accounts to be used for adjusting entries: Depreciation expense, Accumulated depreciation-equipment, Supplies expense, Insurance expense, Interest expense, Interest payable, salaries and wages payable. Note: Adjusting entries are prepared quarterly. 5. Prepare adjusted trial balance at March 31, 2020.arrow_forward
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