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1.
Introduction:
Financial Statements: The financial statements of a company are prepared at the end of an accounting year to calculate the total liabilities, total assets, net profit or loss, and increase or decrease in cash during the year. The financial statements are used by various external and internal parties.
To prepare: The
2.
Introduction:
Financial Statements: The financial statements of a company are prepared at the end of an accounting year to calculate the total liabilities, total assets, net profit or loss, and increase or decrease in cash during the year. The financial statements are used by various external and internal parties.
To prepare: The T-account and show the adjusted balance.
3.
Introduction:
Financial Statements: The financial statements of a company are prepared at the end of an accounting year to calculate the total liabilities, total assets, net profit or loss, and increase or decrease in cash during the year. The financial statements are used by various external and internal parties.
To prepare: The adjusted
4.
Introduction:
Financial Statements: The financial statements of a company are prepared at the end of an accounting year to calculate the total liabilities, total assets, net profit or loss, and increase or decrease in cash during the year. The financial statements are used by various external and internal parties.
Whether the adjusting entries are correctly recorded if the total of debit and credit of the adjusted trial matches.
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Chapter 3 Solutions
Pearson eText Horngren's Financial & Managerial Accounting: The Financial Chapters -- Instant Access (Pearson+)
- Prepare adjusting journal entries, as needed, considering the account balances excerpted from the unadjusted trial balance and the adjustment data. A. supplies actual count at year end, $6,500 B. remaining unexpired insurance, $6,000 C. remaining unearned service revenue, $1,200 D. salaries owed to employees, $2,400 E. depreciation on property plant and equipment, $18,000arrow_forwardPrepare adjusting journal entries, as needed, considering the account balances excerpted from the unadjusted trial balance and the adjustment data. A. depreciation on buildings and equipment, $17,500 B. advertising still prepaid at year end, $2,200 C. interest due on notes payable, $4,300 D. unearned rental revenue, $6,900 E. interest receivable on notes receivable, $1,200arrow_forwardJournalize the necessary adjusting entry for each of the following independent situations:1. The supplies account balance on September 1, 2020, is $3,975. The supplies on hand onSeptember 30th is $1,050.2. On January 1, 2020, the company paid $3,600 for an annual (12 month) flood insurancepolicy covering their headquarter building.a) Assume the company has a monthly accounting period, prepare the adjusting entryneeded at the end of January.b) Assume the company has a quarterly accounting period (report once every 3months). Prepare the entry needed at the end of the first quarter.3. A business pays its employees $1,500 per day and payday is each Friday.a) Prepare the adjusting entry needed if the end of the accounting period falls onMonday.b) Prepare the adjusting entry needed if the end of the accounting period falls onThursday.4. On October 1, a tenant pays their landlord $2,500 for five months' rent.a) Prepare the entry needed on October 1st to record this transactionb) Prepare the…arrow_forward
- Journalizing adjusting entries and analyzing their effect on the income statement The following data at July 31, 2018, are given for RCO: Depreciation, $600. Prepaid rent expires, $200. Interest expense accrued, $700. Employee salaries owed for Monday through Thursday of a five-day workweek; weekly payroll, $8,000. Unearned revenue earned $1,000. Office supplies used $150. Requirements Journalize the adjusting entries needed on July 31, 2018. Suppose the adjustments made in Requirement 1 were not made. Compute the overall overstatement or understatement of net income as a result of the omission of these adjustments.arrow_forwardAdjusting Entries: Please tell me how this would be recorded on a General Journal. The following categories are in this order Date, Description, Post Ref, Debit, Credit.a) Depreciation expense for the month on the building is $2,000b) A count of the Supplies account indicates that supplies of $450 have been usedc) Two months have passed since insurance for the year was paid. The amount of the check was $1,200. The entry at time of payment debited the Prepaid Insurance accountd) Employees have earned $400 since the last pay daye) Advertising in the local paper was paid this month in the amount of $500. THe amount was debited to Prepaid Advertising and the advertisement is to run next monthf) Joe Moreland paid us $500 in advance for work to be done on his residence. The entry to record the collection of this cash included a credit to Labor Revenue. The work is halfway done.arrow_forwardConsider the following situations for College Park Welding Services: i (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.) More info 4 a. Depreciation for the current year includes equipment, $2,800. b. Each Monday, College Park pays employees for the previous week's work. The amount of weekly payroll is $7,700 for a seven-day workweek (Monday to Sunday). This year, December 31 falls on Thursday. c. The beginning balance of Office Supplies was $2,700. During the year, College Park purchased office supplies for $2,800, and at December 31 the office supplies on hand totaled $1,300. d. College Park prepaid a two full years' insurance on April 1 of the current year, $6,960. Record insurance expense for the year ended December 31. e. College Park had earned $2,900 of unearned…arrow_forward
- The ledger of Bourque Rental Agency on March 31, 2021, includes the following selected accounts before preparing quarterly adjusting entries:   Debit  Credit  Supplies  $ 13,600    Prepaid Insurance  3,440    Equipment  37,760    Accumulated Depreciation—Equipment    $ 9,440  Unearned Revenue    9,200  Notes Payable    28,800  Rent Revenue    29,800  Salaries Expense  13,600    An analysis of the accounts shows the following: 1.  The equipment has a four-year useful life. 2.  One-quarter of the unearned rent is still unearned on March 31, 2021. 3.  The note payable has an interest rate of 4%. Interest is paid every June 30 and December 31. 4.  Supplies on hand at March 31 total $ 760. 5.  The one-year insurance policy was purchased on January 1, 2021. 6.  As at March 31, a tenant owed Bourque $ 600 for the month of March. Prepare the quarterly adjusting entries required at March 31, 2021arrow_forwardFAITH Company presented the following information pertaining to accounts that will need adjustments forits November 30, 2020 year-end financial statements:a. On Oct. 1, 2020, Faith Company paid $10,800 for 6-months’ insurance premiums. Debited InsuranceExpense for the amount paid.b. The balance in the ledger account Office Supplies amounted to $32,000. A count of the officesupplies on hand as of Nov. 30, 2020 totaled $12,800.c. Faith Company received $22,800 on Nov. 1, 2020 from a customer for future services to be renderedduring the months of November, December, January, and February.d. Faith acquired Office Equipment costing $355,000 on April 1, 2020. The equipment is expected to last5 years after which it will have a salvage value of $2,200.e. Assume that Nov. 30, 2020 is a Thursday and that Faith pays its employees a total of $87,500 everyFridays for a 5-day working week.Required: Prepare the necessary adjusting entries for Faith Company at November 30, 2020arrow_forwardYou have been provided with the end of year, unadjusted trial balance for City Movers LTD and  a list of balance day adjustments to be entered into the General Journal.  CITY MOVERS  UNADJUSTED TRIAL BALANCE AS AT 31st August 2021 Cash at bank 60080  Accounts Receivable 68250  Allowance for Doubtful Debts  1500 Prepaid Insurance 3600  Moving Van 45000  Acc. Depreciation- Van  9000 Capital – Gui Nash  102000 Drawings – Gui Nash 16,500  Fees Revenue  90930 Moving staff wages 10000  Total 203430 203430   Additional Information The annual Insurance policy was paid on 1st June 2021. An Accounts Receivable of $750 is uncollectable and is to be written off. The policy is to have the Allowance for Doubtful Debts equal to 2% of accounts receivable Moving van is depreciated at 10% per annum straight line method. Wages amounting to $ 950 had been incurred but not been paid as at 31st August 2021.  Required:…arrow_forward
- Current Attempt in Progress You are asked to prepare the following adjusting entries for Sandra's Sewing at December 31, 2024: 1. 2. 3. Annual depreciation on equipment is $2,750. Journalise the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Supplies of $715, originally recorded as supplies, were used during the year. Prepaid insurance of $880 expired during the year. No. Date Account Titles and Explanation 1. 2. 3. Dec. 31 Dec. 31 Dec. 31 eTextbook and Media Debit Creditarrow_forwardGeneral Instructions: Prepare the adjusting journal entries for the following transactions of Company AA.  1. Paid one – year fire insurance amounting to P12,000 on August 15, 2019. Record the adjusting entries for the year ended December 31, 2019:            a. If the company is using Asset method            b. If the company is using Expense method  2. Purchased office supplies on September 01, 2019 amounting to P30,000. On December 31, 2019, the Supplies Custodian reported that per physical count, the office supplies on hand is P8,000. Prepare adjusting entries:            a. If the company is using Expense method            b. If the company is using Asset method  3. The customer made an advance payment for the ordered goods amounting to P480,000 on November 07. As of December 31, the company has shipped 70% of the ordered goods. Prepare the adjusting entry on December 31:            a. If the company is using Liability method            b. If the company is…arrow_forwardWorksheet Victoria Company has the following account balances on December 31, 2019, prior to any adjustments: Additional adjustment information: (a) depreciation on buildings, 1,100; on equipment, 600; (b) bad debts expense, 240; (c) interest accumulated but not paid: on note payable, 50; on mortgage payable, 530 (this interest is due during the next accounting period); (d) insurance expired, 175; (e) salaries accrued but not paid 370; (f) rent was collected in advance and the performance obligation is now satisfied, 800; (g) office supplies cm hand at year-end, 230 (expensed when originally purchased earlier in the year); and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2020. Required: 1. Transfer the account balances to a 10-column worksheet and prepare a trial balance. 2. Prepare the adjusting entries in the general journal and complete the worksheet. 3. Prepare the companys income statement, retained earnings statement, and balance sheet. 4. Prepare closing entries in the general journal.arrow_forward
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