Financial Accounting - Access
4th Edition
ISBN: 9781259958533
Author: SPICELAND
Publisher: MCG
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Chapter 3, Problem 3.4AP
Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted
| Accounts | Debits | Credits | |
| Cash | $ 10,300 | ||
| Accounts Receivable | 9,500 | ||
| Supplies | 2,000 | ||
| Prepaid Rent | 7,200 | ||
| Equipment | 90,000 | ||
| $ 12,000 | |||
| Accounts Payable | 7,700 | ||
| Salaries Payable | -0- | ||
| Interest Payable | -0- | ||
| Utilities Payable | -0- | ||
| Notes Payable | 20,000 | ||
| Common Stock | 45,000 | ||
| 19,000 | |||
| Service Revenue | 42,200 | ||
| Salaries Expense | 24,500 | ||
| Interest Expense | -0- | ||
| Rent Expense | -0- | ||
| Supplies Expense | -0- | ||
| Utilities Expense | 2,400 | ||
| Depreciation Expense | -0- | ||
| Totals | $145,900 | $145,900 | |
Information necessary to prepare the year-end
a. Depreciation of equipment for the year is $6,000.
b. Accrued salaries at year-end should be $2,100.
c. Crimson Tide borrows $20,000 on September 1, 2018. The principal is due to be repaid in four years. Interest is payable each August 31 at an annual rate of 12%.
d. Unused supplies at year-end total $700. Crimson Tide debits Supplies at the time supplies are purchased.
e. Crimson Tide opens a second studio by paying for one war of rent in advance on April 1, 2018, for $7,200 ($600 per month) debiting Prepaid Rent.
f. Unpaid utilities for December total $200.
Required:
Record the necessary adjusting entries on December 31, 2018.
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The following transactions occur for Cardinal Music Academy during the month of October:
a. Provide music lessons to students for $7,500 cash.b. Purchase prepaid insurance to protect musical equipment over the next year for $3,060 cash.c. Purchase musical equipment for $10,500 cash. d. Obtain a loan from a bank by signing a note for $11,000.
Record the transactions. The company uses the following accounts: Cash, Prepaid Insurance, Equipment, Notes Payable, and Service Revenue.
Required information
Use the following information for the Exercises below.
[The following information applies to the questions displayed below.]
The following is the adjusted year-end trial balance at December 31, 2018, of Wilson Trucking Company.
Account Title
Debit
Credit
Cash
$
7,400
Accounts receivable
17,000
Office supplies
3,800
Trucks
176,000
Accumulated depreciation—Trucks
$
35,000
Land
76,900
Accounts payable
12,700
Interest payable
4,700
Long-term notes payable
48,000
Common stock
21,100
Retained earnings, December 31, 2017
154,000
Dividends
19,800
Trucking fees earned
133,000
Depreciation expense—Trucks
22,500
Salaries expense
64,000
Office supplies expense
8,500
Repairs expense—Trucks
12,600
Totals
$
408,500
$
408,500
Exercise 3-8 Preparing…
Oriole Company was organized on April 1, 2020. The company prepares quarterly financial statements. The adjusted trial balance amounts at June 30 are shown below.
Debit
Credit
Cash
$ 6,200
Accumulated Depreciation—Equipment
$ 800
Accounts Receivable
680
Notes Payable
4,300
Prepaid Rent
1,000
Accounts Payable
900
Supplies
900
Salaries and Wages Payable
300
Equipment
12,600
Interest Payable
70
Owner’s Drawings
400
Unearned Rent Revenue
300
Salaries and Wages Expense
7,200
Owner’s Capital
12,380
Rent Expense
1,400
Service Revenue
11,100
Depreciation Expense
800
Rent Revenue
1,700
Supplies Expense
100
$31,850
Utilities Expense
500
Interest Expense
70
$31,850
Determine the net income for the quarter April 1 to June 30.
Net income
$
Determine the total assets and total liabilities at June 30, 2020, for Oriole Company.
Yang Company
Total assets…
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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- uired information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] The following is the adjusted year-end trial balance at December 31, 2018, of Wilson Trucking Company. Account Title Debit Credit Cash $ 7,400 Accounts receivable 17,000 Office supplies 3,800 Trucks 176,000 Accumulated depreciation—Trucks $ 35,000 Land 76,900 Accounts payable 12,700 Interest payable 4,700 Long-term notes payable 48,000 Common stock 21,100 Retained earnings, December 31, 2017 154,000 Dividends 19,800 Trucking fees earned 133,000 Depreciation expense—Trucks 22,500 Salaries expense 64,000 Office supplies expense 8,500 Repairs expense—Trucks 12,600 Totals $ 408,500 $ 408,500 Exercise 3-8 Preparing financial…arrow_forwardPREPARE ADJUSTED TRIAL BALANCE BY USING THE INFORMATION On December 1, 2020, Sheridan Distributing Company had the following account balances. Debit Credit Cash $7,500 Accumulated Depreciation—Equipment $2,640 Accounts Receivable 4,900 Accounts Payable 4,500 Inventory 12,200 Salaries and Wages Payable 1,000 Supplies 1,300 Owner’s Capital 44,160 Equipment 26,400 $52,300 $52,300 During December, the company : Dec. 6 Paid $1,800 for salaries and wages due employees, of which $800 is for December and $1,000 is for November salaries and wages payable. 8 Received $1,900 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6,500. The cost of the merchandise sold was $3,900. 13 Purchased merchandise on account from Boehm Co. $9,000, terms 2/10, n/30. 15 Purchased supplies for cash $1,600. 18 Sold merchandise on account $12,800, terms 3/10, n/30. The…arrow_forwardUse the following information for the Exercises below. [The following information applies to the questions displayed below.] The following is the adjusted year-end trial balance at December 31, 2018, of Wilson Trucking Company. Account Title Debit Credit Cash $ 7,400 Accounts receivable 17,000 Office supplies 3,800 Trucks 176,000 Accumulated depreciation—Trucks $ 35,000 Land 76,900 Accounts payable 12,700 Interest payable 4,700 Long-term notes payable 48,000 Common stock 21,100 Retained earnings, December 31, 2017 154,000 Dividends 19,800 Trucking fees earned 133,000 Depreciation expense—Trucks 22,500 Salaries expense 64,000 Office supplies expense 8,500 Repairs expense—Trucks 12,600 Totals $ 408,500 $ 408,500 Exercise 3-9 Preparing a classified balance sheet…arrow_forward
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