FINANCIAL+MANAG.ACCT - CONNECT ACCESS
9th Edition
ISBN: 9781265318420
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 3, Problem 3SP
No | Account Title | Debit | Credit |
101 | Cash | $38,264 | |
106 | Accounts receivable | 12,618 | |
126 | Computer supplies | 2,545 | |
128 | Prepaid insurance | 2,220 | |
131 | Prepaid rent | 3,300 | |
163 | Office equipment | 8,000 | |
164 | $ 0 | ||
167 | Computer equipment | 20,000 | |
168 | Accumulated depreciation—Computer equipment | 0 | |
201 | Accounts payable | 0 | |
210 | Wages payable | 0 | |
236 | Unearned computer services revenue | 0 | |
307 | Common stock | 73,000 | |
318 | 0 | ||
319 | Dividends | 5,600 | |
403 | Computer services revenue | 25,659 | |
612 | Depreciation expense—Office equipment | 0 | |
613 | Depreciation expense—Computer equipment | 0 | |
623 | Wages expense | 2,625 | |
637 | Insurance expense | 0 | |
640 | Rent expense | 0 | |
652 | Computer supplies expense | 0 | |
655 | Advertising expense | 1,728 | |
676 | Mileage expense | 704 | |
677 | Miscellaneous expenses | 250 | |
684 | Repairs expense—Computer | 805 | |
Total | $98,659 | $98,659 | |
The following additional facts are collected for use in making
- The December 31 inventory count of computer supplies shows $580 still available.
- Three months have expired since the 12-month insurance premium was paid in advance.
- As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.
- The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
- The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
- Three of the four months’ prepaid rent have expired.
Required
- Prepare
journal entries to record each of the December transactions and events for Business Solutions - Prepare adjusting entries to record each of the December
Expert Solution & Answer
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CHART OF ACCOUNTS
Kirchhoff Industries
General Ledger
Assets
110
Cash
111
Petty Cash
120
Accounts Receivable
129
Allowance for Doubtful Accounts
131
Interest Receivable
132
Notes Receivable
141
Merchandise Inventory
145
Office Supplies
146
Store Supplies
151
Prepaid Insurance
181
Land
191
Store Equipment
192
Accumulated Depreciation-Store Equipment
193
Office Equipment
194
Accumulated Depreciation-Office Equipment
LIABILITIES
210
Accounts Payable
211
Salaries Payable
213
Sales Tax Payable
214
Interest Payable
215
Notes Payable
EQUITY
310
Owner, Capital
311
Owner, Drawing
312
Income Summary
REVENUE
410
Sales
610
Interest Revenue
EXPENSES
510
Cost of Merchandise Sold
520
Sales Salaries Expense
521
Advertising Expense
522
Depreciation Expense-Store Equipment
523
Delivery Expense
524
Repairs Expense
529
Selling Expenses
530
Office Salaries Expense
531
Rent Expense…
110
Cash
$83,600
112
Accounts Receivable
233,900
115
Merchandise Inventory
652,400
117
Prepaid Insurance
16,800
118
Store Supplies
11,400
123
Store Equipment
569,500
124
Accumulated Depreciation—Store Equipment
56,700
210
Accounts Payable
96,600
211
Customer Refunds Payable
50,000
212
Salaries Payable
—
310
Lynn Tolley, Capital, June 1, 20Y6
685,300
311
Lynn Tolley, Drawing
135,000
410
Sales
5,069,000
510
Cost of Merchandise Sold
2,823,000
520
Sales Salaries Expense
664,800
521
Advertising Expense
281,000
522
Depreciation Expense
—
523
Store Supplies Expense
—
529
Miscellaneous Selling Expense
12,600
530
Office Salaries Expense
382,100
531
Rent Expense
83,700
532
Insurance Expense
—
539
Miscellaneous Administrative Expense
7,800
Part 1: Using the attached spreadsheet, journalize the transactions for May, the last month of the fiscal year, below.
Part 2: Post the journal to the general ledger you created in Part 1, extending the month-end…
Account Titles
Debit
Credit
110
Cash
400,000
120
Accounts Receivable
55,000
121
Allowance for Bad Debts
3,000
130
Notes Receivable
51,000
140
Merchandise Inventory, January 1
670,000
150
Store Supplies on Hand
3,000
170
Furniture and Fixtures
120,000
171
Accumulated Depreciation
10,000
210
Accounts Payable
40,800
220
Notes Payable
20,000
240
VAT Payable
3,800
250
Unearned Interest Income
4,000
310
Diana, Capital
1,043,400
320
Diana, Drawing
15,000
410
Sales
1,167,000
411
Sales Discounts
2,000
510
Purchases
860,000
511
Freight In
5,000
512
Purchase Returns and Allowances
3,000
520
Freight Out
3,000
530
Taxes and Licenses
12,000
540
Salaries and Wages
60,000
550
Rent Expense
14,000
560
Utilities Expense
15,000
570
Store Supplies Used
2,000
580
Depreciation Expense
4,000
600
Interest Expense
1,000
230
Interest Payable
1,000
160
Prepaid Rent
4,000
420
Interest Income
1,000
590
Bad Debts Expense
1,000
Total
2,297,000
2,297,000
The merchandise inventory at December 31, 2020 amounted to…
Chapter 3 Solutions
FINANCIAL+MANAG.ACCT - CONNECT ACCESS
Ch. 3 - Prob. 1QSCh. 3 - Computing accrual and cash income C1 In its first...Ch. 3 - Identifying accounting adjustments P1 Classify the...Ch. 3 - Prob. 4QSCh. 3 - Prepaid (deferred) expenses adjustments P1 For...Ch. 3 - Prepaid (deferred) expense adjustments P1 For each...Ch. 3 - Prob. 7QSCh. 3 - Prob. 8QSCh. 3 - Prob. 9QSCh. 3 - Prob. 10QS
Ch. 3 - Prob. 11QSCh. 3 - Prob. 12QSCh. 3 - Prob. 13QSCh. 3 - Prob. 14QSCh. 3 - Prob. 15QSCh. 3 - Prob. 16QSCh. 3 - Prob. 17QSCh. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Prob. 21QSCh. 3 - Prob. 22QSCh. 3 - Prob. 23QSCh. 3 - Identifying post-closing accounts P5 Identify...Ch. 3 - identifying the accounting cycle C2 List the...Ch. 3 - Prob. 26QSCh. 3 - Prob. 27QSCh. 3 - Prob. 28QSCh. 3 - Prob. 29QSCh. 3 - Prob. 30QSCh. 3 - Prob. 31QSCh. 3 - Prob. 32QSCh. 3 - Prob. 33QSCh. 3 - Prob. 34QSCh. 3 - Prob. 35QSCh. 3 - Prob. 36QSCh. 3 - Prob. 37QSCh. 3 - Prob. 38QSCh. 3 - Prob. 39QSCh. 3 - Prob. 40QSCh. 3 - Prob. 1ECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Prob. 8ECh. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Prob. 11ECh. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Prob. 14ECh. 3 - Prob. 15ECh. 3 - Prob. 16ECh. 3 - Prob. 17ECh. 3 - Prob. 18ECh. 3 - Prob. 19ECh. 3 - Prob. 20ECh. 3 - Prob. 21ECh. 3 - Prob. 22ECh. 3 - Prob. 23ECh. 3 - Prob. 24ECh. 3 - Prob. 25ECh. 3 - Prob. 26ECh. 3 - Prob. 27ECh. 3 - Prob. 28ECh. 3 - Prob. 29ECh. 3 - Prob. 30ECh. 3 - Prob. 31ECh. 3 - Prob. 32ECh. 3 - Prob. 33ECh. 3 - Prob. 34ECh. 3 - Prob. 35ECh. 3 - Prob. 36ECh. 3 - Prob. 37ECh. 3 - Prob. 1PSACh. 3 - Prob. 2PSACh. 3 - Prob. 3PSACh. 3 - Prob. 4PSACh. 3 - Prob. 5PSACh. 3 - Prob. 6PSACh. 3 - Prob. 7PSACh. 3 - Prob. 8PSACh. 3 - Prob. 9PSACh. 3 - Prob. 10PSACh. 3 - Prob. 11PSACh. 3 - Prob. 1PSBCh. 3 - Prob. 2PSBCh. 3 - Prob. 3PSBCh. 3 - Prob. 4PSBCh. 3 - Prob. 5PSBCh. 3 - Prob. 6PSBCh. 3 - Prob. 7PSBCh. 3 - Prob. 8PSBCh. 3 - Prob. 9PSBCh. 3 - Prob. 10PSBCh. 3 - Prob. 11PSBCh. 3 - No Account Title Debit Credit 101 Cash $38,264 106...Ch. 3 - Prob. 1GLPCh. 3 - Prob. 2GLPCh. 3 - Prob. 3GLPCh. 3 - Prob. 4GLPCh. 3 - Prob. 1.1AACh. 3 - Prob. 1.2AACh. 3 - Prob. 1.3AACh. 3 - Prob. 1.4AACh. 3 - Prob. 2.1AACh. 3 - Prob. 2.2AACh. 3 - Prob. 2.3AACh. 3 - Prob. 2.4AACh. 3 - Prob. 3.1AACh. 3 - Prob. 3.2AACh. 3 - What is the difference between the cash basis and...Ch. 3 - Why is the accrual basis of accounting generally...Ch. 3 - What type of business is most likely to select a...Ch. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 9DQCh. 3 - Prob. 10DQCh. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Prob. 13DQCh. 3 - Prob. 14DQCh. 3 - Prob. 15DQCh. 3 - Prob. 16DQCh. 3 - Prob. 17DQCh. 3 - Prob. 18DQCh. 3 - Prob. 1BTNCh. 3 - Prob. 4BTN
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