FUNDAMENTAL ACCOUNTING PRINCIPLES
FUNDAMENTAL ACCOUNTING PRINCIPLES
24th Edition
ISBN: 9781260811704
Author: Wild
Publisher: MCG
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Chapter 3, Problem 3SP
To determine

Prepare journal entries to record each of the given December transaction:

Introduction:

A journal entry is the recording of a transaction in journal items. The journal entry comprise of several recordings, each of which is either a debit or a credit. The total of the debits must equal the total of the credits.
To calculate:

Journal Entries:

Expert Solution
Check Mark

Explanation of Solution

    DATEPARTICULARSDR AMOUNTCR AMOUNT
    Dec 2
    Advertising expense A/c Dr
    To Cash A/c
    $1,025

    $1,025
    Dec 3
    Repair Expense- Computer A/c Dr
    To Cash A/c
    $500

    $500
    Dec 4
    Cash A/c Dr
    To Accounts Receivable A/c
    $3950

    $3950
    Dec 10
    Wages A/c Dr
    To Cash A/c
    $750

    $750
    Dec 14
    Cash A/c Dr
    To Unearned Computer Service Revenue
    $1500

    $1500
    Dec 15
    Computer Supplies A/c Dr
    To Accounts Payable A/c
    $1100

    $1100
    Dec 20
    Cash A/c Dr
    To Computer Services Revenue A/c
    $5625

    $5625
    Dec 28
    Cash A/c Dr
    To Accounts Receivable A/c
    $3000

    $3000
    Dec 29
    Mileage Expense A/c Dr
    To cash A/c
    $192

    $192
    Dec 31
    S. Rey Withdrawal A/c Dr
    To cash A/c
    $1500

    $1500

Conclusion:

The above mentioned entries would be reflected in the books of Business Solution for the month of December.

To determine

Prepare adjusting entries to reflect a to f. And post those entries in ledger.

Introduction:

Adjusting entries are journal entries made at the end of an accounting period to allocate income or expenditure to the period in which they actually occurred.

To calculate:

Adjusting Entries for month end December.

Expert Solution
Check Mark

Explanation of Solution

    ParticularsDebit AmountCredit Amount
    Computer Supplies Expenses A/c Dr
    To Computer Supplies A/c
    $3065

    $3065
    Insurance Expense A/c Dr
    To Prepaid Insurance
    $555

    $555
    Wages Expenses A/c Dr
    To Wages Payable
    $500

    $500
    Depreciation expenses-Office Equipment A/c Dr
    To Office Equipment A/c
    $400

    $400
    Depreciation expenses- Computer Equipment A/c Dr
    To Computer Equipment A/c
    $1250

    $1250
    Rent Expense A/c Dr
    To Prepaid Rent A/c
    $2475

    $2475

Conclusion:

The above mentioned adjusting entries would be reflected in the books of Business Solution for the month of December.

To determine

Prepare Adjusted Trial Balance as of December 31, 2019

Introduction:

An adjusted trial balance is a list of all the account balances contained in the general ledger after the adjusting entries for a period have been posted in the accounts

To calculate:

Adjust Trial Balance as on December 31, 2019

Expert Solution
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Explanation of Solution

    Account TitleDebitCredit
    Cash
    48372
    Accounts Receivable
    5668
    Computer supplies
    580
    Prepaid Insurance
    1665
    Prepaid Rent
    825
    Office equipment
    8000
    Accumulated Depreciation- Office Equipment
    400
    Computer Equipment
    20000
    Accumulated Depreciation-Computer Equipment
    1250
    Accounts Payable
    1100
    Wages Payable
    500
    Unearned Computer Services Revenue
    1500
    S.Rey Capital
    73000
    S.Rey Withdrawl
    7100
    Computer Services Revenue
    31284
    Depreciation expenses-Office Equipment
    400
    Depreciation expenses- Computer Equipment
    1250
    Wages Expenses
    3875
    Insurance Expenses
    555
    Rent Expenses
    2475
    Computer Supplies Expenses
    3065
    Advertising Expenses
    2753
    Mileage Expenses
    896
    Miscellaneous Expense
    250
    Repair Expenses- Computer
    1305
    TOTALS109034
    109034

Conclusion:

The aforesaid adjusted trial balance would be reflected in the books of Business Solution for the month of December.

To determine

Prepare Income Statement for three months ended as of December 31, 2019

Introduction:

An Income statement is the summary of all the income and expenses of a company over a period

To calculate:

Income Statement as on December 31, 2019

Expert Solution
Check Mark

Explanation of Solution

    Revenue
    31284
    Unearned Computer Services Revenue
    1500
    Expenses:
    Depreciation expenses-Office Equipment
    400
    Depreciation expenses- Computer Equipment
    1250
    Wages Expenses
    3875
    Insurance Expenses
    555
    Rent Expenses
    2475
    Computer Supplies Expenses
    3065
    Advertising Expenses
    2753
    Mileage Expenses
    896
    Miscellaneous Expense
    250
    Repair Expenses- Computer
    1305
    Operating Income
    15960

The Income statement would show the above given income and expenses.

Conclusion:

The aforesaid income and expenditure would be reflected in the books of Business Solution for the month of December.

To determine

Prepare statement of owners equity for three months ended as of December 31, 2019

Introduction:

A statement of owners equity summarizes changes in the capital balance of a business over a defined period

To calculate:

Owners Equity as on December 31, 2019

Expert Solution
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Explanation of Solution

    Opening Capital
    73,000
    (+) Income earned
    15,960
    (-) Losses incurred
    (+) Owners Contribution during the period
    (-) Owners draw during the period
    (7,100)
    Closing Capital
    81,860

The owners equity would be shown as above with a closing balance of $ 81,860

Conclusion:

The aforesaid Owners Equity would be reflected in the books of Business Solution for the month of December.

To determine

Prepare balance sheet ended as of December 31, 2019

Introduction:

Balance sheet is a statement of assets and liabilities and capital of a business at a particular point of time

To calculate:

Balance Sheet as on December 31, 2019

Expert Solution
Check Mark

Explanation of Solution

FUNDAMENTAL ACCOUNTING PRINCIPLES, Chapter 3, Problem 3SP

The balance sheet would be shown as above with a closing balance

Conclusion:

The aforesaid Balance sheet would be reflected in the books of Business Solution for the month of December.

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Chapter 3 Solutions

FUNDAMENTAL ACCOUNTING PRINCIPLES

Ch. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Periodic reporting C1 Choose from the following...Ch. 3 - Prob. 2QSCh. 3 - Identifying accounting adjustments Classify the...Ch. 3 - Concepts 0f adjusting entries During the year, a...Ch. 3 - Prepaid (deferred) expenses adjustments Pl For...Ch. 3 - Prepaid (deferred) expenses adjustments For each...Ch. 3 - Prob. 7QSCh. 3 - Accumulated depreciation adjustments Pl For each...Ch. 3 - Adjusting for depreciation P1 For each separate...Ch. 3 - Unearned (deferred) revenues adjustments For each...Ch. 3 - Adjusting for unearned (deferred) revenues P2 For...Ch. 3 - Accrued expenses adjustments Pl For each separate...Ch. 3 - Prob. 13QSCh. 3 - Accrued revenues adjustments P4 For each separate...Ch. 3 - Recording and analysing adjusting entries A1...Ch. 3 - QS3-16 Determining effects of adjusting...Ch. 3 - Preparing an adjusted trial balance P5 Following...Ch. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Preparing adjusting entries P4 Garcia Company had...Ch. 3 - Preparing adjusting entries P4 Cal Consulting...Ch. 3 - Prob. 1ECh. 3 - Exercise 3.2 Classifying adjusting entries C3 In...Ch. 3 - Exercise 3-3 Adjusting and paying accrued wages P3...Ch. 3 - Prob. 4ECh. 3 - Exercise 3-5 Adjusting and paying accrued expenses...Ch. 3 - Exercise 3-6 Preparing adjusting entries P1 P2 P3...Ch. 3 - Exercise 3-7 Preparing adjusting entries P1 P3 P4...Ch. 3 - Exercise 3-8 Analyzing and preparing adjusting...Ch. 3 - Prob. 9ECh. 3 - Preparing financial statements from a trial...Ch. 3 - Prob. 11ECh. 3 - Exercise 3-11 Adjusting for prepaid recorded as...Ch. 3 - Prob. 13ECh. 3 - Exercise 3-14 Preparing adjusting entries P1 P2 P3...Ch. 3 - Problem 3-1A Identifying adjusting entries with...Ch. 3 - Problem 3-2B Preparing adjusting and subsequent...Ch. 3 - Problem 3-3A Preparing adjusting entries, adjusted...Ch. 3 - Problem 3-4A Interpreting unadjusted and adjusted...Ch. 3 - Problem 3-5A Preparing financial statements from...Ch. 3 - Problem 3-6A Recording prepaid expenses and...Ch. 3 - Prob. 1BPSBCh. 3 - Problem 3-2B Preparing adjusting and subsequent...Ch. 3 - Problem 3-3B Preparing adjusting entries, adjusted...Ch. 3 - Prolme 3-4B Interpreting unadjusted and adjusted...Ch. 3 - Problem 3-5B Preparing financial statements from...Ch. 3 - Problem 3-6B Recording prepaid expenses and...Ch. 3 - Prob. 3SPCh. 3 - Prob. 1GLPCh. 3 - Using transactions from the following assignments,...Ch. 3 - Using transactions from the following assignments,...Ch. 3 - Prob. 4GLPCh. 3 - Prob. 5GLPCh. 3 - Prob. 1AACh. 3 - Key figures for the recent two years of both Apple...Ch. 3 - Key comparative figures for Samsung. Apple, and...Ch. 3 - Prob. 1BTNCh. 3 - Prob. 2BTNCh. 3 - Access EDGAR online (SEC.gov) and locate the...Ch. 3 - Prob. 4BTNCh. 3 - BTN 3-5 Access EDGAR online (SEC.gov) and locate...Ch. 3 - Prob. 6BTN
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