Financial Accounting: Business Process Approach, Student Value Edition Plus New Mylab Accounting With Pearson Etext -- Access Card Package (3rd Edition)
3rd Edition
ISBN: 9780132962667
Author: Jane L. Reimers
Publisher: PEARSON
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Chapter 3, Problem 5SEA
Account for insurance expense. (LO 1, 3). Catrina Company was started on January 1, 2009. During its first week of business, the company paid $3,600 for 24 months’ worth of fire insurance with an effective date of January 1, 2009. When Catrina Company prepares its income statement for the year ended December 31, 2009, how much prepaid insurance will be shown on the balance sheet at December 31, 2009, and how much insurance expense will be shown on the income statement? Is the needed adjustment at year end related to an accrual or a deferral?
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At the beginning of 2009, A company prepaid insurance in the amount of 120,000 for one year. At the end of December 2009 what are the balances of the prepaid insurance account and the insurance expense account.
The Piper Ventura Illustrators presented the following information pertaining to accounts that will
need adjustments for its Nov. 30, 2021 year-end financial statements.
a) On Oct. 1, 2021, Piper paid P10,800 for 6-months’ insurance premiums.
b) The balance in the ledger account Office Supplies amounted to P32,000. A count of the office supplies on Nov. 30, 2021 totaled P12,800.
c) The company received P22,800 on Nov. 1, 2021 from a customer for services to be rendered during the months of November, December, January, and February.
d) Piper Ventura acquired Office Equipment costing P352,800 on April 1, 2020. The equipment is expected to last 5 years after which it will be worthless.
e) Assume that Nov. 30, 2021 is a Friday and the Piper pays its employees a total of P87,500 on Saturday.
f) On September 1, the entity completed the negotiations with a client and accepted an advance of P168,000 for services to be performed on November. The P168,000 was credited to Unearned Service…
The Piper Ventura Illustrators presented the following information pertaining to accounts that will need adjustments for its Nov. 30, 2021 year-end financial statements.
a) On Oct. 1, 2021, Piper paid P10,800 for 6-months’ insurance premiums.
b) The balance in the ledger account Office Supplies amounted to P32,000. A count of the office supplies on Nov. 30, 2021 totaled P12,800.
c) The company received P22,800 on 1, 2021 from a customer for services to be rendered during the months of November, December, January, and February.
d) Piper Ventura acquired Office Equipment costing P352,800 on April 1, The
equipment is expected to last 5 years after which it will be worthless.
e) Assume that Nov. 30, 2021 is a Friday and the Piper pays its employees a total of P87,500 on Saturday.
f) On September 1, the entity completed the negotiations with a client and accepted an advance of P168,000 for services to be performed on The P168,000…
Chapter 3 Solutions
Financial Accounting: Business Process Approach, Student Value Edition Plus New Mylab Accounting With Pearson Etext -- Access Card Package (3rd Edition)
Ch. 3 - Prob. 1YTCh. 3 - Prob. 2YTCh. 3 - Prob. 3YTCh. 3 - Prob. 4YTCh. 3 - Prob. 5YTCh. 3 - Prob. 6YTCh. 3 - Prob. 7YTCh. 3 - How does accrual basis accounting differ from cash...Ch. 3 - Prob. 2QCh. 3 - Prob. 3Q
Ch. 3 - Prob. 4QCh. 3 - What are accrued expenses?Ch. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Name two common deferred expenses.Ch. 3 - What does it mean to recognize revenue?Ch. 3 - How does matching relate to accruals and...Ch. 3 - What is depreciation?Ch. 3 - Why is depreciation necessary?Ch. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - When prepaid insurance has been used, the...Ch. 3 - Prob. 10MCQCh. 3 - Prob. 1SEACh. 3 - Prob. 2SEACh. 3 - Account for interest expense. (LO 1, 2). UMC...Ch. 3 - Prob. 4SEACh. 3 - Account for insurance expense. (LO 1, 3). Catrina...Ch. 3 - Prob. 6SEACh. 3 - Account for unearned revenue. (LO 1, 3). Able...Ch. 3 - Prob. 8SEACh. 3 - Prob. 9SEACh. 3 - Prob. 10SEACh. 3 - Calculate profit margin on sales ratio. (LO 5)....Ch. 3 - Prob. 12SEBCh. 3 - Prob. 13SEBCh. 3 - Prob. 14SEBCh. 3 - Prob. 15SEBCh. 3 - Prob. 16SEBCh. 3 - Prob. 17SEBCh. 3 - Prob. 18SEBCh. 3 - Prob. 19SEBCh. 3 - Calculate net income. (LO I, 4). Suppose a company...Ch. 3 - Prob. 21SEBCh. 3 - Prob. 22SEBCh. 3 - Prob. 23EACh. 3 - Prob. 24EACh. 3 - Prob. 25EACh. 3 - Prob. 26EACh. 3 - Prob. 27EACh. 3 - Prob. 28EACh. 3 - Account for insurance expense. (LO 1, 3). Yodel ...Ch. 3 - Prob. 30EACh. 3 - Prob. 31EACh. 3 - Prob. 32EACh. 3 - Prob. 33EACh. 3 - Prob. 34EACh. 3 - Southeast Pest Control, Inc., was started when its...Ch. 3 - Prob. 36EACh. 3 - Prob. 37EACh. 3 - Prob. 38EACh. 3 - Prob. 39EACh. 3 - Prob. 40EBCh. 3 - Prob. 41EBCh. 3 - Prob. 42EBCh. 3 - TJs Tavern paid 10,800 on February 1, 2010, for a...Ch. 3 - Prob. 44EBCh. 3 - Prob. 45EBCh. 3 - Account for insurance expense. (LO 1, 3). All...Ch. 3 - Prob. 47EBCh. 3 - Prob. 48EBCh. 3 - Prob. 49EBCh. 3 - Prob. 50EBCh. 3 - Prob. 51EBCh. 3 - Prob. 52EBCh. 3 - From the following list of accounts (1) identify...Ch. 3 - Prob. 54EBCh. 3 - Prob. 55EBCh. 3 - Prob. 56EBCh. 3 - Prob. 57PACh. 3 - Prob. 58PACh. 3 - Prob. 59PACh. 3 - Following is a partial list of financial statement...Ch. 3 - Prob. 61PACh. 3 - Record adjustments. (LO 1, 2, 3). The Gladiator...Ch. 3 - Prob. 63PACh. 3 - Transactions for Pops Company for 2011 were as...Ch. 3 - Record adjustments and prepare financial...Ch. 3 - Prob. 66PACh. 3 - Prob. 67PACh. 3 - Record adjustments and prepare income statement....Ch. 3 - Prob. 69PBCh. 3 - Prob. 70PBCh. 3 - Following is a partial list of financial statement...Ch. 3 - Prob. 72PBCh. 3 - Record adjustments. (LO 1, 2, 3). Summit Climbing...Ch. 3 - Prob. 74PBCh. 3 - Prob. 75PBCh. 3 - Record adjustments and prepare financial...Ch. 3 - Prob. 77PBCh. 3 - Prob. 78PBCh. 3 - Identify and explain accruals and deferrals. (LO...Ch. 3 - Prob. 2FSACh. 3 - Prob. 3FSACh. 3 - Prob. 1CTPCh. 3 - Prob. 1IECh. 3 - Prob. 3IECh. 3 - Prob. 4IE
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- The Gloria Dimen Company presented the following information pertaining to accounts that will need adjustments for its November 30, 2021, year-end financial statements: On October 1, 2021, Gloria Dimen Company paid P10,080 for 6 months' insurance premiums The balance in the ledger account Office Supplies amounted to P32,000. A count of the office supplies on November 30,2021 totaled P12,800. Gloria Dimen Company received P22,800 on November 1, 2021 from a customer for services to be rendered during the months of November, December, January, and February. Gloria Dimen acquired Office Equipment costing P352,800 on April 1, 2021. The equipment is expected to last 5 years after which it will be worthless. Assume that November 30, 2021 is a Friday and that Gloria Dimen pays its employees a total of P87,500 on Saturday.arrow_forwardOn May 1 of Year 1 Mills Enterprises paid $3,780 cash for an insurance policy that would provide protection for a one year term. The company’s fiscal closing date is December 31. Based on this information, the amount of prepaid insurance appearing on the Year 1 Balance Sheet would be $arrow_forwardAt the beginning of the year, it had a balance in its prepaid insurance account of $48,400. During the year, $86,000 was paid for insurance. At the end of the year, after adjusting entries were recorded, the balance in prepaid insurance account was $42,000. Indurancr expense for the year would be: A. $92,400 B. $6,400 C. $134,400 D. $86,000arrow_forward
- The ledger of Bramble Corp. on March 31, 2020, includes the following selected accounts before adjusting entries. Debit Credit Prepaid Insurance 2,200 Supplies 2,200 Equipment 33,200 Unearned Service Revenue 8,300 An analysis of the accounts shows the following. 1. Insurance expires at the rate of $300 per month. 2. Supplies on hand total $1,100. 3. The equipment depreciates $400 per month. 4. During March, services were performed for two-fifths of the unearned service revenue. Prepare the adjusting entries for the month of Marcharrow_forwardThe ledger of Hammond Company, on March 31, 2012, includes these selected accounts before adjusting entries are prepared. Debit Credit Prepaid Insurance P 3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation – Equipment P 5,000 Unearned Service Revenue 9,200 An analysis of the accounts shows the following: Insurance expires at the rate of P100 per month. Supplies on hand total P800. The equipment depreciates P200 a month One-half of the unearned service revenue was earned in March. Required: Prepare adjusting entries for the month of March.arrow_forwardThe Gloria Dimen Company present the following information pertaining to accounts that will need adjustment for its November 30, 20121. On October 1, 2012, Gloria Dimen Company paid P10,800 for 6-monts insurance premiums2. The balance in the ledger account Office Supplies amounted to P32,000. A count of the office supplies on November 30, 2012 totaled P12,8003. Gloria Dimen Company received P22, 800 on November 1, 2012 from customer for service to be rendered during the months of November, December, January, and February.4. Gloria Dimen acquired Office Equipment costing P352, 800 on April 1, 2012. The equipment is expected to last 5 years which it will be worthless.5. Assume that November 30, 2012 is a Friday and that Gloria Dimen pays it's employees a total of P87, 500 on Saturday.Required:A. Prepare the adjusting entries.B. Prepare the December 1, 2012 entry to record payment of the salaries.arrow_forward
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