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AccountingCornerstones of Financial Accounting4th Edition

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Chapter 3, Problem 64APSA
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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

Solutions

Chapter
Section
Problem 1DQ
Problem 2DQ
Problem 3DQ
Problem 4DQ
Problem 5DQ
Problem 6DQ
Problem 7DQ
Problem 8DQ
Problem 9DQ
Problem 10DQ
Problem 11DQ
Problem 12DQ
Problem 13DQ
Problem 14DQ
Problem 15DQ
Problem 16DQ
Problem 17DQ
Problem 18DQ
Problem 19DQ
Problem 20DQ
Problem 1MCQ
Problem 2MCQ
Problem 3MCQ
Problem 4MCQ
Problem 5MCQ
Problem 6MCQ
Problem 7MCQ
Problem 8MCQ
Problem 9MCQ
Problem 10MCQ
Problem 11MCQ
Problem 12CE
Problem 13CE
Problem 14CE
Problem 15CE
Problem 16CE
Problem 17CE
Problem 18CE
Problem 19CE
Problem 20CE
Problem 21CE
Problem 22CE
Problem 23CE
Problem 24CE
Problem 25CE
Problem 26CE
Problem 27CE
Problem 28BE
Problem 29BE
Problem 30BE
Problem 31BE
Problem 32BE
Problem 33BE
Problem 34BE
Problem 35BE
Problem 36BE
Problem 37BE
Problem 38E
Problem 39E
Problem 40E
Problem 41E
Problem 42E
Problem 43E
Problem 44E
Problem 45E
Problem 46E
Problem 47E
Problem 48E
Problem 49E
Problem 50E
Problem 51E
Problem 52E
Problem 53E
Problem 54E
Problem 55E
Problem 56E
Problem 57E
Problem 58E
Problem 59E
Problem 60E
Problem 61E
Problem 62APSA
Problem 63APSA
Problem 64APSA
Problem 65APSA
Problem 66APSA
Problem 67APSA
Problem 68APSA
Problem 69APSA
Problem 70APSA
Problem 71APSA
Problem 62BPSB
Problem 63BPSB
Problem 64BPSB
Problem 65BPSB
Problem 66BPSB
Problem 67BPSB
Problem 68BPSB
Problem 69BPSB
Problem 70BPSB
Problem 71BPSB
Problem 72C
Problem 73.1C
Problem 73.2C
Problem 73.3C
Problem 74.1C
Problem 74.2C
Problem 75C
Problem 76C
Problem 77.1C
Problem 77.2C
Problem 78.1C
Problem 78.2C
Problem 78.3C
Problem 79.1C
Problem 79.2C
Problem 79.3C
Problem 79.4C
Problem 79.5C
Problem 80.1C
Problem 80.2C
Problem 80.3C
Problem 80.4C
Problem 81.1C
Problem 81.2C
Problem 81.3C
Problem 81.4C
Problem 81.5C
Problem 81.6C
Problem 81.7C
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
105 views

Problem 3-64A Identification and Preparation of Adjusting Entries

Kuepper’s Day Care is a large daycare center in South Orange, New Jersey. The daycare center serves several nearby businesses as well as a number of individual families. The businesses pay $6,180 child per year for daycare services for their employees' children. The businesses pay in on a quarterly basis. For individual families, daycare services are provided monthly and billed at the beginning of the next month. The following transactions describe Kuepper’s activities during December 2019:

  1. On December 1, Kuepper borrowed $50,000 by issuing a 5-year, 9% note payable.
  2. Daycare service in the amount of $13,390 was provided to individual families during December. These families will not be billed until January 2020.
  3. At l, the balance in unearned service revenue was S26,780. At December 31, determined that$10,300 of this revenue was still unearned.
  4. On December 31, the daycare center collected $40,170 from businesses for services to be provided in 2020.
  5. On December 31, the center recorded depreciation of $1,875 on a bus that it uses for field trips.
  6. The daycare center had prepaid insurance at December 1 of an examination of the insurance policies indicates that prepaid insurance at December 31 is $3,000.
  7. Interest on the $50,000 note payable (see Transaction a) is unpaid and unrecorded at December 31.
  8. Salaries of $35,480 are owed but unpaid on December 31.
  9. Supplies of disposable diapers on December 1 are $4,200. At December 31, the cost of diapers in supplies is $750.

Required:

  1. Identify whether each transaction is an adjusting entry or a regular journal entry. If the entry is an adjusting entry, identify it as an accrued revenue, accrued expense, deferred revenue, or deferred expense.
  2. Prepare the entries necessary to record the transactions above and on the previous page.

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

  • Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
  • Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
  • Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
  • Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
  • Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.
    • Requirement-1:

To Indicate:

If the given transactions require adjusting entry or not.

Explanation

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The given transactions require adjusting entry or not as follows:

    Kuepper's Day Care
    Transaction Adjusting entry required or not Type of adjusting entry
    a.Not Required NA
    b.Required Accrued Revenue
    c...
To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

  • Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
  • Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
  • Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
  • Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
  • Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.
    • Requirement-2:

    To Prepare The journal entries for the given adjustments.

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    Ch-3 P-1DQCh-3 P-2DQCh-3 P-3DQCh-3 P-4DQCh-3 P-5DQCh-3 P-6DQCh-3 P-7DQCh-3 P-8DQCh-3 P-9DQCh-3 P-10DQ
    Ch-3 P-11DQCh-3 P-12DQCh-3 P-13DQCh-3 P-14DQCh-3 P-15DQCh-3 P-16DQCh-3 P-17DQCh-3 P-18DQCh-3 P-19DQCh-3 P-20DQCh-3 P-1MCQCh-3 P-2MCQCh-3 P-3MCQCh-3 P-4MCQCh-3 P-5MCQCh-3 P-6MCQCh-3 P-7MCQCh-3 P-8MCQCh-3 P-9MCQCh-3 P-10MCQCh-3 P-11MCQCh-3 P-12CECh-3 P-13CECh-3 P-14CECh-3 P-15CECh-3 P-16CECh-3 P-17CECh-3 P-18CECh-3 P-19CECh-3 P-20CECh-3 P-21CECh-3 P-22CECh-3 P-23CECh-3 P-24CECh-3 P-25CECh-3 P-26CECh-3 P-27CECh-3 P-28BECh-3 P-29BECh-3 P-30BECh-3 P-31BECh-3 P-32BECh-3 P-33BECh-3 P-34BECh-3 P-35BECh-3 P-36BECh-3 P-37BECh-3 P-38ECh-3 P-39ECh-3 P-40ECh-3 P-41ECh-3 P-42ECh-3 P-43ECh-3 P-44ECh-3 P-45ECh-3 P-46ECh-3 P-47ECh-3 P-48ECh-3 P-49ECh-3 P-50ECh-3 P-51ECh-3 P-52ECh-3 P-53ECh-3 P-54ECh-3 P-55ECh-3 P-56ECh-3 P-57ECh-3 P-58ECh-3 P-59ECh-3 P-60ECh-3 P-61ECh-3 P-62APSACh-3 P-63APSACh-3 P-64APSACh-3 P-65APSACh-3 P-66APSACh-3 P-67APSACh-3 P-68APSACh-3 P-69APSACh-3 P-70APSACh-3 P-71APSACh-3 P-62BPSBCh-3 P-63BPSBCh-3 P-64BPSBCh-3 P-65BPSBCh-3 P-66BPSBCh-3 P-67BPSBCh-3 P-68BPSBCh-3 P-69BPSBCh-3 P-70BPSBCh-3 P-71BPSBCh-3 P-72CCh-3 P-73.1CCh-3 P-73.2CCh-3 P-73.3CCh-3 P-74.1CCh-3 P-74.2CCh-3 P-75CCh-3 P-76CCh-3 P-77.1CCh-3 P-77.2CCh-3 P-78.1CCh-3 P-78.2CCh-3 P-78.3CCh-3 P-79.1CCh-3 P-79.2CCh-3 P-79.3CCh-3 P-79.4CCh-3 P-79.5CCh-3 P-80.1CCh-3 P-80.2CCh-3 P-80.3CCh-3 P-80.4CCh-3 P-81.1CCh-3 P-81.2CCh-3 P-81.3CCh-3 P-81.4CCh-3 P-81.5CCh-3 P-81.6CCh-3 P-81.7C

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