FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
15th Edition
ISBN: 9781265564483
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 3, Problem 6APSA
Problem 3-6A
Recording prepaid expenses and unearned revenues
P1 P4
Gomez Co. had the following transactions in the last two months of its year ended December 31. (Entries can draw from the following partial chart of accounts: Cash; Prepaid Insurance; Prepaid Advertising; Prepaid Consulting Fees; Unearned Service Fees; Services Fees Earned; Insurance Expense; Advertising Expense; Consulting Fees Expense.)
Nov. 1- Paid $1,800 cash for future newspaper advertising.
1- Paid $2,460 cash for 12 months of insurance through October31 of the next year.
30- Received $3,600 cash for future services to be provided to a customer.
Dec. 1- Paid $3,000 cash for a consultant’s services to be received over the next three months.
15- Received $7,950 cash for future services to be provided to a customer.
31 Of the advertising paid for on November 1, $1,200 worth is not yet used.
31- A portion of the insurance paid for on November 1 has expired. No adjustment was made in November to Prepaid Insurance.
31- Services worth $1,500 are not yet provided to the customer who paid on November
30.
31- One-third of the consulting services paid for on December 1 have been received.
31- The company has performed $3,300 of services that the customer paid for on December 15.
Required
1. Prepare entries for these transactions under the method that initially records prepaid expenses as assets and records unearned revenues as liabilities. Also prepare
2. Prepare entries for these transactions under the method that initially records prepaid expenses as expenses and records unearned revenues as revenues. Also prepare adjusting entries at the end of the year.
Analysis Component
3. Explain why the alternative sets of entries in requirements 1 and 2 do not result in different financial statement amounts.
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Hide or show questions Progress:11/32 items On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume that the fiscal year of Rodriguez ends on June 30. Which of the following relationships is true?
a.Wilson is the creditor and debits Accounts Receivable
b.Rodriguez is the borrower and debits Accounts Payable
c.Rodriguez is the creditor and credits Accounts Receivable
d.Wilson is the borrower and credits Accounts Payable
Problem 7. Single-entry bookkeeping (sales revenue during the year)
The December 31, 2020 statement of financial position of YOYO Company showed accounts
receivable of P50,270. During 2021, accounts were written off in the amount of P6,200 and an
account for P4,200, which was written off in 2020, was collected and recorded as a regular
collection of accounts receivable in 2021.
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QUESTION3
Journalize the following assuming a 360-day year is used for interest computations using the chart of accounts below.
Apr. 30
June 30
Issued a $504,000, 60-day, 796 note dated April 30 to Misner Co. on account.
Paid Misner Co. the amount owed on the noted dated April 30.
Accounts Payable
Accounts Payable-Misner Co.
Accounts Receivable
Accounts Receivable-Misner Co.
Cash
Interest Payable
Notes Payable-Misner Co.
Notes Receivable-Misner Co.
Interest Expense
nter your answers into the table below.
ey the account names carefully (exactly as shown above) and follow formatting instructions below.
ONOT USEA DECIMAL WITH ZEROES FOR WHOLE DOLLAR AMOUNTS AND USE COMMAS APPROPRIATELY.
HEN THE DEBIT/CREDIT DOES NOT REQUIRE AN ENTRY, LEAVE IT BLANK.
equired, round your answers to two decimal places.
Date
Account
Debit
Credit
r. 30
30
Chapter 3 Solutions
FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
Ch. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - What is an accrued revenue? Give an example..Ch. 3 - Prob. 9DQCh. 3 - Prob. 10DQ
Ch. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Prob. 1QSCh. 3 - Prob. 2QSCh. 3 - Prob. 3QSCh. 3 - Prob. 4QSCh. 3 - Prob. 5QSCh. 3 - Prob. 6QSCh. 3 - Prob. 7QSCh. 3 - Prob. 8QSCh. 3 - Prob. 9QSCh. 3 - Prob. 10QSCh. 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. 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 - Problem 3-1A Identifying adjusting entries with...Ch. 3 - Prob. 2APSACh. 3 - Prob. 3APSACh. 3 - Prob. 4APSACh. 3 - Prob. 5APSACh. 3 - Problem 3-6A Recording prepaid expenses and...Ch. 3 - Prob. 1BPSBCh. 3 - Prob. 2BPSBCh. 3 - Prob. 3BPSBCh. 3 - Prob. 4BPSBCh. 3 - Prob. 5BPSBCh. 3 - Prob. 6BPSBCh. 3 - Prob. 3SPCh. 3 - Prob. 1GLPCh. 3 - Prob. 2GLPCh. 3 - Prob. 3GLPCh. 3 - Prob. 4GLPCh. 3 - Prob. 5GLPCh. 3 - Refer to Apple's financial statements in Appendix...Ch. 3 - Prob. 2BTNCh. 3 - Prob. 3BTNCh. 3 - Prob. 4BTNCh. 3 - Prob. 5BTNCh. 3 - Prob. 6BTNCh. 3 - Prob. 7BTNCh. 3 - Prob. 8BTNCh. 3 - Prob. 9BTN
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