Financial Accounting-w/cd-package
3rd Edition
ISBN: 9780131060876
Author: REIMERS
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 3, Problem 76PB
Record adjustments and prepare financial statements. (LO 1, 2, 3, 4). On October 1, Jill Jackson started Jill’s Apple Farm as a corporation. Jill started the firm by contributing $50,000 in exchange for common stock. On October 1, the new firm paid six months of rent in advance totaling $6,000 and paid eight months of insurance in advance totaling $3,000. Both rent and insurance coverage began on October 1. On October 6, the firm purchased supplies for $1,200. The firm hired one employee to help Jill and agreed to pay the worker $3,000 per month, paid on the last day of each month. Jill’s Apple Farm paid $100 for a newspaper advertisement to announce the opening of the business. The farm earned revenue of $8,000 in October, of which $5,000 was in cash. At the end of the month, the firm had only $400 worth of supplies on hand.
Requirements
- 1. Using an
accounting equation worksheet, record the transactions that occurred during the month of October and the adjustments that must be made prior to the preparation of the financial statements for the month ended October 31. - 2. Prepare the income statement, statement of changes in shareholder’s equity, and statement of
cash flows for the month ended October 31 and thebalance sheet at October 31.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Eleven Co. began operations on Jan. 1, 2022. Eleven starts her business by
investing $25,000 of her own money by purchasing 2,500 shares of $1 par
value stock, and borrowing $40,000 from the bank. The loan has an interest
rate of 6-percent, and she will have to make annual payments each January 1st
of the accumulated interest, plus $10,000, until the entire principle is repaid.
On April 1, Eleven purchased equipment for $17,250 cash, which she expects to
use for five years and expects no salvage value. She also purchased for cash
$5,000 in supplies during the year, but only $750 of supplies remaining at year
end. Eleven does not offer credit to her customers. For the first year of
operations, she had cash revenues of $55,000. Eleven also incurred $27,500
for other operating expenses, for which she still owes $4,750.
|Operating Cash Flows
Investing Cash Flows
Financing Cash Flows
gnoring taxes, determine (i) Cash from Operations, (ii) Cash from Investing, and (ii) Cash
35,900
from…
Mark Jacobs established Jacobs Services in August by contributing $30,000 cash from his personal savings to the business in exchange for 100% of the common stock. Jacobs Services had the following transactions in September.
September 1Purchased equipment with a price of $15,000 by paying $5,000 cash and signing a note for the remaining balance.
September 2Paid $2,400 cash for a oneyear (or 12month) premium toward insurance.
September 3 Paid September rent of $3,000.
September 5 Purchased $4,000 of supplies on credit.
September 8Performed serviced and received $1,000 cash.
September 10 Billed clients $8,500 for services performed.
September 12 Received an advance of $3,000 cash from a client for a project to be delivered in November.
September 18 Collected $8,500 cash from clients toward their accounts billed on September 10.
September 24 Paid $4,000 for the supplies purchased on September 5.
September 30 Paid $100 cash for newspaper advertising to be aired in October.…
Mark Jacobs established Jacobs Services in August by contributing $30,000 cash from his personal savings to the business in exchange for 100% of the common stock. Jacobs Services had the following transactions in September.
September 1Purchased equipment with a price of $15,000 by paying $5,000 cash and signing a note for the remaining balance.
September 2Paid $2,400 cash for a oneyear (or 12month) premium toward insurance.
September 3 Paid September rent of $3,000.
September 5 Purchased $4,000 of supplies on credit.
September 8Performed serviced and received $1,000 cash.
September 10 Billed clients $8,500 for services performed.
September 12 Received an advance of $3,000 cash from a client for a project to be delivered in November.
September 18 Collected $8,500 cash from clients toward their accounts billed on September 10.
September 24 Paid $4,000 for the supplies purchased on September 5.
September 30 Paid $100 cash for newspaper advertising to be aired in October.…
Chapter 3 Solutions
Financial Accounting-w/cd-package
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Grady Service Company Inc. was organized by Chris Grady and five other investors. The following events occurred during the year: a. Received $68,400 cash from the investors; each was issued 1,520 shares. b. Purchased equipment for use in the business at a cost of $18,400; one-fourth was paid in cash, and the company signed a note for the balance, payable in six months. c. Signed an agreement with a cleaning service to pay it $320 per week for cleaning the corporate offices. d. Lent $3,700 to one of the investors, who signed a note due in six months. e. Issued shares to additional investors, who contributed $7,200 in cash and a lot of land valued at $16,200. f. Paid the amount of the note payable in (b). g. Conor Mulkeen borrowed $11,200 for personal use from a local bank and signed a note payable in one year. Required: 1. Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No journal…arrow_forwardMs. Ang put up an accounting firm on Nov. 1, 2021. The registered name of the business is "Ang Accounting Firm." The following were the transactions during the months of November and December, 2021. 1. The owner provided ₱300,000 cash as initial investment to the business on December 1, 2021. 2. Obtained a 12%, one year, bank loan for ₱50,000 on November 1, 2021. Principal and interest are due at maturity date. 3. On December 1, 2021, She purchased office supplies worth ₱60,000 for cash during the period. (the firm uses asset method). 4. The business acquired computer equipment for ₱150,000 cash on November 1, 2021, which has a useful life of 5 years with a residual value of ₱30,000. 5. On December 1, 2021, the business took one year insurance for ₱42,000 covering the months of December, 2021 to February, 2022. The business uses expense method in recording this transaction. 6. As of December 31, 2021, rendered services billed to clients are worth ₱280,000 for cash and ₱200,000 on…arrow_forwardOn January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91,772 cash. The new company, Blossom Sales and Service, has the following transactions during January. 1. 2. 3. 4. 5. Pays $9,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 43 personal computers at a cost of $1,688 each, 9 graphics computers at a cost of $2,688 each, and 28 printers at a cost of $488 each, paying cash upon delivery. Sales, repair, and office employees earn $14,372 in salaries and wages during January, of which $4,772 was still payable at the end of January. Sells 33 personal computers at $2,738 each, 7 graphics computers for $3,788 each, and 18 printers for $688 each; $76,772 is received in cash in January, and $52,482 is sold on a deferred payment basis. Other operating expenses of $10,172 are incurred and paid for during January; $3,772 of incurred expenses are payable at January 31.arrow_forward
- Mr. Y opens an apartment-locator business near a Green University campus. The corporation will be named Campus Apartment Locators, Inc. During the first month of operations, July 2022, the business completes the following transactions: a. Mr. Y invests 350,000. The business receives 350,000 cash and issues common stock to Mr. Y. b. Purchases 3500 of office supplies on account. c. Pays cash of 30,000 to acquire a lot next to the campus. Mr. Y intends to use the land as a future building site for the business office. d. Locates apartments for clients and receives cash of 10,900. e. Pays 1000 on the account payable he created in transaction b. f. Pays 20,000 of personal funds for a vacation. g. Pays cash expenses for office rent, 4000, and utilities, 1000. h. Returns office supplies of 2500 from transaction b. i. Declares and pays a cash dividend of 10,200. Requirements: 1. Analyze the preceding transactions in terms of their effects on the accounting equation of Campus Apartment…arrow_forwardSharon Samson starts a plumbing service called Reliable Waterworks. Selected transactions are described as follows: A) Sharon deposits $7,000 into a new checking account for the business, recording the capital contribution. B) Reliable pays $4,000 cash for equipment to be used for plumbing repairs. C) Reliable borrows $15,000 from a local bank and deposits the money in the checking account. D) Reliable pays $600 rent for the first month. E) Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future. F) Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash. G) Sharon takes a cash withdrawal of $2,500. After all the transactions, what is the amount of total liabilities? a. $15,000 b. $4,400 c. $19,000 d. $4,000arrow_forwardConsider the following transactions for Huskies Insurance Company: 1. Equipment costing $42,000 is purchased at the beginning of the year for cash. Depreciation on the equipment is $7,000 per year. 2. On June 30, the company lends its chief financial officer $50,000; principal and interest at 7% are due in one year. 3. On October 1, the company receives $16,000 from a customer for a one-year property insurance policy. Deferred Revenue is credited.Required: For each item, record the necessary adjusting entry for Huskies Insurance at its year-end of December 31. No adjusting entries were made during the year.arrow_forward
- Sharon Samson starts a plumbing service named Reliable Waterworks. Selected transactions are described as follows: A) Sharon deposits $7,000 into a new checking account for the business, recording the capital contribution. B) Reliable pays $4,000 cash for equipment to be used for plumbing repairs. C) Reliable borrows $15,000 from a local bank and deposits the money in the checking account. D) Reliable pays $600 rent for the first month. E) Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future. F) Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash. G) Sharon takes a cash withdrawal of $2,500. After all the transactions, what is the amount of total assets? a. $24,200 b. $25,700 c. $5,200 d. $20,200arrow_forwardSharon Samson starts a plumbing service named Reliable Waterworks. Selected transactions are described as follows: A) Sharon deposits $7,000 into a new checking account for the business, recording the capital contribution. B) Reliable pays $4,000 cash for equipment to be used for plumbing repairs. C) Reliable borrows $15,000 from a local bank and deposits the money in the checking account. D) Reliable pays $600 rent for the first month. E) Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future. F) Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash. G) Sharon takes a cash withdrawal of $2,500. After all of the transactions, what is the amount of total assets? A)25,200 B)5,200 C)24,200 D)20,200arrow_forwardNatalie opened Natalie Washing co. on July 1, 2022. During July, the following transactions were completed. July 1 Owner invests $12,000 cash to start the business. July 3 Purchased used truck for $8,000, paying $2,000 cash and signing a 1-year, 10% note for the remainder. July 5 Purchased clening supplies for $900 on account. July10 Paid $1800 cash on a 1-year insurnace policy effective July 1 July 12 Billed customers $3700 fore cleaning services performed. July 15 Paid $500 on amount owed on cleaning supplies. July 16 Received $2500 for serviced to be performed evenly from July 16 through September 15. July 22 Paid $2000 for employee salaries. July 29 July 30 July 31 Collected $1600 cash from customers billed on July 12. Paid $290 for maintenance of the truck during month. Owner withdrew $600 from the business for personal expenses. Requirements: 1) Make a tabular analysis of the transactions on accounting equation. Use the following column headings: cash, Supplies, accounts…arrow_forward
- Meredith Snelson started Campus Pizzeria, Inc. on August 1, 1998. Transactions for August are: 1. Snelson invested $5000 in the business as owner. 2. The firm paid $750 rent for the month of August. 3. On August 01, 1998, the firm borrowed $4000 from a bank on a 3% monthly note payable, with interest payable monthly and the principal to be paid in full at the end of 2 years. Interest for August was paid in cash. 4. Equipment costing $7200 was purchased for cash. The expected life of the equipment was 10 years. 5. An initial inventory of pizza ingredients and boxes was purchased on credit for $6550. 6. Pizzeria's employees were paid $3000 in wages. 7. Pizza sales for August were $12000, all for cash. 8. Sales in August consumed $6000 worth of ingredients and boxes. 9. At the end of the month, bills for various utilities totaled $450. 10. $4800 of accounts payable was paid. 11. The firm catered a party for a fee of $200. Since the customer was a friend of Snelson, the customer was told…arrow_forwardSharon Samson starts a plumbing service named Reliable Waterworks. Selected transactions are described as follows: A) Sharon deposits $7,000 into a new checking account for the business, recording the capital contribution. B) Reliable pays $4,000 cash for equipment to be used for plumbing repairs. C) Reliable borrows $15,000 from a local bank and deposits the money in the checking account. D) Reliable pays $600 rent for the first month. E) Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future. F) Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash. G) Sharon takes a cash withdrawal of $2,500. After all the transactions, what is the amount of total owner's equity? a. $20,200 b. $7,700 c. $5,200 d. $7,300arrow_forwardOn January 1, 2022, Lloyd and Joan Valdez organized Tech Associates as a corporation; each contributed $75,000 cash to start the business and received 4,000 shares of common stock. The store completed its first year of operations on December 31, 2022. financial items for the year were determined: On that date, the following Cash on hand and in the bank $73,350 Amounts due from customers for the sales of merchandise $39,000 Office equipment $72,000 Amounts owed to suppliers for merchandise inventory $12,000 One-year note payable to a local bank $3,000 Retained Earnings at Dec 31, 2022 $19230 No dividends were declared or paid to shareholders during the year. What was the amount of net income for the year? (Hint: Use the retained earnings equation [Beginning Retained Earnings + Net Income – Dividends = Ending Retained Earnings] to solve for net income.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License