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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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 the balance sheet at October 31.
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T.J. Chan, an engineering consultant, decided to begin a business of his own. Chan has set up the following chart of accounts to be used in his business.
Transactions
On March 1, 20–, when T.J. began his business, he invested in the business a bank balance of $8000, an automobile worth $14 000, and equipment costing $6000.
**DON’T FORGET TO CALCULATE THE OPENING CAPITAL BALANCE. (Remember the fundamental accounting equation!!) **
Issued cheque for $465 to Royalty Trust Co. in payment of the monthly rent.
Issued cheque for $200 to the owner for personal use.
Received a bill in the amount of $900 from Eustace Bros. for office supplies purchased on account.
Issued cheque for $350 to West End Garage as payment for repairs to the owner’s personal car.
Issued bill to F. Morsi for services performed, $500.
Issued cheque for $400 to pay the office secretary’s weekly wage.
Received an invoice for $90 from Regal Oil for gasoline and oil used in the business automobile, due in 30 days.…
Ms. P put up an accounting firm on November 1, 2011. The registered name of the business is “P Accounting Firm.” The following were the transactions during the months of November and December 2011:
The owner provided P30,000 cash as initial investment to the business on November 1, 2011.
Obtained a 12%, one year, bank loan for P50,000 on November 1, 2011. Principal and interest are due at maturity date.
Purchased office supplies worth P60,000 for cash during the period.
Rendered services worth P280,000 for cash during the period.
Paid utilities expense of P4,000.
The owner withdrew a total of P100,000 cash from the business during the period.
Additional information:
a. Unused office supplies on December 31, 2011 amounted to P5,000
With the given information:
1. Prepare the closing the entries.
2. Prepare the balance sheet and income statement.
Ms. P put up an accounting firm on November 1, 2011. The registered name of the business is “P Accounting Firm.” The following were the transactions during the months of November and December 2011:
The owner provided P30,000 cash as initial investment to the business on November 1, 2011.
Obtained a 12%, one year, bank loan for P50,000 on November 1, 2011. Principal and interest are due at maturity date.
Purchased office supplies worth P60,000 for cash during the period.
Rendered services worth P280,000 for cash during the period.
Paid utilities expense of P4,000.
The owner withdrew a total of P100,000 cash from the business during the period.
Additional information:
Unused office supplies on December 31, 2011 amounted to P5,000.
With the given information:
1. Provide the Journal Entries
2. Post the entries to the ledger
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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