MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting
12th Edition
ISBN: 9780134489728
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 3, Problem P3.35APGA
Journalizing and posting adjustments to the T-accounts and preparing an adjusted
Learning Objectives 3,4 |
3. Adjusted trial balance total $75,600 |
The unadjusted trial balance of Anniston Air Purification System at December 31, 2018, and the data needed for the adjustments follow.
ANNISTON AIR PURIFICATION SYSTEM Unadjusted Trial Balance December 31, 2018 | ||
Balance | ||
Account Title | Debit | Credit |
Cash | $7,600 | |
Accounts Receivable | 19,700 | |
Prepaid Rent | 2,900 | |
Office Supplies | 1,800 | |
Equipment | 22,000 | |
$3,900 | ||
Accounts Payable | 2,900 | |
Salaries Payable | 0 | |
Unearned Revenue | 3,100 | |
Anniston, Capital | 43,800 | |
Anniston, Withdrawals | 9,900 | |
Service Revenue | 15,300 | |
Salaries Expense | 3,300 | |
Rent Expense | 0 | |
Depreciation Expense—Equipment | 0 | |
Advertising Expense | 1,800 | |
Supplies Expense | 0 | |
Total | $69,000 | $69,000 |
Adjustment data at December 31 follow:
- On December 15, Anniston contracted to perform services for a client receiving $3, 100 in advance. Anniston recorded this receipt of cash as Unearned Revenue. As of December 31, Anniston has completed $2,100 of the services.
- Anniston prepaid two months of rent on December 1. (Assume the Prepaid Rent balance as shown on the unadjusted trial balance represents the two months of rent prepaid on December 1.)
- Anniston used $750 of office supplies.
- Depreciation for the equipment is S$8S0.
- Anniston received a bill for December’s online advertising, $1, 100. Anniston will not pay the bill until January. (Use Accounts Payable.)
- Anniston pays its employees on Monday for the previous week’s wages. Its employees earn $3,500 for a five-day workweek. December 31 falls on Wednesday this year.
- On October 1, Anniston agreed to provide a four-month air system check (beginning October 1) for a customer for $3,400. Anniston has completed the system check every month, but payment has not yet been received and no entries have been made.
Requirements
- Journalize the
adjusting entries on December 31. - Using the unadjusted trial balance, open the T-accounts with the unadjusted balances.
Post the adjusting entries to the T-accounts. - Prepare the adjusted trial balance.
- How will Anniston Air Purification System use the adjusted trial balance?
Expert Solution & Answer
Learn your wayIncludes step-by-step video
schedule08:33
Students have asked these similar questions
(Learning Objective 3: Adjust the accounts) Answer the following questions aboutprepaid expenses:a. On March 1, Meadow Tree Service prepaid $7,200 for six months’ rent. Give theadjusting entry to record rent expense at March 31. Include the date of the entry and anexplanation. Then post all amounts to the two accounts involved, and show their balancesat March 31. Meadow adjusts the accounts only at March 31, the end of its fiscal year.b. On March 1, Meadow Tree Service paid $1,050 for supplies. At March 31, Meadow has$400 of supplies on hand. Make the required journal entry at March 31. Then post allamounts to the accounts and show their balances at March 31. Assume no beginningbalance in supplies
Prepare the Adjusted Trial Balance for Smart Touch Learning for December. Check your spelling carefully and do not abbreviate. Enter account names exactly as provided in the account chart. Enter accounts in the order Assets, Liabilities, Equity, Revenues, and Expenses.
ACCOUNT
VALUE
Accounts Receivable
1,700
Accumulated Depreciation - Furniture
200
Cash
35,270
Common Stock
36,800
Depreciation Expense - Furniture
200
Dividends
4,200
Furniture
13,400
Insurance Expense
450
Office Supplies
290
Prepaid Insurance
1,350
Rent Expense
2,000
Salaries Expense
6,600
Salaries Payable
4,600
Service Revenue
20,800
Supplies Expense
110
Unearned Revenue
3,400
Utilities Expense
230
Adjusted Trial BalanceDecember 31, 2016Month ended December 31, 2016Smart Books LearningSmart Touch LearningUnadjusted Trial Balance
Adjusted Trial BalanceDecember 31, 2016Month ended December 31, 2016Smart Books LearningSmart Touch LearningUnadjusted Trial Balance…
SERVICE COMPANY WORKSHEET P1WORK
LEARNING OBJECTIVES
* Prepare a worksheet for a proprietorship service firm.
* Prepare financial statements from a worksheet.
* Compare expense levels to national averages.
* Alter the worksheet to include an additional adjusting entry.
* Create a chart showing the amount of all expenses.
PROBLEM DATA
The trial balance of Wikki Cleaners at December 31, 2012, the end of the current fiscal year, is below:
Wikki Cleaners
Trial Balance
December 31, 2012
Cash $13,200
Cleaning Supplies 22,000
Prepaid Insurance 5,400
Equipment 206,000
Accumulated Depreciation $…
Chapter 3 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting
Ch. 3 - Prob. 1QCCh. 3 - Get Fit Now gains a client who prepays S540 for a...Ch. 3 - The revenue recognition principle requires...Ch. 3 - Adjusting the accounts is the process of Learning...Ch. 3 - Which of the following is an example of a deferral...Ch. 3 - Assume that the weekly payroll of In the Woods...Ch. 3 - Prob. 7QCCh. 3 - A equity overstated income statement: expense...Ch. 3 - A worksheet Learning Objective 6 is a journal used...Ch. 3 - On February 1, Clovis Wilson Law Firm contracted...
Ch. 3 - What is the difference between cash basis...Ch. 3 - Which method of accounting (cash or accrual basis)...Ch. 3 - Prob. 3RQCh. 3 - What is a fiscal year? Why might companies choose...Ch. 3 - Under the revenue recognition principle, when is...Ch. 3 - Under the matching principle, when are expenses...Ch. 3 - When are adjusting entries completed and what is...Ch. 3 - What are the two basic categories of adjusting...Ch. 3 - What is a deferred expense? Provide an example.Ch. 3 - What is the process of allocating the cost of a...Ch. 3 - What is a contra account?Ch. 3 - Prob. 12RQCh. 3 - What does accumulated depreciation represent?Ch. 3 - Prob. 14RQCh. 3 - What is a deferred revenue? Provide an example.Ch. 3 - What is an accrued expense? Provide an example.Ch. 3 - What is an accrued revenue? Provide an example.Ch. 3 - What are the two rules to remember about adjusting...Ch. 3 - When is an adjusted trial balance prepared, and...Ch. 3 - Prob. 20RQCh. 3 - What is a worksheet, and how is it used to help...Ch. 3 - If a payment of a deferred expense was recorded...Ch. 3 - If a payment of a deferred expense was recorded...Ch. 3 - Comparing cash and accrual basis accounting for...Ch. 3 - Comparing cash and accrual basis accounting for...Ch. 3 - Applying the revenue recognition principle...Ch. 3 - S3-4 Applying the matching principle Learning...Ch. 3 - S3-5 Identifying types of adjusting entries...Ch. 3 - Journalizing and posting adjusting entries for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Prob. S3.11SECh. 3 - Journalizing an adjusting entry for accrued...Ch. 3 - Preparing an adjusted trial balance Learning...Ch. 3 - Determining the effects on financial statements...Ch. 3 - Preparing a partial worksheet Learning Objective 6...Ch. 3 - Prob. S3A.16SECh. 3 - Prob. S3A.17SECh. 3 - E3-18 Comparing cash and accrual basis accounting...Ch. 3 - Comparing cash and accrual basis accounting and...Ch. 3 - Determining the amount of prepaid expenses...Ch. 3 - E3-21 Journalizing adjusting entries Learning...Ch. 3 - E3-22 Journalizing adjusting entries Learning...Ch. 3 - Journalizing adjusting entries Learning Objective...Ch. 3 - Journalizing adjusting entries and posting to...Ch. 3 - Journalizing adjusting entries and posting to...Ch. 3 - Preparing an adjusted trial balance Learning...Ch. 3 - Identifying the impact of adjusting entries on the...Ch. 3 - Journalizing adjusting entries and analyzing their...Ch. 3 - Using the worksheet to record the adjusting...Ch. 3 - Using the worksheet to prepare the adjusted trial...Ch. 3 - Understanding the alternative treatment of prepaid...Ch. 3 - Understanding the alternative treatment of...Ch. 3 - Journalizing adjusting entries and subsequent...Ch. 3 - Journalizing adjusting entries and identifying the...Ch. 3 - Journalizing and posting adjustments to the...Ch. 3 - Journalizing and posting adjustments to the...Ch. 3 - Using the worksheet to record the adjusting...Ch. 3 - Prob. P3A.38APGACh. 3 - Prob. P3.39BPGBCh. 3 - P3-40B Journalizing adjusting entries and...Ch. 3 - P3-41B Journalizing and posting adjustments to the...Ch. 3 - Prob. P3.42BPGBCh. 3 - Prob. P3.43BPGBCh. 3 - Prob. P3A.44BPGBCh. 3 - Using Excel to journalize and post adjusting...Ch. 3 - Prob. P3.46CPCh. 3 - Prob. P3.47PSCh. 3 - Tying It All Together Case 3-1
Before you begin...Ch. 3 - One year ago, Tyler Stasney founded Swift...Ch. 3 - Prob. 3.1EICh. 3 - Prob. 3.1FCCh. 3 - Prob. 3.1FSC
Additional Business Textbook Solutions
Find more solutions based on key concepts
Loder Company had a good year, and recorded a large gain on the sale of a discontinued business segment. Bates ...
Financial Accounting
Quick ratio (Learning Objective 7) 510 min. Calculate the quick assets and the quick ratio for each of the foll...
Financial Accounting, Student Value Edition (5th Edition)
20. What is a prior-period adjustment?
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Determine the annual budget for office utilities using the data from the past 12 months shown in Figure 9-7. Ut...
Construction Accounting And Financial Management (4th Edition)
The amount that should be recorded by Company R for building under historical cost principle.
Financial Accounting (11th Edition)
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
- (Learning Objective 5: Construct and use a trial balance) The accounts of Specialty Deck Service, Inc., follow with their normal balances at April 30, 2018. The accounts arelisted in no particular order.Account BalanceDividends..........................Utilities expense ................Accounts receivable...........Delivery expense ...............$ 3,1002,3005,300700Retained earnings.............. 7,800Salary expense................... 8,400AccountCommon stock..................Accounts payable ..............Service revenue..................Equipment.........................Note payable.....................Cash..................................Balance$ 16,2004,30020,50030,80021,00019,200Requirements1. Prepare the company’s trial balance at April 30, 2018, listing accounts in proper sequence,as illustrated in the chapter. For example, Accounts Receivable comes before Equipment.List the expense with the largest balance first, the expense with the next largest balancesecond, and so on.2.…arrow_forwardJournalize Smart Touch Learning's closing entries for December 31 in RED order. Record debits first, then credits. Check your spelling carefully and do not abbreviate. Enter account names exactly as provided in the adjusted trial balance. Select the dates from the dropdown provided. SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit Cash 35,270 Accounts Receivable 1,700 Office Supplies 290 Prepaid Insurance 1,350 Furniture 13,400 Accumulated Depreciation - Furniture 200 Salaries Payable 4,600 Unearned Revenue 3,400 Common Stock 36,800 Retained Earnings 0 Dividends 4,200 Service Revenue 20,800 Salaries Expense 6,600 Depreciation Expense - Furniture 200 Insurance Expense 450 Utilities Expense 230 Rent Expense 2,000 Supplies Expense 110 Total 65,800 65,800 Date Accounts Debit Credit Nov. 15Nov. 30Dec. 15Dec. 31…arrow_forwardPrepare the Post-Closing Trial Balance for Smart Touch Learning for December. Check your spelling carefully and do not abbreviate. Enter the account names exactly as provided in the account chart. Enter accounts in the order Assets, Liabilities, Equity, Revenues, and Expenses. ACCOUNT BALANCE Accounts Receivable 1,700 Accumulated Depreciation - Furniture 200 Cash 35,270 Common Stock 36,800 Furniture 13,400 Office Supplies 290 Prepaid Insurance 1,350 Retained Earnings 7,010 Salaries Payable 4,600 Unearned Revenue 3,400 Adjusted Trial BalanceDecember 31, 2016Month ended December 31, 2016Post-Closing Trial BalanceSmart Books LearningSmart Touch LearningUnadjusted Trial Balance Adjusted Trial BalanceDecember 31, 2016Month ended December 31, 2016Post-Closing Trial BalanceSmart Books LearningSmart Touch LearningUnadjusted Trial Balance Adjusted Trial BalanceDecember 31, 2016Month ended December 31, 2016Post-Closing Trial BalanceSmart Books…arrow_forward
- Quiz for Chapter 3 P3-67A (Learning Objective 3: Adjust the accounts) Journalize the adjusting entry needed on December 31, end of the current accounting period, for each of the following independent cases affecting Green Corp. Include an explanation for each entry. a. Details of Prepaid Insurance are shown in the account: Prepaid Insurance Jan 1 Bal 1,050 Mar 31 4,800 Green prepays insurance on March 31 each year. At December 31, $1,200 is still prepaid. b. Green pays employees each Friday. The amount of the weekly payroll is $5,800 for a five-day work week. The current accounting period ends on Tuesday. c. Green has a note receivable. During the current year, Green has earned accrued interest revenue of $600 that it will collect next year. d. The beginning balance of supplies was $2,300. During the year, Green purchased supplies costing $6,100, and at December 31 supplies on hand total $2,100. e. Green is providing services for Manatee Investments, and the owner of Manatee paid Green…arrow_forward(Learning Objective 4: Journalize and post transactions) Orman Consulting performed services for a client who could not pay immediately. Orman expected to collect the$4,600 the following month. A month later, Orman received $2,100 cash from the client.1. Record the two transactions on the books of Orman Consulting. Include an explanation foreach transaction.2. Post to these T-accounts: Cash, Accounts Receivable, and Service Revenue. Compute eachaccount balance and denote it as Bal.arrow_forwardE3-33B. (Learning Objectives 3, 4: Adjust the accounts for prepaid expenses; construct thefinancial statements) Fairmount Co. prepaid three years’ rent ($31,500) on January 1, 2018. AtDecember 31, 2018, Fairmount prepared a trial balance and then made the necessary adjustingentry at the end of the year. Fairmount adjusts its accounts once each year—on December 31.What amount appears for Prepaid Rent ona. Fairmount’s unadjusted trial balance at December 31, 2018?b. Fairmount’s adjusted trial balance at December 31, 2018?What amount appears for Rent Expense onc. Fairmount’s unadjusted trial balance at December 31, 2018?d. Fairmount’s adjusted trial balance at December 31, 2018?arrow_forward
- (Learning Objective 4: Account for accounts receivable) Perform the followingaccounting tasks for the receivables of Able and Bowman, a law firm, at December 31, 2018.Requirements1. Set up T-accounts for Cash, Accounts Receivable, and Service Revenue. Start with thebeginning balances as follows: Cash $28,000; Accounts Receivable $103,000; and ServiceRevenue $0. Post the following 2018 transactions to the T-accounts:a. Service revenue of $705,000, all on accountb. Collections on account, $713,0002. What are the ending balances of Cash, Accounts Receivable, and Service Revenue?arrow_forward(Learning Objectives 4, 5: Account for accounts receivable and uncollectibleaccounts) Perform the following accounting for the receivables of Andrews and Johnson, a lawfirm, at December 31, 2018.Requirements1. Set up T-accounts and start with the beginning balances for these T-accounts:■ Accounts Receivable, $100,000■ Allowance for Uncollectible Accounts, $14,000Post the following 2018 transactions to the T-accounts:a. Service revenue of $697,000, all on accountb. Collections on account, $714,000c. Write-offs of uncollectible accounts, $8,000d. Uncollectible-account expense (allowance method), $11,0002. What are the ending balances of Accounts Receivable and Allowance for UncollectibleAccounts?3. Show how Andrews and Johnson will report accounts receivable on its balance sheet atDecember 31, 2018.arrow_forwardS3-5. (Learning Objective 2: Apply the revenue and expense recognition principles)Identify the accounting concept or principle that gives the most direction on how to account foreach of the following situations:a. A utility bill is received on December 27 and will be paid next year. When should thecompany record utility expense?b. A physician performs a surgical operation and bills the patient’s insurance company. Itmay take three months to collect from the insurance company. Should the physicianrecord revenue now or wait until cash is collected?c. March has been a particularly slow month, and the business will have a net loss for thesecond quarter of the year. Management is considering not following its customarypractice of reporting quarterly earnings to the public.d. Salary expense of $48,000 is accrued at the end of the period to measure incomeproperly.e. A construction company is building a highway system, which will take four years.When should the company record the revenue it…arrow_forward
- (Learning Objectives 4, 5: Account for accounts receivable and uncollectibleaccounts) Perform the following accounting for the receivables of Hawkins and Harris, a CPAfirm, at December 31, 2018.Requirements1. Set up T-accounts and start with the beginning balances for these T-accounts:■ Accounts Receivable, $104,000■ Allowance for Uncollectible Accounts, $12,000Post the following 2018 transactions to the T-accounts:a. Service revenue of $695,000, all on accountb. Collections on account, $720,000c. Write-offs of uncollectible accounts, $8,000d. Uncollectible-account expense (allowance method), $15,0002. What are the ending balances of Accounts Receivable and Allowance for UncollectibleAccounts?3. Show how Hawkins and Harris will report accounts receivable on its balance sheet atDecember 31, 2018.arrow_forwardPrepare the Unadjusted Trial Balance for Smart Touch Learning for December 31st. Check your spelling carefully and do not abbreviate. Enter the account names exactly as provided in the Chart of Accounts. Enter the accounts in the order of Assets, Liabilities, Equity, Revenues, and Expenses. ACCOUNT Accounts Receivable 600 Cash 35,270 Common Stock 36,800 Dividends 4,200 Furniture 13,400 Office Supplies 400 Prepaid Insurance 1,800 Rent Expense 2,000 Salaries Expense 2,000 Service Revenue 19,100 Unearned Revenue 4,000 Utilities Expense 230 December 31, 2016Month ended December 31, 2016Smart Books LearningSmart Touch LearningUnadjusted Trial Balance December 31, 2016Month ended December 31, 2016Smart Books LearningSmart Touch LearningUnadjusted Trial Balance December 31, 2016Month ended December 31, 2016Smart Books LearningSmart Touch LearningUnadjusted Trial Balance Balance Account Title Debit Credit…arrow_forward3-21A. (Learning Objective 3: Adjust the accounts) Jenkins Rentals Company faced thefollowing situations. Journalize the adjusting entry needed at December 31, 2020, for eachsituation. Consider each fact separately.a. The business has interest expense of $3,100 that it must pay early in January 2021.b. Interest revenue of $4,400 has been earned but not yet received.c. On July 1, 2020, when the business collected $14,200 rent in advance, it debited Cashand credited Unearned Rent Revenue. The tenant was paying for two years’ rent.d. Salary expense is $5,700 per day—Monday through Friday—and the business paysemployees each Friday. This year, December 31 falls on a Thursday.e. The unadjusted balance of the Supplies account is $3,100. The total cost of supplies onhand is $1,200.f. Equipment was purchased on January 1 of this year at a cost of $140,000. The equipment’s useful life is five years. There is no residual value. Record depreciation for thisyear and then determine the equipment’s…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY