Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134642932
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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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 | |
| 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
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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
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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
Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
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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
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