FUND OF FINANCIAL ACCOUNTING
5th Edition
ISBN: 9781259712609
Author: PHILLIPS
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 3E
To determine
To prepare:
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
During the month of September, the Texas Go-Kart Company had the following business activities:
On September 1, paid rent on the track facility for six months at a total cost of $12,000.
On September 1, received $60,000 for season tickets for 12-month admission to the race track.
On September 1, booked the race track for a private organization that will use the track one day per month for $2,000 each time, to be paid in the following month. The organization uses the track on September 30.
On September 1, hired a new manager at a monthly salary of $3,000, to be paid the first Monday following the end of the month.
Required:
Prepare the journal entry, if any, required to record each of the initial business activities on September 1.
Turner Engineering completed the following transactions in the month of June.Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements.
Jun.
1
Tony Turner, the owner, invested $144,000 cash, office equipment with a value of $16,000, and $82,000 of drafting equipment to launch the company.
Jun.
2
The company purchased land worth $60,000 for an office by paying $21,700 cash and signing a long-term note payable for $38,300.
Jun.
3
The company purchased a portable building with $44,000 cash and moved it onto the land acquired on June 2.
Jun.
4
The company paid $9,600 cash for the premium on an 18-month insurance policy.
Jun.
5
The company completed and delivered a set of plans for a client and collected $15,000 cash.
Jun.
6
The company purchased $33,200 of additional drafting equipment by paying $20,500 cash and signing a long-term note payable for…
Turner Engineering completed the following transactions in the month of June.Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements.
Jun.
1
Tony Turner, the owner, invested $144,000 cash, office equipment with a value of $16,000, and $82,000 of drafting equipment to launch the company.
Jun.
2
The company purchased land worth $60,000 for an office by paying $21,700 cash and signing a long-term note payable for $38,300.
Jun.
3
The company purchased a portable building with $44,000 cash and moved it onto the land acquired on June 2.
Jun.
4
The company paid $9,600 cash for the premium on an 18-month insurance policy.
Jun.
5
The company completed and delivered a set of plans for a client and collected $15,000 cash.
Jun.
6
The company purchased $33,200 of additional drafting equipment by paying $20,500 cash and signing a long-term note payable for…
Chapter 4 Solutions
FUND OF FINANCIAL ACCOUNTING
Ch. 4 - Prob. 1QCh. 4 - Explain the relationships between adjustments and...Ch. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - What is a contra-asset? Give an example of one.Ch. 4 - Explain the differences between depreciation...Ch. 4 - What is an adjusted trial balance? What is its...Ch. 4 - On December 31, a company makes a 59,000 payment...Ch. 4 - Using the information in question 8, determine the...Ch. 4 - Using the information in question 8, prepare the...
Ch. 4 - What is the equation for each of the following...Ch. 4 - Prob. 12QCh. 4 - What is the purpose of closing journal entries?Ch. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - What is a post-closing trial balance? Is it a...Ch. 4 - The owner of a local business complains that the...Ch. 4 - Which of the following accounts would not appear...Ch. 4 - Which account is least likely to appear in an...Ch. 4 - When a concert promotions company collects cash...Ch. 4 - On December 31, an adjustments made to reduce...Ch. 4 - An adjusting journal entry to recognize accrued...Ch. 4 - Prob. 6MCCh. 4 - Company A has owned a building for several years....Ch. 4 - Which of the following trial balances is used as a...Ch. 4 - Assume the balance in Prepaid Insurance is 2,500...Ch. 4 - Assume a company receives a bill for 10,000 for...Ch. 4 - Prob. 1MECh. 4 - Understanding Concepts Related to Adjustments...Ch. 4 - Matching Transactions with Type of Adjustment...Ch. 4 - Recording Adjusting Journal Entries Using the...Ch. 4 - Determine Accounting Equation Effects of Deferral...Ch. 4 - Prob. 6MECh. 4 - Determining Accounting Equation Effects of Accrual...Ch. 4 - Recording Adjusting Journal Entries Using be...Ch. 4 - Preparing Journal Entries for Deferral...Ch. 4 - Preparing Journal Entries for Deferral...Ch. 4 - Preparing Journal Entries for Deferral and Accrual...Ch. 4 - Reporting Adjusted Account Balances Indicate...Ch. 4 - Preparing an Adjusted Trial Balance Macro Company...Ch. 4 - Reporting an Income Statement The Sky Blue...Ch. 4 - Reporting a Statement of Retained Earnings Refer...Ch. 4 - Prob. 16MECh. 4 - Recording Closing Journal Entries Refer to the...Ch. 4 - Preparing and Posting Adjusting Journal Entries At...Ch. 4 - Preparing and Posting Adjusting Journal Entries At...Ch. 4 - Prob. 20MECh. 4 - Prob. 21MECh. 4 - Prob. 22MECh. 4 - Prob. 23MECh. 4 - Prob. 24MECh. 4 - Prob. 25MECh. 4 - Prob. 26MECh. 4 - Prob. 1ECh. 4 - Identifying Adjustments and Preparing Financial...Ch. 4 - Prob. 3ECh. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Recording Adjusting Journal Entries Refer to E4-6....Ch. 4 - Recording Typical Adjusting Journal Entries...Ch. 4 - Determining Accounting Equation Effects of Typical...Ch. 4 - Determining Adjusted Income Statement Account...Ch. 4 - Reporting Depreciation The adjusted trial balance...Ch. 4 - Recording Transactions Including Adjusting and...Ch. 4 - Analyzing the Effects of Adjusting Journal Entries...Ch. 4 - Reporting an Adjusted Income Statement Dyer, Inc.,...Ch. 4 - Recording Adjusting Entries and Preparing an...Ch. 4 - Recording Four Adjusting Journal Entries and...Ch. 4 - Recording Four Adjusting Journal Entries and...Ch. 4 - Prob. 18ECh. 4 - Analyzing, Recording, and Summarizing Business...Ch. 4 - Preparing Adjusting Entries, an Adjusted Trial...Ch. 4 - Preparing an Adjusted Trial Balance, Closing...Ch. 4 - Analyzing and Recording Adjusting Journal Entries...Ch. 4 - Prob. 3CPCh. 4 - Identifying and Preparing Adjusting Journal...Ch. 4 - Preparing a Trial Balance, Closing Journal Entry,...Ch. 4 - Analyzing and Recording Adjusting Journal Entries...Ch. 4 - Prob. 3PACh. 4 - Identifying and Preparing Adjusting Journal...Ch. 4 - Preparing a Trial Balance, Closing Journal Entry,...Ch. 4 - Recording Adjusting Journal Entries Cactus...Ch. 4 - Determining Accounting Equation Effects of...Ch. 4 - Identifying and Preparing Adjusting Journal...Ch. 4 - From Recording Transactions to Preparing Accrual...Ch. 4 - Prob. 2COPCh. 4 - Recording Transactions (Including Adjusting...Ch. 4 - From Recording Transactions (Including Adjusting...Ch. 4 - From Recording Transactions to Preparing Accrual...Ch. 4 - Prob. 6COPCh. 4 - Finding Financial Information Refer to the...Ch. 4 - Prob. 2SDCCh. 4 - Ethical Decision Making: A Mini-Case Assume you...Ch. 4 - Adjusting the Accounting Records Assume it is now...
Knowledge Booster
Similar questions
- On October 31, the Vermillion Igloos Hockey Club received 800,000 in cash in advance for season tickets for eight home games. The transaction was recorded as a debit to Cash and a credit to Unearned Admissions. By December 31, the end of the fiscal year, the team had played three home games and received an additional 450,000 cash admissions income at the gate. a. Journalize the adjusting entry as of December 31. b. List the title of the account and the related balance that will appear on the income statement. c. List the title of the account and the related balance that will appear on the balance sheet.arrow_forwardAt the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker Jacobs, an attorney: In preparing the financial statements, adjustments for the following data were overlooked: Unbilled fees earned at August 31, 31,900. Depreciation of equipment for August, 7,500. Accrued wages at August 31, 5,200. Supplies used during August, 3,000. Instructions 1. Journalize the entries to record the omitted adjustments. 2. Determine the correct amount of net income for August and the total assets, liabilities, and owners equity at August 31. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table similar to the following. The first adjustment is presented as an example.arrow_forwardIn July of this year, M. Wallace established a business called Wallace Realty. The account headings are presented below. Transactions completed during the month follow. a. Wallace deposited 24,000 in a bank account in the name of the business. b. Paid the office rent for the current month, 650, Ck. No. 1000. c. Bought office supplies for cash, 375, Ck. No. 1001. d. Bought office equipment on account from Dellos Computers, 6,300. e. Received a bill from the City Crier for advertising, 455. f. Sold services for cash, 3,944. g. Paid on account to Dellos Computers, 1,500, Ck. No. 1002. h. Received and paid the bill for utilities, 340, Ck. No. 1003. i. Paid on account to the City Crier, 455, Ck. No. 1004. j. Paid truck expenses, 435, Ck. No. 1005. k. Wallace withdrew cash for personal use, 1,500, Ck. No. 1006. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.arrow_forward
- Gonzalez Engineering completed the following transactions in the month of June.Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements. Jun. 1 Maria Gonzalez, the owner, invested $108,000 cash, office equipment with a value of $7,000, and $64,000 of drafting equipment to launch the company. Jun. 2 The company purchased land worth $51,000 for an office by paying $9,100 cash and signing a long-term note payable for $41,900. Jun. 3 The company purchased a portable building with $53,000 cash and moved it onto the land acquired on June 2. Jun. 4 The company paid $4,200 cash for the premium on an 18-month insurance policy. Jun. 5 The company completed and delivered a set of plans for a client and collected $7,800 cash. Jun. 6 The company purchased $22,400 of additional drafting equipment by paying $11,500 cash and signing a long-term note payable for…arrow_forwardWhich of the following events would be recognized in the accounting records of Progusto Consultants on the date indicated? Explain your answer. Feb. 15 : Progusto Consultants offers to purchase a piece of land for $1,200,000. There is a high likelihood that the offer will be accepted. March 2 : Progusto Consultants recieved notice that its rentals for their office will increase from $40,000 to $45,000 per month starting May 1. April 29 : The Business recieves its electricity bill for the month of April. The bill is due to May 5. July 5 : Progusto places an order for an office equipment costing $85,000 Aug. 6 : The office equipment ordered on July 5 is delivered. Payment will be due on Sept. 1 Sep. 5 : The business hired a new office clerk.arrow_forwardDuerr Engineering completed the following transactions in the month of June.Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements. Jun. 1 Melanie Duerr, the owner, invested $150,000 cash, office equipment with a value of $17,500, and $85,000 of drafting equipment to launch the company. Jun. 2 The company purchased land worth $61,500 for an office by paying $23,800 cash and signing a long-term note payable for $37,700. Jun. 3 The company purchased a portable building with $42,500 cash and moved it onto the land acquired on June 2. Jun. 4 The company paid $10,500 cash for the premium on an 18-month insurance policy. Jun. 5 The company completed and delivered a set of plans for a client and collected $16,200 cash. Jun. 6 The company purchased $35,000 of additional drafting equipment by paying $22,000 cash and signing a long-term note payable for…arrow_forward
- Giant Corporation incurred the following transactions during their second year of business. Record the transactions in the space provided below On Jan. 1st, purchased $1,500 in supplies for cash On July 1st, paid cash of $6,000 for the upcoming 12 months of rent On October 1st, received cash of $9,000 in advance for a six month consulting project At year end, a count revealed $600 of supplies remained. Record the adjustment. At year end, record the adjustment to recognize rent expense for transaction #2 At year end, record the adjustment to recognize revenue earned on transation #3arrow_forwardFor each of the following situations write the principle, assumption, or concept that justifies or explains what occurred.A. A landscaper received a customers order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year.B. A company divides its income statements into four quarters for the year.C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000.D. Brandys Flower Shop is forecasting its balance sheet for the next five years.E. When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns.F. A company records the expenses incurred to generate the revenues reported.arrow_forwardThe Golden Goals, a professional soccer team, prepares financial statements on a monthly basis. The soccer season begins in May, but in April the team engaged in the following transactions: Paid $1,200,000 to the municipal stadium as advance rent for use of the facilities for the five-month period from May 1 through September 30. This payment was initially recorded as Prepaid Rent. Collected $4,500,000 cash from the sale of season tickets for the team’s home games. The entire amount was initially recorded as Unearned Ticket Revenue. During the month of May, the Golden Goals played several home games at which $148,800 of the season tickets sold in April were used by fans. Required: Prepare the two adjusting entries required on May 31arrow_forward
- The MRS , professional soccer team, prepares financial statements on a monthly basis. The soccer season begins in May, but in April the team engaged in the following transations. 1 paid $1,500,000 to the municipal stadium as abvance rent for use the facilities for the 6 month period from May 1 through October 31. This payment was initially recorded as prepaid rent. 2.Collected $6,000,000 cash from sale of season tickets for the tieam's home games. The entire amount was initially played several home games at which $750,000 of the season tickess sold in April were used by fans. I need Prepare the two adjusting entries required on May 31arrow_forwardFor each of the following independent situations, prepare journal entries to record the initial transaction on September 30 and the adjustment required on October 31.a. Hockey Helpers paid $4,000 cash on September 30 to rent an arena for the months of Octoberand November.b. Super Stage Shows received $16,000 on September 30 for season tickets that admit patrons toa theatre event that will be held twice (on October 31 and November 30).c. Risky Ventures paid $3,000 on September 30 for insurance coverage for the months ofOctober, November, and December.arrow_forwardPacker Wings Company received an advance payment of $144,000 for a consulting contract during the year. The balance in the Unearned Consulting Fees account at the beginning of the year was $12,000. At the end of the year, $8,000 was still unearned. Create T-accounts for the accounts involved in the adjusting entry needed at year end, and post all amounts to them, including the adjusting entry necessary, and calculate the account balances. How much will Packer Wings report as Consulting Revenue on its income statement for the year? I need quick answerarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning