Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4, Problem E4.21E
Preparing closing entries from an adjusted
Learning Objective 3
The adjusted trial balance of Stone Sign Company follow:
Adjusted trial balance for Stone Sign Company for January 31,201-5
Requirements
1.Assume Stone Sign Company has a January 31 year-end. Journalize Stone's closing entries at January 31.
2. How much net income or net loss did Stone Sign Company earn for the year ended January 31? How can you tell?
Expert Solution & Answer
Learn your wayIncludes step-by-step video
schedule03:41
Students have asked these similar questions
P3-59A. (Learning Objective 3: Adjust the accounts) Journalize the adjusting entry neededon December 31, the end of the current accounting period, for each of the following independent cases affecting Castaway Corporation. Include an explanation for each entry.a. The details of Prepaid Insurance are as follows:Prepaid Insurance2,9004,000JanMar 311 BalCastaway prepays insurance on March 31 each year. At December 31, $1,700 is still prepaid.b. Castaway pays employees each Friday. The amount of the weekly payroll is $6,100 fora five-day work week. The current accounting period ends on a Wednesday.c. Castaway has a note receivable. During the current year, Castaway has earned accruedinterest revenue of $700 that it will collect next year.d. The beginning balance of supplies was $3,000. During the year, Castaway purchasedsupplies costing $6,200, and at December 31 supplies on hand total $2,200.e. Castaway is providing services for Blue Whale Investments, and the owner of BlueWhale paid…
. (Learning Objective 5: Make closing entries and calculate net income) The adjustedtrial balance of Amana Corporation at December 31 shows that sales revenue for the year was$513,000 and other revenue was $37,000. Cost of goods sold for that same period was $256,000,while other expenses totaled $185,000. The corporation declared and paid dividends of $12,000during the year. The balance of retained earnings before closing entries was $457,000.1. Prepare the closing entries for revenues, expenses, and dividends for the year.2. What was net income for the year?3. What is the ending balance of retained earnings after the closing entries are posted?
E3-21 Journalizing adjusting entries
Learning Objective 3
Consider the following situations:
Business receives $3,200 on January 1 for 10-month service contract for the period January 1 through October 31.
Total salaries for all employees is $3,600 per month. Employees are paid on the 1st and 15th of the month.
Work performed but not yet billed to customers for the month is $1,600.
The company pays interest on its $16,000, 4% note payable of $53 on the first day of each month.
Assume the company records adjusting entries monthly. Journalize the adjusting entries needed as of January 31.
Chapter 4 Solutions
Horngren's Accounting (12th Edition)
Ch. 4 - Assets are listed on the balance sheet in the...Ch. 4 - Which of the following accounts would be included...Ch. 4 - Which situation indicates a net loss within the...Ch. 4 - Which of the following accounts is not closed?...Ch. 4 - What do closing entries accomplish? Learning...Ch. 4 - Which of the following is not a closing entry?...Ch. 4 - Which of the following accounts may appear on a...Ch. 4 - 8. Which of the following steps of the accounting...Ch. 4 - Clean Water Softener Systems has Cash of $600,...Ch. 4 - Which of the following statements concerning...
Ch. 4 - What document are financial statements prepared...Ch. 4 - What does the income statement report?Ch. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Why are financial statements prepared in a...Ch. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - How could a worksheet help in preparing financial...Ch. 4 - If a business had a net loss for the year, where...Ch. 4 - Prob. 12RQCh. 4 - What are temporary accounts? Are temporary...Ch. 4 - What are permanent accounts? Are permanent...Ch. 4 - How is the Income Summary account used? Is it a...Ch. 4 - Prob. 16RQCh. 4 - If a business had a net loss for the year, what...Ch. 4 - What types of accounts are listed on the...Ch. 4 - Prob. 19RQCh. 4 - What is the current ratio, and how is it...Ch. 4 - Prob. 21ARQCh. 4 - Preparing an income statement Learning Objective 1Ch. 4 - Preparing a statement of owner’s equity. Learning...Ch. 4 - Preparing a balance sheet (unclassified, account...Ch. 4 - Preparing a balance sheet (classified, report...Ch. 4 - Classifying balance sheet accounts Learning...Ch. 4 - Prob. S4.6SECh. 4 - Prob. S4.7SECh. 4 - Determine net loss using a worksheet Learning...Ch. 4 - Identifying temporary and permanent accounts...Ch. 4 - Prob. S4.10SECh. 4 - Posting closing entries directly to Taccounts...Ch. 4 - S412 Identifying accounts included on a...Ch. 4 - Identifying steps in the accounting cycle Learning...Ch. 4 - Calculating the current ratio Learning Objective 6...Ch. 4 - Journalizing reversing entries Learning Objective...Ch. 4 - E416 Preparing the financial statements The...Ch. 4 - Classifying balance sheet accounts Learning...Ch. 4 - Preparing a classified balance sheet and...Ch. 4 - Preparing a worksheet Learning Objective 2: Title...Ch. 4 - Preparing financial statements from the completed...Ch. 4 - Preparing closing entries from an adjusted trial...Ch. 4 - Preparing closing entries from T-accounts Learning...Ch. 4 - Determining the effects of closing entries on the...Ch. 4 - Preparing a worksheet and closing entries Learning...Ch. 4 - Preparing closing entries from an adjusted trial...Ch. 4 - Preparing a worksheet, closing entries, and a...Ch. 4 - Journalizing reversing entries. Learning Objective...Ch. 4 - Journalizing reversing entries Leaning Objectives...Ch. 4 - Preparing financial statements including a...Ch. 4 - Preparing financial statements including a...Ch. 4 - Preparing a worksheet, financial statements, and...Ch. 4 - Completing the accounting cycle from adjusting...Ch. 4 - Completing the accounting cycle from journal...Ch. 4 - Preparing adjusting entries and reversing entries...Ch. 4 - Preparing financial statements including a...Ch. 4 - Preparing financial statements including a...Ch. 4 - Preparing a worksheet financial statements, and...Ch. 4 - Completing the accounting cycle from adjusting...Ch. 4 - Completing the accounting cycle from journal...Ch. 4 - Preparing adjusting entries and reversing entries...Ch. 4 - Using Excel to prepare financial statements,...Ch. 4 - Completing the accounting cycle from adjusted...Ch. 4 - Completing the accounting cycle from adjusted...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - Comprehensive Problem 2 for Chapters 1 —4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 —4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Prob. 4.1TIATCCh. 4 - Prob. 4.1EICh. 4 - Prob. 4.1FSC
Additional Business Textbook Solutions
Find more solutions based on key concepts
Is reporting an investment at its cost considered relevant? Explain
Intermediate Accounting (2nd Edition)
Loder Company had a good year, and recorded a large gain on the sale of a discontinued business segment. Bates ...
Financial Accounting
(Record inventory transactions in the periodic system) Wexton Technologies began the year with inventory of 560...
Financial Accounting (12th Edition) (What's New in Accounting)
How is activity-based costing useful for pricing decisions?
Cost Accounting (15th Edition)
What is the relationship between management by exception and variance analysis?
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Small Business Analysis Purpose: To help you understand the importance of cash flows in the operation of a smal...
Financial Accounting, Student Value Edition (5th 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
- Exercise 3-59 Preparation of Closing Entries Grand Rapids Consulting Inc. began 2019 with a retained earnings balance of $38,100 and has the following accounts and balances at year end: Required: 1. Prepare the closing entries made by Grand Rapids Consulting at the end of 2019. 2. Prepare Grand Rapids Consultings retained earnings statement for 2019.arrow_forwardCornerstone Exercise 3-27 Preparing and Analyzing Closing Entries Refer to the information for Sparrow Company on the previous page. Required: Prepare the closing entries for Sparrow at December 31, 2019. How does the closing process affect retained earnings?arrow_forwardADJUSTING. CLOSING. AND REVERSING ENTRIES A 6-column spreadsheet for Baldwin Company is shown on the next page. Data for adjusting the accounts are as follows: REQUIRED 1. Prepare the December 31 adjusting journal entries for Baldwin Company. 2. Prepare the December 31 closing journal entries for Baldwin Company. 3. Prepare the reversing journal entries as of January 1,20-2, for Baldwin Company. PROBLEM 27-8Aarrow_forward
- (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 suppliesarrow_forwardQuiz 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_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
- Problem 4 - Prepare Closing Entries and a Post-Closing Trial Balance Required: Below is the Adjusted Trial Balance for Orange Corporation for the year ended December 31, 2020. Prepare the closing entries and the post-closing trial balance for December 31, 2020. Orange Corporation Adjusted Trial Balance December 31, 2020 Account Debit Credit Cash 42,550 Accounts Receivable 36,470 Supplies 3,550 Prepaid Rent 4,200 Land 50,000 Equipment 131,500 Accum. Deprec. - Equip. 63,500 Accounts Payable 32,600 Salaries Payable 3,500 Unearned Revenue 6,370 Common Stock 75,000 Retained Earnings 42,000 Dividends 7,300 Service Revenue 336,000 Rent Expense 48,000 Salaries Expense…arrow_forwardusiness AccountingQ&A LibraryREQUIRED: Prepare Columbus Ltd classified balance sheet at December 31, 2018. Prepare the closing entries. Prepare the post-closing trial balance. REQUIRED: Prepare Columbus Ltd classified balance sheet at December 31, 2018. Prepare the closing entries. Prepare the post-closing trial balance. error_outlineGet 24/7 homework help and experts with bartleby learn. Subscribe now!arrow_forward Question The following trial balance was extracted from the books of Columbus Ltd at December 31, the end of the company’s financial year. The company is owned by John Columbus and is in the business of buying and farming supplies. Trial Balance as at December 31, 2018 Trial Balance A/C Name Debit Credit Cash 1,000,000 Accounts receivable 450,000 Allowance for bad debt 15,000 Merchandise Inventory 186,000…arrow_forwardE3-22A. (Learning Objectives 3, 4: Adjust the accounts for prepaid expenses; construct thefinancial statements) Dizzy Toys prepaid three years’ rent ($36,000) on January 1, 2018. AtDecember 31, 2018, Dizzy prepared a trial balance and then made the necessary adjusting entryat the end of the year. Dizzy adjusts its accounts once each year—on December 31.What amount appears for Prepaid Rent ona. Dizzy’s unadjusted trial balance at December 31, 2018?b. Dizzy’s adjusted trial balance at December 31, 2018?What amount appears for Rent Expense onc. Dizzy’s unadjusted trial balance at December 31, 2018?d. Dizzy’s adjusted trial balance at December 31, 2018?arrow_forward
- E3-33B. (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_forwardE3-25A. (Learning Objective 5: Close the books) Prepare the closing entries from thefollowing selected accounts from the records of North Pole Enterprises at December 31, 2018:Cost of services sold............ $14,800Accumulated depreciation... 41,100Selling, general, andadministrative expenses.... 6,200Retained earnings,December 31, 2017......... 2,000Service revenue....................... $32,200Depreciation expense ............. 4,100Other revenue ........................ 1,000Dividends declared................. 500Income tax expense ................ 900Income tax payable ................ 600How much net income did North Pole Enterprises earn during 2018? Prepare a T-account forRetained Earnings to show the December 31, 2018, balance of Retained Earningsarrow_forwardCompleting the accounting cycle from adjusted trial balance to post-closing trial balance with an optional worksheet This problem continues the Canyon Canoe Company situation from Chapter 3. Requirements Complete the worksheet at December 31, 2018 (optional). Use the unadjusted trial balance from Chapter 2 and the adjusting entries from Chapter 3. Prepare an income statement for the two months ended December 31, 2018. Use the worksheet prepared in Requirement 1 or the adjusted trial balance from Chapter 3. Prepare a statement of retained earnings for the two months ended December 31, 2018. Prepare a classified balance sheet (report form) on December 31, 2018. Assume the note payable is long-term. Journalize and post the closing entries at December 31, 2018. Open T-accounts for Income Summary and Retained earnings. Determine the ending balance for each account. Denote each closing amount as and each account balance as Balance Prepare a post-closing trial balance at December 31, 2018.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY