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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Chapter 4, Problem E4A.28E
Journalizing reversing entries
Leaning Objectives 7 Appendix 4A|Q
Mountain View Services had the following unadjusted balances at December 31,2018:Salaries Payable, $0;and Salaries Expense, $1,900.The following transactions have taken place at the end of 2018 and beginning of 2019:
2018
Dec. 31 Accrued Salaries Expenses at December 31, 2018.
31 Closed the Salaries Expense Account.
2019
Jan. 1 Reversed the accrued salaries. (Requirement 3 only)
4 Paid salaries of $8, 500. This payment included the Salaries payable amount, plus $500 for the first few days of January.
Requirements
- Open T-accounts for Salaries Payable and Salaries Expense using their unadjusted balances at December 31,2018.
Journalize the entries assuming Mountain View Services does not use reversing entries. Do not record the reversing entry on Jan. 1.Post to the accounts.- Open new T-accounts for Salaries Payable and Salaries Expense using their unadjusted balances at December 31,2018.Journalize the entries assuming Mountain View Services uses reversing entries. Don't forget to record the reversing entry on Jan. 1.Post to the accounts. Compare the balances on January 4,2019with Requirement 2 balances on January 4, 2019.
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Exercise 5-19 (Algo) Prepaid expenses—insurance LO 10
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[The following information applies to the questions displayed below.]
A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2019.
Exercise 5-19 (Algo) Part b (2)
b-2. Prepare the adjusting entry that will be made at the end of every month to show the amount of insurance premium "used" that month. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Serial Problem Business Solutions LO P1, A1
Selected ledger account balances for Business Solutions follow.
For Three MonthsEnded December 31, 2019
For Three MonthsEnded March 31, 2020
Office equipment
$
8,100
$
8,100
Accumulated depreciation—Office equipment
405
810
Computer equipment
20,000
20,000
Accumulated depreciation—Computer equipment
1,250
2,500
Total revenue
31,334
44,900
Total assets
83,360
121,668
Required:1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2020. Compute amounts for the year ended December 31, 2020, for Depreciation expense—Office equipment and for Depreciation expense—Computer equipment (assume use of the straight-line method).2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2020?3. Compute the three-month total asset turnover for Business…
Required information
Exercise 5-19 (Algo) Prepaid expenses—insurance LO 10
Skip to question
[The following information applies to the questions displayed below.]
A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2019.
Exercise 5-19 (Algo) Part d
d. If the premium had been $8,880 for a two-year period, how should the prepaid amount at December 31, 2019, be reported on the balance sheet?
Chapter 4 Solutions
Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
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