FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 3, Problem 4QS
To determine
1.
To identify: The adjusting entries to be passed at the end of the accounting period for accrued salaries expense.
2.
To determine
To identify: The adjusting entries to be passed at the end of the accounting period to adjust the unearned services revenue account to recognize earned revenue.
3.
To determine
To identify: The adjusting entries to be passed at the end of the accounting period to record services revenue earned for which cash will be received the following period.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
During the year, a company recorded prepayments of expenses in asset accounts and cash receipts of unearned revenues in liability accounts. At the end of its annual accounting period, the company must make three adjusting entries. (1) Accrue salaries expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dr. ___ Cr. ___ (2) Adjust the Unearned Services Revenue account to recognize earned revenue. . . . . . . Dr. ___ Cr. ___ (3) Record services revenue earned for which cash will be received the following period. . . Dr. ___ Cr. ___ For each of the adjusting entries (1), (2), and (3), indicate the account to be debited and the account to be credited—from a through i below. a. Prepaid Insurance d. Unearned Services Revenue g. Accounts Receivable b. Cash e. Salaries Expense h. Accounts Payable c. Salaries Payable f. Services Revenue i. Depreciation Expense
tasks will provide further exposure to the year-end adjustments.
5.17.1 Enter the following year-end adjustments under the headings i
The first one has been done for you as an example. The year-end is 28 February
interest on capital
Ve covered some of these adjustments. Subsequent
The previous
iation accounts
Revision of adjustments & accounting equation
covered in Grade 10
TASK 5.17
el Agency on
s B. Bester and
Required:
the table below.
20.7.
GAAP
Account debited
Account credited
Name of
No. Description
Amount
Name of
concept
applicable
Section in
Section in
account
ledger
account
ledger
1. Correction of Business
entity rule
Drawings
Balance
Sheet
Sundry
Nominal
R3 000
expenses
error
following:
5472 For each of the adjustments indicate the effect on the accounting equation
A = 0 + L.
Information:
166750
in the ratio
1.
Correction of error:
The owner took stock for personal use at cost price, R3 000, but this has been deb-
ited to Sundry expenses.
2.
Omission:
A direct electronic…
Concept Introduction:
Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.
The business activity for each type of adjusting entry is explained as follows:
Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.
Requirement-1:
To prepare:
The…
Chapter 3 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
Ch. 3 - A company forgot to record accrued and unpaid...Ch. 3 - Prior to recording adjusting entries, the Supplies...Ch. 3 - Prob. 3MCQCh. 3 - On November 1, Stockton Co. receives $3,600 cash...Ch. 3 - Prob. 5MCQCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQ
Ch. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 9DQCh. 3 - Prob. 10DQCh. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Prob. 13DQCh. 3 - Prob. 14DQCh. 3 - Prob. 15DQCh. 3 - Prob. 16DQCh. 3 - Prob. 17DQCh. 3 - Prob. 18DQCh. 3 - Prob. 1QSCh. 3 - Prob. 2QSCh. 3 - Prob. 3QSCh. 3 - Prob. 4QSCh. 3 - Prob. 5QSCh. 3 - Prob. 6QSCh. 3 - Prob. 7QSCh. 3 - Prob. 8QSCh. 3 - Prob. 9QSCh. 3 - Prob. 10QSCh. 3 - Prob. 11QSCh. 3 - Prob. 12QSCh. 3 - Prob. 13QSCh. 3 - Prob. 14QSCh. 3 - Prob. 15QSCh. 3 - Prob. 16QSCh. 3 - Prob. 17QSCh. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Prob. 21QSCh. 3 - Prob. 22QSCh. 3 - Preparing a classified balance sheet C3 Use the...Ch. 3 - Prob. 24QSCh. 3 - Prob. 25QSCh. 3 - Prob. 26QSCh. 3 - Prob. 27QSCh. 3 - Prob. 28QSCh. 3 - Prob. 1ECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Prob. 8ECh. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Prob. 11ECh. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Prob. 14ECh. 3 - Prob. 15ECh. 3 - Preparing unadjusted and adjusted trial balances,...Ch. 3 - Prob. 17ECh. 3 - Prob. 1PSACh. 3 - Prob. 2PSACh. 3 - Prob. 6PSACh. 3 - Prob. 7PSACh. 3 - Prob. 1PSBCh. 3 - Prob. 2PSBCh. 3 - Prob. 3PSBCh. 3 - Preparing financial statements from adjusted trial...Ch. 3 - Prob. 5PSBCh. 3 - Preparing closing entries and financial statements...Ch. 3 - Determining balance sheet classifications C3 In...Ch. 3 - After the success of the company’s first two...Ch. 3 - Prob. 1GLPCh. 3 - Prob. 2GLPCh. 3 - Prob. 3GLPCh. 3 - Prob. 4GLPCh. 3 - Prob. 5GLPCh. 3 - Prob. 1AACh. 3 - Prob. 2AACh. 3 - Prob. 3AACh. 3 - Prob. 1BTNCh. 3 - Prob. 2BTNCh. 3 - Prob. 3BTNCh. 3 - Prob. 4BTNCh. 3 - Prob. 5BTNCh. 3 - Prob. 6BTN
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
- Identify whether each of the following transactions, which are related to expense recognition, are accrual, deferral, or neither. A. paid an expense for the current month B. prepaid an expense for future months C. made a payment to reduce accounts payable D. incurred a current-month expense, to be paid next montharrow_forwardok nt ences At the end of its annual accounting period, the company must make three adjusting entries. a. Accrue utilities expense. b. Adjust the Supplies account for supplies used up during the year. c. Adjust the Unearned Revenue account to recognize earned services revenue. For each of these adjusting entries, indicate the account to be debited and the account to be credited. a. Debit a. Credit b. Debit b. Credit c. Debit c. Creditarrow_forwardJournalize the adjusting entry for each of the following accrued expenses at the end of the current year:a. Product warranty cost, $26,800.b. Interest on the 19 remaining notes owed to Gallardo Co.arrow_forward
- Show all calculation notes a. Prepare the adjusting entry to account for the depreciation of the company's building and fixtures during December b. Prepare the adjusting entry to report the portion of unearned customer deposits that were earned during December c. Prepare the adjusting entry to account for income tax expense that accrued during Decemberarrow_forwardMatch each transaction with the type of adjustment that will be required. A. Accrual adjustment B. Deferral adjustment Transaction Type of Adjustment 1. Supplies for office use were purchased during the year for $500, of which $100 remained on hand (unused) at year-end. Interest of $250 on a note receivable was earned at year-end, although collection of the interest is not due until the following 2. year. 3. At year-end, salaries and wages payable of $3,600 had not been recorded or paid. At year-end, one-half of a $2,000 advertising project had been completed for a client, but nothing had been billed or 4. collected. 5. Redeemed a gift card for $600 of services.arrow_forwardInformation to prepare adjusting journal entries The following information relates to Gatsby, Inc. as of December 31 of the current year. The company uses the calendar year as its annual reporting period and the Accrual Method of Accounting. Prepaid and unearned items are recorded as assets and liabilities, respectively. Prepare all necessary adjusting journal entries and post to the T-accounts. 1 The company's weekly payroll is $3,000 and is paid each Friday for a five-day work week. Assume December 31st falls on a Thursday, but the employees will not be paid their wages until Friday, January 3rd. 2 Eighteen months earlier, on July 1st the company purchased equipment that cost $160,000. Its useful life is predicted to be ten years, at which time the equipment is expected to have a zero salvage/residual value. Gatsby, Inc. uses the straight-line depreciation method. Deprecation has NOT been recorded for this year. 3 On September 1st of the current year Gatsby, Inc. was paid $60,000 in…arrow_forward
- Prepare year-end adjusting journal entries for M&R Company as of December 31 for each of the following separate cases. Entries can draw from the following partial chart of accounts: Cash; Accounts Receivable; Interest Receivable; Equipment; Wages Payable; Salary Payable; Interest Payable; Lawn Services Payable; Unearned Revenue; Revenue; Interest Revenue; Wages Expense; Salary Expense; Supplies Expense; Lawn Services Expense; and Interest Expense. a. M&R Company provided $2,000 in services to customers in December. Those customers are expected to pay the company sometime in January following the company’s year-end. b. Wage expenses of $1,000 have been incurred but are not paid as of December 31. c. M&R Company has a $5,000 bank loan and has incurred (but not recorded) 8% interest expense of $400 for the year ended December 31. The company will pay the $400 interest in cash on January 2 following the company’s year-end. d. M&R Company hired a firm that provided lawn…arrow_forwardPrepaid Expense us an expense that is paid in advance in the current year which the benefits are available in the future years. Prepaid Expense is adjusted with the amount equal to the cost of the prepaid expense expired during the year. The amount of cost that has expired is transferred from the assets account (Prepaid Expense) to the expense account. The other adjusting entries do a company need to make for a period before preparing financial statements Accrued refers to revenue earned in a period that is both unrecorded and not gets received in cash example is a technician who bills the customer only when the job is done Accrued these are expenses that have accumulated or built up during the accounting year but will not be paid until the following year, after the date of the balance sheet Deferred revenues are liabilities representing cash received for goods not yet delivered or services to be performed. what is your opinion?arrow_forwardPrepare the necessary adjusting entries for the year at December 31, 20x2 and reversing entries at January 2, 20x3. Answer in the following format; original entry made, adjusting entry, and reversing entry. 1. The note amounting to P500,000 was received from a customer on October 1, 20x2 with an interest of 12% per annum. Advance interest for one year was collected on the same 2. The Expense-Insurance of P24.000 shown in the unadjusted trial balance represents date and credited to Income Interest. premium for one year beginning March 1, 201x2. 3. Office supplies in the amount of P12,000 was purchased on January 2, 20x2 and debited to Expense-Office Supplies Unused office supplies at December 31, 20x2 amounted to P2,500 4. The Expense-Rent for P90,000 is advance payment for six months beginning June 16, 20x2 5. The Interest Income of P24,000 was received on August 1, 20x2 from an issuer for a one year note of P240.000 at 10% per annum 6. The Note Payable for P1,000,000 is a loan…arrow_forward
- 1. A commission income account in the trial balance at the end of the year showed a balance of Php 12,000. 1/5 of the amount is already earned. a. What type of adjustment is used? b. What is the year-end adjusting entry?arrow_forwardThe revenue recognition principle dictates that revenue should be recognized in the accounting records Select one: a. when cash is received. b. in the period that income taxes are paid. c. when the performance obligation is satisfied. d. at the end of the month.arrow_forwardPrepare the December 31 year-end entry that companies record to adjust the Revenue and the Unearned Revenue accounts.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
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
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY