Question

VII. Problem #3 (24 points) ne ledger accounts given below, with an identification number for each, are used by Dalton Company. instructions: Prepare appropriate adusting entries for the year ended December 31, 2001, by replacing the appropriate identification numbers in the debit and credit columns provided and the dollar amount in the adjoining column. Item is given as an example. 1. Notes Receivable 2. Accounts Receivable 3. Interest Receivable 4. Supplies 5. Prepaid Insurance 6. Equipment 7. Accumulated Depreciation ---Equipment 8 Salaries Payable 9. Interest Payable 10. 11. 12. 13. 14. 15. 16. 17. 18. Unearned Service Revenue Notes Payable Interest Revenue Service Revenue Depreciation Expense-Equipment Salaries Expense Interest Expense Supplies Expense Insurance Expense Account(s) Debited Account(s) Credited Dollar Amount $500 12 Entry Information 0. Interest of $500 is accrued on a note receivable at December 31, 2001. 1. Dalton has three employees who earn $120 per day per person. At December 31, three days' salaries have been earned but not paid. 2. A customer paid Dalton $10,000 on December 1, 2001 for services to be rendered from December 1 through January 31, 2002. The receipt was credited to a liability account. 3. Dalton purchased equipment costing $48,000 on January 1, 2000. Monthly depreciation is $1,000. 4. Dalton provided services to a customer in 2001 at a fee of $400. This fee has not yet been received or billed. 5. Dalton started the year with no supplies on hand. They purchased $8,000 in supplies during the year and have $3,000 on hand at December 31. Supplies were debited to an asset account when purchased. 6. Dalton paid $9,000 for a three-year insurance policy on July 1, 2001, debiting an asset account at that time. 7. Dalton borrowed $20,000 by signing a three-month, 12% interest, note payable on December 1, 2001. 8. Dalton purchased marketable securities on October 1, 2001. Interest of $400 per month has been earned but not received prior to December 31.

Answer 1

Page 6 Entry Information (s no.) Acounts Defited Acounts Credited Dollar amount 15 8 $1080 10 13 $5000 3. 147 $12000 4. 2 13 $400 5. 17 4 $ 5000 $1500 18 5 16 7 $200 8 3 12 $1200 Working Amount Notes :- in Entryl. :- 3 employees * $120 per day x 3 days $ 1080 Amount in Entry 2 : $ 10000 for 2 months Core than 1 month (Dee) = $10000 = $5000 for Anwount in Entry 3 :- Annual Depreciation = 12x Months Depreciation = 1000 X12 = $12000

DATE PAGE ☆ I Page ② working noks :- Anount in Entry si Supplies expenses Opening supplies in hand . it supplies purchared. caode - closing supples in hand : 0 + 8000 - 2000 = 5000 $ Wunt in Entry b o er oor ont cool for 3 years ( 36 months), amount : & gooo - for 6 months = gooo x6 = $1500 36 mount in Entry 7 - Interest for 3 montly $20000 x 12 x3 Ceca 100 12 s oods a $600 for inconth $600 = $200 Goo Interest Amount in Entry 8 dona . Interest for I month= $400 for 3 months out to Dee) = $400x3 $1200