Question

as L $6,500. Laughter recorded this amount several months to complete, a nd Laughter estimates that the company has 40% of the total revenue during the current year e. At December 31, Laughter had earned $3,000 for landscape services complet t Deprecation for the current year includes Equipment, $3,000, and Trucks, $22 & Laughter has incurred $250 of interest expense on a $550 interest payment due Turnkey Appliances. Turnkey has stated that it will pay Laughter on January 10 for On January 15 Requirements 1. Journaliz e the adjusting entry needed on December 31 for each of the previous tems affecting Laughter Landscaping Assume Laughter records adjustin only at the end of the year entries Sadjusting entries a, d and g ourn P3-34A Journalizing adjusting entries and identifying the impact on financial statements Griffin Fishing Charters has collected the following data for the December 31 adjusting entries: a. The company received its electric bill on December 31 for $375 but will not pay it until January 5. (Use the Utilities Payable account.) b. Griffin purchased a three-month boat insurance policy on November 1 for $1,200 Griffin recorded a debit to Prepaid Insurance. c. As of December 31, Griffin had earned $3,000 of charter revenue that has not been recorded or received. d. Griffin's fishing boat was purchased on January 1 at a cost of $33,500. Griffin expec to use the boat for 10 years and that it will have a residual value of $3,500. Determine annual depreciation assuming the straight-line depreciation method is used. e. On October 1, Griffin received $9,000 prepayment for a deep-sea fishing charter to take place in December. As of December 31, Griffin has completed the charter Requirements 1. Journalize the adjusting entries needed on December 31 for Griffin Fishing Charters. Assume Griffin records adjusting entries only at the end of the year. 2. If Griffin had not recorded the adjusting entries, indicate which specific category of accoutie n the financial statemewould be misstated and if the misstatement is overstated or. "dersn . use the following table as a guide. Specific Category of you only have to do #1 on each question CHAT

Answer 1

Adjusting entries in the book of laughter on 31-Dec

Date	Client name / Particulars	Debit (amount in $)	Credit (amount in $)
31-Dec	Turnkey appliances A/c                                       Dr (Sundry Debtor )            Cr Landscape service Income a/c (Being Landscape services completed on 31-dec, Income accrued and but not received on closing date)	$3000	$3000
31-Dec	Depreciation on equipment a/c                        Dr Depreciation on Truck a/c                                    Dr                         Cr Equipment a/c                         Cr Trucks a/c (Being depreciation expenses are accounted for on closing date)	$3000 $2200	$3000 $2200
31-Dec	Interest expenses a/c                                            Dr                      Cr Outstanding interest Expenses a/c                                        (Payable) (Being interest expenses incurred & not paid as on closing date)	$250	$250

                                                                                          

Adjusting entries in the book of Griffin fishing charters on 31-Dec

Date	Client name / Particulars	Debit (amount in $)	Credit (amount in $)
31-Dec	Utilities Expenses a/c                                 Dr                                Cr Utilities payable a/c        (Being electricity expenses were due but not paid on closing date )	$375 -	-         $375
1-Nov	Prepaid insurance a/c                               Dr         Cr Cash /Bank ( Being purchased 3 months boat insurance policy )	$1200 -	-           $1200
31-Dec	Insurance expenses a/c                            Dr                To Prepaid Insurance a/c (Being prepaid insurance adjusted for the nov & Dec months booked as expense)	$800	- $800
31-Dec	Sundry debtors   a/c                                 Dr                 Cr Charters revenue a/c (Being transaction omitted and duly recorded )	$3000 -	- $3000
31-Dec	Depreciation on boat a/c                        Dr                        Cr Boat (Asset)a/c (Being depreciation expense provided for )	$3000 -	- $3000
1-Oct	Cash /Bank a/c                                       Dr                 Cr sundry creditors (Liability) (Being prepayment received deep sea fishing charter)	$9000 -	- $9000
31-Dec	Sundry creditors a/c                            Dr                     Cr Charter Revenue (Being deep sea fishing charter has completed on 31 Dec and recognize revenue as well)	$9000 -	- $9000