Homework Answers
Accrued income:
Case 1
Interest income for 3 months is receivable.
Interest for 3 months = 100000×12%×(3/12) which is 3000.
Debit: interest receivable account 3000
Credit: interest income account 3000
Case 2
Rent for December 2019 is receivable but not recieved yet. Hence it is an asset.
Rental income for one month = 120000/12 which is 10000
Debit:rent receivable 10,000
Credit: rent income 10,000
Accrued expense
Case 1
Interest expense accrued for 4 months = 100000×12%×(4/12)which is 4000
Debit: interest expense 4000
Credit: interest payable 4000
Case 2
Rent expense for 3 months payable.
Rent expense for two month =(120000/12) × 2 which is 20,000
Debit: rent expense 20,000
Credit: rent payable 20,000
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DO IT! 3 Adjusting Entries for Accruals ACCRUED INCOME CASE 1: Assume that the business entity...
DO IT! 2 Adjusting Entries for Deferrals DEFERRED INCOME CASE 1: On November 1, 2019, Borja...
DO IT! 2 Adjusting Entries for Deferrals DEFERRED INCOME CASE 1: On November 1, 2019, Borja (Sole Proprietor) leased a portion of its building for a monthly rental fee of P20,000. On the same day, Borja received a three-month advance rental of P60,000 from a tenant. The entry made upon receipt of payment from tenant was debit to Cash and credit to Unearned Rent Revenue amounting to P60,000. What is the adjusting entry needed on December 31, 2019? Answer: Debit...
1. Record the following adjusting entries to reflect the accrual and deferral of expense and revenue...
1. Record the following adjusting entries to reflect the accrual
and deferral of expense and revenue for the ending of December
31.
2.After you have journalized and posted the transactions, record
the adjusting entries on the worksheet.
a - Recognized the interest income accumlated on $5,000 note
bearing interest of 10% dated a month before the accounting
period.
b- Interest expense incurred but not yet paid on the promissory
note amounted to $50.
c- Recognized that the cleaning income which...
Problem 3-2A Preparing adjusting and subsequent journal entries LO C1, A1, P1 Arnez Company's annual accounting...
Problem 3-2A Preparing adjusting and subsequent journal entries LO C1, A1, P1 Arnez Company's annual accounting period ends on December 31, 2017. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $4,375 balance. During 2017, the company purchased supplies for $18,069, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2017, totaled $3,850. b. An analysis of the...
Jackson Company holds a $50,000 note receivable dated July 1, 2019, with 10% interest. What adjusting...
Jackson Company holds a $50,000 note receivable dated July 1, 2019, with 10% interest. What adjusting entry is needed on December 31, 2019? Date Accounts Debit Credit Edit Insert Format Tools Table 12pt V Paragraph B IU A ev T² vow
Arnez Company's annual accounting period ends on December 31. The following information concerns the adjusting entries...
Arnez Company's annual accounting period ends on December 31. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $3,175 balance. During the year, the company purchased supplies for $13,113, which was added to the Office Supplies account. The inventory of supplies available at December 31 totaled $2,794. b. The Prepaid Insurance account had a $30,984 debit balance at December 31 before adjusting for the costs...
Part 1: (Done) Needs to be used as a reference for Part 3. Adjusting Entries: Date...
Part 1: (Done) Needs to be used as a reference for Part 3. Adjusting Entries: Date Account title and Explanation Post ref. Debit Credit July 31 Accounts receivable 12 $1,400 Fees Earned [(115-80) x $40] 41 $1,400 [To record accrued fees earned] July 31 Supplies expense [1,020-275] 56 $745 Supplies 14 $745 [To record supplies expense] July 31 Insurance expense [2,700/12] 57 $225 Prepaid insurance 15 $225 [To record insurance expense] July 31 Depreciation expense 58 $50 Accumulated depreciation- office...
For each separate case below, follow the three-step process for adjusting the accrued revenue account at...
For each separate case below, follow the three-step process for adjusting the accrued revenue account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2 Assume no other adjusting entries are made during the year a. Unearned Rent Revenue. The Krug Company collected 516,200 rent in advance on November 1, debiting Cash...
Problem 3-2A Preparing adjusting and subsequent journal entries LO A1, P1 Arnez Company's annual accounting period...
Problem 3-2A Preparing adjusting and subsequent journal entries LO A1, P1 Arnez Company's annual accounting period ends on December 31, 2017. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $3.775 balance. During 2017, the company purchased supplies for $15,591 which was added to the Office Supplies account. The inventory of supplies available at December 31, 2017, totaled $3,322. b. An analysis of the company's...
Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2,...
Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3 The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2018, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of...
DO IT! 4 Balance Sheet Classifications Fill in your answers. Name of Account Normal Balance Debit...
DO IT! 4 Balance Sheet Classifications Fill in your answers. Name of Account Normal Balance Debit Credit ACCOUNT CLASSIFICATION -Asset - Liability -Equity Example: Asset If Asset or Liability, state if --Current -Non-Current Debit Non-Current 1. Buildings 2. Accounts Payable 3. Castro, Drawings 4. Equipment 5. Allowance for Doubtful Accounts 6. Notes Payable 7. Cash in Bank 8. Furniture and Fixtures 9. Taxes Payable 10. Notes Receivable 11. Cash on hand 12. Land 13. Accounts Receivable 14. Accumulated Depreciation 15....
DO IT! 2 Adjusting Entries for Deferrals DEFERRED INCOME CASE 1: On November 1, 2019, Borja (Sole Proprietor) leased a portion of its building for a monthly rental fee of P20,000. On the same day, Borja received a three-month advance rental of P60,000 from a tenant. The entry made upon receipt of payment from tenant was debit to Cash and credit to Unearned Rent Revenue amounting to P60,000. What is the adjusting entry needed on December 31, 2019? Answer: Debit...
1. Record the following adjusting entries to reflect the accrual
and deferral of expense and revenue for the ending of December
31.
2.After you have journalized and posted the transactions, record
the adjusting entries on the worksheet.
a - Recognized the interest income accumlated on $5,000 note
bearing interest of 10% dated a month before the accounting
period.
b- Interest expense incurred but not yet paid on the promissory
note amounted to $50.
c- Recognized that the cleaning income which...
Problem 3-2A Preparing adjusting and subsequent journal entries LO C1, A1, P1 Arnez Company's annual accounting period ends on December 31, 2017. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $4,375 balance. During 2017, the company purchased supplies for $18,069, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2017, totaled $3,850. b. An analysis of the...
Jackson Company holds a $50,000 note receivable dated July 1, 2019, with 10% interest. What adjusting entry is needed on December 31, 2019? Date Accounts Debit Credit Edit Insert Format Tools Table 12pt V Paragraph B IU A ev T² vow
Arnez Company's annual accounting period ends on December 31. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $3,175 balance. During the year, the company purchased supplies for $13,113, which was added to the Office Supplies account. The inventory of supplies available at December 31 totaled $2,794. b. The Prepaid Insurance account had a $30,984 debit balance at December 31 before adjusting for the costs...
For each separate case below, follow the three-step process for adjusting the accrued revenue account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2 Assume no other adjusting entries are made during the year a. Unearned Rent Revenue. The Krug Company collected 516,200 rent in advance on November 1, debiting Cash...
Problem 3-2A Preparing adjusting and subsequent journal entries LO A1, P1 Arnez Company's annual accounting period ends on December 31, 2017. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $3.775 balance. During 2017, the company purchased supplies for $15,591 which was added to the Office Supplies account. The inventory of supplies available at December 31, 2017, totaled $3,322. b. An analysis of the company's...
Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3 The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2018, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of...
DO IT! 4 Balance Sheet Classifications Fill in your answers. Name of Account Normal Balance Debit Credit ACCOUNT CLASSIFICATION -Asset - Liability -Equity Example: Asset If Asset or Liability, state if --Current -Non-Current Debit Non-Current 1. Buildings 2. Accounts Payable 3. Castro, Drawings 4. Equipment 5. Allowance for Doubtful Accounts 6. Notes Payable 7. Cash in Bank 8. Furniture and Fixtures 9. Taxes Payable 10. Notes Receivable 11. Cash on hand 12. Land 13. Accounts Receivable 14. Accumulated Depreciation 15....
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