Assignment #2-DANIELA PACHECO

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May 24, 2024

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4/3/24, 15:06 Assignment #2-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 1/9 1. Student: DANIELA PACHECO Date: 03/04/24 Instructor: Rachel Sham Course: ACCT1000 - Financial Accounting Principles 1 (W24) Assignment: Assignment #2 The unadjusted trial balance of Delivery at December 31, , appears below. The data needed for the month-end adjustments also appear below. Punctual 2023 (Click the icon to view the unadjusted trial balance.) (Click the icon to view the data.) 1 2 Required 1 . Journalize the adjusting entries on December 31, and post them to the T-accounts. 2. Prepare the adjusted trial balance. Requirement 1. Journalize the adjusting entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Prepaid rent still available at December 31, . Record the adjustment to prepaid rent. $4,800 Accounts and Explanation Debit Credit a. Rent Expense 4,600 Prepaid Rent 4,600 To record rent expense. b. Supplies used during the month, $ . Record the adjustment to the supplies account. 3,200 Accounts and Explanation Debit Credit b. Supplies Expense 3,200 Supplies 3,200 To record supplies expense. c. Amortization for the month, $ . Record the amortization for the month. 810 Accounts and Explanation Debit Credit c. Amortization Expense—Trucks 810 Accumulated Amortization—Trucks 810 To record amortization expense. d. Accrued salaries expense at December 31, $ . Record accrued salaries expense. 950 Accounts and Explanation Debit Credit d. Salaries Expense 950 Salaries Payable 950 To accrue salaries expense. e. Unearned commission revenue still remaining to be earned at December 31, $ . Record the transaction for unearned delivery revenue. 3,700

4/3/24, 15:06 Assignment #2-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 2/9 Accounts and Explanation Debit Credit e. Unearned Delivery Revenue 3,500 Delivery Revenue 3,500 To record revenue collected in advance and now earned. Next, post each journal entry in the appropriate T-account. The opening balances have been entered for you. Post journal entry a. to the T-accounts. Prepaid rent still available at December 31, . Record the adjustment to prepaid rent. (If a box not used in the T-accounts, leave the box empty; do not enter a zero.) $4,800 Prepaid Rent Rent Expense Bal. 9,400 Bal. 0 (a) 4,600 (a) 4,600 Bal. 4,800 Bal. 4,600 Post journal entry b. to the T-accounts. Supplies used during the month, $ . (If a box is not used in the T-accounts, leave the box empty; do not enter a zero.) 3,200 Supplies Supplies Expense Bal. 3,900 Bal. 0 (b) 3,200 (b) 3,200 Bal. 700 Bal. 3,200 Post journal entry c. to the T-accounts. Amortization for the month, $ . (If a box is not used in the T-accounts, leave the box empty; do not enter a zero.) 810 Accumulated Amortization Amortization Expense —Trucks —Trucks Bal. 46,000 Bal. 0 (c) 810 (c) 810 Bal. 46,810 Bal. 810 Post journal entry d. to the T-accounts. Accrued salaries expense at December 31, $ . (If a box is not used in the T-accounts, leave th box empty; do not enter a zero.) 950 Salaries Payable Salaries Expense Bal. 0 Bal. 8,000 (d) 950 (d) 950 Bal. 950 Bal. 8,950 Post the journal entry e. to the T-accounts. Unearned delivery revenue still remaining to be earned at December 31, $ . (If a box is not used in the T-accounts, leave the box empty; do not enter a zero.) 3,700 Unearned Delivery Revenue Delivery Revenue Bal. 7,200 Bal. 50,000 (e) 3,500 (e) 3,500 Bal. 3,700 Bal. 53,500 Requirement 2. Prepare the adjusted trial balance. Begin with the heading for the statement, and then enter the adjusted balances for each account. (If a box is not used in the T-accounts, leave the box empty; do not enter a zero.)

4/3/24, 15:06 Assignment #2-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 3/9 1: Unadjusted Trial Balance Punctual Delivery Adjusted Trial Balance December 31, 2023 Account Debit Credit Cash 24,000 $ Accounts receivable 52,000 Prepaid rent 4,800 Supplies 700 Trucks 77,000 Accumulated amortization—trucks 46,810 $ Accounts payable 7,200 Salaries payable 950 Unearned delivery revenue 3,700 M. Foster, capital 94,000 M. Foster, withdrawals 28,000 Delivery revenue 53,500 Salaries expense 8,950 Rent expense 4,600 Amortization expense—trucks 810 Advertising expense 2,100 Supplies expense 3,200 Total 206,160 $ 206,160 $

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4/3/24, 15:06 Assignment #2-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 4/9 2. 3. 4. 2: Data Punctual Delivery Unadjusted Trial Balance December 31, 2023 Account Debit Credit Cash 24,000 $ Accounts receivable 52,000 Prepaid rent 9,400 Supplies 3,900 Trucks 77,000 Accumulated amortization—trucks 46,000 $ Accounts payable 7,200 Salaries payable 0 Unearned delivery revenue 7,200 M. Foster, capital 94,000 M. Foster, withdrawals 28,000 Delivery revenue 50,000 Salaries expense 8,000 Rent expense 0 Amortization expense—trucks 0 Advertising expense 2,100 Supplies expense 0 Total 204,400 $ 204,400 $ a. Prepaid rent still available at December 31, . $4,800 b. Supplies used during the month, $ . 3,200 c. Amortization on trucks for the month, $ . 810 d. Accrued salaries expense at December 31, $ . 950 e. Unearned delivery revenue still remaining to be earned at December 31, $ . 3,700 Adjusting entries assign revenues to the period in which they are earned and expenses to the period in which they are incurred. True False Closing the accounts consists of journalizing and posting entries, which will zero out all temporary accounts. True False A credit balance in the income summary account after closing revenues and expenses indicates a net income for the current period. True False

4/3/24, 15:06 Assignment #2-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 5/9 5. On 1, your company paid cash of for computers that are expected to remain useful for years. At the end of years, the value of the computers is expected to be zero. Make journal entries to record (a) purchase of the computers on 1 and (b) amortization on 31. Include dates and explanations, and use the following accounts: Computer Equipment; Accumulated Amortization Computer Equipment; and Amortization Expense Computer Equipment. August $45,000 five five August August — — a . First we will record the purchase of the computer equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journal Entry Date Accounts and Explanation Debit Credit August 1 Computer Equipment 45,000 Cash 45,000 To record computer purchase. b . Record amortization on 31. August Before we can record the amortization for one month we must calculate the expense. The cost of the capital asset is spread over its useful life. Remember, we are recording only one month of amortization. First, determine the formula for the amortization expense, then use the formula to calculate the amount of amortization expense. (Round your answers to the nearest whole number. Abbreviations used: Amort. = amortization.) Cost of asset ÷ Useful life ÷ Months in a year × Months to amortize = Amort. expense 45,000 $ ÷ 5 years ÷ 12 × 1 = 750 $ Using the amounts you calculated above, record the entry for one month's amortization. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Round amounts to the nearest whole number.) Journal Entry Date Accounts and Explanation Debit Credit August 31 Amortization Expense, Computer Equipment 750 Accumulated Amortization, Computer Equipment 750 To record monthly amortization on computer equipment.

4/3/24, 15:06 Assignment #2-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 6/9 6. 3: Account Balances Auto Repair had the following account balances after adjustments. Assume all accounts had normal balances. Barter (Click the icon to view the account balances.) 3 Prepare the closing entries for at . Barter December 31 Prepare the closing entries for at . Barter December 31 First, we will close the Service Revenue account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Clos. (1) Service Revenue 1,100 Income Summary 1,100 To close revenues. Next, we will close the expense accounts. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Clos. (2) Income Summary 2,300 Salaries Expense 700 Rent Expense 300 Utilities Expense 800 Supplies Expense 400 Amortization Expense—Equipment 100 To close expenses. Now we will close the Income Summary account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Clos. (3) S. Barter, Capital 1,200 Income Summary 1,200 To close Income Summary. Finally close the Withdrawals account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Clos. (4) S. Barter, Capital 2,000 S. Barter, Withdrawals 2,000 To close withdrawals.

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4/3/24, 15:06 Assignment #2-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 7/9 Cash 1,440 $ Accounts Receivable 3,100 Prepaid Rent 1,700 Office Supplies 3,300 Equipment 35,100 Accumulated Amortization—Equipment 1,300 Accounts Payable 5,300 S. Barter, Capital 33,940 S. Barter, Withdrawals 2,000 Service Revenue 1,100 Amortization Expense—Equipment 100 Salaries Expense 700 Rent Expense 300 Utilities Expense 800 Supplies Expense 400 Note Payable (long-term) 7 300

4/3/24, 15:06 Assignment #2-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 8/9 7. Suppose a company purchased $ of supplies on account but in error credited Accounts Receivable for $ . Make the single journal entry on November 7 to correct this error, and then correct the error using two journal entries using the same date. Provide an explanation for each journal entry. 1,200 1,200 Let's begin with the single journal entry to correct the error. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanations Debit Credit November 7 Accounts Receivable 1,200 Accounts Payable 1,200 To correct a previous journal entry. Next, let's correct the error using the two journal entry approach. Begin with the reversal of the incorrect entry. Date Accounts and Explanations Debit Credit November 7 Accounts Receivable 1,200 Supplies 1,200 To reverse an incorrect entry. Now, record the entry correctly. Date Accounts and Explanations Debit Credit November 7 Supplies 1,200 Accounts Payable 1,200 To record a purchase correctly. YOU ANSWERED: Date Accounts and Explanations Debit Credit November 7 Unearned Service Revenue 1200 nothing Accounts Payable nothing 1200 nothing nothing nothing nothing nothing nothing To correct a previous journal entry. Date Accounts and Explanations Debit Credit November 7 Unearned Service Revenue 1200 nothing Supplies nothing 1200 nothing nothing nothing nothing nothing nothing To reverse an incorrect entry.

4/3/24, 15:06 Assignment #2-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 9/9 8. 9. 10. 11. Property, plant and equipment are shown before current assets on a classified balance sheet. True False The measure of how quickly an item can be converted to cash is referred to as: A. profitability. B. liquidity. C. solvency. D. leverage. All of the following are current assets except : A. prepaid rent. B. accounts receivable. C. cash. D. buildings. Debts that are due to be paid within one year or within the entity's operating cycle, whichever is longer, are called: A. quick liabilities. B. current liabilities. C. deferred liabilities. D. liquid liabilities.

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