53 a. Depreciation on the building for the year is $6,200. b. Prepaid Insurance had a $3,200 debit balance at December 31 before adjusting for the costs of any expired coverage. A review shows that $1,200 of unexpired insurance coverage remains at year-end. c. Received $6,600 cash in advance from a client for services not yet performed. As of December 31, one-third of the work had been performed. d. As of December 31, salaries expense of $2,400 has been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $520 of interest revenue. The interest revenue will be received in cash next year. For each of the separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table by indicating the amount and direction ((+) increase or (-) decrease) of the effect. a b. C -- d. e. Net Income Total Assets Total Liabilities Total Equity 4

53 a. Depreciation on the building for the year is $6,200. b. Prepaid Insurance had a $3,200 debit balance at December 31 before adjusting for the costs of any expired coverage. A review shows that $1,200 of unexpired insurance coverage remains at year-end. c. Received $6,600 cash in advance from a client for services not yet performed. As of December 31, one-third of the work had been performed. d. As of December 31, salaries expense of $2,400 has been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $520 of interest revenue. The interest revenue will be received in cash next year. For each of the separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table by indicating the amount and direction ((+) increase or (-) decrease) of the effect. a b. C -- d. e. Net Income Total Assets Total Liabilities Total Equity 4

Name: 63a. Depreciation on the building for the year is $6,200.b. Prepaid I
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Description: 63a. Depreciation on the building for the year is $6,200.b. Prepaid Insurance had a $3,200 debit balance at December 31 before adjusting for the costs of any expired coverage. A reviewshows that $1,200 of unexpired insurance coverage remains at year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Account Title Cash Accounts Receivable Office Supplies Prepaid Insurance Truck Unadjusted Trial Balance January 31, 2025 Accumulated Depreciation-Truck Accounts Payable Unearned Revenue Milton, Capital Milton, Withdrawals Service Revenue Salaries Expense Fuel Expense Rent Expense Total Balance Debit $ 34,800 4,860 750 1,200 15,000 2,500 Credit 150 100 1,700 54,100 7,810 2,900 150 1,700 63,860 $ 63,860
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Exercise 6: Durian Ltd. owns an office building which it uses for administrative purposes with a depreciated historical cost of $2 million on 1 July 20x5, a useful life of 20 years. The company adopts the revaluation model for its office building and records revaluations using the netting method as well amortizes revaluation surplus annually. Indicators of impairment and/or reversal of impairment existed at 30 June 20x6, 20x7 and 20x8. The information below shows relevant asset measurements at various dates: Year ended 30 June Fair value Cost of disposal Value-in-use 20x6 $1,700,000 $85,000 $1,550,000 20x7 $1,400,000 $80,000 $1,350,000 20x8 $1,428,000 $128,000 $1,310,000 4 |Page After a reorganisation on 1 January 20x9, this property was let to a third party and reclassified as an investment property applying Durian's policy of the fair value model. An independent valuer assessed the property to have a fair value of $1.8 million at 1 January 20x9, which had risen to $1.9 million at 30…
Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value.a. Prepare the journal entry necessary for recording the purchase of the new carpet.b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek Company uses the straight-line method.
am. 116.
On 31 December, a finishing machine was sold. Accumulated depreciation to 30 June was $10,000. The depreciation for 6 months ended 31 December was $3,000. Its capital cost was $25,000 and accumulated depreciation was $13,000 at date of sale. The machine was sold for cash to Jake Strong for $14,300 (including GST). Balance date is 30 June. a. Record General Journal entries to account for the depreciation 6 months ended 31 December and the sale of the finishing machine and post to the relevant ledger accounts.
Further information 1. Depreciation has not yet been charged. There were no movements in non-current assets during the year. The plant is depreciated at 10% straight-line on a monthly basis taking into account the month of sale or purchase. Freehold buildings are depreciated over their useful life of 40 years. Depreciation on the plant is charged to cost of sales. Depreciation on freehold buildings is charged to administrative expenses. 2. Closing inventories at cost amounted to £X1. 3. The company paid £138,000 in insurance costs in August 2020, which covered the period from 1 September 2020 to 31 August 2021. This was included in administrative expenses in the trial balance. 4. Interest on the bank loan for the last three months of the year has not been included in the accounts in the trial balance. The corresponding figure as at 31 December 2019 was £220,000. 5. The income tax charge for the year has been calculated as € X2. 6. A cheque received from customer Broke…
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The ledger of Hillsboro Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Assume no adjusting entries were made in Januaray or February either. Prepaid Insurance Supplies Equipment Accumulated Depreciation- Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense Debit $ 3,600 3,053 26,200 -0- 15,330 Credit $ 8,921 20,600 7,500 54,170