All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December 31 On September 1 of the current year, Zimmerman collected six months' rent of $8,760 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,760. On October 1 of the current year, the company borrowed $22,800 from a local bank and signed a one-year, 11 percent note for that amount. The principal and interest are payable on the maturity date. Depreciation of $3,400 must be recognized on a service truck purchased in July of the current year at a cost of $16,000. Cash of $4,800 was collected on November of the current year for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was received. On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $9,840, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount. The company earned service revenue of $4,200 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded. At December 31 of the current year, wages earned by employees totaled $15,000. The employees will be paid on the next payroll date in January of the next year. On December 31 of the current year, the company estimated it owed $470 for this year's property taxes on land. The tax will be paid when the bill is received in January of next year. Using the following headings, indicate the effect of each adjusting entry and the amount of the effect. (Reminder: Assets = Liabilities + Stockholders’ Equity; Revenues – Expenses = Net Income; and Net Income accounts are closed to Retained Earnings, a part of Stockholders’ Equity.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December 31

On September 1 of the current year, Zimmerman collected six months' rent of $8,760 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,760.
On October 1 of the current year, the company borrowed $22,800 from a local bank and signed a one-year, 11 percent note for that amount. The principal and interest are payable on the maturity date.
Depreciation of $3,400 must be recognized on a service truck purchased in July of the current year at a cost of $16,000.
Cash of $4,800 was collected on November of the current year for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was received.
On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $9,840, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount.
The company earned service revenue of $4,200 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded.
At December 31 of the current year, wages earned by employees totaled $15,000. The employees will be paid on the next payroll date in January of the next year.
On December 31 of the current year, the company estimated it owed $470 for this year's property taxes on land. The tax will be paid when the bill is received in January of next year.

Using the following headings, indicate the effect of each adjusting entry and the amount of the effect. (Reminder: Assets = Liabilities + Stockholders’ Equity; Revenues – Expenses = Net Income; and Net Income accounts are closed to Retained Earnings, a part of Stockholders’ Equity.)

All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The
company's annual accounting year ends on December 31
a. On September 1 of the current year, Zimmerman collected six months' rent of $8,760 on storage space. At that
date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,760.
b. On October 1 of the current year, the company borrowed $22,800 from a local bank and signed a one-year, 11
percent note for that amount. The principal and interest are payable on the maturity date.
c. Depreciation of $3,400 must be recognized on a service truck purchased in July of the current year at a cost of
$16,000.
d. Cash of $4,800 was collected on November of the current year for services to be rendered evenly over the next
year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was
received.
e. On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $9,840, for
coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount.
f. The company earned service revenue of $4,200 on a special job that was completed December 29 of the
current year. Collection will be made during January of the next year. No entry has been recorded.
g. At December 31 of the current year, wages earned by employees totaled $15,000. The employees will be paid on
the next payroll date in January of the next year.
h. On December 31 of the current year, the company estimated it owed $470 for this year's property taxes on land.
The tax will be paid when the bill is received in January of next year.

2. Using the following headings, indicate the effect of each adjusting entry and the amount of the effect. (Reminder: Assets = Liabilities
+ Stockholders' Equity; Revenues – Expenses = Net Income; and Net Income accounts are closed to Retained Earnings, a part of
Stockholders' Equity.) (Enter negative amounts with a minus sign.)
Balance Sheet
Income Statement
Stockholders'
Transaction
Assets
Liabilities
Revenues
Expenses
Net Income
Equity
a.
C.
e
f.
g.
h.

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