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amoun Instructions For each of the numbered paragraphs, prepare the necessary adjusting entry (including a explanation). If no adjusting entry is required, explain why. a. b. Four types of adjusting entries are described at the beginning of the chapter. Using thes descriptions, identify the type of each adjusting entry prepared in part a. c. Indicate the effects that each of the adjustments in part a will have on the following six tot с. amounts in the campground's financial statements for the month of December. Organize yo- answer in tabular form, using the column headings shown. Use the letters I for increase, D f decrease, and NE for no effect. Adjusting entry 1 is provided as an example.

amoun Instructions For each of the numbered paragraphs, prepare the necessary adjusting entry (including a explanation). If no adjusting entry is required, explain why. a. b. Four types of adjusting entries are described at the beginning of the chapter. Using thes descriptions, identify the type of each adjusting entry prepared in part a. c. Indicate the effects that each of the adjustments in part a will have on the following six tot с. amounts in the campground's financial statements for the month of December. Organize yo- answer in tabular form, using the column headings shown. Use the letters I for increase, D f decrease, and NE for no effect. Adjusting entry 1 is provided as an example.

FINANCIAL ACCOUNTING
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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### Chapter 4: The Accounting Cycle - Accruals and Deferrals #### Instructions for Adjusting Entries For each of the numbered paragraphs, prepare the necessary adjusting entry (including an explanation). If no adjusting entry is required, explain why. 1. **Property Insurance Policy:** - A one-year property insurance policy was purchased on March 1. The entire premium of $7,800 was initially recorded as Unexpired Insurance. 2. **Annual Agreement Revenue:** - In December, Florida Palms Country Club entered into an agreement to host the annual meeting of the Florida Seniors Golf Association. The country club expects to generate gross revenue of $4,500 from this event. 3. **Income Taxes Expense:** - Unrecorded Income Taxes Expense accrued in December amounts to $19,000. This amount will not be paid until January 15. #### Enchanted Forest Adjustments Enchanted Forest, a large campground in South Carolina, adjusts its accounts monthly. Guests of the campground pay at the time they check out, and the amounts collected are credited to Camper Revenue. The following information is available as a source for preparing the adjusting entries at December 31: 1. **Interest from Investments:** - Enchanted Forest has earned interest revenue on its CDs at December 31 of $400. None of this revenue has yet been received. (Debit Interest Receivable.) 2. **Bank Loan Interest:** - A six-month bank loan in the amount of $12,000 had been obtained on September 1. Interest is to be computed at an annual rate of 8.5 percent and is payable when the loan becomes due. 3. **Depreciation on Buildings:** - Depreciation on buildings owned by the campground is based on a 25-year life. The original cost of the buildings was $600,000. The Accumulated Depreciation: Buildings account had a balance of $310,000 at December 31, prior to the adjusting entry processes. 4. **Future Revenue from Scout Troop:** - A notice signed in August of the current year to lease the campground in January next year. The agreement stated that Boy Scout Troop 538 of Lewisburg, Pennsylvania, would use the campground for a daily rate of $15 per campsite. 5. **Employees' Salaries Payable:** - Salaries earned by campground employees that have not been paid amount
Transcribed Image Text:### Chapter 4: The Accounting Cycle - Accruals and Deferrals #### Instructions for Adjusting Entries For each of the numbered paragraphs, prepare the necessary adjusting entry (including an explanation). If no adjusting entry is required, explain why. 1. **Property Insurance Policy:** - A one-year property insurance policy was purchased on March 1. The entire premium of $7,800 was initially recorded as Unexpired Insurance. 2. **Annual Agreement Revenue:** - In December, Florida Palms Country Club entered into an agreement to host the annual meeting of the Florida Seniors Golf Association. The country club expects to generate gross revenue of $4,500 from this event. 3. **Income Taxes Expense:** - Unrecorded Income Taxes Expense accrued in December amounts to $19,000. This amount will not be paid until January 15. #### Enchanted Forest Adjustments Enchanted Forest, a large campground in South Carolina, adjusts its accounts monthly. Guests of the campground pay at the time they check out, and the amounts collected are credited to Camper Revenue. The following information is available as a source for preparing the adjusting entries at December 31: 1. **Interest from Investments:** - Enchanted Forest has earned interest revenue on its CDs at December 31 of $400. None of this revenue has yet been received. (Debit Interest Receivable.) 2. **Bank Loan Interest:** - A six-month bank loan in the amount of $12,000 had been obtained on September 1. Interest is to be computed at an annual rate of 8.5 percent and is payable when the loan becomes due. 3. **Depreciation on Buildings:** - Depreciation on buildings owned by the campground is based on a 25-year life. The original cost of the buildings was $600,000. The Accumulated Depreciation: Buildings account had a balance of $310,000 at December 31, prior to the adjusting entry processes. 4. **Future Revenue from Scout Troop:** - A notice signed in August of the current year to lease the campground in January next year. The agreement stated that Boy Scout Troop 538 of Lewisburg, Pennsylvania, would use the campground for a daily rate of $15 per campsite. 5. **Employees' Salaries Payable:** - Salaries earned by campground employees that have not been paid amount
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