E3-31B. (Learning Objectives 2, 3: Apply the revenue and expense recognition principles;adjust the accounts) Englewood Corporation experienced four situations for its supplies.Calculate the amounts that have been left blank for each situation. For situations 1 and 2,journalize the needed transaction. Consider each situation separately.Beginning supplies.....................................Purchases of supplies during the year........Total amount to account for.....................Ending supplies.........................................Supplies Expense .......................................3$ 700??(700)$ 1,3001$1,500?2,900(990)$1,910$ 700400?(900)$ ?2$ 1,0008001,800?$ 1,600Situation 4E3-32B. (Learning Objective 3: Adjust the accounts) Thornton Company faced the following situations. Journalize the adjusting entry needed at December 31, 2020, for each situation.Consider each fact separately.a. The business has interest expense of $3,800 that it must pay early in January 2021.b. Interest revenue of $4,300 has been earned but not yet received.c. On July 1, 2020, when the business collected $12,600 rent in advance, it debited Cashand credited Unearned Rent Revenue. The tenant was paying for two years’ rent.d. Salary expense is $6,500 per day—Monday through Friday—and the business paysemployees each Friday. This year, December 31 falls on a Thursday.e. The unadjusted balance of the Supplies account is $3,300. The total cost of supplies onhand is $1,200.f. Equipment was purchased on January 1 of this year at a cost of $60,000. Theequipment’s useful life is five years. There is no residual value. Record depreciation forthis year and then determine the equipment’s book value.
E3-31B. (Learning Objectives 2, 3: Apply the revenue and expense recognition principles;
adjust the accounts) Englewood Corporation experienced four situations for its supplies.
Calculate the amounts that have been left blank for each situation. For situations 1 and 2,
journalize the needed transaction. Consider each situation separately.
Beginning supplies.....................................
Purchases of supplies during the year........
Total amount to account for.....................
Ending supplies.........................................
Supplies Expense .......................................
3
$ 700
?
?
(700)
$ 1,300
1
$1,500
?
2,900
(990)
$1,910
$ 700
400
?
(900)
$ ?
2
$ 1,000
800
1,800
?
$ 1,600
Situation 4
E3-32B. (Learning Objective 3: Adjust the accounts) Thornton Company faced the following situations. Journalize the
Consider each fact separately.
a. The business has interest expense of $3,800 that it must pay early in January 2021.
b. Interest revenue of $4,300 has been earned but not yet received.
c. On July 1, 2020, when the business collected $12,600 rent in advance, it debited Cash
and credited Unearned Rent Revenue. The tenant was paying for two years’ rent.
d. Salary expense is $6,500 per day—Monday through Friday—and the business pays
employees each Friday. This year, December 31 falls on a Thursday.
e. The unadjusted balance of the Supplies account is $3,300. The total cost of supplies on
hand is $1,200.
f. Equipment was purchased on January 1 of this year at a cost of $60,000. The
equipment’s useful life is five years. There is no residual value. Record
this year and then determine the equipment’s book value.
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