QUESTION 1 Match the statements below with the appropriate terms by entering the appropriate letter code in the spaces provided. TERMS: A. Prepaid Expenses Paid in cash b4 st use/consume. B. Unearned Revenues Cash receive before performe C. Accrued Revenues Service perform, cash later. D. Accrued Expenses Expence perform each later. STATEMENTS: I. A revenue not yet earned; collected in advance. A 2. Office supplies on hand that will be used in the next period. 3. Interest revenue collected, not yet earned. 4. Rent not yet collected; already earned. 5. An expense incurred, not yet paid or recorded. 6. A revenue camed; not yet collected or recorded. 7. An expense not yet incurred, paid in advance. D Interest expense incurred, not yet paid. QUESTION 2 Silas Company prepares accounts for accounting year end December 31. Prepare the appropriate adjusting entries for the year ended December 31, 2018 for the following items. a. Interest of $500 is accrued on a note receivable at December 31, 2018. b. Silas has three employees who each earn $160 per day. At December 31, four days' salaries have been earned but not paid. BALA B D A c. A customer paid Silas $16,000 on December 1 2008 for services to be rendered from December 1 through January 31, 2019. d. Silas purchased equipment costing $48,000 on January 1, 2017. Annual depreciation is $6000, e. Silas provided services to a customer in 2018 at a fee of $500. This fee has not yet been received or billed f. Silas started the year with no supplies on hand. They purchased $6,000 in supplies during the year and have $2,000 on hand at December 31. g. Silas paid $12,000 for a three-year insurance policy on July 1, 2018, debiting an asset account at that time. h. Silas borrowed $20,000 by signing a 9% interest, note payable on November 1, 2018. i Silas purchased short-term investments on November 1, 2018. Interest of $300 per month has been earned but not received prior to December 31. QUESTION 3 Johan Graphic Enterprise was established by Mr. Johan on 1 January 2021. At the end of the sixth month of its operation, the trial balance containing the relevant account balances is shown as follows Johan Graphic Enterprise Trial Balance as at 30 June 2021 Credit (RM) Cash Fumiture and equipment Vehicle Supplies Prepaid Insurance Note Payable 20,000 Uneared service revenue 15,000 Capital 100,000 Drawings Debit (RM) 35,000 40,000 220,000 3,500 17,500 15,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Silas Company accounts for accounting year end December 31. Prepare the appropriate adjusting entries for the year ended December 31, 2018 for the following items. 

SECTION B:
QUESTION 1
Match the statements below with the appropriate terms by entering the appropriate letter code
in the spaces provided.
TERMS:
A. Prepaid Expenses Paid in cash b4 stuse/consume.
B. Unearned Revenues Cash receive before performe
C. Accrued Revenues
D. Accrued Expenses
Service perform, cash later.
Expense perform each later.
STATEMENTS:
B
1. A revenue not yet earned; collected in advance.
A 2. Office supplies on hand that will be used in the next period.
3. Interest revenue collected; not yet earned.
B
4. Rent not yet collected; already earned.
D
5. An expense incurred; not yet paid or recorded.
6. A revenue carned; not yet collected or recorded.
A 7. An expense not yet incurred; paid in advance.
D
8. Interest expense incurred; not yet paid.
QUESTION 2
Silas Company prepares accounts for accounting year end December 31. Prepare the
appropriate adjusting entries for the year ended December 31, 2018 for the following items.
a. Interest of $500 is accrued on a note receivable at December 31, 2018.
b. Silas has three employees who each earn $160 per day. At December 31, four days' salaries
have been earned but not paid.
c. A customer paid Silas $16,000 on December 1 2008 for services to be rendered from
December 1 through January 31, 2019.
d. Silas purchased equipment costing $48,000 on January 1, 2017. Annual depreciation is
$6000.
e. Silas provided services to a customer in 2018 at a fee of $500. This fee has not yet been
received or billed.
f. Silas started the year with no supplies on hand. They purchased $6,000 in supplies during
the year and have $2,000 on hand at December 31.
g. Silas paid $12,000 for a three-year insurance policy on July 1, 2018, debiting an asset
account at that time.
h. Silas borrowed $20,000 by signing a 9% interest, note payable on November 1, 2018.
i. Silas purchased short-term investments on November 1, 2018. Interest of $300 per month
has been earned but not received prior to December 31.
QUESTION 3
Johan Graphic Enterprise was established by Mr. Johan on 1 January 2021. At the end of the
sixth month of its operation, the trial balance containing the relevant account balances is shown
as follows:
Johan Graphic Enterprise
Trial Balance as at 30 June 2021
Credit (RM)
Cash
Fumiture and equipment
Vehicle
Supplies
Prepaid Insurance
Note Payable
20,000
Unearned service revenue
15,000
Capital
100,000
Drawings
Debit (RM)
35,000
40,000
220,000
3,500
17,500
15,000
Transcribed Image Text:SECTION B: QUESTION 1 Match the statements below with the appropriate terms by entering the appropriate letter code in the spaces provided. TERMS: A. Prepaid Expenses Paid in cash b4 stuse/consume. B. Unearned Revenues Cash receive before performe C. Accrued Revenues D. Accrued Expenses Service perform, cash later. Expense perform each later. STATEMENTS: B 1. A revenue not yet earned; collected in advance. A 2. Office supplies on hand that will be used in the next period. 3. Interest revenue collected; not yet earned. B 4. Rent not yet collected; already earned. D 5. An expense incurred; not yet paid or recorded. 6. A revenue carned; not yet collected or recorded. A 7. An expense not yet incurred; paid in advance. D 8. Interest expense incurred; not yet paid. QUESTION 2 Silas Company prepares accounts for accounting year end December 31. Prepare the appropriate adjusting entries for the year ended December 31, 2018 for the following items. a. Interest of $500 is accrued on a note receivable at December 31, 2018. b. Silas has three employees who each earn $160 per day. At December 31, four days' salaries have been earned but not paid. c. A customer paid Silas $16,000 on December 1 2008 for services to be rendered from December 1 through January 31, 2019. d. Silas purchased equipment costing $48,000 on January 1, 2017. Annual depreciation is $6000. e. Silas provided services to a customer in 2018 at a fee of $500. This fee has not yet been received or billed. f. Silas started the year with no supplies on hand. They purchased $6,000 in supplies during the year and have $2,000 on hand at December 31. g. Silas paid $12,000 for a three-year insurance policy on July 1, 2018, debiting an asset account at that time. h. Silas borrowed $20,000 by signing a 9% interest, note payable on November 1, 2018. i. Silas purchased short-term investments on November 1, 2018. Interest of $300 per month has been earned but not received prior to December 31. QUESTION 3 Johan Graphic Enterprise was established by Mr. Johan on 1 January 2021. At the end of the sixth month of its operation, the trial balance containing the relevant account balances is shown as follows: Johan Graphic Enterprise Trial Balance as at 30 June 2021 Credit (RM) Cash Fumiture and equipment Vehicle Supplies Prepaid Insurance Note Payable 20,000 Unearned service revenue 15,000 Capital 100,000 Drawings Debit (RM) 35,000 40,000 220,000 3,500 17,500 15,000
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