INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
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Chapter 2, Problem 2.6BE
• LO2–4, LO2–5
If the adjusting entries prepared in BE 2–5 were not recorded, would net income be higher or lower and by how much?
BE 2–4
• LO2–2
Prepare journal entries for each of the following transactions for a company that has a fiscal year-end of December 31: (1) on October 1, $12,000 was paid for a one-year fire insurance policy; (2) on June 30 the company lent its chief financial officer $10,000; principal and interest at 6% are due in one year; and (3) equipment costing $60,000 was purchased at the beginning of the year for cash.
BE 2–5
Adjusting entries
• LO2–5
Prepare the necessary adjusting entries at December 31 for each of the items listed in BE 2–4.
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Intermediate Accounting ll ch 16
9. In 2024, DFS Medical Supply collected rent revenue for 2025 tenant occupancy. For income tax reporting, the rent is taxed when collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy the rental property. The deferred portion of the rent collected in 2024 amounted to $360,000 at December 31, 2024. DFS had no temporary differences at the beginning of the year.
Required:
Assuming an income tax rate of 25% and 2024 income tax payable of $910,000, prepare the journal entry to record income taxes for 2024.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
EA10.
LO 4.3Prepare journal entries to record the following adjustments.
Insurance that expired this period, $18,000
Depreciation on assets, $4,800
Salaries earned by employees but unpaid, $1,200
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Week 6 HW.docx
Q1. The balance in the unearned rent account for Jones Co. as of
December 31 is $1,200. If Jones Co. failed to record the
adjusting entry for $600 of rent earned during December, the
effect on the balance sheet and income statement for December
would be:
A. Assets understated by $600; net income overstated by
$600.
B. Liabilities understated by $600; net income understated by
$600.
C. Liabilities overstated by $600; net income understated by
$600.
D. Liabilities overstated by $600; net income overstated by
$600.
Q2. Would AT&T (T) and Microsoft (MSFT) use the cash basis
or the accrual basis of accounting? Explain.
Q3. Why are adjustments needed at the end of an accounting
period?
Q4. Describe the nature of the assets that compose the following
sections of a balance sheet:
a. Balance
Sheet:
b. Property, Plant, and
Equipment:
12
000
00
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Chapter 2 Solutions
INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
Ch. 2 - Explain the difference between external events and...Ch. 2 - Each economic event or transaction will have a...Ch. 2 - What is the purpose of a journal? What is the...Ch. 2 - Explain the difference between permanent accounts...Ch. 2 - Describe how debits and credits affect assets,...Ch. 2 - Describe how debits and credits affect temporary...Ch. 2 - What is the first step in the accounting...Ch. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 2.10Q
Ch. 2 - What is an unadjusted trial balance? An adjusted...Ch. 2 - Define adjusting entries and discuss their...Ch. 2 - Define closing entries and their purpose.Ch. 2 - Define prepaid expenses and provide at least two...Ch. 2 - Deferred revenues represent liabilities recorded...Ch. 2 - Define accrued liabilities. What adjusting journal...Ch. 2 - Prob. 2.17QCh. 2 - [Based on Appendix A] What is the purpose of a...Ch. 2 - [Based on Appendix B] Define reversing entries and...Ch. 2 - [Based on Appendix C] What is the purpose of...Ch. 2 - Prob. 2.21QCh. 2 - Transaction analysis LO21 The Marchetti Soup...Ch. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Prob. 2.3BECh. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; income determination LO24,...Ch. 2 - Prob. 2.12BECh. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Prob. 2.7ECh. 2 - Prob. 2.8ECh. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.24ECh. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Prob. 2.8PCh. 2 - Prob. 2.12PCh. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Prob. 2.1DA
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