CONNECT ONLINE ACCESS FOR INTERMEDIATE
10th Edition
ISBN: 9781264798834
Author: SPICELAND
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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
11:04
< Вack
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
Dashboard
Calendar
To Do
Notifications
Inbox
Chapter 2 Solutions
CONNECT ONLINE ACCESS FOR INTERMEDIATE
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Required information Exercise 7-7 (Algo) Other accrued liabilities—payroll taxes LO 4 Skip to question [The following information applies to the questions displayed below.]At March 31, 2019, the end of the first year of operations at Lukancic Inc., the firm’s accountant neglected to accrue payroll taxes of $6,370 that were applicable to payrolls for the year then ended. Exercise 7-7 (Algo) Part c c. Assume that when the payroll taxes were paid in April 2019, the payroll tax expense account was charged. Assume that at March 31, 2020, the accountant again neglected to accrue the payroll tax liability, which was $6,587 at that date. Determine the income statement and balance sheet effects of not accruing payroll taxes at March 31, 2020.Effect on net income for year ended March 31, 2020:arrow_forward11/26 1216 12/11 8. What is the partial payment credit given for a $650 payment on a $2500 invoice dated April 29th with terms of 3/10 EOM if the partial payment is received on June 10th of the same year?arrow_forwardQ.w14.arrow_forward
- 9arrow_forward41arrow_forwardQuestion 2 The capital balance in a sole proprietorship was R800 000 on 29 February 2020, the end of the financial year. The net profit and drawings for the year ended 29 February 2020 amounted to R300 000 and R100 000 respectively. The capital balance on 01 March 2019 was Select one: a. R1 000 000 b. R400 000 c. R600 000 d. R1 200 000arrow_forward
- attached in SS thanks for the help aplpreciated it i42oi62j 624ijo62 6j2o64 j6o4j2 jo46 4i2oarrow_forwardF.22.arrow_forwardapter 4 E4-10 (Algo) Determining Financial Statement Effects of Interest on Two Notes LO4-1 Note 1: On April 1 of the current year, Warren Corporation received a $50,000, 5 percent no from a customer in settlement of a $50,000 open account receivable. According to the terms, the principal of the note and interest are payable at the end of 12 months. Warren's fiscal year ends on December 31. Note 2: On August 1 of the current year, to meet a cash shortage, Warren Corporation obtained a $50,000, 6 percent loan from a local bank. The principal of the note and interest expense are payable at the end of six months. Note 1: Required: For the relevant transaction dates of each note, indicate the amounts and direction of effects on the elements of the statement of financial position and the statement of earnings. (Reminder: Assets = Liabilities + Shareholders' equity; Revenues - Expenses = Net earnings; and net earnings accounts are closed to retained earnings, a component of shareholders'…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License