9th Edition

ISBN: 9781259722660

Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher: McGraw-Hill Education

Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

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Textbook Question

Chapter 2, Problem 2.9BE

Adjusting entries

• LO2–5

Prepare the necessary adjusting entries for Johnstone Controls at the end of its December 31, 2018, fiscal year-end for each of the following situations. No adjusting entries were recorded during the year.

1. On March 31, 2018, the company lent $50,000 to another company. A note was signed with principal and interest at 6% payable on March 31, 2019.

2. On September 30, 2018, the company paid its landlord $12,000 representing rent for the period September 30, 2018, to September 30, 2019.

3. Supplies on hand at the end of 2017 totaled $3,000. Additional supplies costing $5,000 were purchased during 2018 and debited to the supplies account. At the end of 2018, supplies costing $4,200 remain on hand.

4. Vacation pay of $6,000 for the year that had been earned by employees was not paid or recorded. The company records vacation pay as salaries and wages expense.

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Chapter 2, Problem 2.8BE

Chapter 2, Problem 2.10BE

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Problem 10-22 (AICPA Adapted) Black Company reported accounta payable on December 1 2021 at P4,600,000 before any necessary yoar-end adjustment rolating to the following transactions: On December 27, 2021, Black Company wrote and recorded checks to creditors totaling P2,000,000 causing an overdrat of P500,000 in Black Company's bank account on December 31, 2021. The checks were mniled out on January 10, 2022 On December 28, 2021, Black Company purchaied and received goods for P750,000 terms 2/10, n /30. Black Company, records purchases and accounts payable at net amount. The invoice was recorded and paid January 5, 2022 Goods shipped FOB destination, 5/10, n/30 on December 20, 2021 from a vendor to Black Company were received January 15, 2022. The invoice cost was P325,000. On December 31, 2021, what amount should be reported as accounts payable? a. 7,575,000 b. 7,250,000 c. 7.235,000 d. 7,553,500

View Policies Current Attempt in Progress On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,500, Sheffield Corp. estimates that 11% of its accounts receivable balance of $64,000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Sheffield Corp. determined that B. Jared's account was uncollectible and wrote off $1,100. On June 12, 2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To reverse write-off) (To record collection of write-off)

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Chapter 2 Solutions

Intermediate Accounting

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. 2.8Q Ch. 2 - Prob. 2.9Q Ch. 2 - Prob. 2.10Q

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