1. Explanation a. Date Account Title and Explanation Post ref Debit ($) Credit ($) Dec 31 Office Supplies Expenses 14,846 Office Supplies 14,846 (Being office supplies used during the year) • Office supplies expense is an expense. Since, office supply expense reduce equity, office supply expense account is debited. • Office supplies are an asset. Since office supply has decreased due to usage, it reduces asset. Hence, it is credited. Working Notes: Calculation of office supplies used, Office Supplies Used = ( Opening Office Supplies + Purchases − Closing Office Supplies ) = $4,000 + $13,400 − $ 2 , 554 = $ 14 , 846 b. Date Account Title and Explanation Post ref. Debit ($) Credit ($) Dec 31 Insurance Expenses 7,120 Prepaid insurance 7,120 (Being Insurance paid in advance) • Insurance expense is an expense. Since, it reduce equity, it is debited. • Prepaid insurance is an asset. Since, we have used up prepaid insurance worth $7,120, it reduce our asset. Hence, it is debited. Working note: Calculation of amount of insurance of policy A, Policy A = Number of months policy used Total duration of policy × Cost = 3 24 × $ 14 , 400 = $ 1 , 800 Calculation of amount of insurance of policy B, Policy B = Number of months policy used Total duration of policy × Cost = 12 36 × $ 12 , 960 = $ 4 , 320 Calculation of amount of insurance of policy C, Policy C = Number of months policy used Total duration of policy × Cost = 5 12 × $ 2 , 400 = $ 1 , 000 Calculation of total amount of policy, Total Amount of Policy = Policy A + Policy B + Policy C = $ 1 , 800 + $ 4 , 320 + $ 1 , 000 = $ 7 , 120 c... 2. To determine To prepare: Journal entries for January, 2016.

Connect 2 Semester Access Card for Financial and Managerial Accounting

6th Edition

ISBN: 9780077633059

Author: John Wild, Ken Shaw

Publisher: McGraw-Hill Education

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Chapter 3, Problem 2PSA

To determine

To prepare:

Adjusting entries.

To determine

To prepare:

Journal entries for January, 2016.

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Chapter 3, Problem 1PSA

Chapter 3, Problem 3PSA

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Chapter 3 Solutions

Connect 2 Semester Access Card for Financial and Managerial Accounting

Ch. 3 - Prob. 1MCQ Ch. 3 - Prior to recording adjusting entries, the Supplies...Ch. 3 - Prob. 3MCQ Ch. 3 - Prob. 4MCQ Ch. 3 - If a company had $ 15,000 in net income for the...Ch. 3 - What is the difference between the cash basis and...Ch. 3 - Why is the accrual basis of accounting generally...Ch. 3 - What type of business is most likely to select a...Ch. 3 - Prob. 4DQ Ch. 3 - Prob. 5DQ

Ch. 3 - Prob. 6DQ Ch. 3 - Prob. 7DQ Ch. 3 - Prob. 8DQ Ch. 3 - A If a company initially records prepaid expenses...Ch. 3 - Prob. 10DQ Ch. 3 - Prob. 11DQ Ch. 3 - Prob. 12DQ Ch. 3 - Prob. 13DQ Ch. 3 - Prob. 14DQ Ch. 3 - Prob. 15DQ Ch. 3 - Prob. 16DQ Ch. 3 - Prob. 17DQ Ch. 3 - Prob. 18DQ Ch. 3 - Prob. 19DQ Ch. 3 - Prob. 20DQ Ch. 3 - Prob. 21DQ Ch. 3 - Prob. 22DQ Ch. 3 - Prob. 23DQ Ch. 3 - Prob. 24DQ Ch. 3 - Prob. 25DQ Ch. 3 - Prob. 26DQ Ch. 3 - Prob. 27DQ Ch. 3 - Prob. 28DQ Ch. 3 - Prob. 29DQ Ch. 3 - Periodic reporting C1 Choose from the following...Ch. 3 - Computing accrual and cash income C1 In its first...Ch. 3 - Identifying accounting adjustments P1 Classify the...Ch. 3 - Prob. 4QS Ch. 3 - Prepaid (deferred) expenses adjustments P1 For...Ch. 3 - Prepaid (deferred) expense adjustments P1 For each...Ch. 3 - Prob. 7QS Ch. 3 - Prob. 8QS Ch. 3 - Prob. 9QS Ch. 3 - Prob. 10QS Ch. 3 - Prob. 11QS Ch. 3 - Prob. 12QS Ch. 3 - Prob. 13QS Ch. 3 - Prob. 14QS Ch. 3 - Recording and analyzing adjusting entries P1...Ch. 3 - Prob. 16QS Ch. 3 - Prob. 17QS Ch. 3 - Prob. 18QS Ch. 3 - Prob. 19QS Ch. 3 - A preparing adjusting entries P4 Cal Consulting...Ch. 3 - Preparing closing entries from the ledger P4 The...Ch. 3 - Identifying post-closing accounts P5 Identify...Ch. 3 - identifying the accounting cycle C2 List the...Ch. 3 - Classifying balance sheet items C3 The following...Ch. 3 - Identifying current accounts and computing the...Ch. 3 - Prob. 26QS Ch. 3 - Prob. 27QS Ch. 3 - Prob. 1E Ch. 3 - Exercise 3-2 Adjusting and paying accrued expenses...Ch. 3 - Prob. 3E Ch. 3 - Prob. 4E Ch. 3 - Prob. 5E Ch. 3 - Prob. 6E Ch. 3 - Prob. 7E Ch. 3 - Prob. 8E Ch. 3 - Prob. 9E Ch. 3 - Prob. 10E Ch. 3 - Prob. 11E Ch. 3 - Prob. 12E Ch. 3 - Prob. 13E Ch. 3 - Prob. 14E Ch. 3 - Prob. 15E Ch. 3 - Prob. 1PSA Ch. 3 - Prob. 2PSA Ch. 3 - Prob. 3PSA Ch. 3 - Prob. 4PSA Ch. 3 - Prob. 5PSA Ch. 3 - Prob. 6PSA Ch. 3 - Prob. 7PSA Ch. 3 - Prob. 8PSA Ch. 3 - Prob. 1PSB Ch. 3 - Prob. 2PSB Ch. 3 - Prob. 3PSB Ch. 3 - Prob. 4PSB Ch. 3 - Prob. 5PSB Ch. 3 - Prob. 6PSB Ch. 3 - Prob. 7PSB Ch. 3 - Prob. 8PSB Ch. 3 - Prob. 3SP Ch. 3 - Prob. 1GLP Ch. 3 - Prob. 2GLP Ch. 3 - Prob. 3GLP Ch. 3 - Prob. 4GLP Ch. 3 - Prob. 5GLP Ch. 3 - Prob. 6GLP Ch. 3 - Prob. 1BTN Ch. 3 - Prob. 2BTN Ch. 3 - Prob. 3BTN Ch. 3 - Prob. 4BTN Ch. 3 - Prob. 5BTN Ch. 3 - Prob. 6BTN Ch. 3 - Prob. 7BTN Ch. 3 - Prob. 8BTN Ch. 3 - Prob. 9BTN

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