Horngren's Financial & Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780133866292
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 3, Problem 3.14SE
Determining the effects on financial statements
In recording
- a. Office supplies on hand, $ 100.
- b. Accrued revenues, $5,000.
- c. Accrued interest expense, $250.
- d. Depredation, $800.
- e. Unearned revenue that has been earned, $55 0.
Determine the effects on the income statement and
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n recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries for the following situations:
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Determine the effects on the income statement and balance sheet by identifying whether assets, liabilities, equity, revenue, and expenses are either overstated or understated. Use the following table. Adjustment a has been provided as an example.
Begin by determining the effects for adjusting entries b. and c. and then determine the effects for adjusting entries d. and e. (Leave unused cells blank.)
Adjustment
Balance Sheet
Income Statement
Not Recorded
Assets
Liabilities
Equity
Revenue
Expenses
(a)
Overstated
Overstated
Understated
(b)
(c)
(d)
(e)
a.…
In recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries for the following situations:
(Click to view the adjusting entries.)
Determine the effects on the income statement and balance sheet by identifying whether assets, liabilities, equity, revenue, and expenses are either overstated or understated. Use the following table. Adjustment a has been provided as an
example. (Leave unused input fields blank.)
Adjustment Not Recorded
Adjustment not recorded (a)
Adjustment not recorded (b)
Adjustment not recorded (c)
Adjustment not recorded (d)
Adjustment not recorded (e)
Assets
Overstated
Balance Sheet
Liabilities
Equity
Overstated
Income Statement
Revenue
Expenses
Understated
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a. Office supplies on hand, $100.
b. Accrued revenues, $5,000.
C. Accrued interest expense, $250.
d. Depreciation, $800.
e.
Unearned revenue that has been earned, $550.
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Done
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Which of the following adjusting entries involves the recognition of an accrued expense?
a. recording depreciation on a long-lived asset
b. writing off the portion of an insurance policy that has expired
c. recognition of salaries owed to employees for work done during the current period that will be paid during the next accounting period
d. recognition of bad debt losses that are expected to result from making sales on credit terms
Chapter 3 Solutions
Horngren's Financial & Managerial Accounting (5th Edition)
Ch. 3 - Which of the following is true of accrual basis...Ch. 3 - Get Fit Now gains a client who prepays 540 for a...Ch. 3 - The revenue recognition principle requires a. time...Ch. 3 - Adjusting the accounts is the process of a....Ch. 3 - Which of the following is an example of a deferral...Ch. 3 - Assume that the weekly payroll of In the Woods...Ch. 3 - The adjusted trial balance shows a. amounts that...Ch. 3 - A D Window Cleaning performed 450 of services but...Ch. 3 - A worksheet a. is a journal used to record...Ch. 3 - On February 1, Clovis Wilson Law Firm contracted...
Ch. 3 - What is the difference between cash basis...Ch. 3 - Which method of accounting (cash or accrual basis)...Ch. 3 - Which accounting concept or principle requires...Ch. 3 - What is a fiscal year? Why might companies choose...Ch. 3 - Under the revenue recognition principle, when is...Ch. 3 - Prob. 6RQCh. 3 - When are adjusting entries completed, and what is...Ch. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 10RQCh. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Prob. 14RQCh. 3 - Prob. 15RQCh. 3 - What is an accrued expense? Provide an example.Ch. 3 - What is an accrued revenue? Provide an example.Ch. 3 - Prob. 18RQCh. 3 - When is an adjusted trial balance prepared, and...Ch. 3 - If an accrued expense is not recorded at the end...Ch. 3 - What is a worksheet, and how is it used to help...Ch. 3 - If a payment of a deferred expense was recorded...Ch. 3 - If a payment of a deferred expense was recorded...Ch. 3 - Comparing cash and accrual basis accounting for...Ch. 3 - Comparing cash and accrual basis accounting for...Ch. 3 - Applying the revenue recognition principle South...Ch. 3 - Applying the matching principle Suppose on January...Ch. 3 - Identifying types of adjusting entries A select...Ch. 3 - Journalizing and posting adjusting entries for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Prob. 3.9SECh. 3 - Prob. 3.10SECh. 3 - Prob. 3.11SECh. 3 - Journalizing an adjusting entry for accrued...Ch. 3 - Prob. 3.13SECh. 3 - Determining the effects on financial statements In...Ch. 3 - Prob. 3.15SECh. 3 - Prob. 3.16SECh. 3 - Prob. 3.17SECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.21ECh. 3 - Prob. 3.22ECh. 3 - Prob. 3.23ECh. 3 - Prob. 3.24ECh. 3 - Prob. 3.25ECh. 3 - Prob. 3.26ECh. 3 - Identifying the impact of adjusting entries on the...Ch. 3 - Journalizing adjusting entries and analyzing their...Ch. 3 - Prob. 3.29ECh. 3 - Prob. 3.30ECh. 3 - Understanding the alternative treatment of prepaid...Ch. 3 - Understanding the alternative treatment of...Ch. 3 - Journalizing adjusting entries and subsequent...Ch. 3 - Journalizing adjusting entries and identifying the...Ch. 3 - Journalizing and posting adjustments to the...Ch. 3 - Journalizing and posting adjustments to the...Ch. 3 - A Using the worksheet to record the adjusting...Ch. 3 - Understanding the alternative treatment of prepaid...Ch. 3 - Journalizing adjusting entries and subsequent...Ch. 3 - Journalizing adjusting entries and identifying the...Ch. 3 - Journalizing and posting adjustments to the...Ch. 3 - Journalizing and posting adjustments to the...Ch. 3 - Prob. 3.43BPCh. 3 - Understanding the alternative treatment of prepaid...Ch. 3 - Prob. 3.45CPCh. 3 - Prob. 3.46PSCh. 3 - One year ago, Tyler Stasney founded Swift...Ch. 3 - Prob. 3.1CTEICh. 3 - XM, Ltd. was a small engineering firm that built...Ch. 3 - Prob. 3.1CTFSCCh. 3 - In 75 words or fewer, explain adjusting journal...
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- An accountant failed to record the adjusting entry for accrued revenues. How does this error affect the balance sheet? A. The liabilities at the end of the period will be understated. B. The assets at the end of the period will be overstated C. The assets at the end of the period will be understated. D. The liabilities at the end of the period will be overstated. Click to select your answer. 99+arrow_forwardPrepare the adjusting journal entries to record the credit losses for the following independent situations. Required: (Explanation for the journal entry is NOT required.) a. The Allowance for Impairment has a S1,500 credit balance prior to adjustment. Net credit sales during the year are $425,000 and 4% are estimated to be uncollectible. Assume the income statement approach is used. b. The Allowance for Impairment has a $300 debit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared on December 31, $18,100 of accounts receivable are estimated to be uncollectible. Assume the statement of financial position approach is used. c. Explain how the transaction in (b) affects the accounting equation.arrow_forwardAccording to AASB110, which of the following is an adjusting event? Select one: a. All of the above b. Determination after the end of the reporting period of amount of profit sharing or bonus payments c. Determination after the end of the reporting period of cost of assets purchased prior to year end d. Discovery of fraud or errors showing that the financial statements are incorrectarrow_forward
- At the beginning of 2020, Tanham Company discovered the following errors made in the preceding 2 years: Reported net income was 27,000 in 2018 and 35,000 in 2019. The allowance for doubtful accounts had a zero balance at the beginning of 2018. No accounts were written off during 2018 or 2019. Ignore income taxes. Required: 1. What is the correct net income for 2018 and 2019? 2. Prepare the adjusting journal entry in 2020 to correct the errors.arrow_forwardi need the answer for question number 2arrow_forwardCan you please answer this question in the image i attached? 1. Just know the numbers may be different so make sure to actually solve itarrow_forward
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