2 Semester Cengage Now, Warren Accounting
26th Edition
ISBN: 9781305662308
Author: WARREN
Publisher: Cengage
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Question
Chapter 3, Problem 3.1EX
To determine
Accrual Accounting:
Accrual Accounting is an accounting method in which all the revenue and expenses are recorded only when they are earned or incurred, irrespective of the receipt or payment of cash.
To Classify: The transactions to various types of adjustments
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For journal entries 1 through 12, indicate the explanation that most closely describes it. You can use explanations more than once.
To record receipt of unearned revenue.
To record this period's earning of prior unearned revenue.
To record payment of an accrued expense.
To record receipt of an accrued revenue.
To record an accrued expense.
To record an accrued revenue.
To record this period's use of a prepaid expense.
To record payment of a prepaid expense.
To record this period's depreciation expense.
Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?
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debit Income Summary and credit Insurance Expense
B.
debit Common Stock and credit Insurance Expense
C.
debit Insurance Expense and credit Common Stock
D.
debit Insurance Expense and credit Income Summary
Chapter 3 Solutions
2 Semester Cengage Now, Warren Accounting
Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Is the matching concept related to (a) the cash...Ch. 3 - Why are adjusting entries needed at the end of an...Ch. 3 - What is the difference between adjusting entries...Ch. 3 - Identify the four different categories of...Ch. 3 - If the effect of the debit portion of an adjusting...Ch. 3 - If the effect of the credit portion of an...Ch. 3 - Does every adjusting entry affect net income for...Ch. 3 - Prob. 9DQCh. 3 - (a) Explain the purpose of the two accounts:...
Ch. 3 - Accounts requiring adjustment Indicate with a Yes...Ch. 3 - Accounts requiring adjustment Indicate with a Yes...Ch. 3 - Type of adjustment Classify the following items as...Ch. 3 - Prob. 3.2BPECh. 3 - Prob. 3.3APECh. 3 - Adjustment for prepaid expense The prepaid...Ch. 3 - Prob. 3.4APECh. 3 - Prob. 3.4BPECh. 3 - Adjustment for accrued revenues At the end of the...Ch. 3 - Adjustment for unearned revenue The balance in the...Ch. 3 - Adjustment for prepaid expense The prepaid...Ch. 3 - Adjustment for prepaid expense The supplies...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Prob. 3.8APECh. 3 - Prob. 3.8BPECh. 3 - Effect of errors on adjusted trial balance For...Ch. 3 - Effect of errors on adjusted trial balance For...Ch. 3 - Prob. 3.10APECh. 3 - Prob. 3.10BPECh. 3 - Prob. 3.1EXCh. 3 - Prob. 3.2EXCh. 3 - Prob. 3.3EXCh. 3 - Prob. 3.4EXCh. 3 - Prob. 3.5EXCh. 3 - Prob. 3.6EXCh. 3 - Adjusting entries for prepaid insurance The...Ch. 3 - Prob. 3.8EXCh. 3 - Prob. 3.9EXCh. 3 - Prob. 3.10EXCh. 3 - Adjusting entries for unearned and accrued fees...Ch. 3 - Prob. 3.12EXCh. 3 - Prob. 3.13EXCh. 3 - Prob. 3.14EXCh. 3 - Prob. 3.15EXCh. 3 - Prob. 3.16EXCh. 3 - Prob. 3.17EXCh. 3 - Prob. 3.18EXCh. 3 - Determining fixed assets book value The balance in...Ch. 3 - Prob. 3.20EXCh. 3 - Prob. 3.21EXCh. 3 - Prob. 3.22EXCh. 3 - Effects of errors on financial statements The...Ch. 3 - Effects of errors on financial statements If the...Ch. 3 - Adjusting entries for depreciation; effect of...Ch. 3 - Prob. 3.26EXCh. 3 - Adjusting entries from trial balances The...Ch. 3 - Prob. 3.28EXCh. 3 - Prob. 3.29EXCh. 3 - Prob. 3.1APRCh. 3 - Prob. 3.2APRCh. 3 - Prob. 3.3APRCh. 3 - Adjusting entries Good Note Company specializes in...Ch. 3 - Prob. 3.5APRCh. 3 - Adjusting entries and errors At the end of April,...Ch. 3 - Prob. 3.1BPRCh. 3 - Prob. 3.2BPRCh. 3 - Prob. 3.3BPRCh. 3 - Prob. 3.4BPRCh. 3 - Prob. 3.5BPRCh. 3 - Prob. 3.6BPRCh. 3 - The unadjusted trial balance that you prepared for...Ch. 3 - Ethics and professional conduct in business Daryl...Ch. 3 - Accrued revenue The following is an excerpt from a...Ch. 3 - Prob. 3.3CP
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- Which one of the following is example of prepaid expenses? A. Provision for warranty expenses B. Advanced paid to supplier for the purchase of material C. Payment of insurance premium for 3 years.arrow_forwardPlease check my work For journal entries 1 through 12, indicate the explanation that most closely describes it. You can use explanations more than once. To record receipt of unearned revenue. To record this period's earning of prior unearned revenue. To record payment of an accrued expense. To record receipt of an accrued revenue. To record an accrued expense. To record an accrued revenue. To record this period's use of a prepaid expense. To record payment of a prepaid expense. To record this period's depreciation expense.arrow_forwardWhich of the following types of adjusting entries would result in a decrease in the amount of a one-year insurance policy premium reported on the balance sheet? Select one: O a. Prepaid expense b. Accrued expense C. Accrued revenue d. Unearned revenuearrow_forward
- 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 termsarrow_forwardClassify the following items as (a) deferred expense (prepaid expense), (b) deferred revenue (unearned revenue), (c) accrued expenses (accrued liability), or (d) accrued revenue (accrued asset). 1 A three-year premium paid on a fire insurance policy. 2 Utilities owed but not yet paid. 3 Supplies on hand. 4 Salary owed but not yet paid. 5 Interest owed but payable in the following period. 6 Subscriptions received in advance by a newspaper publisher. 7 Professional Fees received but not yet earned. 8 Professional Fees earned but not yet received. 9 Interest paid in advance from a bank loan. 10 Rent collected in advance. 11 Services rendered but uncollected. 12 Advertising paid in advance for 3 months. 13 Income collected but not yet earned. 14 Rent paid in advance. 15 Interest collected in advance by the creditor.arrow_forwardClassify the following items as: (1) prepaid expense, (2) unearned revenue, (3) accrued expense, or (4) accrued revenue. a. Fees received but not yet earned. b. Fees earned but not yet received. c. Paid premium on a one-year insurance policy. d. Property tax owed to be paid beginning of next year. Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry. 1. Cash 2. Prepaid Expenses 3. Depreciation Expense 4. Accounts Payable 5. Accumulated Depreciation Yes 6. Equipmentarrow_forward
- There are 6 Journal entry’s 1. Record the adjusting entry for insurance expense expired during the period. 2. Record the adjusting entry for depreciation expense for the period. 3. Record the adjusting entry for supplies used during the period. 4. Record the adjusting entry for interest earned and receivable on the outstanding notes receivable for the period. 5. Record the adjusting entry for services performed, for which customers had previously paid in advance. 6. Record the adjusting entry for services performed, which are not yet billed or recordedarrow_forwardIdentify which type of adjustment is associated with this account, and what is the other account in the adjustment? Choose accrued revenue, accrued expense, deferred revenue, or deferred expense. A. accounts receivable B. interest payable C. prepaid insurance D. unearned rentarrow_forwardWhich of the following are items which are likely to need an accrual adjustment at the year end? Select one: A. Motor vehicles B. Bank O C. Interest received O D. Salesarrow_forward
- provide the answer for question 6 and 7arrow_forwardWhich among the following is an example of prepaid expense? a. Insurance paid in advance for the whole year b. Insurance not paid c. Insurance paid for current month d. Insurance to be paid next yeararrow_forwardFor journal entries 1through 12, indicate the explanation that most closely describes it. You can use explanations more than once. A. To record receipt of unearned revenue. B. To record this period's earning of prior unearned revenue. C. To record payment of an accrued expense. D. To record receipt of an accrued revenue. E. To record an accrued expense. F. To record an accrued revenue. G. To record this period's use of a prepaid expense. H. To record payment of a prepaid expense. 1. To record this period's depreciation expense.arrow_forward
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