Adjusting entries Adjusting entries are those entries which are made at the end of the accounting period, to record the revenues in the period of which they have been earned and to record the expenses in the period of which have been incurred, as well as to update all the balances of assets and liabilities accounts on the balance sheet, and to ascertain accurate amount of net income (loss) on the income statement to maintain the records according to the accrual basis principle. Accounting rules for journal entries: To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains. To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains. To prepare: The adjusting entries needed as at December 31.

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Answer 1

Question

Chapter 3, Problem 3.22E

(a)

To determine

Adjusting entries

Adjusting entries are those entries which are made at the end of the accounting period, to record the revenues in the period of which they have been earned and to record the expenses in the period of which have been incurred, as well as to update all the balances of assets and liabilities accounts on the balance sheet, and to ascertain accurate amount of net income (loss) on the income statement to maintain the records according to the accrual basis principle.

Accounting rules for journal entries:

To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains.

To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains.

To prepare: The adjusting entries needed as at December 31.

(b)

To determine

To prepare: The adjusting entries needed as of December 31.

(c)

To determine

To prepare: The adjusting entries needed as of December 31 for supplies.

(d)

To determine

To prepare: The adjusting entries needed as of December 31 for depreciation on equipment.

(e)

To determine

To prepare: The adjusting entries needed as of December 31 for adjusting prepaid insurance.

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Scarce resource; discontinued product lines; negative contribution marginThe officers of Bardwell Company are reviewing the profitability of the company’s four products and the potential effects of several proposals for varying the product mix. The following is an excerpt from the income statement and other data. Total Product P Product Q Product R Product S Sales $62,600 $10,000 $18,000 $12,600 $22,000 Cost of goods sold (44,274) (4,750) (7,056) (13,968) (18,500) Gross profit $18,326 $5,250 $10,944 $(1,368) $3,500 Operating expenses (12,004) (1,990) (2,968) (2,826) (4,220) Income before taxes 6,322 $3,260 $7,976 $(4,194) $(720) Units sold 1,000 1,200 1,800 2,000 Sales price per unit $10.00 $15.00 $7.00 $11.00 Variable cost of goods sold 2.50 3.00 6.50 6.00 Variable operating expenses 1.17 1.25 1.00 1.20 Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in each…

Analyzing one company's make or buy and special order proposals OneCo is a retail organization in the Northeast that sells upscale clothing. Each year, store managers (in consultation with their supervisors) establish financial goals; a monthly reporting system captures actual performance. OneCo Inc. produces a single product. Cost per unit, based on the manufacture and sale of 10,000 units per month at full capacity, is shown below. Product costs Direct materials $4.00 Direct labor 1.30 Variable overhead 2.50 Fixed overhead 3.40 Sales commission 0.90 $12.10 The $0.90 sales commission is paid for every unit sold through regular channels. Market demand is such that OneCo is operating at full capacity, and the firm has found it can sell all it can produce at the market price of $16.50. Currently, OneCo is considering two separate proposals: · Gatsby, Inc. has offered to buy 1,000 units at $14.35 each. Sales commission would be $0.35 on this special order. ·…

MYS App Ch 1 M Ques M X Chat Use ta gaut Soluta acco a webs a wear a acco calcuTelesa Requ /ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fconnect ework i ces Saved [The following information applies to the questions displayed below.] The first production department in a process manufacturing system reports the following unit data. Beginning work in process inventory Units started and completed 35,200 units 52,800 units Units completed and transferred out Ending work in process inventory 88,000 units 17,900 units Help Save & Exercise 16-4 (Algo) Weighted average: Computing equivalent units LO P1 Prepare the production department's equivalent units of production for direct materials under each of the following three separate assumptions using the weighted average method for process costing. Equivalent Units of Production (EUP)-Weighted Average Method 1. All direct materials are added to products when…

Answer 2

Question

Chapter 3, Problem 3.22E

(a)

To determine

Adjusting entries

Adjusting entries are those entries which are made at the end of the accounting period, to record the revenues in the period of which they have been earned and to record the expenses in the period of which have been incurred, as well as to update all the balances of assets and liabilities accounts on the balance sheet, and to ascertain accurate amount of net income (loss) on the income statement to maintain the records according to the accrual basis principle.

Accounting rules for journal entries:

To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains.

To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains.

To prepare: The adjusting entries needed as at December 31.

(b)

To determine

To prepare: The adjusting entries needed as of December 31.

(c)

To determine

To prepare: The adjusting entries needed as of December 31 for supplies.

(d)

To determine

To prepare: The adjusting entries needed as of December 31 for depreciation on equipment.

(e)

To determine

To prepare: The adjusting entries needed as of December 31 for adjusting prepaid insurance.

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Answer 3

Question

Chapter 3, Problem 3.22E

(a)

To determine

Adjusting entries

Adjusting entries are those entries which are made at the end of the accounting period, to record the revenues in the period of which they have been earned and to record the expenses in the period of which have been incurred, as well as to update all the balances of assets and liabilities accounts on the balance sheet, and to ascertain accurate amount of net income (loss) on the income statement to maintain the records according to the accrual basis principle.

Accounting rules for journal entries:

To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains.

To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains.

To prepare: The adjusting entries needed as at December 31.

(b)

To determine

To prepare: The adjusting entries needed as of December 31.

(c)

To determine

To prepare: The adjusting entries needed as of December 31 for supplies.

(d)

To determine

To prepare: The adjusting entries needed as of December 31 for depreciation on equipment.

(e)

To determine

To prepare: The adjusting entries needed as of December 31 for adjusting prepaid insurance.

Expert Solution & Answer

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Answer 4

Question

Chapter 3, Problem 3.22E

(a)

To determine

Adjusting entries

Adjusting entries are those entries which are made at the end of the accounting period, to record the revenues in the period of which they have been earned and to record the expenses in the period of which have been incurred, as well as to update all the balances of assets and liabilities accounts on the balance sheet, and to ascertain accurate amount of net income (loss) on the income statement to maintain the records according to the accrual basis principle.

Accounting rules for journal entries:

To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains.

To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains.

To prepare: The adjusting entries needed as at December 31.

(b)

To determine

To prepare: The adjusting entries needed as of December 31.

(c)

To determine

To prepare: The adjusting entries needed as of December 31 for supplies.

(d)

To determine

To prepare: The adjusting entries needed as of December 31 for depreciation on equipment.

(e)

To determine

To prepare: The adjusting entries needed as of December 31 for adjusting prepaid insurance.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 3.22E

(a)

To determine

Adjusting entries

Adjusting entries are those entries which are made at the end of the accounting period, to record the revenues in the period of which they have been earned and to record the expenses in the period of which have been incurred, as well as to update all the balances of assets and liabilities accounts on the balance sheet, and to ascertain accurate amount of net income (loss) on the income statement to maintain the records according to the accrual basis principle.

Accounting rules for journal entries:

To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains.

To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains.

To prepare: The adjusting entries needed as at December 31.

(b)

To determine

To prepare: The adjusting entries needed as of December 31.

(c)

To determine

To prepare: The adjusting entries needed as of December 31 for supplies.

(d)

To determine

To prepare: The adjusting entries needed as of December 31 for depreciation on equipment.

(e)

To determine

To prepare: The adjusting entries needed as of December 31 for adjusting prepaid insurance.

Answer 6

Chapter 3, Problem 3.22E

(a)

To determine

Adjusting entries

Adjusting entries are those entries which are made at the end of the accounting period, to record the revenues in the period of which they have been earned and to record the expenses in the period of which have been incurred, as well as to update all the balances of assets and liabilities accounts on the balance sheet, and to ascertain accurate amount of net income (loss) on the income statement to maintain the records according to the accrual basis principle.

Accounting rules for journal entries:

To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains.

To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains.

To prepare: The adjusting entries needed as at December 31.

Answer 7

Chapter 3, Problem 3.22E

(a)

To determine

Adjusting entries

Adjusting entries are those entries which are made at the end of the accounting period, to record the revenues in the period of which they have been earned and to record the expenses in the period of which have been incurred, as well as to update all the balances of assets and liabilities accounts on the balance sheet, and to ascertain accurate amount of net income (loss) on the income statement to maintain the records according to the accrual basis principle.

Accounting rules for journal entries:

To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains.

To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains.

To prepare: The adjusting entries needed as at December 31.

Answer 8

(b)

To determine

To prepare: The adjusting entries needed as of December 31.

Answer 9

(b)

To determine

To prepare: The adjusting entries needed as of December 31.

Answer 10

(c)

To determine

To prepare: The adjusting entries needed as of December 31 for supplies.

Answer 11

(c)

To determine

To prepare: The adjusting entries needed as of December 31 for supplies.

Answer 12

(d)

To determine

To prepare: The adjusting entries needed as of December 31 for depreciation on equipment.

Answer 13

(d)

To determine

To prepare: The adjusting entries needed as of December 31 for depreciation on equipment.

Answer 14

(e)

To determine

To prepare: The adjusting entries needed as of December 31 for adjusting prepaid insurance.

Answer 15

(e)

To determine

To prepare: The adjusting entries needed as of December 31 for adjusting prepaid insurance.

Answer 16

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Answer 17

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Answer 18

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Answer 19

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To prepare: The adjusting entries needed as of December 31.

To prepare: The adjusting entries needed as of December 31 for supplies.

To prepare: The adjusting entries needed as of December 31 for depreciation on equipment.

To prepare: The adjusting entries needed as of December 31 for adjusting prepaid insurance.

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