FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Chapter 3, Problem 32E
a.
To determine
Prepare necessary adjustments using financial statement which effects template.
b.
To determine
Prepare
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Assessing Financial Statement Effects of Adjustments
For each of the following separate situations, prepare the necessary accounting adjustments using the financial statement effects template.
(a) Unrecorded depreciation on equipment is $1,220.
(b) The Supplies account has an unadjusted balance of $5,980. Supplies still available at the end of the period total $2,200.
(c) On the date for preparing financial statements, an estimated utilities expense of $780 has been incurred, but no utility bill has yet been received or paid.
(d) On the first day of the current period, rent for four periods was paid and recorded as a $5,600 increase to Prepaid Rent and a $5,600 decrease to Cash.
(e) Nine months ago, The Allstate Corporation sold a one-year policy to a customer and recorded the receipt of the premium by crediting Unearned Revenue for $1,248. No accounting adjustments have been prepared during the nine-month period. Allstate's annual financial
statements are now being prepared.
(f) At…
Required 1. Prepare and complete a 10-column work sheet for fiscal year 2019, starting with the unadjusted trial balance and including adjustments based on these additional facts. a. The supplies available at the end of fiscal year 2019 had a cost of $7,900. b. The cost of expired insurance for the fiscal year is $10,600. c. Annual depreciation on equipment is $7,000. d. The April utilities expense of $800 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded. e. The company’s employees have earned $2,000 of accrued and unpaid wages at fiscal year-end. f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $3,000. g. Additional property taxes of $550 have been assessed for this fiscal year but have not been paid or recorded in the accounts. h. The $300 accrued interest for April on the long-term notes payable has not yet been paid or recorded. 2. Using information…
The estimated amount of depreciation on equipment for the current year is $8,330.
Journalize the adjusting entry, to record the depreciation. Refer to the Chart of Accounts for exact wording of account titles.
Chapter 3 Solutions
FINANCIAL ACCOUNTING
Ch. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MCCh. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - Prob. 4QCh. 3 - Prob. 5Q
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