Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Question
Chapter 3, Problem 3.2P
To determine
The adjusting entries are recorded at the end to each accounting period to adjust the account as per the accrual concept of accounting. The adjusting entries include adjustment of
To Prepare:
The adjusting entries
Expert Solution & Answer
Answer to Problem 3.2P
The adjusting entries are as follows:
| San Mateo Care Inc. | |||
| Adjusting entries | |||
| # | Account Title | Debit | Credit |
| 1 | Insurance Expense | $ 900 | |
| Prepaid Insurance | $ 900 | ||
| 2 | Supplies Expense | $ 1,000 | |
| Supplies | $ 1,000 | ||
| 3 | Depreciation Expense- Building | $ 2,300 | |
| $ 2,300 | |||
| 4 | Unearned Service Revenue | $ 3,000 | |
| Service Revenue | $ 3,000 | ||
| 5 | Wages expense | $ 2,900 | |
| Wages payable | $ 2,900 | ||
| 6 | $ 5,000 | ||
| Service Revenue | $ 5,000 | ||
The adjusting entries are explained as follows:
| San Mateo Care Inc. | |||
| Adjusting entries | |||
| # | Account Title | Debit | Credit |
| 1 | Insurance Expense | $ 900 | |
| Prepaid Insurance | $ 900 | ||
| (Being adjustment made for prepaid Insurance) | |||
| 2 | Supplies Expense | $ 1,000 | |
| Supplies | $ 1,000 | ||
| (Being adjustment made for Supplies used) | |||
| 3 | Depreciation Expense- Building | $ 2,300 | |
| Accumulated Depreciation- Building | $ 2,300 | ||
| (Being adjustment made for depreciation) | |||
| 4 | Unearned Service Revenue | $ 3,000 | |
| Service Revenue | $ 3,000 | ||
| (Being adjustment made for revenue earned) | |||
| 5 | Wages expense | $ 2,900 | |
| Wages payable | $ 2,900 | ||
| (Being adjustment made for the wages accrued) | |||
| 6 | Accounts Receivables | $ 5,000 | |
| Service Revenue | $ 5,000 | ||
| (Being adjustment made for the revenue earned) | |||
Explanation of Solution
The adjusting entries are explained as follows:
| San Mateo Care Inc. | |||
| Adjusting entries | |||
| # | Account Title | Debit | Credit |
| 1 | Insurance Expense | $ 900 | |
| Prepaid Insurance | $ 900 | ||
| (Being adjustment made for prepaid Insurance) | |||
| 2 | Supplies Expense | $ 1,000 | |
| Supplies | $ 1,000 | ||
| (Being adjustment made for Supplies used) | |||
| 3 | Depreciation Expense- Building | $ 2,300 | |
| Accumulated Depreciation- Building | $ 2,300 | ||
| (Being adjustment made for depreciation) | |||
| 4 | Unearned Service Revenue | $ 3,000 | |
| Service Revenue | $ 3,000 | ||
| (Being adjustment made for revenue earned) | |||
| 5 | Wages expense | $ 2,900 | |
| Wages payable | $ 2,900 | ||
| (Being adjustment made for the wages accrued) | |||
| 6 | Accounts Receivables | $ 5,000 | |
| Service Revenue | $ 5,000 | ||
| (Being adjustment made for the revenue earned) | |||
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Chapter 3 Solutions
Survey of Accounting (Accounting I)
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