Horngren's Financial & Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)

5th Edition

ISBN: 9780134078908

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Textbook Question

Chapter 3, Problem 3.33AP

Journalizing adjusting entries and subsequent journal entries

Laroche Landscaping has collected the following data for the December 31 adjusting entries:

a. Each Friday, Laroche pays employees for the current week’s work. The amount of the weekly payroll is $7,500 for a five-day workweek. This year, December 31 falls on a Wednesday. Laroche will pay its employees on January 2.
b. On January 1 of the current year, Laroche purchases an insurance policy that covers two years, $2,500.
c. The beginning balance of Office Supplies was $3,900. During the year, Laroche purchased office supplies for $5,400, and at December 31 the office supplies on hand total $2,600.
d. During December, Laroche designed a landscape plan and the client prepaid $5,000. Laroche recorded this amount as Unearned Revenue. The job will take several months to complete, and Laroche estimates that the company has earned 60% of the total revenue during the current year.
e. At December 31, Laroche had earned $4,500 for landscape services completed for Turnkey Appliances. Turnkey has stated that it will pay Laroche on January 10.
f. Depredation for the current year includes Equipment, $3,300; and Trucks, $2,100.
g. Laroche has incurred $400 of interest expense on a $900 interest payment due on January 15.

Requirements

1. Journalize the adjusting entry needed on December 31 for each of the previous items affecting Laroche Landscaping. Assume Laroche records adjusting entries only at the end of the year.
2. Journalize the subsequent journal entries for adjusting entries a, d, and g.

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Chapter 3, Problem 3.32E

Chapter 3, Problem 3.34AP

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Chapter 18 Homework i Saved 15 Exercise 18-14 (Algo) Contribution margin income statement LO C2 1 points eBook Hint Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $133 per unit. The company's annual fixed costs are $628,000. The sales manager predicts that next year's annual sales of the company's product will be 39,800 units at a price of $198 per unit. Variable costs are predicted to increase to $138 per unit, but fixed costs will remain at $628,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year. SUNN COMPANY Contribution Margin Income Statement Units $ per unit 39,800 $ 198 Ask Sales Variable costs 39,800 Print Contribution margin 39,800 Fixed costs Income References Mc Graw Hill $ 7,880,400 138 5,492,400 2,388,000 628,000 $ 1,760,000 Help Save & Exit Submit Check my work

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Chapter 3 Solutions

Horngren's Financial & Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (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...

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Solution Summary: The author explains the accounting rules for journal entries: Adjusting entries record revenues, expenses, capital, revenue and gains, and deferred expenses. Accrued expenses create assets.

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