Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)

5th Edition

ISBN: 9780134078939

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

Publisher: PEARSON

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Textbook Question

Chapter 3, Problem 3.36AP

Journalizing and posting adjustments to the four-column accounts and preparing an adjusted trial balance

The unadjusted trial balance of Newport Inn Company at December 31, 2016, and the data needed for the adjustments follow.

Chapter 3, Problem 3.36AP, Journalizing and posting adjustments to the four-column accounts and preparing an adjusted trial

Adjustment data at December 31 follow:

a. As of December 31, Newport had $600 of Prepaid Insurance remaining.

b. At the end of the month, Newport had $700 of office supplies remaining.

c. Depreciation on the building is $3,500.

d. Newport pays its employees weekly on Friday. Its employees earn $1,500 for a five-day workweek. December 31 falls on Wednesday this year.

e. On November 20, Newport contracted to perform services for a client receiving $2,500 in advance. Newport recorded this receipt of cash as Unearned Revenue.

As of December 31, Newport has $1,500 still unearned.

Requirements

1. Journalize the adjusting entries on December 31.

2. Using the unadjusted trial balance, open the accounts (use a four-column ledger) with the unadjusted balances. Post the adjusting entries to the ledger accounts.

3. Prepare the adjusted trial balance.

4. Assuming the adjusted trial balance has total debits equal to total credits, does this mean that the adjusting entries have been recorded correctly? Explain.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 3, Problem 3.35AP

Chapter 3, Problem 3.37AP

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Chapter 3 Solutions

Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)

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 to record revenues, expenses, capital, revenue and gains, and deferred expenses.

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