Explanation The adjusting entries of Company C are as follows: a. Depreciation expense: Date Accounts title and explanation Post Ref. Debit ($) Credit ($) 2015 Depreciation Expense- Equipment 6,000 December, 31 Accumulated Depreciation - Equipment 6,000 ( To record the amount of depreciation expense incurred at the end of the accounting year ) Table (1) Depreciation expense is an expense. There is an increase in the expenses, and therefore it is debited. Accumulated Depreciation is a contra-asset account. There is a decrease in assets, and therefore it is credited. b. Accrued salaries expense: Date Accounts title and explanation Post Ref. Debit ($) Credit ($) 2015 Salary expense 2,100 December, 31 Salary payable 2,100 ( To record the amount of accrued salary expenses. ) Table (2) Salary Expense is an expense. There is an increase in the expenses, and therefore, it is debited. Salary Payable is a liability account. There is an increase in liabilities, and therefore, it is credited. c. Accrued interest expense: Date Accounts title and explanation Post Ref. Debit ($) Credit ($) 2015 Interest Expense (1) 800 December, 31 Interest Payable 800 ( To record the amount of accrued interest expenses ) Table (3) Interest Expense is an expense. There is an increase in the expenses, and therefore, it is debited. Interest Payable is a liability account. There is an increase in liabilities, and therefore, it is credited. Working note: Calculate the amount of interest expense incurred at the end of the accounting year. Here, Principal=$20,000 Annual rate=12% from September to December Number of months=4 Use the following formula to determine the interest expense for 4 months. Interest expense = Principal × Annual rate × Number of months = $20,000 × 12% × 4 12 = $ 800 (1) d. Supplies expense: Date Accounts title and explanation Post Ref. Debit ($) Credit ($) 2015 Supplies expense (2) 1,300 December, 31 Supplies 1,300 ( To record the amount of supplies used during the period

3rd Edition

ISBN: 9780077506902

Author: David J Spieceland Wayne Thomas Don Herrmann

Publisher: Mcgraw-Hill

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Chapter 3, Problem 3.4AP

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To record: The necessary adjusting entries of Company C.

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Chapter 3 Solutions

Financial accounting

Ch. 3 - Prob. 1RQ Ch. 3 - 2.Discuss the major principle that describes...Ch. 3 - 3.Samantha is a first-year accounting student. She...Ch. 3 - 4.Describe when revenues and expenses are...Ch. 3 - Rip Side of Question 7 5.Executive Lawn provides...Ch. 3 - Prob. 6RQ Ch. 3 - Prob. 7RQ Ch. 3 - Consider the information in Question 7. Using...Ch. 3 - Prob. 9RQ Ch. 3 - There are two basic types of adjusting...

Ch. 3 - 11.Provide an example of a prepaid expense. The...Ch. 3 - Provide an example of a deferred revenue. The...Ch. 3 - 13.Provide an example of an accrued expense. The...Ch. 3 - Provide an example of an accrued revenue. The...Ch. 3 - Sequoya Printing purchases office supplies for 75...Ch. 3 - Jackson Rental receives its September utility bill...Ch. 3 - 17.Global Printing publishes several types of...Ch. 3 - At the end of May, Robertson Corporation has...Ch. 3 - Prob. 19RQ Ch. 3 - Prob. 20RQ Ch. 3 - Prob. 21RQ Ch. 3 - Prob. 22RQ Ch. 3 - Prob. 23RQ Ch. 3 - Prob. 24RQ Ch. 3 - Describe the debits and credits for the three...Ch. 3 - In its first four years of operations, Chance...Ch. 3 - Prob. 27RQ Ch. 3 - Prob. 28RQ Ch. 3 - Determine revenues to be recognized (LO31) Below...Ch. 3 - Prob. 3.2BE Ch. 3 - Prob. 3.3BE Ch. 3 - Analyze the impact of transactions on the balance...Ch. 3 - Prob. 3.5BE Ch. 3 - At the beginning of May, Golden Gopher Company...Ch. 3 - Record the adjusting entry for prepaid rent (LO33)...Ch. 3 - Prob. 3.8BE Ch. 3 - Prob. 3.9BE Ch. 3 - Prob. 3.10BE Ch. 3 - Prob. 3.11BE Ch. 3 - Prob. 3.12BE Ch. 3 - Prob. 3.13BE Ch. 3 - Prob. 3.14BE Ch. 3 - Prob. 3.15BE Ch. 3 - Prob. 3.16BE Ch. 3 - Prob. 3.17BE Ch. 3 - Prob. 3.18BE Ch. 3 - Prob. 3.19BE Ch. 3 - Prob. 3.20BE Ch. 3 - Consider the following situations: 1.American...Ch. 3 - Consider the following situations: 1.American...Ch. 3 - Refer to the situations discussed in E31....Ch. 3 - Differentiate cash-basis expenses from...Ch. 3 - Prob. 3.5E Ch. 3 - Listed below are all the steps in the accounting...Ch. 3 - Prob. 3.7E Ch. 3 - Prob. 3.8E Ch. 3 - Prob. 3.9E Ch. 3 - Prob. 3.10E Ch. 3 - Prob. 3.11E Ch. 3 - Prob. 3.12E Ch. 3 - Prob. 3.13E Ch. 3 - Prob. 3.14E Ch. 3 - Prob. 3.15E Ch. 3 - Prob. 3.16E Ch. 3 - Prob. 3.17E Ch. 3 - Prob. 3.18E Ch. 3 - Prob. 3.19E Ch. 3 - Prob. 3.20E Ch. 3 - Consider the following transactions. Required: For...Ch. 3 - Prob. 3.2AP Ch. 3 - Prob. 3.3AP Ch. 3 - Prob. 3.4AP Ch. 3 - Prob. 3.5AP Ch. 3 - The year-end financial statements of Rattlers Tax...Ch. 3 - Prob. 3.7AP Ch. 3 - Prob. 3.8AP Ch. 3 - Consider the following transactions. Required: For...Ch. 3 - Prob. 3.2BP Ch. 3 - Prob. 3.3BP Ch. 3 - Prob. 3.4BP Ch. 3 - Prob. 3.5BP Ch. 3 - FIGHTING ILLINI Income Statement Service revenue...Ch. 3 - Prob. 3.7BP Ch. 3 - Prob. 3.8BP Ch. 3 - Prob. 3.1APCP Ch. 3 - Prob. 3.2APFA Ch. 3 - Prob. 3.3APFA Ch. 3 - Prob. 3.4APCA Ch. 3 - Prob. 3.5APE Ch. 3 - Prob. 3.7APWC

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