13th Edition

ISBN: 9781285866307

Author: Carl Warren, James M. Reeve, Jonathan Duchac

Publisher: Cengage Learning

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The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

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Textbook Question

Chapter 3, Problem 3.4EX

Determining supplies purchased

The supplies and supplies expense accounts at December 31, after adjusting entries have been posted at the end of the first year of operations, are shown in the following T accounts:

Supplies		Supplies Expense
Bal. 2,550		Bal. 7,120

Determine the amount of supplies purchased during the year.

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Chapter 3, Problem 3.3EX

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Chapter 3 Solutions

Financial & Managerial Accounting

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Solution Summary: The author explains that deferrals are classified into two types: prepaid expenses and unearned revenues. The expense recognition principle refers to the expenses that should match with revenue.

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