Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781337517386
Author: WARREN
Publisher: Cengage
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Textbook Question
Chapter 3, Problem 3.6.2P
Adjustment process and financial statements
Adjustment data for Ms. Ellen’s Laundry Inc. for the year ended December 31, 20Y8. are as follows:
a. Wages accrued but not paid at December 31. $2150
b.
c. Laundry supplies on hand at December 31. $1,500
d. Insurance premiums expired. $4600
Instructions
2. Prepare an income statement and statement of
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Selected accounts from Lue Co.'s adjusted trial balance for the year ended December 31 follow. Prepare a
classified balance sheet. Total equity........
....... $30,000 Employee federal income taxes payable
$9,000
Equipment......
..725
Salaries payable....
Accounts receivable.
Cash..........
3,100
40,000 Federal unemployment taxes payable .......... 200
34,000 FICA-Medicare taxes payable......
5,100 FICA-Social Security taxes payable..
50,000 Employee medical insurance payable.
..4,000 State unemployment taxes payable.
. 10,000 Sales tax payable (due in 2 weeks).
.2,000
Current portion of long-term debt.........
Notes payable (due in 6 years)...
.275
1,800
Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow:
Debits
Credits
Accounts Receivable
$52,310
Equipment
81,000
Accumulated Depreciation - Equipment
$8,060
Prepaid Rent
6,600
Supplies
1,570
Wages Payable
_
Unearned Fees
7,220
Fees Earned
305,490
Wages Expense
103,050
Rent Expense
_
Depreciation Expense
_
Supplies Expense
_
Data needed for year-end adjustments are as follows:
Supplies on hand at November 30, $470.
Depreciation of equipment during year, $780.
Rent expired during year, $4,810.
Wages accrued but not paid at November 30, $1,520.
Unearned fees at November 30, $3,030.
Unbilled fees at November 30, $3,610.
Required:
Question Content Area
1. Journalize the six adjusting entries required at November 30, based on the data presented.
Nov. 30
Supplies Expense
Supplies
30…
Selected accounts from Lue Co.’s adjusted trial balance for the year ended December 31 follow. Prepare aclassified balance sheet. Total equity. . . . . . . . . . . . . . . . . . . . . . . . . . . $30,000 Employee federal income taxes payable . . . . . . . . $9,000Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Federal unemployment taxes payable . . . . . . . . . . 200Salaries payable . . . . . . . . . . . . . . . . . . . . . . 34,000 FICA—Medicare taxes payable . . . . . . . . . . . . . . . . 725Accounts receivable . . . . . . . . . . . . . . . . . . . 5,100 FICA—Social Security taxes payable . . . . . . . . . . . . 3,100Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 Employee medical insurance payable . . . . . . . . . . 2,000Current portion of long-term debt . . . . . . . . 4,000 State unemployment taxes payable . . . . . . . . . . . . 1,800Notes payable (due in 6 years) . . . . . . . . . . . 10,000 Sales tax payable (due in 2 weeks)…
Chapter 3 Solutions
Survey of Accounting (Accounting I)
Ch. 3 - Assume that a lawyer bills her clients $15000 on...Ch. 3 - On January 24, 20Y8, Niche Consulting collected...Ch. 3 - Prob. 3SEQCh. 3 - If the supplies account indicated a balance of...Ch. 3 - The balance in the unearned rent account for Jones...Ch. 3 - Would AT&T and Microsoft Use the cash basis or the...Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Fees for services provided are billed to a...Ch. 3 - Employees performed services in 20Y8, but the...Ch. 3 - Prob. 5CDQ
Ch. 3 - Is the Land balance before the accounts have been...Ch. 3 - Is the Supplies balance before the accounts have...Ch. 3 - Prob. 8CDQCh. 3 - Prob. 9CDQCh. 3 - Prob. 10CDQCh. 3 - If the effect of an adjustment is to increase the...Ch. 3 - Prob. 12CDQCh. 3 - (a) Explain the purpose of the accounts...Ch. 3 - Prob. 14CDQCh. 3 - Transactions using accrual accounting Terry Mason...Ch. 3 - Adjustment process Using the data from Exercise...Ch. 3 - Financial statements Using the data from Exercises...Ch. 3 - Prob. 3.4ECh. 3 - Accrual basis of accounting Margie Van Epps...Ch. 3 - Classify accruals and deferrals Classify the...Ch. 3 - Classify adjustments The following accounts were...Ch. 3 - Adjustment for supplies Answer each of the...Ch. 3 - Adjustment for prepaid insurance The prepaid...Ch. 3 - Adjustment for unearned fees The balance in the...Ch. 3 - Adjustment for unearned revenue For a recent year....Ch. 3 - Effect of omitting adjustment At the end of...Ch. 3 - Adjustment for accrued salaries Laguna Realty Co....Ch. 3 - Determine wages paid The balances of the two...Ch. 3 - Effect of omitting adjustment Accrued salaries of...Ch. 3 - Effect of omitting adjustment Assume that the...Ch. 3 - Effects of errors on financial statements For a...Ch. 3 - Effects of errors on financial statements The...Ch. 3 - Effects of errors on financial statements If the...Ch. 3 - Adjustment for accrued fees At the end of the...Ch. 3 - Adjustments for unearned and accrued fees The...Ch. 3 - Effect on financial statements of omitting...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Adjustments Clean Air Company is a consulting firm...Ch. 3 - Book value of fixed assets For a recent year....Ch. 3 - Classify assets Identify each of the following as...Ch. 3 - Balance sheet classification At the balance sheet...Ch. 3 - Classified balance sheet Pounds-Away Services Co....Ch. 3 - Prob. 3.29ECh. 3 - Balance sheet List any errors you can find in the...Ch. 3 - Accrual basis accounting San Mateo Health Care...Ch. 3 - Prob. 3.2PCh. 3 - Financial statements Data for San Mateo Health...Ch. 3 - Statement of cash flows Data for San Mateo Health...Ch. 3 - Statement of cash flows Data for San Mateo Health...Ch. 3 - Adjustments and errors At the end of May, the...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Prob. 3.1MBACh. 3 - Prob. 3.2MBACh. 3 - Prob. 3.3MBACh. 3 - Prob. 3.4MBACh. 3 - Prob. 3.5.1MBACh. 3 - Prob. 3.5.2MBACh. 3 - Prob. 3.5.3MBACh. 3 - Prob. 3.5.4MBACh. 3 - Quick ratio The Gap Inc. (GPS)operates specialty...Ch. 3 - Prob. 3.6.2MBACh. 3 - Quick ratio The Gap Inc. (GPs)operates specialty...Ch. 3 - Quick ratio American Eagle Outfitters Inc. (AEO)...Ch. 3 - Quick ratio American Eagle Outfitters Inc. (AEO)...Ch. 3 - Prob. 3.7.3MBACh. 3 - Prob. 3.8MBACh. 3 - Prob. 3.9.1MBACh. 3 - Prob. 3.9.2MBACh. 3 - Prob. 3.9.3MBACh. 3 - Prob. 3.1CCh. 3 - Adjustments for financial statements Several years...Ch. 3 - Prob. 3.3.1CCh. 3 - Prob. 3.3.2CCh. 3 - Prob. 3.4.1CCh. 3 - Prob. 3.4.2CCh. 3 - Accrual versus cash net income. Cigna Corp. (CI)...Ch. 3 - Prob. 3.5.1CCh. 3 - Prob. 3.5.2C
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