EBK HORNGREN'S ACCOUNTING
12th Edition
ISBN: 9780134487212
Author: MILLER-NOBLES
Publisher: PEARSON CO
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Textbook Question
Chapter 3, Problem 3QC
The revenue recognition principle requires
| Learning Objective 2 |
- time to be divided into annual periods to measure revenue properly.
- revenue to be recorded only after the business has satisfied its performance obligation.
- expenses to be matched with revenue of the period.
- revenue to be recorded only after the cash is received.
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Learning Outcome 7. Answer the following question in a short answer of 100-150 words; provide comprehensive information and examples in applicable, to support your answer. How Financial Statements are Interconnected? Explain.
Name:
Learning Task #1
Directions: Complete the table below. The first item has been done for you.
Decreased by
List of Accounts
Normal
Increased by
Classification
(Debit
Credit)
Balance
(Debit/
(Asset, Liabilities,
Owner's Equity
(Debit/ Credit) Credit)
Revenue,
Expense)
Debit
Credit
Cash
Asset
Debit
11 Accounts Payable
12 Notes Payable
13 Salaries Payable
14 Utilities Payable
15 Liam,Capital
16 Liam.Withdrawal
17 Sales
18 Interest Income
19 Cost of Sales
20 Purchases
and
Chapter 3 Solutions
EBK HORNGREN'S ACCOUNTING
Ch. 3 - Prob. 1QCCh. 3 - Get Fit Now gains a client who prepays S540 for a...Ch. 3 - The revenue recognition principle requires...Ch. 3 - Adjusting the accounts is the process of Learning...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 - Prob. 7QCCh. 3 - A equity overstated income statement: expense...Ch. 3 - A worksheet Learning Objective 6 is a journal used...Ch. 3 - On February 1, Clovis Wilson Law Firm contracted...
Ch. 3 - What is the difference between cash basis...Ch. 3 - Which method of accounting (cash or accrual basis)...Ch. 3 - Prob. 3RQCh. 3 - What is a fiscal year? Why might companies choose...Ch. 3 - Under the revenue recognition principle, when is...Ch. 3 - Under the matching principle, when are expenses...Ch. 3 - When are adjusting entries completed and what is...Ch. 3 - What are the two basic categories of adjusting...Ch. 3 - What is a deferred expense? Provide an example.Ch. 3 - What is the process of allocating the cost of a...Ch. 3 - What is a contra account?Ch. 3 - Prob. 12RQCh. 3 - What does accumulated depreciation represent?Ch. 3 - Prob. 14RQCh. 3 - What is a deferred revenue? Provide an example.Ch. 3 - What is an accrued expense? Provide an example.Ch. 3 - What is an accrued revenue? Provide an example.Ch. 3 - What are the two rules to remember about adjusting...Ch. 3 - When is an adjusted trial balance prepared, and...Ch. 3 - Prob. 20RQCh. 3 - What is a worksheet, and how is it used to help...Ch. 3 - If a payment of a deferred expense was recorded...Ch. 3 - If a payment of a deferred expense was recorded...Ch. 3 - Comparing cash and accrual basis accounting for...Ch. 3 - Comparing cash and accrual basis accounting for...Ch. 3 - Applying the revenue recognition principle...Ch. 3 - S3-4 Applying the matching principle Learning...Ch. 3 - S3-5 Identifying types of adjusting entries...Ch. 3 - Journalizing and posting adjusting entries for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Prob. S3.11SECh. 3 - Journalizing an adjusting entry for accrued...Ch. 3 - Preparing an adjusted trial balance Learning...Ch. 3 - Determining the effects on financial statements...Ch. 3 - Preparing a partial worksheet Learning Objective 6...Ch. 3 - Prob. S3A.16SECh. 3 - Prob. S3A.17SECh. 3 - E3-18 Comparing cash and accrual basis accounting...Ch. 3 - Comparing cash and accrual basis accounting and...Ch. 3 - Determining the amount of prepaid expenses...Ch. 3 - E3-21 Journalizing adjusting entries Learning...Ch. 3 - E3-22 Journalizing adjusting entries Learning...Ch. 3 - Journalizing adjusting entries Learning Objective...Ch. 3 - Journalizing adjusting entries and posting to...Ch. 3 - Journalizing adjusting entries and posting to...Ch. 3 - Preparing an adjusted trial balance Learning...Ch. 3 - Identifying the impact of adjusting entries on the...Ch. 3 - Journalizing adjusting entries and analyzing their...Ch. 3 - Using the worksheet to record the adjusting...Ch. 3 - Using the worksheet to prepare the adjusted trial...Ch. 3 - Understanding the alternative treatment of prepaid...Ch. 3 - Understanding the alternative treatment of...Ch. 3 - Journalizing adjusting entries and subsequent...Ch. 3 - Journalizing adjusting entries and identifying the...Ch. 3 - Journalizing and posting adjustments to the...Ch. 3 - Journalizing and posting adjustments to the...Ch. 3 - Using the worksheet to record the adjusting...Ch. 3 - Prob. P3A.38APGACh. 3 - Prob. P3.39BPGBCh. 3 - P3-40B Journalizing adjusting entries and...Ch. 3 - P3-41B Journalizing and posting adjustments to the...Ch. 3 - Prob. P3.42BPGBCh. 3 - Prob. P3.43BPGBCh. 3 - Prob. P3A.44BPGBCh. 3 - Using Excel to journalize and post adjusting...Ch. 3 - Prob. P3.46CPCh. 3 - Prob. P3.47PSCh. 3 - Tying It All Together Case 3-1
Before you begin...Ch. 3 - One year ago, Tyler Stasney founded Swift...Ch. 3 - Prob. 3.1EICh. 3 - Prob. 3.1FCCh. 3 - Prob. 3.1FSC
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- Use the list of concepts given to match the description of the concept to the concept.arrow_forwardLearning Task 1: Identify or classify the different account titles as to whether they belong to Assets, Liabilities, Owners' Equity Revenue or Expense of the busi- ness. Fill the amounts of the following SFP and SCI elements: Sales Current Assets Noncurrent Assets Current Liabilities Noncurrent Liabilities Expenses Net Income (Loss) Chart of Accounts SCI ACCOUNTS SFP ACCOUNTS ASSETS Account INCOME Acc. No. No. 410 Service Fees 110 Cash 420 Sales 120 Accounts Receivables Interest Income Gains Allow for Bad debts 430 125 130 Notes Receivable 440 EXPENSES 140 Inventory 150 Prepayments 510 Cost of SAles Freight-out Building Accum Depn-Bldg 160 515 165 520 Salaries Expense LIABILITIES 210 Accounts payable 530 Utilities Expense Notes Payable Interest Payable Salaries Payable Utilities Payable 220 540 Bad Debts Depreciation Advertising Expense 230 545 240 550 250 560 Taxes and Licenses Unearned Income Interest Expense Miscellaneous Expense 260 570 EQUITY Owner's Capital Owner's Drawing 580…arrow_forwardS1-8. (Learning Objective 4: Identify income statement components)1. Identify the two basic categories of items on an income statement.2. What do we call the bottom line of the income statement?arrow_forward
- (Learning Outcome 2) Which of the following is a collection of all the accounts, the changes in those accounts, and their balances? source document journal ledger trial balancearrow_forwardThe revenue recognition principle dictates that revenue be recognized in the accounting period Select one: a. after it is earned. b. before it is earned. wh the performance obligation is satisfied. C. d. in which it is collected Previous page Next pa hparrow_forward(Learning Objective 5: Construct and use a trial balance) The accounts of Specialty Deck Service, Inc., follow with their normal balances at April 30, 2018. The accounts arelisted in no particular order.Account BalanceDividends..........................Utilities expense ................Accounts receivable...........Delivery expense ...............$ 3,1002,3005,300700Retained earnings.............. 7,800Salary expense................... 8,400AccountCommon stock..................Accounts payable ..............Service revenue..................Equipment.........................Note payable.....................Cash..................................Balance$ 16,2004,30020,50030,80021,00019,200Requirements1. Prepare the company’s trial balance at April 30, 2018, listing accounts in proper sequence,as illustrated in the chapter. For example, Accounts Receivable comes before Equipment.List the expense with the largest balance first, the expense with the next largest balancesecond, and so on.2.…arrow_forward
- For each of these itens, list the assumption, principle, information characteristic, or convention that is violated. Write your Learning Task 4: Below are a number of accounting proccdures and practices in Prospere General Merchandise. answer in your notebook. ác company prepares financial reports are based on the SFAS promulgated by the ASC. 4. The assets and owner's couity are reported at fair value but business obliga tions are reported at historical cost. 3. The company maintains only one employee to function as accountant, inter- nal auditor, collector and treasurer. 4. The financial reports are always delayed. 5. Due to recession, estimated future earnings are reported in the current finan- cial reports of Prospere General Merchandise. 6. The accounting methods and procedures used are regularly changed semi- annually. 7. The accountant records transactions as desired by the owner without proper supporting documents. 8. The financial reports do not include minutes of the meeting,…arrow_forwardKindly answer please. Thank you so mucharrow_forward1. Content Learning Worksheet - Answer the question and provide the page number of your solution.1. ____________ Considering revenue from contracts with Customers, revenue is recognized and measured based on_______________________________________, which is called the _____________________________ approach.2. ____________Name the five steps for Revenue recognition.3. ____________ What is the basic 4-line entry made when a contract exists and performance obligation has been met?4._____________ Define a performance obligation.5.____________What value is revenue recognized at in a non-cash transaction?6.___________List the 5 indicators of change in control of a good or service. 7.___________When is revenue recognized in the following situations:Sales with Returns and Allowances – Credit Sales ___________________________________________________Sales with Returns and Allowances – Cash Sales ___________________________________________________Repurchase…arrow_forward
- For which type of learning outcomes would be the essay test be least useful?A. Understanding of accounting principlesB. Thinking skillsC. Organization of ideasD. Knowledge of factsE. Application of accounting principlesarrow_forward2 3 1 4 5 7 8 9 10 12 Depreciation Expense Accumulated Depreciation Uneamed Revenue Services Revenue Insurance Expense Prepaid Insurance Salaries Payable Cash Prepaid Rent Cash Salaries Expense Salaries Payable Interest Receivable Interest Revenue Cash Accounts Receivable (from consulting) Cash Unearned Revenue Cash Interest Receivable Rent Expense Prepaid Rent Interest Expense Interest Payable 1,400 4,300 3,300 4,500 2,000 3,700 5,400 4,900 9,000 6,000 3,000 1,700 1,400 4,300 3,300 4,500 2,000 3,700 5,400 4,900 9,000 6,000 3,000 1,700arrow_forwardRevenue generally should be recognized Select one: when realized. when the performance obligation is satisfied. at the time of cash collection. at the end of production.arrow_forward
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