Financial Accounting (5th Edition) (What's New in Accounting)
5th Edition
ISBN: 9780134727790
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Chapter 3, Problem 42AP
Problems (Group A)
Common adjusting
Journalize the adjusting entry needed at December 31, the end of the current accounting yean for each of the following independent cases affecting Premier Powersports, Inc. No other
- a. Prior making the adjusting entry on December 31, the balance in Prepaid Insurance is $4,800. Premier Powersports, Inc., pays liability insurance each year on June 1.
- b. Premier Powersports, Inc., pays employees each Friday. The amount of the weekly payroll is $6,500 for a five-day workweek. December 31, the fiscal year-end, is a Tuesday.
- c. Premier Powersports, Inc., received notes receivable from some customers for services provided. For the current year, accrued interest amounts to $835 and will be collected next year.
- d. The beginning balance of Supplies was $900. During the year, $3,800 of supplies were purchased. At December 31, the supplies on hand total $1,400.
- e. During the year, Premier Powersports, Inc., received $12,500 in advance for services to be provided at a later date. As of December 31, Premier Powersports, Inc,, earned $8,900 of the total fees received in advance during the current year.
- f.
Depreciation for the current year includes Vehicles, $2,550, and Equipment, $1,000.
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P3-59A. (Learning Objective 3: Adjust the accounts) Journalize the adjusting entry neededon December 31, the end of the current accounting period, for each of the following independent cases affecting Castaway Corporation. Include an explanation for each entry.a. The details of Prepaid Insurance are as follows:Prepaid Insurance2,9004,000JanMar 311 BalCastaway prepays insurance on March 31 each year. At December 31, $1,700 is still prepaid.b. Castaway pays employees each Friday. The amount of the weekly payroll is $6,100 fora five-day work week. The current accounting period ends on a Wednesday.c. Castaway has a note receivable. During the current year, Castaway has earned accruedinterest revenue of $700 that it will collect next year.d. The beginning balance of supplies was $3,000. During the year, Castaway purchasedsupplies costing $6,200, and at December 31 supplies on hand total $2,200.e. Castaway is providing services for Blue Whale Investments, and the owner of BlueWhale paid…
Apply what you have learned
Task 8: (Individual/Pair/Group Work)
Snoopy enterprises provides collection services to its customers. year-end adjusting journal entries
are prepared every Dec. 31 as its books are closed. make the appropriate adjusting entry for each of
the ff items:
1. Uncollectible accounts at year-end is estimated to be P6,950.
2. Rent paid last April amounted to P400, 000, one fourth of which has already expired. This
was initially recorded as prepaid rent upon payment.
3. Depreciation expense for its transportation equipment, P6,780
4. Supplies purchased during the year amounted to P4,290, of which one- third has been used
during the year.
5. Unpaid salaries of its cleaners as of December 31 is P7,460.
6. Unearned interest has a balance of P3,120, of which P2,560 has already been
earned during the year. the amount was initially credited to unearned interest
upon collection
S3-12. (Learning Objective 3: Adjust the accounts for prepaid rent) Due to the terms ofits lease, Hawke Services, Inc., pays the rent for its new office space in one annual payment of$26,800 on August 1, 2018. The lease covers the period of August 1, 2018, through July 31,2019. Hawke Services has a year-end of December 31. Assume that Hawke Services had noother prepaid rent transactions, nor did it have a Prepaid Rent beginning balance in 2018. Givethe journal entries that Hawke Services would make for (a) the annual rent payment of $26,800on August 1 and (b) the adjusting entry for rent expense on December 31, 2018. What is thebalance of Prepaid Rent at December 31, 2018?
Chapter 3 Solutions
Financial Accounting (5th Edition) (What's New in Accounting)
Ch. 3 - If XYZ Consulting performs a consulting service,...Ch. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - What kind of account is accumulated depreciation?...Ch. 3 - Prob. 10DQ
Ch. 3 - Prob. 1SCCh. 3 - Adjusting the accounts is the process of a....Ch. 3 - Which of the following terms describes the types...Ch. 3 - Assume the weekly payroll of ASR, Inc., is 4,500....Ch. 3 - Prob. 5SCCh. 3 - Prob. 6SCCh. 3 - Prob. 7SCCh. 3 - What do closing entries accomplish? a. Bring the...Ch. 3 - Prob. 9SCCh. 3 - Which correctly represents the flow of information...Ch. 3 - Prob. 11SCCh. 3 - Prob. 12SCCh. 3 - Prob. 1SECh. 3 - Prob. 2SECh. 3 - Prob. 3SECh. 3 - Adjusting journal entryprepaid rent (Learning...Ch. 3 - Prob. 5SECh. 3 - Prob. 6SECh. 3 - Prob. 7SECh. 3 - Adjusting journal entrysalaries, accrued revenue,...Ch. 3 - Prob. 9SECh. 3 - Closing entries (Learning Objective 4) 5-10 min....Ch. 3 - Prob. 11SECh. 3 - Prob. 12SECh. 3 - Preparing a post-closing trial balance (Learning...Ch. 3 - Exercises (Group A) E3-14A. Adjusting journal...Ch. 3 - Adjusting journal entry-prepaid insurance...Ch. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 17AECh. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 19AECh. 3 - Prob. 20AECh. 3 - Prob. 21AECh. 3 - Prob. 22AECh. 3 - Preparing a financial statement (Learning...Ch. 3 - Prob. 24AECh. 3 - Prob. 25AECh. 3 - Prob. 26AECh. 3 - Prob. 27AECh. 3 - Prob. 28BECh. 3 - Prob. 29BECh. 3 - Prob. 30BECh. 3 - Analyzing errors (Learning Objective 2) 10-15 min....Ch. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 33BECh. 3 - Prob. 34BECh. 3 - Prob. 35BECh. 3 - Prob. 36BECh. 3 - Prob. 37BECh. 3 - Prob. 38BECh. 3 - Prob. 39BECh. 3 - Prob. 40BECh. 3 - Preparing closing entries (Learning Objective 4)...Ch. 3 - Problems (Group A) Common adjusting journal...Ch. 3 - Prob. 43APCh. 3 - Prob. 44APCh. 3 - Prob. 45APCh. 3 - Prob. 46APCh. 3 - Prob. 47APCh. 3 - Problems (Group B) Common adjusting journal...Ch. 3 - Re-creating adjusting journal entries from a trial...Ch. 3 - Preparing adjusting journal entries and an...Ch. 3 - Effects of adjusting journal entries on income...Ch. 3 - Preparing financial statements (Learning Objective...Ch. 3 - Preparing closing entries and a post-closing trial...Ch. 3 - This exercise continues the accounting process for...Ch. 3 - This problem continues the accounting process for...Ch. 3 - Prob. 1CFSAPCh. 3 - Prob. 1EIACh. 3 - Case 2. Brent Robertson and his banker were...Ch. 3 - Prob. 1FACh. 3 - Prob. 1IACh. 3 - Prob. 1SBACh. 3 - Written Communication You have received a letter...Ch. 3 - Journalizing, Posting, Adjusting, Preparing, and...
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