Financial Accounting, Student Value Edition (5th Edition)

5th Edition

ISBN: 9780134728520

Author: Robert Kemp, Jeffrey Waybright

Publisher: PEARSON

See similar textbooks

Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll p…

Videos

Textbook Question

Chapter 3, Problem 42AP

Problems (Group A)

Common adjusting journal entries (Learning Objective 2) 15-20 min.

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 adjusting entries have been made for the year.

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.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 3, Problem 41BE

Chapter 3, Problem 43AP

Students have asked these similar questions

Write down as many descriptions describing rock and roll that you can. From these descriptions can you come up with s denition of rock and roll? What performers do you recognize? What performers don’t you recognize? What can you say about musical inuence on these current rock musicians? Try to break these inuences into genres and relate them to the rock musicians. What does Mick Jagger say about country artists? What does pioneering mean? What kind of ensembles w

Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's expenses, Gross margin, and Net income?

Chapter 3 Solutions

Financial Accounting, Student Value Edition (5th Edition)

Ch. 3 - If XYZ Consulting performs a consulting service,...Ch. 3 - Prob. 2DQ Ch. 3 - Prob. 3DQ Ch. 3 - Prob. 4DQ Ch. 3 - Prob. 5DQ Ch. 3 - Prob. 6DQ Ch. 3 - Prob. 7DQ Ch. 3 - Prob. 8DQ Ch. 3 - What kind of account is accumulated depreciation?...Ch. 3 - Prob. 10DQ

Ch. 3 - Prob. 1SC Ch. 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. 5SC Ch. 3 - Prob. 6SC Ch. 3 - Prob. 7SC Ch. 3 - What do closing entries accomplish? a. Bring the...Ch. 3 - Prob. 9SC Ch. 3 - Which correctly represents the flow of information...Ch. 3 - Prob. 11SC Ch. 3 - Prob. 12SC Ch. 3 - Prob. 1SE Ch. 3 - Prob. 2SE Ch. 3 - Prob. 3SE Ch. 3 - Adjusting journal entryprepaid rent (Learning...Ch. 3 - Prob. 5SE Ch. 3 - Prob. 6SE Ch. 3 - Prob. 7SE Ch. 3 - Adjusting journal entrysalaries, accrued revenue,...Ch. 3 - Prob. 9SE Ch. 3 - Closing entries (Learning Objective 4) 5-10 min....Ch. 3 - Prob. 11SE Ch. 3 - Prob. 12SE Ch. 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. 17AE Ch. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 19AE Ch. 3 - Prob. 20AE Ch. 3 - Prob. 21AE Ch. 3 - Prob. 22AE Ch. 3 - Preparing a financial statement (Learning...Ch. 3 - Prob. 24AE Ch. 3 - Prob. 25AE Ch. 3 - Prob. 26AE Ch. 3 - Prob. 27AE Ch. 3 - Prob. 28BE Ch. 3 - Prob. 29BE Ch. 3 - Prob. 30BE Ch. 3 - Analyzing errors (Learning Objective 2) 10-15 min....Ch. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 33BE Ch. 3 - Prob. 34BE Ch. 3 - Prob. 35BE Ch. 3 - Prob. 36BE Ch. 3 - Prob. 37BE Ch. 3 - Prob. 38BE Ch. 3 - Prob. 39BE Ch. 3 - Prob. 40BE Ch. 3 - Preparing closing entries (Learning Objective 4)...Ch. 3 - Problems (Group A) Common adjusting journal...Ch. 3 - Prob. 43AP Ch. 3 - Prob. 44AP Ch. 3 - Prob. 45AP Ch. 3 - Prob. 46AP Ch. 3 - Prob. 47AP Ch. 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. 1CFSAP Ch. 3 - Prob. 1EIA Ch. 3 - Case 2. Brent Robertson and his banker were...Ch. 3 - Prob. 1FA Ch. 3 - Prob. 1IA Ch. 3 - Prob. 1SBA Ch. 3 - Written Communication You have received a letter...Ch. 3 - Journalizing, Posting, Adjusting, Preparing, and...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Solution Summary: The author lists the adjusting entries that are needed at 31 st December. Insurance expense is an expense account which is a component of stockholders' equity.

Concept explainers

Videos

Want to see the full answer?

Chapter 3 Solutions