Fundamental Accounting Principles
24th Edition
ISBN: 9781259916960
Author: Wild, John J., Shaw, Ken W.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 3, Problem 4BPSB
Prolme 3-4B Interpreting unadjusted and adjusted trial balances, and preparing financial statements P1 P2 P3 P4 P5 P6
A six-column table for JKL Company follows. The first two columns contain the unadjusted
Unadjusted Trial Balance Adjustments Unadjusted Trial Balance Cash $45.000 $ 45,000Accounts receivable 60,000 66.660 Office supplies 40.000 17.000 Prepaid insurance 8,200 3.600 Office equipment 120,000 120,000Accumulated depreciation — Office equip $ 20.000 $ 30.000 Accounts payable 26.000 32,000 Interest payable 0 2,150 Salaries payable 0 16,000 Unearned consulting fees 40.000 27,800 Long-term notes payable 75.000 75,000 Z.Yan, Capital 80.200 80,200 Z. Van. Withdrawals 20,000 20.000 Consulting fees earned 234.600 253,460 Depredation expense— Office equip 0 10,000 Salaries expense 112.000 128.000 Interest expense 8.600 10.750 Insurance expense 0 4,600 Rent expense 20.000 20,000 Office supplies expense 0 23.000 Advertising expense 42,000 48.000 Totals $475,800 $475,800 $516,610 $516,610 Page 122
Required
Analysis Component
1. Analyze the differences between the unadjusted and adjusted trial balances to determine the eight adjustments that likely were made. Show the results of your analysis by inserting these adjustment amounts in the table's two middle columns. Label each adjustment with a letter a through h and provide a short description of each.
Preparation Component
2. Use the information in the adjusted trial balance to prepare the company's (a) income statement and its statement of owner's equity for the year ended July 31 [Note: J. Logan, Capital at July 31 of the peior year was $40,000, and the current-year withdrawals were $20,000] and (b) the
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Vd
Sub: accounting
Follow-up for Q1 Submission
The schedule of accounts receivable by age, shown below, was prepared for the Lucero Company at the end of the firm's fiscal year
on December 31, 20X1:
LUCERO COMPANY
Schedule of Accounts Receivable by Age
December 31, 20X1
Past Due-Days
31-60
Account
1-30
Balance
660.00 $
Current
Over 60
Adson, Paul
Allen, Alfred
Ash, John
$
620.00
326.00
350.00
106.00
351.00
78.00
47,009.00
660.00
$ 510.00 $ 110.00
$ 326.00
Вае, John
Barker, Kelsie
Bentley, Maggie
Blair, Herman
(All other accts.)
350.00
75.00
125.00
31.00
155.00
71.00
55.00
23.00
38,790 5,304.00 1,764.00 1,151.00
Totals
$49,500.00 $40,000.00 $6,000.00 $2,000.00 $1,500.00
2. As of December 31, 20X1, there is a credit balance of $118 in Allowance for Doubtful Accounts. Compute the amount of the
adjustment for uncollectible accounts expense that must be made as part of the adjusting entries.
3. Prepare a journal entry to record the adjustment for the estimated losses. Use Uncollectible Accounts Expense and…
16
Holloway Company started operations on January 1, Year 1. During Year 1, Holloway earned $4,700 of service revenue and collected
$3,995 cash from accounts receivable.
Required:
Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in a horizontal financial
statements model before satisfying the requirements.)
Note: Enter any decreases to account balances with a minus sign.
Event
Eamed revenue
Collected accounts receivable
Ending balance
HOLLOWAY COMPANY
Effect of Events on the Year 1 Horizontal Financial Statements
Assets
Accounts receivable
Cash
Net income
+
✦
Accounts
Receivable
W
B
Liabilities
Stockholders' Equity
Common
Stock
a. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet.
b. The amount of net income that would be reported on the Year 1 income statement.
+
Retained
Earnings
Chapter 3 Solutions
Fundamental Accounting Principles
Ch. 3 - Prob. 1DQCh. 3 - Why is the accrual basis of accounting generally...Ch. 3 - Prob. 3DQCh. 3 - What is a prepaid expense and where is it reported...Ch. 3 - What type of assets requires adjusting entries to...Ch. 3 - 6. What contra account is used when recording and...Ch. 3 - What is an accrued revenue? Give an example..Ch. 3 - 8. If a company initially records prepaid expenses...Ch. 3 - Review the balance sheet of Apple in Appendix À....Ch. 3 - Prob. 10DQ
Ch. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Periodic reporting C1 Choose from the following...Ch. 3 - Prob. 2QSCh. 3 - Identifying accounting adjustments Classify the...Ch. 3 - Concepts 0f adjusting entries During the year, a...Ch. 3 - Prepaid (deferred) expenses adjustments Pl For...Ch. 3 - Prepaid (deferred) expenses adjustments For each...Ch. 3 - Prob. 7QSCh. 3 - Accumulated depreciation adjustments Pl For each...Ch. 3 - Adjusting for depreciation P1 For each separate...Ch. 3 - Unearned (deferred) revenues adjustments For each...Ch. 3 - Adjusting for unearned (deferred) revenues P2 For...Ch. 3 - Accrued expenses adjustments Pl For each separate...Ch. 3 - Prob. 13QSCh. 3 - Accrued revenues adjustments P4 For each separate...Ch. 3 - Recording and analysing adjusting entries A1...Ch. 3 - QS3-16
Determining effects of adjusting...Ch. 3 - Preparing an adjusted trial balance P5 Following...Ch. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Preparing adjusting entries P4 Garcia Company had...Ch. 3 - Preparing adjusting entries P4 Cal Consulting...Ch. 3 - Prob. 1ECh. 3 - Exercise 3.2 Classifying adjusting entries C3 In...Ch. 3 - Exercise 3-3 Adjusting and paying accrued wages P3...Ch. 3 - Prob. 4ECh. 3 - Exercise 3-5 Adjusting and paying accrued expenses...Ch. 3 - Exercise 3-6 Preparing adjusting entries P1 P2 P3...Ch. 3 - Exercise 3-7 Preparing adjusting entries P1 P3 P4...Ch. 3 - Exercise 3-8 Analyzing and preparing adjusting...Ch. 3 - Prob. 9ECh. 3 - Preparing financial statements from a trial...Ch. 3 - Prob. 11ECh. 3 - Exercise 3-11 Adjusting for prepaid recorded as...Ch. 3 - Prob. 13ECh. 3 - Exercise 3-14 Preparing adjusting entries P1 P2 P3...Ch. 3 - Problem 3-1A Identifying adjusting entries with...Ch. 3 - Problem 3-2B Preparing adjusting and subsequent...Ch. 3 - Problem 3-3A Preparing adjusting entries, adjusted...Ch. 3 - Problem 3-4A Interpreting unadjusted and adjusted...Ch. 3 - Problem 3-5A Preparing financial statements from...Ch. 3 - Problem 3-6A
Recording prepaid expenses and...Ch. 3 - Prob. 1BPSBCh. 3 - Problem 3-2B Preparing adjusting and subsequent...Ch. 3 - Problem 3-3B Preparing adjusting entries, adjusted...Ch. 3 - Prolme 3-4B Interpreting unadjusted and adjusted...Ch. 3 - Problem 3-5B Preparing financial statements from...Ch. 3 - Problem 3-6B Recording prepaid expenses and...Ch. 3 - Prob. 3SPCh. 3 - Prob. 1GLPCh. 3 - Using transactions from the following assignments,...Ch. 3 - Using transactions from the following assignments,...Ch. 3 - Prob. 4GLPCh. 3 - Prob. 5GLPCh. 3 - Prob. 1AACh. 3 - Key figures for the recent two years of both Apple...Ch. 3 - Key comparative figures for Samsung. Apple, and...Ch. 3 - Prob. 1BTNCh. 3 - Prob. 2BTNCh. 3 - Access EDGAR online (SEC.gov) and locate the...Ch. 3 - Prob. 4BTNCh. 3 - BTN 3-5 Access EDGAR online (SEC.gov) and locate...Ch. 3 - Prob. 6BTN
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