Problem 3-64B Identification and Preparation of Entries Morgan Dance Inc. provides ballet, tap, and jazz dancing instruction to promising young dancers. Morgan began operations in January 2020 and is preparing its monthly financial statements. The following items describe Morgan’s transactions in January 2020: Morgan requires that dance instruction be paid in advance-either monthly or quarterly. On January 1, Morgan received $4,125 for dance instruction to be provided during 2020. On January 31, Morgan noted that $825 of dance instruction revenue is still unearned. On January 20, Morgan’s hourly employees were paid $1,415 for work performed in January. Morgan’s insurance policy requires semiannual premium payments. Morgan paid the $3,000 insurance policy which covered the first half of 2020 in December 2019. When there are no scheduled dance classes, Morgan rents its dance studio for birthday parties for $100 per two-hour party. Four birthday parties were held during January. Morgan will not bill the parents until February. Morgan purchased $350 of office supplies on January 10. On January 31, Morgan determined that Office supplies of $770 were unused. Morgan received a January utility bill for S770. The bill will not be paid until it is due in February. Required: Identify whether each transaction is an adjusting entry or a regular journal entry . If the entry is an adjusting entry, identify it as an accrued revenue, accrued expense, deferred revenue, or deferred expense. Prepare the entries necessary to record the transactions above and on the previous page.

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Answer 1

Textbook Question

Chapter 3, Problem 64BPSB

Problem 3-64B Identification and Preparation of Entries

Morgan Dance Inc. provides ballet, tap, and jazz dancing instruction to promising young dancers. Morgan began operations in January 2020 and is preparing its monthly financial statements. The following items describe Morgan’s transactions in January 2020:

Morgan requires that dance instruction be paid in advance-either monthly or quarterly.
On January 1, Morgan received $4,125 for dance instruction to be provided during 2020.
On January 31, Morgan noted that $825 of dance instruction revenue is still unearned.
On January 20, Morgan’s hourly employees were paid $1,415 for work performed in January.
Morgan’s insurance policy requires semiannual premium payments. Morgan paid the $3,000 insurance policy which covered the first half of 2020 in December 2019.
When there are no scheduled dance classes, Morgan rents its dance studio for birthday parties for $100 per two-hour party. Four birthday parties were held during January. Morgan will not bill the parents until February.
Morgan purchased $350 of office supplies on January 10.
On January 31, Morgan determined that Office supplies of $770 were unused.
Morgan received a January utility bill for S770. The bill will not be paid until it is due in February.

Required:

Identify whether each transaction is an adjusting entry or a regular journal entry. If the entry is an adjusting entry, identify it as an accrued revenue, accrued expense, deferred revenue, or deferred expense.
Prepare the entries necessary to record the transactions above and on the previous page.

Expert Solution

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-1:

To Indicate:

If the given transactions is regular or adjusting journal entry and type of adjusting journal entry, if any.

Answer to Problem 64BPSB

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Expert Solution

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-2:

To Prepare The journal entries for the given transactions.

Answer to Problem 64BPSB

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue		$ 3,300

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue		$ 400

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350

g.	Jan. 31	Office Supplies Expense	$ 265
		Office Supplies		$ 265

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125
		(Being amount received in advance)

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue (4125-825)		$ 3,300
		(Being revenue accrued)

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415
		(Being expense paid in cash)

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000
		(Being amount paid in advance )

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue (100*4)		$ 400
		(Being revenue accrued)

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350
		(Being supplies purchased )

g.	Jan. 31	Office Supplies Expense (350-85)	$ 265
		Office Supplies		$ 265
		(Being expense accrued)

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770
		(Being expense accrued)

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Answer 2

Textbook Question

Chapter 3, Problem 64BPSB

Problem 3-64B Identification and Preparation of Entries

Morgan Dance Inc. provides ballet, tap, and jazz dancing instruction to promising young dancers. Morgan began operations in January 2020 and is preparing its monthly financial statements. The following items describe Morgan’s transactions in January 2020:

Morgan requires that dance instruction be paid in advance-either monthly or quarterly.
On January 1, Morgan received $4,125 for dance instruction to be provided during 2020.
On January 31, Morgan noted that $825 of dance instruction revenue is still unearned.
On January 20, Morgan’s hourly employees were paid $1,415 for work performed in January.
Morgan’s insurance policy requires semiannual premium payments. Morgan paid the $3,000 insurance policy which covered the first half of 2020 in December 2019.
When there are no scheduled dance classes, Morgan rents its dance studio for birthday parties for $100 per two-hour party. Four birthday parties were held during January. Morgan will not bill the parents until February.
Morgan purchased $350 of office supplies on January 10.
On January 31, Morgan determined that Office supplies of $770 were unused.
Morgan received a January utility bill for S770. The bill will not be paid until it is due in February.

Required:

Identify whether each transaction is an adjusting entry or a regular journal entry. If the entry is an adjusting entry, identify it as an accrued revenue, accrued expense, deferred revenue, or deferred expense.
Prepare the entries necessary to record the transactions above and on the previous page.

Expert Solution

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-1:

To Indicate:

If the given transactions is regular or adjusting journal entry and type of adjusting journal entry, if any.

Answer to Problem 64BPSB

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Expert Solution

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-2:

To Prepare The journal entries for the given transactions.

Answer to Problem 64BPSB

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue		$ 3,300

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue		$ 400

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350

g.	Jan. 31	Office Supplies Expense	$ 265
		Office Supplies		$ 265

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125
		(Being amount received in advance)

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue (4125-825)		$ 3,300
		(Being revenue accrued)

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415
		(Being expense paid in cash)

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000
		(Being amount paid in advance )

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue (100*4)		$ 400
		(Being revenue accrued)

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350
		(Being supplies purchased )

g.	Jan. 31	Office Supplies Expense (350-85)	$ 265
		Office Supplies		$ 265
		(Being expense accrued)

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770
		(Being expense accrued)

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Answer 3

Textbook Question

Chapter 3, Problem 64BPSB

Problem 3-64B Identification and Preparation of Entries

Morgan Dance Inc. provides ballet, tap, and jazz dancing instruction to promising young dancers. Morgan began operations in January 2020 and is preparing its monthly financial statements. The following items describe Morgan’s transactions in January 2020:

Morgan requires that dance instruction be paid in advance-either monthly or quarterly.
On January 1, Morgan received $4,125 for dance instruction to be provided during 2020.
On January 31, Morgan noted that $825 of dance instruction revenue is still unearned.
On January 20, Morgan’s hourly employees were paid $1,415 for work performed in January.
Morgan’s insurance policy requires semiannual premium payments. Morgan paid the $3,000 insurance policy which covered the first half of 2020 in December 2019.
When there are no scheduled dance classes, Morgan rents its dance studio for birthday parties for $100 per two-hour party. Four birthday parties were held during January. Morgan will not bill the parents until February.
Morgan purchased $350 of office supplies on January 10.
On January 31, Morgan determined that Office supplies of $770 were unused.
Morgan received a January utility bill for S770. The bill will not be paid until it is due in February.

Required:

Identify whether each transaction is an adjusting entry or a regular journal entry. If the entry is an adjusting entry, identify it as an accrued revenue, accrued expense, deferred revenue, or deferred expense.
Prepare the entries necessary to record the transactions above and on the previous page.

Expert Solution

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-1:

To Indicate:

If the given transactions is regular or adjusting journal entry and type of adjusting journal entry, if any.

Answer to Problem 64BPSB

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Expert Solution

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-2:

To Prepare The journal entries for the given transactions.

Answer to Problem 64BPSB

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue		$ 3,300

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue		$ 400

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350

g.	Jan. 31	Office Supplies Expense	$ 265
		Office Supplies		$ 265

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125
		(Being amount received in advance)

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue (4125-825)		$ 3,300
		(Being revenue accrued)

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415
		(Being expense paid in cash)

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000
		(Being amount paid in advance )

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue (100*4)		$ 400
		(Being revenue accrued)

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350
		(Being supplies purchased )

g.	Jan. 31	Office Supplies Expense (350-85)	$ 265
		Office Supplies		$ 265
		(Being expense accrued)

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770
		(Being expense accrued)

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Answer 4

Textbook Question

Chapter 3, Problem 64BPSB

Problem 3-64B Identification and Preparation of Entries

Morgan Dance Inc. provides ballet, tap, and jazz dancing instruction to promising young dancers. Morgan began operations in January 2020 and is preparing its monthly financial statements. The following items describe Morgan’s transactions in January 2020:

Morgan requires that dance instruction be paid in advance-either monthly or quarterly.
On January 1, Morgan received $4,125 for dance instruction to be provided during 2020.
On January 31, Morgan noted that $825 of dance instruction revenue is still unearned.
On January 20, Morgan’s hourly employees were paid $1,415 for work performed in January.
Morgan’s insurance policy requires semiannual premium payments. Morgan paid the $3,000 insurance policy which covered the first half of 2020 in December 2019.
When there are no scheduled dance classes, Morgan rents its dance studio for birthday parties for $100 per two-hour party. Four birthday parties were held during January. Morgan will not bill the parents until February.
Morgan purchased $350 of office supplies on January 10.
On January 31, Morgan determined that Office supplies of $770 were unused.
Morgan received a January utility bill for S770. The bill will not be paid until it is due in February.

Required:

Identify whether each transaction is an adjusting entry or a regular journal entry. If the entry is an adjusting entry, identify it as an accrued revenue, accrued expense, deferred revenue, or deferred expense.
Prepare the entries necessary to record the transactions above and on the previous page.

Expert Solution

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-1:

To Indicate:

If the given transactions is regular or adjusting journal entry and type of adjusting journal entry, if any.

Answer to Problem 64BPSB

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Expert Solution

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-2:

To Prepare The journal entries for the given transactions.

Answer to Problem 64BPSB

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue		$ 3,300

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue		$ 400

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350

g.	Jan. 31	Office Supplies Expense	$ 265
		Office Supplies		$ 265

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125
		(Being amount received in advance)

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue (4125-825)		$ 3,300
		(Being revenue accrued)

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415
		(Being expense paid in cash)

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000
		(Being amount paid in advance )

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue (100*4)		$ 400
		(Being revenue accrued)

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350
		(Being supplies purchased )

g.	Jan. 31	Office Supplies Expense (350-85)	$ 265
		Office Supplies		$ 265
		(Being expense accrued)

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770
		(Being expense accrued)

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-1:

To Indicate:

If the given transactions is regular or adjusting journal entry and type of adjusting journal entry, if any.

Answer to Problem 64BPSB

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Expert Solution

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-2:

To Prepare The journal entries for the given transactions.

Answer to Problem 64BPSB

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue		$ 3,300

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue		$ 400

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350

g.	Jan. 31	Office Supplies Expense	$ 265
		Office Supplies		$ 265

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125
		(Being amount received in advance)

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue (4125-825)		$ 3,300
		(Being revenue accrued)

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415
		(Being expense paid in cash)

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000
		(Being amount paid in advance )

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue (100*4)		$ 400
		(Being revenue accrued)

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350
		(Being supplies purchased )

g.	Jan. 31	Office Supplies Expense (350-85)	$ 265
		Office Supplies		$ 265
		(Being expense accrued)

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770
		(Being expense accrued)

Answer 8

Expert Solution

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-1:

To Indicate:

If the given transactions is regular or adjusting journal entry and type of adjusting journal entry, if any.

Answer to Problem 64BPSB

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-1:

To Indicate:

If the given transactions is regular or adjusting journal entry and type of adjusting journal entry, if any.

Answer 13

Answer to Problem 64BPSB

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Answer 14

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The given transactions are regular or adjusting journal entry and type of adjusting journal entry, if any as follows:

Morgan Dance Inc.
Transaction	Type of entry	Type of adjusting entry
a.	Regular Journal Entry	NA
b.	Adjusting entry	Accrued Revenue
c.	Regular Journal Entry	NA
d.	Regular Journal Entry	NA
e.	Adjusting entry	Accrued Revenue
f.	Regular Journal Entry	NA
g.	Adjusting entry	Accrued Expense
h.	Adjusting entry	Accrued Expense

Answer 15

Expert Solution

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-2:

To Prepare The journal entries for the given transactions.

Answer to Problem 64BPSB

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue		$ 3,300

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue		$ 400

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350

g.	Jan. 31	Office Supplies Expense	$ 265
		Office Supplies		$ 265

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125
		(Being amount received in advance)

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue (4125-825)		$ 3,300
		(Being revenue accrued)

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415
		(Being expense paid in cash)

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000
		(Being amount paid in advance )

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue (100*4)		$ 400
		(Being revenue accrued)

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350
		(Being supplies purchased )

g.	Jan. 31	Office Supplies Expense (350-85)	$ 265
		Office Supplies		$ 265
		(Being expense accrued)

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770
		(Being expense accrued)

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

To determine

Concept Introduction:

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period. For example: Recording the depreciation expense on depreciable assets at the end of each accounting year.

The business activity for each type of adjusting entry is explained as follows:

Accrued revenue: The adjusting entry for Accrued revenue is prepared to record the revenue earned during the period.
Accrued Expense: The adjusting entry for Accrued expense is prepared to record the expenses incurred during the period.
Deferred Revenue: The adjusting entry for Deferred revenue is prepared to defer the revenue that belong to next period.
Deferred expenses: The adjusting entry for Deferred expense is prepared to defer the expense that belong to next period.
Depreciation: The adjusting entry for depreciation expense is prepared to record the depreciation expense that belong to current period.

Requirement-2:

To Prepare The journal entries for the given transactions.

Answer 20

Answer to Problem 64BPSB

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue		$ 3,300

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue		$ 400

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350

g.	Jan. 31	Office Supplies Expense	$ 265
		Office Supplies		$ 265

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770

Answer 21

Explanation of Solution

Adjusting entries are required to adjust the accounts according to the accrual basis of accounting at the end of the every accounting period.

The journal entries for the given transactions are as follows:

Morgan Dance Inc.
Adjusting entries

#	Date	Account Title	Debit	Credit

a	Jan. 1	Cash	$ 4,125
		Unearned Service Revenue		$ 4,125
		(Being amount received in advance)

b	Jan. 31	Unearned Service Revenue	$ 3,300
		Service Revenue (4125-825)		$ 3,300
		(Being revenue accrued)

c.	Jan. 20	Salaries Expense	$ 1,415
		Cash		$ 1,415
		(Being expense paid in cash)

d.		Prepaid Insurance	$ 3,000
		Cash		$ 3,000
		(Being amount paid in advance )

e.	Jan. 31	Accounts Receivable	$ 400
		Service Revenue (100*4)		$ 400
		(Being revenue accrued)

f.	Jan. 10	Office Supplies	$ 350
		Cash		$ 350
		(Being supplies purchased )

g.	Jan. 31	Office Supplies Expense (350-85)	$ 265
		Office Supplies		$ 265
		(Being expense accrued)

h.	Jan. 31	Utilities Expense	$ 770
		Utilities Payable		$ 770
		(Being expense accrued)

Answer 22

Ch. 3 - How does accural-basis net income differ from...Ch. 3 - Explain when revenue may be recognized and give an...Ch. 3 - What happens during the accounting cycle?Ch. 3 - Prob. 4DQ Ch. 3 - Why are adjusting entries needed?Ch. 3 - What accounting concepts require that adjusting...Ch. 3 - Prob. 7DQ Ch. 3 - Prob. 8DQ Ch. 3 - What is the difference between an accural and a...Ch. 3 - Prob. 10DQ

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Answer to Problem 64BPSB

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Answer to Problem 64BPSB

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Chapter 3 Solutions