Prepaid (deferred) expenses adjustments
For each separate case below, follow the three-step process for adjusting the supplies asset account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step : Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other
a. Supplies. The Supplies account has a $300 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows Silo of supplies remaining.
b. Supplies. The Supplies account has an $8oo debit balance to start the year. Supplies of $2,100 were purchased during the current year and debited to the Supplies account. A December31 physical count shows $650 of supplies remaining.
C. Supplies. The Supplies account has a $4,000 debit balance to start the year. During the current year, supplies of $9,400 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $2,660.

Want to see the full answer?
Check out a sample textbook solution
Chapter 3 Solutions
FUND ACCOUNTING PRINCIPLES BUNDLE
- I am trying to find the accurate solution to this general accounting problem with the correct explanation.arrow_forwardThe balanced scorecard approach includes _.arrow_forwardMichiko Industries uses flexible budgets. At a normal capacity of 25,000 units, the budgeted manufacturing overhead is $75,000 variable and $300,000 fixed. If Michiko Industries had actual overhead costs of $385,500 for 27,000 units produced, what is the difference between actual and budgeted costs?arrow_forward
- Please provide the correct answer to this general accounting problem using valid calculations.arrow_forwardPlease provide the accurate answer to this general accounting problem using valid techniques.arrow_forwardNaiya Enterprises reported the following results from last year's operations: Sales $2,250,000 Variable expenses $900,000 Contribution margin $1,350,000 Fixed expenses $850,000 Net operating income $500,000 Average operating assets $1,600,000 This year, the company has a $320,000 investment opportunity with the following cost and revenue characteristics: Sales $480.000 Contribution margin ratio 55% of sales Fixed expenses $160,000 The company's minimum required rate of return is 11%. What is the margin % related to this year's investment opportunity?arrow_forward
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,


