To determine Prepare Adjusting entries for Incorporation PPSS on December 31 of the current year. Explanation Adjusting entries: Adjusting entries are the journal entries which are recorded at the end of the accounting period to correct or adjust the revenue and expense accounts, to concede with the accrual principle of accounting. a. Wages expense is an expense account which is a component of stockholders equity. There is an increase in the expense which decreases the stock holders’ equity. Hence, debit wages expense with $7,500. Wages payable is a liability. There is an increase in the liability. Hence, credit wages payable with $7,500 b. Unearned revenue is a liability. There is a decrease in the liability. Hence, debit unearned revenue with $4,000. Cleaning service revenue is revenue which is a component of stockholders’ equity. There is an increase in the revenue account which increases the stockholders’ equity. Hence, credit cleaning service revenue with $4,000. c. Utilities expense is the expense account which is a component of stockholders’ equity. There is an increase in the expense which decreases the stockholders’ equity. Hence, debit utilities expense with $520. Utilities payable is a liability. There is an increase in liability. Hence, credit utilities payable with $520. d. Interest expense is an expense account which is a component of stockholders’ equity. There is an increase in the expense account which decreases the stockholders’ equity. Hence, debit interest expense with $2,000. Interest payable is a liability. There is an increase in the liability. Hence, credit interest payable with $2,000. e. Accounts receivable is an asset...

10th Edition

ISBN: 9781264094639

Author: Libby

Publisher: MCG

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Chapter 4, Problem 1CON

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Prepare Adjusting entries for Incorporation PPSS on December 31 of the current year.

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Chapter 4 Solutions

FINANCIAL ACCOUNTING W/CONNECT PKG

Ch. 4 - Prob. 1Q Ch. 4 - 2. List the four types of adjusting entries, and...Ch. 4 - 3. What is a contra-asset? Give an example of...Ch. 4 - Prob. 4Q Ch. 4 - 5. What is the equation for each of the following...Ch. 4 - Prob. 6Q Ch. 4 - 7. How is earnings per share computed and...Ch. 4 - 8. How is the total asset turnover ratio computed...Ch. 4 - 9. What are the purposes for closing the books? Ch. 4 - 10. Differentiate among (a) permanent, (b)...

Ch. 4 - 11. Explain why the income statement accounts are...Ch. 4 - 12. What is a post-closing trial balance? Is it a...Ch. 4 - 1. Which of the following accounts would not...Ch. 4 - 2. Which account is least likely to appear in an...Ch. 4 - On October 1, 2020, the $12,000 premium on a...Ch. 4 - On June 1, 2019, Oakcrest Company signed a...Ch. 4 - 5. Failure to make an adjusting entry to recognize...Ch. 4 - 6. An adjusted trial balance Shows the ending...Ch. 4 - 7. JJ Company owns a building. Which of the...Ch. 4 - 8. At the beginning of the current year. Donna...Ch. 4 - 9. According to GAAP, what ratio must be reported...Ch. 4 - 10. If a company is successful in acquiring...Ch. 4 - Preparing a Trial Balance Hagadorn Company has the...Ch. 4 - Matching Definitions with Terms Match each...Ch. 4 - Matching Definitions with Terms Match each...Ch. 4 - In each of the following transactions (a) through...Ch. 4 - For each of the transactions in M4-4, indicate the...Ch. 4 - In each of the following transactions (a) through...Ch. 4 - For each of the transactions in M4-6, indicate the...Ch. 4 - Prob. 8ME Ch. 4 - Prob. 9ME Ch. 4 - Prob. 10ME Ch. 4 - Indicate how the adjustments below affect the...Ch. 4 - Prob. 12ME Ch. 4 - Refer to the adjusted trial balance for Catena’s...Ch. 4 - Prob. 1E Ch. 4 - Identifying Adjusting Entries from Unadjusted...Ch. 4 - Prob. 3E Ch. 4 - Prob. 4E Ch. 4 - A+T Williamson Company is making adjusting entries...Ch. 4 - Gauge Construction Company is making adjusting...Ch. 4 - Refer to E4-3 and E4-5. Required: For each of the...Ch. 4 - Trotman’s Variety Store is completing the...Ch. 4 - Johnson’s Boat Yard, Inc., repairs, stores, and...Ch. 4 - Refer to E4-8. Required: For each of the...Ch. 4 - Refer to E4-9. Required: For each of the...Ch. 4 - Recording Transactions Including Adjusting and...Ch. 4 - Gordon Company started operations on January 1 of...Ch. 4 - Note 1: On April 1 of the current year, Warren...Ch. 4 - Campbell Soup Company is a manufacturer and...Ch. 4 - Quinlan-Cohen, Inc., publishers of movie and song...Ch. 4 - On December 31, Fawzi Company prepared an income...Ch. 4 - Recording the Effects of Adjusting Entries and...Ch. 4 - Prob. 19E Ch. 4 - Green Valley Company prepared the following trial...Ch. 4 - Prob. 21E Ch. 4 - Refer to E4-20. Required: What are the purposes...Ch. 4 - Prob. 1P Ch. 4 - All of the current year’s entries for Zimmerman...Ch. 4 - S. Miller Towing Company provides hauling and...Ch. 4 - Refer to the information regarding Zimmerman...Ch. 4 - Refer to the information regarding S. Miller...Ch. 4 - Ramirez Company is completing the information...Ch. 4 - Prob. 7P Ch. 4 - Prob. 1AP Ch. 4 - Hannah Company’s annual accounting year ends on...Ch. 4 - Prob. 3AP Ch. 4 - Refer to the information regarding Hannah Company...Ch. 4 - Refer to the information regarding Bill’s Catering...Ch. 4 - Prob. 6AP Ch. 4 - Prob. 7AP Ch. 4 - Adjusting Accounts at Year-End (the Accounting...Ch. 4 - Prob. 1COMP Ch. 4 - Prob. 2COMP Ch. 4 - Refer to the financial statements of American...Ch. 4 - Refer to the financial statements of Express, Inc....Ch. 4 - Prob. 3CP Ch. 4 - Prob. 4CP Ch. 4 - Prob. 5CP Ch. 4 - Prob. 6CP Ch. 4 - Prob. 7CP Ch. 4 - Prob. 8CP Ch. 4 - You are the regional sales manager for Lauren...

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