Horngren's Financial & Managerial Accounting (5th Edition)

5th Edition

ISBN: 9780133866292

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Textbook Question

Chapter 4, Problem 4.36BP

Preparing a worksheet, financial statements, and closing entries

The unadjusted trial balance of Farmer Investment Advisers at December 31, 2016, follows:

Chapter 4, Problem 4.36BP, Preparing a worksheet, financial statements, and closing entries The unadjusted trial balance of

Adjustment data at December 31, 2016:

a. Unearned Revenue earned during the year, $700.

b. Office Supplies on hand, $2,000.

c. Depreciation for the year, $2,000.

d. Accrued Salaries Expense, $5, 000.

e. Accrued Service Revenue, $6,000.

Requirements

1. Prepare a worksheet for Farmer Investment Advisers at December 31, 2016.

2. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in account format.

3. Prepare closing entries.

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.

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Chapter 4, Problem 4.35BP

Chapter 4, Problem 4.37BP

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Reconstruct an adjusted trial balance for the company, from the information presented in the specified financial statement. (Amounts in millions) 2020 ASSETS Current assets: Cash and cash equivalents $ 9,465 $ Receivables, net 6,284 Inventories 44,435 Prepaid expenses and other 1,622 Total current assets 61,806 Property and equipment, net 105,208 Operating lease right-of-use assets 17,424 — Finance lease right-of-use assets, net 4,417 — Property under capital lease and financing obligations, net — Goodwill 31,073 Other long-term assets 16,567 Total assets $ 236,495 LIABILITIES AND EQUITY…

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Comprehensive On November 30, 2019. Davis Company had the following account balance. During the month of December, Davis entered into the following transactions: Required: a.Prepare generaljournal entries to record the preceding transactions. b.Post to general ledger T accoun c.Prepare a year-end trial balance on a worksheet and complete theworksheet using the following information: (a) accrued salaries at year-end total s1,200; (b) for simplicity, the building and equipment are being depreciated using the straight-line method over an estimated life of 20 yean with no residual value;(c) supplies on hand at the end of the year total $630; (d) bad debts expense for the year totals $830; and (e)the income tax rate is 30%; income taxes are payable in the first quarter of d.Prepare the companis financial statements for 2019. e.Prepare the 2019 (a) adjusting and (b) closing entries in the general journal.

Chapter 4 Solutions

Horngren's Financial & Managerial Accounting (5th Edition)

Ch. 4 - Assets are listed on the balance sheet in the...Ch. 4 - Which of the following accounts would be included...Ch. 4 - Which situation indicates a net loss within the...Ch. 4 - Which of the following accounts is not closed? a....Ch. 4 - What do closing entries accomplish? a. Zero out...Ch. 4 - Which of the following is not a closing entry?Ch. 4 - Which of the following accounts may appear on a...Ch. 4 - Which of the following steps of the accounting...Ch. 4 - Clean Water Softener Systems has Cash of 600,...Ch. 4 - Which of the following statements concerning...

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Solution Summary: The author explains the use of a worksheet, which is optional for any organization, and provides important financial information to internal and external users.

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