Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
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Textbook Question
Chapter 4, Problem 4.3BPR
Income: $27,350
accounts,
The unadjusted
The data needed to determine >ear-end adjustments are as follows:
(a) Wages accrued but not paid at August 31 are $2,200.
(b)
(c) Laundry supplies on hand at August 31 are $2,000.
(d) Insurance premiums expired during the year are $5,300.
Instructions
1. For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as “Aug. 51 Bal.” In addition, add T accounts for Wages Payable. Depreciation Expense, Laundry Supplies Expense, and Insurance Expense.
2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (1) as needed.
3. Journalize and post the adjusting entries. Identify the adjustments by “Adj.” and the new balances as “Adj. Bal.”
4. Prepare an adjusted trial balance.
5. Prepare an income statement, a statement of stockholders’ equity, and a
6. Journalize and
7. Prepare a post-closing trial balance.
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Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow:
Debits
Credits
Accounts Receivable
$52,310
Equipment
81,000
Accumulated Depreciation - Equipment
$8,060
Prepaid Rent
6,600
Supplies
1,570
Wages Payable
_
Unearned Fees
7,220
Fees Earned
305,490
Wages Expense
103,050
Rent Expense
_
Depreciation Expense
_
Supplies Expense
_
Data needed for year-end adjustments are as follows:
Supplies on hand at November 30, $470.
Depreciation of equipment during year, $780.
Rent expired during year, $4,810.
Wages accrued but not paid at November 30, $1,520.
Unearned fees at November 30, $3,030.
Unbilled fees at November 30, $3,610.
Required:
Question Content Area
1. Journalize the six adjusting entries required at November 30, based on the data presented.
Nov. 30
Supplies Expense
Supplies
30…
On November 1, 2022, Zora Company had the following account balances. The company uses the
perpetual inventory method.
Credit
Debit
$ 9,000 Accumulated Depreciation
Cash
Accounts Receivable 2,240 Equipment
Supplies
Equipment
860 Accounts Payable
25,000
$37,100
Unearned Service Revenue
Salaries and Wages Payable
Owner's Capital
$ 1,000
3,400
4,000
1,700
27,000
$37,100
During November, the following transactions were completed.
Nov. Paid $3,550 for salaries and wages, of which $1,850 is for November and $1,700 is for
8 October.
10 Received $1,900 cash from customers in payment of account. No discount was allowed.
11 Purchased merchandise on account from Dimas Discount Supply for $8,000, terms 2/10,
n/30.
12 Sold merchandise on account for $5,500, terms 2/10, n/30. The cost of the merchandise sold
was $4,000.
15 Received credit from Dimas Discount Supply for merchandise returned $300.
19 Received collections in full, less discounts, from customers billed on sales of $5,500 on
November 12.…
Prepare adjustment entries of followingmCompany A at January 31st.
1. Office supplies having original cost $4,320 were unused till the end of the period. Office supplies having original cost of $22,800 are shown on unadjusted trial balance.
2. Prepaid rent of $36,000 was paid for the months January, February and March.
3. The equipment costing $80,000 has useful life of 5 years and its estimated salvage value is $14,000. Depreciation is provided using the straight line depreciation method.
4. The interest rate on $20,000 note payable is 9%. Accrue the interest for one month.
5. $3,000 worth of service has been provided to the customer who paid advance amount of $4,000.
Chapter 4 Solutions
Corporate Financial Accounting
Ch. 4 - Prob. 1DQCh. 4 - Describe the nature of the assets that compose the...Ch. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Why are closing entries required at the end of an...Ch. 4 - Prob. 6DQCh. 4 - What is the purpose of the post-closing trial...Ch. 4 - Prob. 8DQCh. 4 - Which step of the accounting cycle is optional?Ch. 4 - Prob. 10DQ
Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Statement of stockholders equity Scott Lockhart...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Closing entries After the accounts have been...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Working capital and current ratio Current assets...Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Classifying accounts Balances for each of the...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Income statement The following account balances...Ch. 4 - Income statement; net loss The following revenue...Ch. 4 - Income statement FedEx Corporation (FDX) had the...Ch. 4 - Statement of stockholders equity Climate Control...Ch. 4 - Statement of stockholders equity; net loss...Ch. 4 - Classifying assets Identify each of the following...Ch. 4 - Balance sheet classification At the balance sheet...Ch. 4 - Balance sheet Dynamic Weight Loss Co. offers...Ch. 4 - Balance sheet The following balance sheet was...Ch. 4 - Identifying accounts to be closed From the list...Ch. 4 - Closing entries with net income Automation...Ch. 4 - Closing entries with net loss Summit Services Co....Ch. 4 - Identifying permanent accounts Which of the...Ch. 4 - Post-closing trial balance An accountant prepared...Ch. 4 - Steps in the accounting cycle Rearrange the...Ch. 4 - Appendix 1 Completing an end-of-period spreadsheet...Ch. 4 - Appendix 1 Adjustment data on an end-of-period...Ch. 4 - Prob. 4.22EXCh. 4 - Appendix 1 Financial statements from an...Ch. 4 - Appendix 1 Adjusting entries from an end-of-period...Ch. 4 - Appendix 1 Closing entries from an end-of-period...Ch. 4 - Appendix 2 Reversing entry The following adjusting...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Financial statements and closing entries 8.Net...Ch. 4 - Financial statements and closing entries Foxy...Ch. 4 - accounts, adjusting entries, financial statements,...Ch. 4 - Net Income: 51,150 Ledger accounts, adjusting...Ch. 4 - Net income: 43,475 Complete accounting cycle For...Ch. 4 - Financial statements and closing entries Last...Ch. 4 - Financial statements and closing entries The...Ch. 4 - Income: 27,350 accounts, adjusting entries,...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Net income: 53,77S Complete accounting cycle For...Ch. 4 - Comprehensive Problem 1 8 Net income. 31,425...Ch. 4 - Working Capital and Current Ratio Analyze and...Ch. 4 - Analyze and compare Zynga, Electronic Arts, and...Ch. 4 - Analyze and compare Foot Locker and The Finish...Ch. 4 - Analyze Under Armour The following year-end data...Ch. 4 - Prob. 4.5MADCh. 4 - Analyze and compare Alphabet (Google) and...Ch. 4 - Prob. 4.1TIFCh. 4 - Prob. 4.3TIFCh. 4 - Financial statements The following is an excerpt...Ch. 4 - Prob. 4.5TIF
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