10th Edition

ISBN: 9781337276337

Author: Porter, Gary A.

Publisher: Cengage Learning,

Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

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Textbook Question

Chapter 4, Problem 4.4.1AAP

Use of Account Balances as a Basis for Annual Adjustments

The following account balances are taken from the records of Laugherty Inc. at December 31, 2017. The Supplies account represents the cost of supplies on hand at the beginning of the year plus all purchases. A physical count on December 31, 2017, shows only $1,520 of supplies on hand. The Deferred Revenue account represents the cash received from a customer on May 1, 2017, for 12 months of service beginning on that date. The Note Payable represents a six-month promissory note signed with a supplier on September 1, 2017. Principal and interest at an annual rate of 10% will be paid on March 1, 2018.

Chapter 4, Problem 4.4.1AAP, Use of Account Balances as a Basis for Annual Adjustments The following account balances are taken

Required

Identify and analyze the adjustments necessary on the books of Laugherty on December 31, 2017. Assume that Laugherty prepares adjustments only once a year, on December 31.

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Chapter 4, Problem 4.3AAP

Chapter 4, Problem 4.4.2AAP

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Chapter 4 Solutions

Using Financial Accounting Information

Ch. 4 - Revenue Recognition The highway department...Ch. 4 - Prob. 4.2.1E Ch. 4 - Prob. 4.2.2E Ch. 4 - Prob. 4.2.3E Ch. 4 - Prob. 4.3E Ch. 4 - Prob. 4.4E Ch. 4 - Prob. 4.5E Ch. 4 - Prob. 4.6.1E Ch. 4 - Prob. 4.6.2E Ch. 4 - Prob. 4.6.3E

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Solution Summary: The author explains that journal entries are the part of basic accounting or primary accounting. They are based on the ledger and trial balance.

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Chapter 4 Solutions