Fundamentals of Financial Accounting
5th Edition
ISBN: 9780078025914
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 4, Problem 4.7E
To determine
To record: The
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Preparing Adjusting Entries
The Sang Tae Company presented the following information pertaining to accounts that will need
adjustments for its November 30, 2019 year-end financial statements.
On Oct. 1,2019 Sang Tae paid P10, 800 for 6 month's insurance premiums
2. The balance in the leger account Office Supplies amounted to P32,000. A count of the supplies on
November 30, 2019 totaled P12,800.
1.
3. Sang Tae received P22,800 on November 1, 2019 from a customer for services to be rendered during
the months of November, December, January and February 2020.
4. Sang Tae acquired Office Equipment costing P352,800 on April 1, 2019, the equipment is expected to
last 5 years after which it will be worthless. The scrap value is 10,500.
5. Assume that November 30, 2019 is a Friday and that Sang Tae pays its employees a total of P87,500 on
Saturday.
Requirements:
1. Prepare the adjusting entries as of November 30,2019
2. Prepare ihe Dec. 1, 2019 entry to record the paymeni of the salaries.
43
The balance in the Prepaid Insurance account before adjustment at the end of the year is P7,200, which represents twelve months’ Insurance purchased on December 1. The adjusting entry required on Dec. 31, 2018 is a. debit Prepaid Insurance, P7,200; credit Insurance Expense, P7,200 b. debit Insurance Expense, P600; credit Insurance Payable, P600 c. debit Insurance Expense, P6,600; credit Prepaid Insurance, P6,600 d. debit Prepaid Insurance, P600; credit Insurance Expense, P600 e. debit, Insurance Expense, P600; credit Prepaid Insurance, P600
View Policies
Current Attempt in Progress
Pina Colada Corp. purchased a 12-month insurance policy on March 1, 2017 for $5880. At March 31, 2017, the adjusting journal entry
to record expiration of this asset will include:
O a debit to Prepaid Insurance and a credit to Insurance Expense for $588.
O a debit to Insurance Expense and a credit to Prepaid Insurance for $490.
O a debit to Prepaid Insurance and a credit to Cash for $5880.
O a debit to Insurance Expense and a credit to Cash for $490.
Submit Answer
Attempts: 0 of 1 used
Save for Later
Chapter 4 Solutions
Fundamentals of Financial Accounting
Ch. 4 - Prob. 1QCh. 4 - Explain the relationships between adjustments and...Ch. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - What is a contra-asset? Give an example of one.Ch. 4 - Explain the differences between depreciation...Ch. 4 - What is an adjusted trial balance? What is its...Ch. 4 - On December 31, a company makes a 59,000 payment...Ch. 4 - Using the information in question 8, determine the...Ch. 4 - Using the information in question 8, prepare the...
Ch. 4 - What is the equation for each of the following...Ch. 4 - Prob. 12QCh. 4 - What is the purpose of closing journal entries?Ch. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - What is a post-closing trial balance? Is it a...Ch. 4 - The owner of a local business complains that the...Ch. 4 - Which of the following accounts would not appear...Ch. 4 - Which account is least likely to appear in an...Ch. 4 - When a concert promotions company collects cash...Ch. 4 - On December 31, an adjustments made to reduce...Ch. 4 - An adjusting journal entry to recognize accrued...Ch. 4 - Prob. 6MCCh. 4 - Company A has owned a building for several years....Ch. 4 - Which of the following trial balances is used as a...Ch. 4 - Assume the balance in Prepaid Insurance is 2,500...Ch. 4 - Assume a company receives a bill for 10,000 for...Ch. 4 - Understanding Concepts Related to Adjustments...Ch. 4 - Understanding Concepts Related to Adjustments...Ch. 4 - Matching Transactions with Type of Adjustment...Ch. 4 - Recording Adjusting Journal Entries Using the...Ch. 4 - Determine Accounting Equation Effects of Deferral...Ch. 4 - Prob. 4.6MECh. 4 - Determining Accounting Equation Effects of Accrual...Ch. 4 - Recording Adjusting Journal Entries Using be...Ch. 4 - Preparing Journal Entries for Deferral...Ch. 4 - Preparing Journal Entries for Deferral...Ch. 4 - Preparing Journal Entries for Deferral and Accrual...Ch. 4 - Reporting Adjusted Account Balances Indicate...Ch. 4 - Preparing an Adjusted Trial Balance Macro Company...Ch. 4 - Reporting an Income Statement The Sky Blue...Ch. 4 - Reporting an Income Statement The Sky Blue...Ch. 4 - Reporting a Balance Sheet Refer to M4-14. Prepare...Ch. 4 - Reporting an Income Statement The Sky Blue...Ch. 4 - Preparing and Posting Adjusting Journal Entries At...Ch. 4 - Preparing and Posting Adjusting Journal Entries At...Ch. 4 - Prob. 4.20MECh. 4 - Prob. 4.21MECh. 4 - Prob. 4.22MECh. 4 - Prob. 4.23MECh. 4 - Prob. 4.24MECh. 4 - Prob. 4.25MECh. 4 - Prob. 4.26MECh. 4 - Posting AJEs and Preparing an Adjusted Trial...Ch. 4 - Identifying Adjustments and Preparing Financial...Ch. 4 - Prob. 4.3ECh. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Inferring Transactions from Accrual and Deferral...Ch. 4 - Reporting Depreciation The adjusted trial balance...Ch. 4 - Recording Transactions Including Adjusting and...Ch. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Recording Adjusting Entries and Preparing an...Ch. 4 - Recording Four Adjusting Journal Entries and...Ch. 4 - Recording Four Adjusting Journal Entries and...Ch. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.1CPCh. 4 - Prob. 4.2CPCh. 4 - Prob. 4.3CPCh. 4 - identifying and Preparing Adjusting Journal...Ch. 4 - Preparing a Trial Balance, Closing Journal Entry,...Ch. 4 - Prob. 4.2PACh. 4 - Determining Accounting Equation Effects of...Ch. 4 - Prob. 4.4PACh. 4 - Preparing a Trial Balance, Closing Journal Entry,...Ch. 4 - Recording Adjusting Journal Entries Cactus...Ch. 4 - Determining Accounting Equation Effects of...Ch. 4 - Prob. 4.4PBCh. 4 - From Recording Transactions to Preparing Accrual...Ch. 4 - Prob. 4.2COPCh. 4 - Prob. 4.3COPCh. 4 - Prob. 4.4COPCh. 4 - From Recording Transactions to Preparing Accrual...Ch. 4 - Prob. 4.6COPCh. 4 - Finding Financial Information Refer to the...Ch. 4 - Prob. 4.2SDCCh. 4 - Ethical Decision Making: A Mini-Case Assume you...Ch. 4 - Adjusting the Accounting Records Assume it is now...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Assume the following data for Oshkosh Company before its year-end adjustments: Journalize the adjusting entries for the following: a. Estimated customer refunds and allowances b. Estimated customer returnsarrow_forwardAssume the following data for Lusk Inc. before its year-end adjustments: Journalize the adjusting entries for the following: a. Estimated customer allowances b. Estimated customer returnsarrow_forwardReversing Entries On December 31, 2019, Kellams Company made the following adjusting entries for its annual accounting period: Required: Prepare whatever reversing entries are appropriate.arrow_forward
- Financial Statement Impact On December 1, 2014 Golden Acres purchased hazard insurance. On December 31, 2014 an adjusting entry is required to journalize the insurance used in December. Two sliders are provided to evaluate the financial statement impact of changes in the amount and term of the insurance. The slider impact is shown first on a timeline, and then in the T-accounts of the accounting equation. Click here and use the sliders to answer the following questions the dynamic timeline, and the T-accounts. If an answer is zero, enter "0". 5. If the amount of prepaid insurance is $3,600 and the term is 24 months, the Prepaid Insurance balance on Dec. 31, 2014 is $________________. 6. If the amount of prepaid insurance is $2,400 and the term is 18 months, the Prepaid Insurance balance on May 31, 2016 is $_______________.arrow_forwardAdjusting entries for prepaid insurance Instructions Chart of Accounts Journal Instructions The balance in the prepaid insurance account, before adjustment at the end of the year, is $18,135. Journalize the March 31 adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of insurance expired during the year is $15,480; (b) the amount of unexpired insurance applicable to future periods is $2,655. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 15 Land 16 Equipment 17…arrow_forwardAdjusting entries for prepaid insurance The balance in the prepaid insurance account, before adjustment at the end of the year, is $21,910. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: a. The amount of insurance expired during the year is $16,650. If an amount box does not require an entry, leave it blank. b. The amount of unexpired insurance applicable to future periods is $5,260. If an amount box does not require an entry, leave it blank. Σ .arrow_forward
- Prepare the adjusting entries on December 31, 2019, the end of the annual accounting period,on the following independent data. Show your computations after each entry.1. The Insurance Expense account had a debit balance on December 31, 2019 of P 36,000 representing premium for a 2-year fire insurance policy effective October 1, 2019.2. Rent Income was credited for P 18,000 on November 1, 2019 representing nine months rent collected in advance.3. Equipment per general ledger on December 31, 2019 shows a balance of P 372,000. Equipment acquired during the year was P 52,000 on April 1, 2019. All equipment is to be depreciated at the rate of 25% per annum.4. As of December 31, 2019, commissions already earned but not yet collected amounted to P 48,000.5. Office Supplies costing P 9,000 bought during the period was debited to the Office Supplies account. Of the amount, P 5,000 were consumed during the year.6. Unearned Service Fees account showed a credit balance of P 80,000 pergeneral…arrow_forwardPlease solve this general accounting questionarrow_forwardPreparing the Adjusting Entries at Year-End On Nov. 30, 2016, the end of fiscal year, the following information is available to enable you to prepare Edgar Detoya research and Development adjusting entries The supplies account showed a beginning balance of P21,740. Purchases during the year were P45,260. The ending inventory revealed supplies on hand of P 13,970. a. b. The Prepaid Insurance account showed the following on November 30: Beginning Balance July 1 October 1 P35,800 42,000 72.720 The beginning balance presented the unexpired portion of a one-year policy purchased in September 2015. The July 1 entry represented a new one-year policy, and the Oct. 1 entry is additional coverage in the form of a three-year policy. c. The following table contains the cost and annual depreciation for buildings and equipment, all of which the entity purchased before the current year: Account Cost Annual Depreciation Buildings P2,860,000 P145,000 Equipment 3,740,000 354,000 d. On September 1, the…arrow_forward
- Prepare the adjusting entries needed as of December 2020. Write your solutions as description/explanation in each entry. The account names are given below. 1. The balance of the supplies account is a debit of P34,125. The inventory of supplies on December 31 amount s to P14,220. 2. The insurance expense account has a debit balance of P11,700 which represent a one-year premium paid in advance on August 1. 3. The balance of the prepaid rent account is a debit balance of P40,500 which represent 6-month rent received in advance on October 1. 4. Subscription income has a credit balance of P7,020 which represent a one-year subscription to a monthly magazine received in advance on May 31. 5. The advertising expense account includes a debit of P37,024 which represent the cost of advertising contract to publish the company ad in 52 consecutive issues of a weekly magazine. As of December 31, advertisements had appeared in 24 issues already. 6. The balance of the equipment account is a debit…arrow_forwardWhat would be the adjusting entry to be made for 2021 if the company ascertain whether actual warranty cost approximate the estimate assuming sales and warranty repairs made evenly during the year? a. A debit to Warranty Expense and credit to Estimated Warranty Liability of Php192,500 b. A debit to Estimated Warranty Liability and credit to Warranty Expense of Php192,500 c. A debit to Estimated Warranty Liability and credit to Retained Earnings of Php192,500 d. No adjusting entry to be madearrow_forwardAn examination of Insurance Policies of Standard Company is presented below: Policy Date of Purchase Life of Policy Cost September 1, 2019 4years P25,920 May 1, 2020 2years 18,960 July 31, 2020 1year 9,720 Prepaid Insurance was debited for the cost of each policy at the time of its purchase. Expired insurance was correctly recorded at the end of 2019. What is the balance of Prepaid Insurance at the end of 2020?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning