Journal: Journal is the systematic method of recording the business transactions in a chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system of accounting. Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions: Debit , all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities. Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses. T-account: T-account refers to an individual account, which records the increases or decreases in the value of specific asset, liability, stockholder’s equity , revenue, and expenditure. This account is referred to as the T-account, because of the alignment, of the components of the account resembles the capital letter ‘T’. This account consists of the three main components which are as follows: (a) The title of the account (b) The left or debit side (c) The right or credit side 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. Closing entries: Closing entries are those journal entries, which are passed to transfer the final balances of temporary accounts, (all revenues account, all expenses account and dividend) to the income summary account. Closing entries produce a zero balance in each temporary account. Adjusted trial balance : Adjusted trial balance is a summary of all the ledger accounts, and it contains the balances of all the accounts after the adjustment entries are journalized, and posted. Post closing trial balance: The post closing trial balance is a summary of all ledger accounts, and it shows the debit and the credit balances after the closing entries are journalized and posted. The post-closing trial balance contains only permanent ( balance sheet ) accounts, and the debit and the credit balances of permanent accounts should agree. To journalize: The transaction as given in the book of Company GL for the month of March.

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Answer 1

Question

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.

Chapter 4, Problem 4.8BP

(a)

To determine

Journal:

Journal is the systematic method of recording the business transactions in a chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system of accounting.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

T-account:

T-account refers to an individual account, which records the increases or decreases in the value of specific asset, liability, stockholder’s equity, revenue, and expenditure.

This account is referred to as the T-account, because of the alignment, of the components of the account resembles the capital letter ‘T’. This account consists of the three main components which are as follows:

(a) The title of the account

(b) The left or debit side

(c) The right or credit side

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.

Closing entries:

Closing entries are those journal entries, which are passed to transfer the final balances of temporary accounts, (all revenues account, all expenses account and dividend) to the income summary account. Closing entries produce a zero balance in each temporary account.

Adjusted trial balance:

Adjusted trial balance is a summary of all the ledger accounts, and it contains the balances of all the accounts after the adjustment entries are journalized, and posted.

Post closing trial balance:

The post closing trial balance is a summary of all ledger accounts, and it shows the debit and the credit balances after the closing entries are journalized and posted. The post-closing trial balance contains only permanent (balance sheet) accounts, and the debit and the credit balances of permanent accounts should agree.

To journalize: The transaction as given in the book of Company GL for the month of March.

(b)

To determine

To post: The journal transactions to T-account of Company GL for the month of March.

(c)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 before adjustment.

(d)

To determine

To journalize: The adjusting transactions as given in the books of Company GL.

(e)

To determine

To post: The adjusting entries to T-account of Company GL for the month of March.

(f)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 after adjustment.

(g)

To determine

To prepare: The income statement, statement of retained earnings, and classified balance sheet of Company GL.

(h)

To determine

To prepare: The closing journal entries of Company GL, and post it to T-accounts.

(i)

To determine

To prepare: The post-closing trial balance of Company GL on March31, 2014

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Frisco Company recently purchased 164,000 units of raw material for $642,000. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $23.00 for each completed product. Frisco manufactured 42,305 finished units during the period just ended and used 153,037 units of raw material. If management is concerned about the timely reporting of variances in an effort to improve cost control and bottom-line performance, what would the materials purchase price variance be?

Answer 2

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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.

Chapter 4, Problem 4.8BP

(a)

To determine

Journal:

Journal is the systematic method of recording the business transactions in a chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system of accounting.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

T-account:

T-account refers to an individual account, which records the increases or decreases in the value of specific asset, liability, stockholder’s equity, revenue, and expenditure.

This account is referred to as the T-account, because of the alignment, of the components of the account resembles the capital letter ‘T’. This account consists of the three main components which are as follows:

(a) The title of the account

(b) The left or debit side

(c) The right or credit side

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.

Closing entries:

Closing entries are those journal entries, which are passed to transfer the final balances of temporary accounts, (all revenues account, all expenses account and dividend) to the income summary account. Closing entries produce a zero balance in each temporary account.

Adjusted trial balance:

Adjusted trial balance is a summary of all the ledger accounts, and it contains the balances of all the accounts after the adjustment entries are journalized, and posted.

Post closing trial balance:

The post closing trial balance is a summary of all ledger accounts, and it shows the debit and the credit balances after the closing entries are journalized and posted. The post-closing trial balance contains only permanent (balance sheet) accounts, and the debit and the credit balances of permanent accounts should agree.

To journalize: The transaction as given in the book of Company GL for the month of March.

(b)

To determine

To post: The journal transactions to T-account of Company GL for the month of March.

(c)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 before adjustment.

(d)

To determine

To journalize: The adjusting transactions as given in the books of Company GL.

(e)

To determine

To post: The adjusting entries to T-account of Company GL for the month of March.

(f)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 after adjustment.

(g)

To determine

To prepare: The income statement, statement of retained earnings, and classified balance sheet of Company GL.

(h)

To determine

To prepare: The closing journal entries of Company GL, and post it to T-accounts.

(i)

To determine

To prepare: The post-closing trial balance of Company GL on March31, 2014

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Answer 3

Question

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.

Chapter 4, Problem 4.8BP

(a)

To determine

Journal:

Journal is the systematic method of recording the business transactions in a chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system of accounting.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

T-account:

T-account refers to an individual account, which records the increases or decreases in the value of specific asset, liability, stockholder’s equity, revenue, and expenditure.

This account is referred to as the T-account, because of the alignment, of the components of the account resembles the capital letter ‘T’. This account consists of the three main components which are as follows:

(a) The title of the account

(b) The left or debit side

(c) The right or credit side

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.

Closing entries:

Closing entries are those journal entries, which are passed to transfer the final balances of temporary accounts, (all revenues account, all expenses account and dividend) to the income summary account. Closing entries produce a zero balance in each temporary account.

Adjusted trial balance:

Adjusted trial balance is a summary of all the ledger accounts, and it contains the balances of all the accounts after the adjustment entries are journalized, and posted.

Post closing trial balance:

The post closing trial balance is a summary of all ledger accounts, and it shows the debit and the credit balances after the closing entries are journalized and posted. The post-closing trial balance contains only permanent (balance sheet) accounts, and the debit and the credit balances of permanent accounts should agree.

To journalize: The transaction as given in the book of Company GL for the month of March.

(b)

To determine

To post: The journal transactions to T-account of Company GL for the month of March.

(c)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 before adjustment.

(d)

To determine

To journalize: The adjusting transactions as given in the books of Company GL.

(e)

To determine

To post: The adjusting entries to T-account of Company GL for the month of March.

(f)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 after adjustment.

(g)

To determine

To prepare: The income statement, statement of retained earnings, and classified balance sheet of Company GL.

(h)

To determine

To prepare: The closing journal entries of Company GL, and post it to T-accounts.

(i)

To determine

To prepare: The post-closing trial balance of Company GL on March31, 2014

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Answer 4

Question

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.

Chapter 4, Problem 4.8BP

(a)

To determine

Journal:

Journal is the systematic method of recording the business transactions in a chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system of accounting.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

T-account:

T-account refers to an individual account, which records the increases or decreases in the value of specific asset, liability, stockholder’s equity, revenue, and expenditure.

This account is referred to as the T-account, because of the alignment, of the components of the account resembles the capital letter ‘T’. This account consists of the three main components which are as follows:

(a) The title of the account

(b) The left or debit side

(c) The right or credit side

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.

Closing entries:

Closing entries are those journal entries, which are passed to transfer the final balances of temporary accounts, (all revenues account, all expenses account and dividend) to the income summary account. Closing entries produce a zero balance in each temporary account.

Adjusted trial balance:

Adjusted trial balance is a summary of all the ledger accounts, and it contains the balances of all the accounts after the adjustment entries are journalized, and posted.

Post closing trial balance:

The post closing trial balance is a summary of all ledger accounts, and it shows the debit and the credit balances after the closing entries are journalized and posted. The post-closing trial balance contains only permanent (balance sheet) accounts, and the debit and the credit balances of permanent accounts should agree.

To journalize: The transaction as given in the book of Company GL for the month of March.

(b)

To determine

To post: The journal transactions to T-account of Company GL for the month of March.

(c)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 before adjustment.

(d)

To determine

To journalize: The adjusting transactions as given in the books of Company GL.

(e)

To determine

To post: The adjusting entries to T-account of Company GL for the month of March.

(f)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 after adjustment.

(g)

To determine

To prepare: The income statement, statement of retained earnings, and classified balance sheet of Company GL.

(h)

To determine

To prepare: The closing journal entries of Company GL, and post it to T-accounts.

(i)

To determine

To prepare: The post-closing trial balance of Company GL on March31, 2014

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Answer 5

Chapter 4, Problem 4.8BP

(a)

To determine

Journal:

Journal is the systematic method of recording the business transactions in a chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system of accounting.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

T-account:

T-account refers to an individual account, which records the increases or decreases in the value of specific asset, liability, stockholder’s equity, revenue, and expenditure.

This account is referred to as the T-account, because of the alignment, of the components of the account resembles the capital letter ‘T’. This account consists of the three main components which are as follows:

(a) The title of the account

(b) The left or debit side

(c) The right or credit side

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.

Closing entries:

Closing entries are those journal entries, which are passed to transfer the final balances of temporary accounts, (all revenues account, all expenses account and dividend) to the income summary account. Closing entries produce a zero balance in each temporary account.

Adjusted trial balance:

Adjusted trial balance is a summary of all the ledger accounts, and it contains the balances of all the accounts after the adjustment entries are journalized, and posted.

Post closing trial balance:

The post closing trial balance is a summary of all ledger accounts, and it shows the debit and the credit balances after the closing entries are journalized and posted. The post-closing trial balance contains only permanent (balance sheet) accounts, and the debit and the credit balances of permanent accounts should agree.

To journalize: The transaction as given in the book of Company GL for the month of March.

(b)

To determine

To post: The journal transactions to T-account of Company GL for the month of March.

(c)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 before adjustment.

(d)

To determine

To journalize: The adjusting transactions as given in the books of Company GL.

(e)

To determine

To post: The adjusting entries to T-account of Company GL for the month of March.

(f)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 after adjustment.

(g)

To determine

To prepare: The income statement, statement of retained earnings, and classified balance sheet of Company GL.

(h)

To determine

To prepare: The closing journal entries of Company GL, and post it to T-accounts.

(i)

To determine

To prepare: The post-closing trial balance of Company GL on March31, 2014

Answer 6

Chapter 4, Problem 4.8BP

(a)

To determine

Journal:

Journal is the systematic method of recording the business transactions in a chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system of accounting.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

T-account:

T-account refers to an individual account, which records the increases or decreases in the value of specific asset, liability, stockholder’s equity, revenue, and expenditure.

This account is referred to as the T-account, because of the alignment, of the components of the account resembles the capital letter ‘T’. This account consists of the three main components which are as follows:

(a) The title of the account

(b) The left or debit side

(c) The right or credit side

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.

Closing entries:

Closing entries are those journal entries, which are passed to transfer the final balances of temporary accounts, (all revenues account, all expenses account and dividend) to the income summary account. Closing entries produce a zero balance in each temporary account.

Adjusted trial balance:

Adjusted trial balance is a summary of all the ledger accounts, and it contains the balances of all the accounts after the adjustment entries are journalized, and posted.

Post closing trial balance:

The post closing trial balance is a summary of all ledger accounts, and it shows the debit and the credit balances after the closing entries are journalized and posted. The post-closing trial balance contains only permanent (balance sheet) accounts, and the debit and the credit balances of permanent accounts should agree.

To journalize: The transaction as given in the book of Company GL for the month of March.

Answer 7

Chapter 4, Problem 4.8BP

(a)

To determine

Journal:

Journal is the systematic method of recording the business transactions in a chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system of accounting.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

T-account:

T-account refers to an individual account, which records the increases or decreases in the value of specific asset, liability, stockholder’s equity, revenue, and expenditure.

This account is referred to as the T-account, because of the alignment, of the components of the account resembles the capital letter ‘T’. This account consists of the three main components which are as follows:

(a) The title of the account

(b) The left or debit side

(c) The right or credit side

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.

Closing entries:

Closing entries are those journal entries, which are passed to transfer the final balances of temporary accounts, (all revenues account, all expenses account and dividend) to the income summary account. Closing entries produce a zero balance in each temporary account.

Adjusted trial balance:

Adjusted trial balance is a summary of all the ledger accounts, and it contains the balances of all the accounts after the adjustment entries are journalized, and posted.

Post closing trial balance:

The post closing trial balance is a summary of all ledger accounts, and it shows the debit and the credit balances after the closing entries are journalized and posted. The post-closing trial balance contains only permanent (balance sheet) accounts, and the debit and the credit balances of permanent accounts should agree.

To journalize: The transaction as given in the book of Company GL for the month of March.

Answer 8

(b)

To determine

To post: The journal transactions to T-account of Company GL for the month of March.

Answer 9

(b)

To determine

To post: The journal transactions to T-account of Company GL for the month of March.

Answer 10

(c)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 before adjustment.

Answer 11

(c)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 before adjustment.

Answer 12

(d)

To determine

To journalize: The adjusting transactions as given in the books of Company GL.

Answer 13

(d)

To determine

To journalize: The adjusting transactions as given in the books of Company GL.

Answer 14

(e)

To determine

To post: The adjusting entries to T-account of Company GL for the month of March.

Answer 15

(e)

To determine

To post: The adjusting entries to T-account of Company GL for the month of March.

Answer 16

(f)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 after adjustment.

Answer 17

(f)

To determine

To prepare: The trial balance of Company GL on March 31, 2014 after adjustment.

Answer 18

(g)

To determine

To prepare: The income statement, statement of retained earnings, and classified balance sheet of Company GL.

Answer 19

(g)

To determine

To prepare: The income statement, statement of retained earnings, and classified balance sheet of Company GL.

Answer 20

(h)

To determine

To prepare: The closing journal entries of Company GL, and post it to T-accounts.

Answer 21

(h)

To determine

To prepare: The closing journal entries of Company GL, and post it to T-accounts.

Answer 22

(i)

To determine

To prepare: The post-closing trial balance of Company GL on March31, 2014

Answer 23

(i)

To determine

To prepare: The post-closing trial balance of Company GL on March31, 2014

Answer 24

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Answer 25

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Answer 26

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Answer 27

Ch. 4 - Prob. 1Q Ch. 4 - Identify and stale two generally accepted...Ch. 4 - Prob. 3Q Ch. 4 - Prob. 4Q Ch. 4 - Prob. 5Q Ch. 4 - Why may the financial information in an unadjusted...Ch. 4 - Distinguish between the two categories of...Ch. 4 - What types of accounts does a company debit and...Ch. 4 - Prob. 9Q Ch. 4 - Prob. 10Q

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To post: The journal transactions to T-account of Company GL for the month of March.

To prepare: The trial balance of Company GL on March 31, 2014 before adjustment.

To journalize: The adjusting transactions as given in the books of Company GL.

To post: The adjusting entries to T-account of Company GL for the month of March.

To prepare: The trial balance of Company GL on March 31, 2014 after adjustment.

To prepare: The income statement, statement of retained earnings, and classified balance sheet of Company GL.

To prepare: The closing journal entries of Company GL, and post it to T-accounts.

To prepare: The post-closing trial balance of Company GL on March31, 2014

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