Intermediate Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833101
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 4, Problem 4.8P
Transaction Analysis; Journal
The post-closing trial balance for Heron Consulting Services, Inc. at December 31 of the prior year is presented here.
Heron Consulting Services, Inc. Post-Closing Trial Balance At December 31 (Prior Year) |
||
Account | Debit | Credit |
Cash | $1,000 | |
800 | ||
Supplies | 150 | |
Prepaid Rent | 300 | |
Building | 6,500 | |
Accounts Payable | $ 750 | |
Unearned Service Revenue | 400 | |
Common Stock | 5,000 | |
2,600 | ||
Service Revenue | 0 | |
Wage Expense | 0 | |
Utilities Expense | 0 | |
Administrative Expense | 0 | |
Totals | $8,750 | $8,750 |
The company reported the following transactions during the current year:
- January 2: Heron took out a 5%, 2-year note payable in the amount of $3,000 to pay for operating expenses. Interest is paid annually on January 1.
- February 1: Heron prepaid $600 for a one-year insurance policy. Policy begins February 1.
- March 1: Heron purchased office supplies for cash, $275.
- March 23: Heron paid $300 cash for advertising expenses.
- April 1: The existing balance of prepaid rent expired, so the company prepaid an additional $480 for a one-year lease on a warehouse.
- May 1: Heron signed a contract to perform consulting services and collected $550. Heron will not provide the services until next year.
- June 30: Heron paid wages in the amount of $200 to employees in cash.
- July 1: The company received $2,150 in cash for services rendered that day.
- August 8: Heron paid a utilities bill in the amount of $70 in cash.
- September 1: Heron paid wages in the amount of $80 in cash.
- October 1: Heron collected $250 of the accounts receivable balance.
- November 14: Heron purchased office equipment in the amount of $1,800 with cash Heron will record $50 of
depreciation on the equipment this year. - December 6: Heron received a bill for $100 for deliveries made this year and will pay the bill next year.
Note: At year-end, Heron had $100 of supplies remaining on hand Also, services pertaining to the beginning balance of unearned service revenue were performed during the year Finally, Heron reports $500 of depreciation expense related to the buildings.
Required
- a. Show the
accounting equation effect of each of the original transactions. - b. Prepare the journal entries for the original transactions Omit explanations.
- c. Prepare any necessary year-end adjusting journal entries for these transactions Show the accounting equation effect of each of the adjusting journal entries.
- d. Post all entries to the T-accounts.
- e. Prepare the adjusted trial balance at the end of the year.
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Chapter 4 Solutions
Intermediate Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (2nd Edition)
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Ch. 4 - Explain the difference between the accrual basis...Ch. 4 - Under the accrual basis of accounting when do...Ch. 4 - Why are adjusting journal entries made? When do...Ch. 4 - What is a deferred revenue? When will the full...Ch. 4 - What is the purpose of the adjusted trial...Ch. 4 - Which statements can be prepared from the adjusted...Ch. 4 - Prob. 4.17QCh. 4 - Jefferson, CPAs provides accounting services for a...Ch. 4 - Gates Accounting Services (GAS), a sole...Ch. 4 - Prob. 4.3MCCh. 4 - State University sold all of its basketball...Ch. 4 - Prob. 4.5MCCh. 4 - Sampson Manufacturing Company (SMC) has an empty...Ch. 4 - On July 15, Year 1, Southeastern University hired...Ch. 4 - Embree Corp. purchased a four-year insurance...Ch. 4 - The Cougars football team sells season tickets in...Ch. 4 - Prob. 4.10MCCh. 4 - Prob. 4.1BECh. 4 - Transaction Analysis. Florences Floral...Ch. 4 - Journal Entries. Using the information provided in...Ch. 4 - Transaction Analysis; Journal Entries. Cals...Ch. 4 - Transaction Analysis; Journal Entries. Using the...Ch. 4 - Journal Entries; T-accounts. Using the information...Ch. 4 - Retained Earnings. In its first year of...Ch. 4 - Retained Earnings. Using the information provided...Ch. 4 - Prob. 4.9BECh. 4 - Prob. 4.10BECh. 4 - Adjusting Journal Entries. Barnard and Associates...Ch. 4 - Prob. 4.12BECh. 4 - Prob. 4.13BECh. 4 - Prob. 4.14BECh. 4 - Prob. 4.15BECh. 4 - Closing Entries. Using the information provided in...Ch. 4 - Closing Entries. At year-end Nelsons Nursery, Inc...Ch. 4 - Closing Entries. Readers, Inc., an online...Ch. 4 - Adjusting Journal Entries. Barnard and Associates...Ch. 4 - Prob. 4.20BECh. 4 - Adjusting Journal Entries. Gerhard News collects...Ch. 4 - Prob. 4.22BECh. 4 - Prob. 4.23BECh. 4 - Prob. 4.24BECh. 4 - Transaction Analysis. The following transactions...Ch. 4 - Prob. 4.2ECh. 4 - Transaction Analysis; Journal Entries. Master Mind...Ch. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Posting to the General Ledger. Using the...Ch. 4 - Preparing Journal Entries in the General Journal....Ch. 4 - Preparing the T-accounts. Using the information...Ch. 4 - Transaction Analysis: Journal Entries and Posting...Ch. 4 - Transaction Analysis: Journal Entries and Posting...Ch. 4 - Prob. 4.11ECh. 4 - Adjusting Journal Entries: T-accounts. Fanatical...Ch. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.15ECh. 4 - Prob. 4.16ECh. 4 - Prob. 4.17ECh. 4 - Adjusting Journal Entries; Adjusted Trial Balance....Ch. 4 - Preparing Financial Statements. Using the adjusted...Ch. 4 - Prob. 4.20ECh. 4 - Prob. 4.21ECh. 4 - Closing Entries. Diane s Dairy Sales Delivery...Ch. 4 - Prob. 4.23ECh. 4 - Prob. 4.24ECh. 4 - Transaction Analysis; Journal Entries; Adjusting...Ch. 4 - Transaction Analysis; Journal Entries; Adjusting...Ch. 4 - Journal Entries; Post to the General Ledger;...Ch. 4 - Prob. 4.4PCh. 4 - Prob. 4.5PCh. 4 - Journal Entries; Post to the General Ledger;...Ch. 4 - Preparing the Trial Balance; Adjusting Journal...Ch. 4 - Transaction Analysis; Journal Entries; Adjusting...Ch. 4 - Closing Process. Using the information in P4-6 and...Ch. 4 - Closing Process. Sherlock Locksmiths, Inc has the...Ch. 4 - Transaction Analysis; Journal Entries, Posting,...Ch. 4 - Transaction Analysis; Journal Entries, Posting,...
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