Financial Accounting
9th Edition
ISBN: 9781259222139
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Chapter 4, Problem 4.9E
1.
To determine
Identify each of these transactions as deferred revenue, deferred expense, accrued revenue, or accrued expense.
2.
To determine
Prepare the
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Journalize the adjusting entries to be made at the end of
the year.
1. Eight Drops Company is a consignee and receives a 5%
commission from sales of a water purifying agent to
customers. The firm is able to generate sales of P280,000
for the months of November and December for which no
commission has yet been received.
2. Darren Company sub-leased a portion of its space to David
Company for P4,500 per month. David Company occupied
the said space on October1 of the current year. Darren
Company did not receive any payments from David
Company since October 1.
3. Dominic Company has not recorded the professional
services it has rendered to a client for P25,000 which
remains uncollected at year -end.
4. Codie Company rented a bus to carry their guests to and
from the airport beginning December 20 from Avis Car
Rental at a daily rate of P2,000. No rental payment has yet
been received by Avis Car Rental.
5. Hailey Company has a 90-day note received from a
customer. Interest earned on the note…
Jõurnalizing
Lorring Landscaping has the following data for the December 31 adjusting entriee
a. Each Friday, Lorring pays employees for the current week's work. The
the weekly payroll is $6,000 for a five-day workweek. This year, December 31 fll.
on a Tuesday. Lorring will pay its employees on January 3.
b. On January 1 of the current year, Lorring purchases an insurance policy that covers
two years, $4,000.
amount of
c. The beginning balance of Office Supplies was $4,100. During the year, Lorring
purchased office supplies for $5,500, and at December 31 the office supplies on
hand total $2,200.
d. During December, Lorring designed a landscape plan and the client prepaid
$4,000. Lorring recorded this amount as Unearned Revenue. The job will take
several months to complete, and Lorring estimates that the company has earned
50% of the total revenue during the current year.
e. At December 31, Lorring had earned $4,500 for landscape services completed for
Tomball Appliances. Tomball has…
At the end of the first year of operations, Mayberry Advertising had accounts receivable of $20,300. Management of the company estimates that 10% of the accounts will not be collected.
What adjustment would Mayberry Advertising record to establish Allowance for Uncollectible Accounts? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter 4 Solutions
Financial Accounting
Ch. 4 - What is the purpose of recording adjusting...Ch. 4 - List the four types of adjusting entries, and give...Ch. 4 - What is a contra-asset? Give an example of one.Ch. 4 - Explain how the financial statements relate to...Ch. 4 - What is the equation for each of the following...Ch. 4 - Explain the effect of adjusting entries on cash.Ch. 4 - How is earnings per share computed and...Ch. 4 - Prob. 8QCh. 4 - What are the purposes for closing the books?Ch. 4 - Differentiate among (a) permanent, (b) temporary,...
Ch. 4 - Explain why the income statement accounts are...Ch. 4 - Prob. 12QCh. 4 - Which of the following accounts would not appear...Ch. 4 - Which account is least likely to appear in an...Ch. 4 - Prob. 3MCQCh. 4 - On June 1, 2016, Oakcrest Company signed a...Ch. 4 - Prob. 5MCQCh. 4 - An adjusted trial balance a. Shows the ending...Ch. 4 - JJ Company owns a building. Which of the following...Ch. 4 - Prob. 8MCQCh. 4 - Prob. 9MCQCh. 4 - If a company is successful in acquiring several...Ch. 4 - Preparing a Trial Balance Hagadorn Company has the...Ch. 4 - Matching Definitions with Terms Match each...Ch. 4 - Matching Definitions with Terms Match each...Ch. 4 - Recording Adjusting Entries (Deferred Accounts) In...Ch. 4 - Determining Financial Statement Effects of...Ch. 4 - Recording Adjusting Entries (Accrued Accounts) In...Ch. 4 - Prob. 4.7MECh. 4 - Reporting an Income Statement with Earnings per...Ch. 4 - Prob. 4.9MECh. 4 - Reporting an Income Statement with Earnings per...Ch. 4 - Prob. 4.11MECh. 4 - Recording Closing Entries Refer to the adjusted...Ch. 4 - Prob. 4.1ECh. 4 - Prob. 4.2ECh. 4 - Recording Adjusting Entries Diane Company...Ch. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Recording Adjusting Entries and Reporting Balances...Ch. 4 - Determining Financial Statement Effects of...Ch. 4 - Recording Seven Typical Adjusting Entries...Ch. 4 - Prob. 4.9ECh. 4 - Determining Financial Statement Effects of Seven...Ch. 4 - Determining Financial Statement Effects of Seven...Ch. 4 - Recording Transactions Including Adjusting and...Ch. 4 - Prob. 4.13ECh. 4 - Determining Financial Statement Effects of...Ch. 4 - Inferring Transactions Deere Company is the...Ch. 4 - Analyzing the Effects of Errors on Financial...Ch. 4 - Prob. 4.17ECh. 4 - Recording the Effects of Adjusting Entries and...Ch. 4 - Reporting a Correct Income Statement with Earnings...Ch. 4 - Recording Four Adjusting Entries and Completing...Ch. 4 - Prob. 4.21ECh. 4 - Recording Four Adjusting Entries and Completing...Ch. 4 - Prob. 4.1PCh. 4 - Prob. 4.2PCh. 4 - Prob. 4.3PCh. 4 - Prob. 4.4PCh. 4 - Prob. 4.5PCh. 4 - Prob. 4.6PCh. 4 - Prob. 4.7PCh. 4 - Prob. 4.1APCh. 4 - Prob. 4.2APCh. 4 - Prob. 4.3APCh. 4 - Prob. 4.4APCh. 4 - Determining Financial Statement Effects of...Ch. 4 - Prob. 4.6APCh. 4 - Prob. 4.7APCh. 4 - Prob. 4.1CONCh. 4 - Recording Transactions (Including Adjusting and...Ch. 4 - Recording Transactions (Including Adjusting and...Ch. 4 - Finding Financial Information Refer to the...Ch. 4 - Finding Financial Information Refer to the...Ch. 4 - Comparing Companies within an Industry and Over...Ch. 4 - Prob. 4.4CPCh. 4 - Prob. 4.5CPCh. 4 - Prob. 4.6CPCh. 4 - Prob. 4.7CPCh. 4 - Prob. 4.8CPCh. 4 - Prob. 4.9CP
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