Fundamentals of Financial Accounting
5th Edition
ISBN: 9780078025914
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
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Chapter 4, Problem 4.9E
To determine
The effects on accounting equation of the adjusting journal entries.
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The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing:
20Y7
Dec. 7.
Dec. 31.
Dec. 31.
20Y8
Feb. 5.
Received payment of note and interest from Unitarian Clothing & Bags Co.
Journalize the entries to record the transactions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank. Assume
February has 28 days in 2018
If required, round the interest to the nearest cent.
20Y7, Dec. 7
Dec. 31
Received from Unitarian Clothing and Bags Co., on account, a $84,000, 60-day, 7% note dated December 7.
Recorded an adjusting entry for accrued interest on the note of December 7.
Recorded the closing entry for interest revenue.
Dec. 31
20Y8, Feb. 5
On November 30, 2014, the end of the fiscal year, the following information is available to
enable you to prepare Edgar Detoya Company's adjusting entries;
a. The Supplies account showed a beginning balance of 21,740. Purchases during the year
were 45, 260. The ending inventory revealed supplies on hand of 13,970.
b. The prepaid insurance account showed the ff. on Nov. 30:
Beginning balance
July 1
35,800
42,000
72,720
October 1
The beginning balance represented the unexpired portion of a one-year policy purchased
in September 2013. The July 1 entry represented a new one year policy and the October 1
entry is additional coverage in the form of a three-year policy.
c. The ff. table contains the cost and annual depreciation for buildings and equipment, all of
which Detoya Company purchased before the current year:
ACCOUNT
COST
ANNUAL
DEPN.
Buildings
Equipment
2,860,000
3,740,000
145,000
354,000
d. On September 1, the company completed negotiations with a client and accepted an
advance of…
The following information was obtained from a review of the ledger and other records of
2Moons Company at the close of the current fiscal year ending December 31, 2017. Write the
adjusting entry and computation as description.
a. The office supplies expense account has a debit balance of P38,610. The inventory of
office supplies on hand as of December 31, totals P14,760.
b. The rent expense account has a debit balance of P74,400 composed of the following: (1)
January 1 balance of P16,800 representing rent for January through April 2017; and (2)
debit balance of P57,600 representing payment for a one-year beginning May 2017.
c. The prepaid insurance account has a debit balance of P62,640 at December 31. Details of
the policies acquired during the past year are as follows:
Type of Policy Premium Paid Date Started
Fire Insurance P 12,960 January 2
Accident Insurance 24,480 March 1
Car Insurance 9,360 June 1
Life Insurance 15,840 August 1
d. The balance of the commissions income account…
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...
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