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Concept explainers
Preparing closing entries from an adjusted
Learning Objective 3
The adjusted trial balance of Stone Sign Company follow:
Adjusted trial balance for Stone Sign Company for January 31,201-5
Requirements
1.Assume Stone Sign Company has a January 31 year-end. Journalize Stone's closing entries at January 31.
2. How much net income or net loss did Stone Sign Company earn for the year ended January 31? How can you tell?
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Chapter 4 Solutions
Horngren's Accounting (12th Edition)
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Financial Accounting (12th Edition) (What's New in Accounting)
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Financial Accounting, Student Value Edition (5th Edition)
- CONTINUATION AND REQUIRED STATEMENTS: • Financial Position • Closing Entries • Post-closing trial balancearrow_forwardCan you please help me solve thisarrow_forwardidentifying and Journalizing Closing Entries through "e" to the accounts at Dec. 31, 2020. All the income, expense, and equity accounts of the entity are listed here in T-account form: Journalize the closing entries. Completing the Accounting Cycle | 283 NAME: SCORE: SECTION: PROFESSOR: Problem #4 dentifying and Journalizing Closing Entries The accountant for Estela Pascual Events Planner has posted adjusting entries "a" through "e" to the accounts at Dec. 31, 2020. All the income, expense, and equity counts of the entity are listed here in T-account form: Accounts Receivable 230,000 35,000 Pascual, Withdrawals 524,000 je) Supplies 40,000 Service Revenues 20,000 (a) 1,030,000 35,000 (e) Accumulated Depreciation-Furniture Salaries Expense 50,000 280,000 30,000 (b) (d) 15,000 Accumulated Depreciation-Building Supplies Expense 330,000 60,000 (a) 20,000 (c) Depreciation Expense-Furniture (b) Salaries Payable 15,000 (d) 30,000 Pascual, Capital 494,000 Depreciation Expense-Building (c)…arrow_forward
- E3-28 Journalizing adjusting entries and analyzing their effect on the income statement Learning Objectives 3, 5 The following data at July 31, 2018, are given for RCO: a. Depreciation, $600. b. Prepaid rent expires, $200. c. Interest expense accrued, $700. d. Employee salaries owed for Monday through Thursday of a five-day workweek; weekly payroll, $8,000. e. Unearned revenue earned, $1,000. f. Office supplies used, $150. Requirements 1. Journalize the adjusting entries needed on July 31, 2018. 2. Suppose the adjustments made in Requirement 1 were not made. Compute the overall overstatement or understatement of net income as a result of the omission of these adjustments.arrow_forwardCLOSING ENTRIES Using the spreadsheet and partially completed Income Summary Account on page 598, prepare the following: 1. Closing entries for Gimbels Gifts and Gadgets in a general journal. 2. A post-closing trial balance. EXERCISE 15-5Aarrow_forwardEND-OF-PERIOD SPREADSHEET, ADJUSTING, CLOSING, AND REVERSING ENTRIES Vickis Fabric Store shows the trial balance on page 601 as of December 31, 20-1. At the end of the year, the following adjustments need to be made: (a, b)Merchandise inventory as of December 31, 31,600. (c, d, e)Vicki estimates that customers will be granted 2,500 in refunds of this years sales next year and the merchandise expected to be returned will have a cost of 1,800. (f)Unused supplies on hand, 350. (g)Insurance expired, 2,400. (h)Depreciation expense for the year on building, 20,000. (i)Depreciation expense for the year on equipment, 4,000. (j)Wages earned but not paid (Wages Payable), 520. (k)Unearned revenue on December 31, 20-1, 1,200. PROBLEM 15-10A CONT. REQUIRED 1. Prepare an end-of-period spreadsheet. 2. Prepare adjusting entries and post adjusting entries to an Income Summary T account. 3. Prepare closing entries and post to a Capital T account. There were no additional investments this year. 4. Prepare a post-closing trial balance. 5. Prepare reversing entry(ies).arrow_forward
- Apply what you have learned Task 8: (Individual/Pair/Group Work) Snoopy enterprises provides collection services to its customers. year-end adjusting journal entries are prepared every Dec. 31 as its books are closed. make the appropriate adjusting entry for each of the ff items: 1. Uncollectible accounts at year-end is estimated to be P6,950. 2. Rent paid last April amounted to P400, 000, one fourth of which has already expired. This was initially recorded as prepaid rent upon payment. 3. Depreciation expense for its transportation equipment, P6,780 4. Supplies purchased during the year amounted to P4,290, of which one- third has been used during the year. 5. Unpaid salaries of its cleaners as of December 31 is P7,460. 6. Unearned interest has a balance of P3,120, of which P2,560 has already been earned during the year. the amount was initially credited to unearned interest upon collectionarrow_forwardprepare the closing journal entries based on the adjusted trial balancearrow_forwardQuiz for Chapter 3 P3-67A (Learning Objective 3: Adjust the accounts) Journalize the adjusting entry needed on December 31, end of the current accounting period, for each of the following independent cases affecting Green Corp. Include an explanation for each entry. a. Details of Prepaid Insurance are shown in the account: Prepaid Insurance Jan 1 Bal 1,050 Mar 31 4,800 Green prepays insurance on March 31 each year. At December 31, $1,200 is still prepaid. b. Green pays employees each Friday. The amount of the weekly payroll is $5,800 for a five-day work week. The current accounting period ends on Tuesday. c. Green has a note receivable. During the current year, Green has earned accrued interest revenue of $600 that it will collect next year. d. The beginning balance of supplies was $2,300. During the year, Green purchased supplies costing $6,100, and at December 31 supplies on hand total $2,100. e. Green is providing services for Manatee Investments, and the owner of Manatee paid Green…arrow_forward
- please provide complete and correct answer and show all work like explanation , computation , formula with steps answer in text million thanksarrow_forwardCLOSING PROCESS AND FINANCIAL STATEMENTS Reversing entries: Selecting which entries should be reversed Certain adjusting entries made at the end of an accounting period are reversed at the beginning of the following period. Required: Analyze the following four adjusting entries made on December 31, and determine whether a reversing entry is needed. Date Description Debit Credit Reversing entry Reversing entry necessary not necessary Dec. 31 Utilities Expense 565 1,550 450 1,750 Utilities Payable 31 Deferred Rent Revenue Rent Revenue 31 Advertising Expense 31 Taxes Expense Prepaid Advertising Taxes Payable Explanation Check 565 1,550 450 1,750 O O X Śarrow_forwardView History Bookmarks Window Help A education.wiley.com 1 ך WP NWP Assessment Player UI Application DAXMED WALI FURINL Question 26 of 42 View Policies Current Attempt in Progress Which of the following is in accordance with generally accepted accounting principles? Accrual-basis accounting Cash-basis accounting Both accrual-basis and cash-basis accounting Neither accrual-basis nor cash-basis accounting Save for Later OO O Oarrow_forward
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