Acc 290 t acc290t acc 290t education for service uopstudy.com
ssuserd9bf9e
174 views
31 slides
Aug 22, 2020
Slide 1 of 31
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
About This Presentation
Acc 290 t acc290t acc 290t education for service uopstudy.com
Slide Content
ACC/290T
PRINCIPLES OF ACCOUNTING I
The Latest Version A+ Study Guide
**********************************************
ACC 290T Entire Course Link
http://www.uopstudy.com/ACC-290
**********************************************
ACC 290T Wk 1 - Practice: Connect Knowledge Check
Required information
Use the following information for exercise 15 to 18 LO P2
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the
owner contributed $85,360 in assets to launch the business. On October 31,
the company’s records show the following items and amounts.
Cash $ 7,010 Cash withdrawals by owner $ 3,390
Accounts receivable 15,360 Consulting revenue 15,360
Office supplies 4,480 Rent expense 4,820
Land 46,040 Salaries expense 8,370
Office equipment 19,360 Telephone expense 910
Accounts payable 9,740 Miscellaneous expenses 720
Owner investments 85,360
PRINCIPLES OF ACCOUNTING I
The Latest Version A+ Study Guide
**********************************************
ACC 290T Entire Course Link
http://www.uopstudy.com/ACC-290
**********************************************
ACC 290T Wk 1 - Practice: Connect Knowledge Check
Required information
Use the following information for exercise 15 to 18 LO P2
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the
owner contributed $85,360 in assets to launch the business. On October 31,
the company’s records show the following items and amounts.
Cash $ 7,010 Cash withdrawals by owner $ 3,390
Accounts receivable 15,360 Consulting revenue 15,360
Office supplies 4,480 Rent expense 4,820
Land 46,040 Salaries expense 8,370
Office equipment 19,360 Telephone expense 910
Accounts payable 9,740 Miscellaneous expenses 720
Owner investments 85,360
Exercise 1-15 Preparing an income statement LO P2
Using the above information prepare an October income statement for the
business.
Exercise 1-16 Preparing a statement of owner's equity LO P2
Using the above information prepare an October statement of owner's equity
for Ernst Consulting.
Exercise 1-18 Preparing a statement of cash flows LO P2
Also assume the following:
a. The owner’s initial investment consists of $39,320 cash and $46,040
in land.
b. The company’s $19,360 equipment purchase is paid in cash.
c. The accounts payable balance of $9,740 consists of the $4,480 office
supplies purchase and $5,260 in employee salaries yet to be paid.
d. The company’s rent, telephone, and miscellaneous expenses are paid
in cash.
e. No cash has been collected on the $15,360 consulting fees earned.
Using the above information prepare an October 31 statement of cash flows
for Ernst Consulting. (Cash outflows should be indicated by a minus
sign.)
Using your earlier attempt(s) as study attempts is
highly recommended, if needed.
True or False
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 1 - Apply: Homework
Using the above information prepare an October income statement for the
business.
Exercise 1-16 Preparing a statement of owner's equity LO P2
Using the above information prepare an October statement of owner's equity
for Ernst Consulting.
Exercise 1-18 Preparing a statement of cash flows LO P2
Also assume the following:
a. The owner’s initial investment consists of $39,320 cash and $46,040
in land.
b. The company’s $19,360 equipment purchase is paid in cash.
c. The accounts payable balance of $9,740 consists of the $4,480 office
supplies purchase and $5,260 in employee salaries yet to be paid.
d. The company’s rent, telephone, and miscellaneous expenses are paid
in cash.
e. No cash has been collected on the $15,360 consulting fees earned.
Using the above information prepare an October 31 statement of cash flows
for Ernst Consulting. (Cash outflows should be indicated by a minus
sign.)
Using your earlier attempt(s) as study attempts is
highly recommended, if needed.
True or False
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 1 - Apply: Homework
Study Attempt
It's highly recommended that you use your
first attempt as a study attempt, if needed.
True or False
S 1-8 Applying the accounting equation LO A1
1. Use the accounting equation to compute the missing financial statement
amounts.
2. Use the expanded accounting equation to compute the missing financial
statement amounts.
Exercise 1-8 Using the accounting equation LO A1
Determine the missing amount from each of the separate situations given
below.
Required information
Exercise 1-9 Using the accounting equation LO A1
[The following information applies to the questions displayed below.]
Answer the following questions. Hint: Use the accounting equation.
Exercise 1-9 Part a
a. At the beginning of the year, Addison Company's assets are $206,000
and its equity is $154,500. During the year, assets increase $80,000 and
liabilities increase $51,000. What is the equity at year-end?
It's highly recommended that you use your
first attempt as a study attempt, if needed.
True or False
S 1-8 Applying the accounting equation LO A1
1. Use the accounting equation to compute the missing financial statement
amounts.
2. Use the expanded accounting equation to compute the missing financial
statement amounts.
Exercise 1-8 Using the accounting equation LO A1
Determine the missing amount from each of the separate situations given
below.
Required information
Exercise 1-9 Using the accounting equation LO A1
[The following information applies to the questions displayed below.]
Answer the following questions. Hint: Use the accounting equation.
Exercise 1-9 Part a
a. At the beginning of the year, Addison Company's assets are $206,000
and its equity is $154,500. During the year, assets increase $80,000 and
liabilities increase $51,000. What is the equity at year-end?
Exercise 1-9 Part b
b. Office Store has assets equal to $240,000 and liabilities equal to $209,000
at year-end. What is the equity for Office Store at year-end?
Exercise 1-9 Part c
b. At the beginning of the year, Quaker Company's liabilities equal $48,000.
During the year, assets increase by $60,000, and at year-end assets equal
$190,000. Liabilities decrease $18,000 during the year. What are the
beginning and ending amounts of equity?
c.
QS 1-10 Identifying effects of transactions using
accounting equation-Revenues and Expenses LO P1
The following transactions were completed by the company.
a. The company completed consulting work for a client and
immediately collected $6,200 cash earned.
b. The company completed commission work for a client and sent a bill
for $4,700 to be received within 30 days.
c. The company paid an assistant $1,750 cash as wages for the period.
d. The company collected $2,350 cash as a partial payment for the
amount owed by the client in transaction b.
e. The company paid $840 cash for this period's cleaning services.
Required:
Enter the impact of each transaction on individual items of the accounting
equation. (Enter decreases to account balances with a minus sign.)
b. Office Store has assets equal to $240,000 and liabilities equal to $209,000
at year-end. What is the equity for Office Store at year-end?
Exercise 1-9 Part c
b. At the beginning of the year, Quaker Company's liabilities equal $48,000.
During the year, assets increase by $60,000, and at year-end assets equal
$190,000. Liabilities decrease $18,000 during the year. What are the
beginning and ending amounts of equity?
c.
QS 1-10 Identifying effects of transactions using
accounting equation-Revenues and Expenses LO P1
The following transactions were completed by the company.
a. The company completed consulting work for a client and
immediately collected $6,200 cash earned.
b. The company completed commission work for a client and sent a bill
for $4,700 to be received within 30 days.
c. The company paid an assistant $1,750 cash as wages for the period.
d. The company collected $2,350 cash as a partial payment for the
amount owed by the client in transaction b.
e. The company paid $840 cash for this period's cleaning services.
Required:
Enter the impact of each transaction on individual items of the accounting
equation. (Enter decreases to account balances with a minus sign.)
QS 1-11 Identifying effects of transactions using accounting
equation-Assets and Liabilities LO P1
The following transactions were completed by the company.
a. The owner (Alex Carr) invested $18,800 cash in the company.
b. The company purchased supplies for $1,450 cash.
c. The owner (Alex Carr) invested $11,900 of equipment in the
company.
d. The company purchased $390 of additional supplies on credit.
e. The company purchased land for $10,900 cash.
Required:
Enter the impact of each transaction on individual items of the accounting
equation. (Enter decreases to account balances with a minus sign.)
Required information
Use the following information for exercise 15 to 18 LO P2
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the
owner contributed $84,470 in assets to launch the business. On October 31,
the company’s records show the following items and amounts.
Cash $ 9,750 Cash withdrawals by owner $ 2,530
Accounts receivable 14,480 Consulting revenue 14,480
Office supplies 3,710 Rent expense 4,070
Land 45,970 Salaries expense 7,450
Office equipment 18,450 Telephone expense 810
Accounts payable 8,900 Miscellaneous expenses 630
Owner investments 84,470
equation-Assets and Liabilities LO P1
The following transactions were completed by the company.
a. The owner (Alex Carr) invested $18,800 cash in the company.
b. The company purchased supplies for $1,450 cash.
c. The owner (Alex Carr) invested $11,900 of equipment in the
company.
d. The company purchased $390 of additional supplies on credit.
e. The company purchased land for $10,900 cash.
Required:
Enter the impact of each transaction on individual items of the accounting
equation. (Enter decreases to account balances with a minus sign.)
Required information
Use the following information for exercise 15 to 18 LO P2
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the
owner contributed $84,470 in assets to launch the business. On October 31,
the company’s records show the following items and amounts.
Cash $ 9,750 Cash withdrawals by owner $ 2,530
Accounts receivable 14,480 Consulting revenue 14,480
Office supplies 3,710 Rent expense 4,070
Land 45,970 Salaries expense 7,450
Office equipment 18,450 Telephone expense 810
Accounts payable 8,900 Miscellaneous expenses 630
Owner investments 84,470
Exercise 1-15 Preparing an income statement LO P2
Using the above information prepare an October income statement for the
business.
Exercise 1-16 Preparing a statement of owner's equity LO P2
Using the above information prepare an October statement of owner's equity
for Ernst Consulting.
Exercise 1-17 Preparing a balance sheet LO P2
Using the above information prepare an October 31 balance sheet for Ernst
Consulting.
Exercise 1-18 Preparing a statement of cash flows LO P2
Also assume the following:
a. The owner’s initial investment consists of $38,500 cash and $45,970
in land.
b. The company’s $18,450 equipment purchase is paid in cash.
c. The accounts payable balance of $8,900 consists of the $3,710 office
supplies purchase and $5,190 in employee salaries yet to be paid.
d. The company’s rent, telephone, and miscellaneous expenses are paid
in cash.
e. No cash has been collected on the $14,480 consulting fees earned.
Using the above information prepare an October 31 statement of cash flows
for Ernst Consulting. (Cash outflows should be indicated by a minus
sign.)
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 2 - Practice: Connect Knowledge Check
Using the above information prepare an October income statement for the
business.
Exercise 1-16 Preparing a statement of owner's equity LO P2
Using the above information prepare an October statement of owner's equity
for Ernst Consulting.
Exercise 1-17 Preparing a balance sheet LO P2
Using the above information prepare an October 31 balance sheet for Ernst
Consulting.
Exercise 1-18 Preparing a statement of cash flows LO P2
Also assume the following:
a. The owner’s initial investment consists of $38,500 cash and $45,970
in land.
b. The company’s $18,450 equipment purchase is paid in cash.
c. The accounts payable balance of $8,900 consists of the $3,710 office
supplies purchase and $5,190 in employee salaries yet to be paid.
d. The company’s rent, telephone, and miscellaneous expenses are paid
in cash.
e. No cash has been collected on the $14,480 consulting fees earned.
Using the above information prepare an October 31 statement of cash flows
for Ernst Consulting. (Cash outflows should be indicated by a minus
sign.)
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 2 - Practice: Connect Knowledge Check
Exercise 2-19 Analyzing changes in a company's equity LO P3
Compute the missing amount for each of the following separate companies
in columns B through E. (Losses and amounts to be deducted should be
indicated with a minus sign.)
Exercise 2-7 Preparing general journal entries LO P1
Following are the transactions of a new company called Pose-for-Pics.
Aug. 1 Madison Harris, the owner, invested $8,750 cash and $37,625 of
photography equipment in the company.
2 The company paid $3,100 cash for an insurance policy covering the next 24
months.
5 The company purchased office supplies for $1,663 cash.
20 The company received $3,400 cash in photography fees earned.
31 The company paid $875 cash for August utilities.
Prepare general journal entries for the above transactions.
Required information
Use the following information for Exercises 16-18 below.
[The following information applies to the questions displayed below.]
Carmen Camry operates a consulting firm called Help Today, which began operations
on August 1. On August 31, the company’s records show the following accounts and
amounts for the month of August.
Cash $ 25,270 C. Camry, Withdrawals $ 5,910
Accounts receivable 22,280 Consulting fees earned 26,920
Office supplies 5,150 Rent expense 9,460
Land 43,940 Salaries expense 5,510
Office equipment 19,910 Telephone expense 760
Accounts payable 10,700 Miscellaneous expenses 430
Compute the missing amount for each of the following separate companies
in columns B through E. (Losses and amounts to be deducted should be
indicated with a minus sign.)
Exercise 2-7 Preparing general journal entries LO P1
Following are the transactions of a new company called Pose-for-Pics.
Aug. 1 Madison Harris, the owner, invested $8,750 cash and $37,625 of
photography equipment in the company.
2 The company paid $3,100 cash for an insurance policy covering the next 24
months.
5 The company purchased office supplies for $1,663 cash.
20 The company received $3,400 cash in photography fees earned.
31 The company paid $875 cash for August utilities.
Prepare general journal entries for the above transactions.
Required information
Use the following information for Exercises 16-18 below.
[The following information applies to the questions displayed below.]
Carmen Camry operates a consulting firm called Help Today, which began operations
on August 1. On August 31, the company’s records show the following accounts and
amounts for the month of August.
Cash $ 25,270 C. Camry, Withdrawals $ 5,910
Accounts receivable 22,280 Consulting fees earned 26,920
Office supplies 5,150 Rent expense 9,460
Land 43,940 Salaries expense 5,510
Office equipment 19,910 Telephone expense 760
Accounts payable 10,700 Miscellaneous expenses 430
Exercise 2-16 Preparing an income statement LO C3, P3
Use the above information to prepare an August income statement for the
business.
Exercise 2-17 Preparing a statement of owner's equity LO P3
Use the above information to prepare an August statement of owner’s equity
for Help Today. The owner’s capital account balance at July 31 was $0, and
the owner invested $101,000 cash in the company on August 1.
Exercise 2-18 Preparing a balance sheet LO P3
Use the above information to prepare an August 31 balance sheet for
Help Today. Hint: Compute the owner’s capital account balance as of
August 31.
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 2 - Apply: Homework
QS 2-6 Analyzing transactions and preparing journal entries LO
P1
For each transaction, (1) analyze the transaction using the accounting equation, (2)
record the transaction in journal entry form, and (3) post the entry using T-accounts to
represent ledger accounts. Use the following (partial) chart of accounts—account
numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies
(124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned
Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302);
Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696).
a. On May 15, DeShawn Tyler opens a landscaping company called Elegant
Lawns by investing $82,000 in cash along with equipment having a $42,000
value.
Use the above information to prepare an August income statement for the
business.
Exercise 2-17 Preparing a statement of owner's equity LO P3
Use the above information to prepare an August statement of owner’s equity
for Help Today. The owner’s capital account balance at July 31 was $0, and
the owner invested $101,000 cash in the company on August 1.
Exercise 2-18 Preparing a balance sheet LO P3
Use the above information to prepare an August 31 balance sheet for
Help Today. Hint: Compute the owner’s capital account balance as of
August 31.
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 2 - Apply: Homework
QS 2-6 Analyzing transactions and preparing journal entries LO
P1
For each transaction, (1) analyze the transaction using the accounting equation, (2)
record the transaction in journal entry form, and (3) post the entry using T-accounts to
represent ledger accounts. Use the following (partial) chart of accounts—account
numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies
(124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned
Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302);
Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696).
a. On May 15, DeShawn Tyler opens a landscaping company called Elegant
Lawns by investing $82,000 in cash along with equipment having a $42,000
value.
b. On May 21, Elegant Lawns purchases office supplies on credit for $520.
c. On May 25, Elegant Lawns receives $9,000 cash for performing landscaping
services.
d. On May 30, Elegant Lawns receives $2,200 cash in advance of providing
landscaping services to a customer.
QS 2-10 Computing T-account balance LO C4
Determine the ending balance of each of the following T-accounts.
Exercise 2-7 Preparing general journal entries LO P1
Following are the transactions of a new company called Pose-for-Pics.
Aug. 1 Madison Harris, the owner, invested $10,500 cash and $45,150 of
photography equipment in the company.
2 The company paid $2,700 cash for an insurance policy covering the next 24
months.
5 The company purchased office supplies for $1,995 cash.
20 The company received $3,500 cash in photography fees earned.
31 The company paid $878 cash for August utilities.
Prepare general journal entries for the above transactions.
Exercise 2-9 Recording effects of transactions in T-accounts LO
A1
The transactions of Spade Company appear below.
a. Kacy Spade, owner, invested $17,250 cash in the company.
b. The company purchased office supplies for $500 cash.
c. The company purchased $9,539 of office equipment on credit.
d. The company received $2,035 cash as fees for services provided to a
customer.
e. The company paid $9,539 cash to settle the payable for the office
equipment purchased in transaction c.
f. The company billed a customer $3,657 as fees for services provided.
g. The company paid $520 cash for the monthly rent.
c. On May 25, Elegant Lawns receives $9,000 cash for performing landscaping
services.
d. On May 30, Elegant Lawns receives $2,200 cash in advance of providing
landscaping services to a customer.
QS 2-10 Computing T-account balance LO C4
Determine the ending balance of each of the following T-accounts.
Exercise 2-7 Preparing general journal entries LO P1
Following are the transactions of a new company called Pose-for-Pics.
Aug. 1 Madison Harris, the owner, invested $10,500 cash and $45,150 of
photography equipment in the company.
2 The company paid $2,700 cash for an insurance policy covering the next 24
months.
5 The company purchased office supplies for $1,995 cash.
20 The company received $3,500 cash in photography fees earned.
31 The company paid $878 cash for August utilities.
Prepare general journal entries for the above transactions.
Exercise 2-9 Recording effects of transactions in T-accounts LO
A1
The transactions of Spade Company appear below.
a. Kacy Spade, owner, invested $17,250 cash in the company.
b. The company purchased office supplies for $500 cash.
c. The company purchased $9,539 of office equipment on credit.
d. The company received $2,035 cash as fees for services provided to a
customer.
e. The company paid $9,539 cash to settle the payable for the office
equipment purchased in transaction c.
f. The company billed a customer $3,657 as fees for services provided.
g. The company paid $520 cash for the monthly rent.
h. The company collected $1,536 cash as partial payment for the
account receivable created in transaction f.
i. Kacy Spade withdrew $1,000 cash from the company for personal
use.
Required:
1. Prepare general journal entries to record the transactions above for Spade
Company by using the following accounts: Cash; Accounts Receivable;
Office Supplies; Office Equipment; Accounts Payable; K. Spade, Capital; K.
Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside
each transaction to identify entries.
2. Post the above journal entries to T-accounts, which serve as the general
ledger for this assignment.
Required information
Use the following information for the Quick Studies below.
[The following information applies to the questions displayed below.]
Liu Zhang operates Lawson Consulting, which began operations on June 1.
On June 30, the company’s records show the following accounts and
amounts for the month of June.
Cash $ 11,000 Service revenue $ 15,600
Accounts receivable 5,700 Equipment 7,700
Accounts payable 4,700 Rent expense 3,200
L. Zhang, Withdrawals 2,700 Wages expense 8,000
QS 2-12 Preparing an income statement LO P3
Use the above information to prepare a June income statement for the
business.
QS 2-13 Preparing a statement of owner's equity LO P3
Use the above information to prepare a June statement of owner’s equity for
Lawson Consulting. The owner’s capital account balance at May 31 was $0,
account receivable created in transaction f.
i. Kacy Spade withdrew $1,000 cash from the company for personal
use.
Required:
1. Prepare general journal entries to record the transactions above for Spade
Company by using the following accounts: Cash; Accounts Receivable;
Office Supplies; Office Equipment; Accounts Payable; K. Spade, Capital; K.
Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside
each transaction to identify entries.
2. Post the above journal entries to T-accounts, which serve as the general
ledger for this assignment.
Required information
Use the following information for the Quick Studies below.
[The following information applies to the questions displayed below.]
Liu Zhang operates Lawson Consulting, which began operations on June 1.
On June 30, the company’s records show the following accounts and
amounts for the month of June.
Cash $ 11,000 Service revenue $ 15,600
Accounts receivable 5,700 Equipment 7,700
Accounts payable 4,700 Rent expense 3,200
L. Zhang, Withdrawals 2,700 Wages expense 8,000
QS 2-12 Preparing an income statement LO P3
Use the above information to prepare a June income statement for the
business.
QS 2-13 Preparing a statement of owner's equity LO P3
Use the above information to prepare a June statement of owner’s equity for
Lawson Consulting. The owner’s capital account balance at May 31 was $0,
and the owner invested $18,000 cash in the company on June 1.
QS 2-14 Preparing a balance sheet LO P3
Use the above information to prepare a June 30 balance sheet for Lawson
Consulting. Hint: Compute the owner’s capital account balance as of June
30.
Exercise 2-15 Computing net income LO A1
A sole proprietorship had the following assets and liabilities at the beginning
and end of this year.
Assets Liabilities
Beginning of the year $ 77,000 $ 33,010
End of the year 135,000 54,675
a. Owner made no investments in the business, and no withdrawals were
made during the year.
b. Owner made no investments in the business, but withdrew $1,000
cash per month for personal use.
c. Owner made no withdrawals during the year, but the owner did invest
an additional $45,000 cash.
d. Owner withdrew $1,000 cash per month for personal use, and the
owner invested an additional $35,000 cash.
Determine net income or net loss for the business during the year for each of
the above separate cases: (Decreases in equity should be indicated with a
minus sign.)
Required information
Use the following information for Exercises 16-18 below.
[The following information applies to the questions displayed below.]
Carmen Camry operates a consulting firm called Help Today, which began
operations on August 1. On August 31, the company’s records show the
QS 2-14 Preparing a balance sheet LO P3
Use the above information to prepare a June 30 balance sheet for Lawson
Consulting. Hint: Compute the owner’s capital account balance as of June
30.
Exercise 2-15 Computing net income LO A1
A sole proprietorship had the following assets and liabilities at the beginning
and end of this year.
Assets Liabilities
Beginning of the year $ 77,000 $ 33,010
End of the year 135,000 54,675
a. Owner made no investments in the business, and no withdrawals were
made during the year.
b. Owner made no investments in the business, but withdrew $1,000
cash per month for personal use.
c. Owner made no withdrawals during the year, but the owner did invest
an additional $45,000 cash.
d. Owner withdrew $1,000 cash per month for personal use, and the
owner invested an additional $35,000 cash.
Determine net income or net loss for the business during the year for each of
the above separate cases: (Decreases in equity should be indicated with a
minus sign.)
Required information
Use the following information for Exercises 16-18 below.
[The following information applies to the questions displayed below.]
Carmen Camry operates a consulting firm called Help Today, which began
operations on August 1. On August 31, the company’s records show the
following accounts and amounts for the month of August.
Cash $ 25,390 C. Camry, Withdrawals $ 6,030
Accounts receivable 22,390 Consulting fees earned 27,020
Office supplies 5,280 Rent expense 9,580
Land 44,030 Salaries expense 5,630
Office equipment 20,030 Telephone expense 900
Accounts payable 10,580 Miscellaneous expenses 540
Exercise 2-16 Preparing an income statement LO C3, P3
Use the above information to prepare an August income statement for the
business.
Exercise 2-17 Preparing a statement of owner's equity LO P3
Use the above information to prepare an August statement of owner’s equity
for Help Today. The owner’s capital account balance at July 31 was $0, and
the owner invested $102,200 cash in the company on August 1.
Exercise 2-18 Preparing a balance sheet LO P3
Use the above information to prepare an August 31 balance sheet for
Help Today. Hint: Compute the owner’s capital account balance as of
August 31.
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 3 - Practice: Connect Knowledge Check
Cash $ 25,390 C. Camry, Withdrawals $ 6,030
Accounts receivable 22,390 Consulting fees earned 27,020
Office supplies 5,280 Rent expense 9,580
Land 44,030 Salaries expense 5,630
Office equipment 20,030 Telephone expense 900
Accounts payable 10,580 Miscellaneous expenses 540
Exercise 2-16 Preparing an income statement LO C3, P3
Use the above information to prepare an August income statement for the
business.
Exercise 2-17 Preparing a statement of owner's equity LO P3
Use the above information to prepare an August statement of owner’s equity
for Help Today. The owner’s capital account balance at July 31 was $0, and
the owner invested $102,200 cash in the company on August 1.
Exercise 2-18 Preparing a balance sheet LO P3
Use the above information to prepare an August 31 balance sheet for
Help Today. Hint: Compute the owner’s capital account balance as of
August 31.
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 3 - Practice: Connect Knowledge Check
Study Attempts
You should use your earlier attempt(s) as study
attempts.
True or False
2.GL0204 (No Analysis Tab) - Based on Problem 2-1A LO A1, C3, C4, P1,
P2
Grace Labeille opens a web consulting business called Travel Smart and
completes the following transactions in its first month of operations.
Prepare journal entries for each transaction and identify the financial
statement impact of each entry.
The financial statements are automatically generated based on the journal
entries recorded.
Apr.
1
Labeille invested $92,000 cash along with office equipment valued
at $28,000 in the company.
Apr.
2
The company prepaid $11,400 cash for 12 months' rent for office
space. The company's policy is record prepaid expenses in balance
sheet accounts.
Apr.
3
The company made credit purchases for $8,400 in office equipment
and $4,000 in office supplies. Payment is due within 10 days.
Apr.
6
The company completed services for a client and immediately
received $5,200 cash.
Apr.
9
The company completed a $8,000 project for a client, who must pay
within 30 days.
Apr.
13
The company paid $12,400 cash to settle the account payable
created on April 3.
Apr.
19
The company paid $3,360 cash for the premium on a 12-month
insurance policy. The company's policy is record prepaid expenses
in balance sheet accounts.
Apr.
22
The company received $4,800 cash as partial payment for the work
completed on April 9.
Apr.
25
The company completed work for another client for $4,300 on
credit.
Apr. 28 Labeille withdrew $5,900 cash from the company for personal use.
Apr.
29
The company purchased $1,000 of additional office supplies on
credit.
You should use your earlier attempt(s) as study
attempts.
True or False
2.GL0204 (No Analysis Tab) - Based on Problem 2-1A LO A1, C3, C4, P1,
P2
Grace Labeille opens a web consulting business called Travel Smart and
completes the following transactions in its first month of operations.
Prepare journal entries for each transaction and identify the financial
statement impact of each entry.
The financial statements are automatically generated based on the journal
entries recorded.
Apr.
1
Labeille invested $92,000 cash along with office equipment valued
at $28,000 in the company.
Apr.
2
The company prepaid $11,400 cash for 12 months' rent for office
space. The company's policy is record prepaid expenses in balance
sheet accounts.
Apr.
3
The company made credit purchases for $8,400 in office equipment
and $4,000 in office supplies. Payment is due within 10 days.
Apr.
6
The company completed services for a client and immediately
received $5,200 cash.
Apr.
9
The company completed a $8,000 project for a client, who must pay
within 30 days.
Apr.
13
The company paid $12,400 cash to settle the account payable
created on April 3.
Apr.
19
The company paid $3,360 cash for the premium on a 12-month
insurance policy. The company's policy is record prepaid expenses
in balance sheet accounts.
Apr.
22
The company received $4,800 cash as partial payment for the work
completed on April 9.
Apr.
25
The company completed work for another client for $4,300 on
credit.
Apr. 28 Labeille withdrew $5,900 cash from the company for personal use.
Apr.
29
The company purchased $1,000 of additional office supplies on
credit.
Apr. 30 The company paid $1,100 cash for this month’s utility bill.
GL0202 (No Analysis Tab) - Based on Exercise 2-9 LO A1
Prepare journal entries for each transaction and identify the financial
statement impact of each entry.
The financial statements are automatically generated based on the journal
entries recorded.
Jan. 1 Sarah Walker, owner, invested $118,750 cash in the company.
Jan. 2 The company purchased office supplies for $1,850 cash.
Jan. 3 The company purchased $14,050 of office equipment on credit.
Jan. 4 The company received $16,700 cash as fees for services provided to a
customer.
Jan. 5 The company paid $14,050 cash to settle the payable for the office equipment
purchased on January 3.
Jan. 6 The company billed a customer $3,300 as fees for services provided.
Jan. 7 The company paid $1,825 cash for the monthly rent.
Jan. 8 The company collected $1,575 cash as partial payment for the account
receivable created on January 6.
Jan. 9 Sarah Walker withdrew $10,600 cash from the company for personal use.
1. General Journal Tab - For each transaction, prepare the required journal entry on the General
Journal tab. List debits before credits.
2. General Ledger Tab - One of the advantages of general ledger software is that posting is done
automatically. To see the detail of all transactions that affect a specific account, or the balance in an
account at a specific point in time, click on the General Ledger tab.
3. Trial Balance Tab - General ledger software also automates the preparation of trial
balances. A trial balance lists each account from the General Ledger, along with its balance, either a
debit or a credit. Total debits should always equal total credits.
4. Income Statement Tab - The revenue and expense balances from the trial balance appear on
the income statement, along with their balance as of the date selected. Review the income statement
and indicate how the income statement is linked to the other financial statements.
5. Statement of Owner's Equity Tab - Owner investments and withdrawals, as reported on the
trial balance, appear on the statement of owner's equity. Review the statement of owner's equity and
indicate how the statement of owner's equity is linked to the other financial statements.
6. Balance Sheet Tab - Each asset and liability account balance, as reported on the trial
balance, appears on the balance sheet, along with the ending capital balance. Review the balance
sheet and then indicate how the balance sheet is linked to the other financial statements.
ACC 290T Wk 3 - Apply: Homework
GL0202 (No Analysis Tab) - Based on Exercise 2-9 LO A1
Prepare journal entries for each transaction and identify the financial
statement impact of each entry.
The financial statements are automatically generated based on the journal
entries recorded.
Jan. 1 Sarah Walker, owner, invested $118,750 cash in the company.
Jan. 2 The company purchased office supplies for $1,850 cash.
Jan. 3 The company purchased $14,050 of office equipment on credit.
Jan. 4 The company received $16,700 cash as fees for services provided to a
customer.
Jan. 5 The company paid $14,050 cash to settle the payable for the office equipment
purchased on January 3.
Jan. 6 The company billed a customer $3,300 as fees for services provided.
Jan. 7 The company paid $1,825 cash for the monthly rent.
Jan. 8 The company collected $1,575 cash as partial payment for the account
receivable created on January 6.
Jan. 9 Sarah Walker withdrew $10,600 cash from the company for personal use.
1. General Journal Tab - For each transaction, prepare the required journal entry on the General
Journal tab. List debits before credits.
2. General Ledger Tab - One of the advantages of general ledger software is that posting is done
automatically. To see the detail of all transactions that affect a specific account, or the balance in an
account at a specific point in time, click on the General Ledger tab.
3. Trial Balance Tab - General ledger software also automates the preparation of trial
balances. A trial balance lists each account from the General Ledger, along with its balance, either a
debit or a credit. Total debits should always equal total credits.
4. Income Statement Tab - The revenue and expense balances from the trial balance appear on
the income statement, along with their balance as of the date selected. Review the income statement
and indicate how the income statement is linked to the other financial statements.
5. Statement of Owner's Equity Tab - Owner investments and withdrawals, as reported on the
trial balance, appear on the statement of owner's equity. Review the statement of owner's equity and
indicate how the statement of owner's equity is linked to the other financial statements.
6. Balance Sheet Tab - Each asset and liability account balance, as reported on the trial
balance, appears on the balance sheet, along with the ending capital balance. Review the balance
sheet and then indicate how the balance sheet is linked to the other financial statements.
ACC 290T Wk 3 - Apply: Homework
GL0201 - (No Analysis Tab) - Based on the FastForward
Company LO A1, C3, C4, P1, P2, P3
This problem is based on the transactions for the FastForward Company in
your text. Prepare journal entries for each transaction and identify the
financial statement impact of each entry. The financial statements are
automatically generated based on the journal entries recorded.
Dec. 1
On December 1, Chas Taylor forms a consulting business, named
FastForward. FastForward receives $30,000 cash from Chas Taylor as an
owner contribution.
Dec. 2
FastForward pays $2,500 cash for supplies. The company's policy is to record
all prepaid expenses in asset accounts.
Dec. 3 FastForward pays $26,000 cash for equipment.
Dec. 4
FastForward purchases $7,100 of supplies on credit from a supplier, CalTech
Supply.
Dec. 5
FastForward provides consulting services and immediately collects $4,200
cash.
Dec. 6 FastForward pays $1,000 cash for December rent.
Dec. 7 FastForward pays $700 cash for employee salary.
Dec. 8
FastForward provides consulting services of $1,600 and rents its test facilities
for $300. The customer is billed $1,900 for these services.
Dec. 9 FastForward receives $1,900 cash from the client billed on December 8.
Dec. 10
FastForward pays CalTech Supply $900 cash as partial payment for its
December 4 $7,100 purchase of supplies.
Dec. 11 Chas Taylor withdraws $200 cash from FastForward for personal use.
Dec. 12
FastForward receives $3,000 cash in advance of providing consulting
services to a customer. The company's policy is to record fees collected in
advance in a balance sheet account.
Dec. 13
FastForward pays $2,400 cash (insurance premium) for a 24-month insurance
policy. Coverage begins on December 1. The company's policy is to record
all prepaid expenses in a balance sheet account.
Dec. 14 FastForward pays $120 cash for supplies.
Dec. 15 FastForward pays $305 cash for December utilities expense.
Dec. 16
FastForward pays $700 cash in employee salary for work performed in the
latter part of December.
Company LO A1, C3, C4, P1, P2, P3
This problem is based on the transactions for the FastForward Company in
your text. Prepare journal entries for each transaction and identify the
financial statement impact of each entry. The financial statements are
automatically generated based on the journal entries recorded.
Dec. 1
On December 1, Chas Taylor forms a consulting business, named
FastForward. FastForward receives $30,000 cash from Chas Taylor as an
owner contribution.
Dec. 2
FastForward pays $2,500 cash for supplies. The company's policy is to record
all prepaid expenses in asset accounts.
Dec. 3 FastForward pays $26,000 cash for equipment.
Dec. 4
FastForward purchases $7,100 of supplies on credit from a supplier, CalTech
Supply.
Dec. 5
FastForward provides consulting services and immediately collects $4,200
cash.
Dec. 6 FastForward pays $1,000 cash for December rent.
Dec. 7 FastForward pays $700 cash for employee salary.
Dec. 8
FastForward provides consulting services of $1,600 and rents its test facilities
for $300. The customer is billed $1,900 for these services.
Dec. 9 FastForward receives $1,900 cash from the client billed on December 8.
Dec. 10
FastForward pays CalTech Supply $900 cash as partial payment for its
December 4 $7,100 purchase of supplies.
Dec. 11 Chas Taylor withdraws $200 cash from FastForward for personal use.
Dec. 12
FastForward receives $3,000 cash in advance of providing consulting
services to a customer. The company's policy is to record fees collected in
advance in a balance sheet account.
Dec. 13
FastForward pays $2,400 cash (insurance premium) for a 24-month insurance
policy. Coverage begins on December 1. The company's policy is to record
all prepaid expenses in a balance sheet account.
Dec. 14 FastForward pays $120 cash for supplies.
Dec. 15 FastForward pays $305 cash for December utilities expense.
Dec. 16
FastForward pays $700 cash in employee salary for work performed in the
latter part of December.
GL0202 (No Analysis Tab) - Based on Exercise 2-9 LO A1
Prepare journal entries for each transaction and identify the financial
statement impact of each entry.
The financial statements are automatically generated based on the journal
entries recorded.
Jan. 1 Juan Perez, owner, invested $127,750 cash in the company.
Jan. 2 The company purchased office supplies for $2,150 cash.
Jan. 3 The company purchased $12,050 of office equipment on credit.
Jan. 4 The company received $17,300 cash as fees for services provided to a
customer.
Jan. 5 The company paid $12,050 cash to settle the payable for the office equipment
purchased on January 3.
Jan. 6 The company billed a customer $3,600 as fees for services provided.
Jan. 7 The company paid $2,125 cash for the monthly rent.
Jan. 8 The company collected $1,800 cash as partial payment for the account
receivable created on January 6.
Jan. 9 Juan Perez withdrew $10,900 cash from the company for personal use.
GL0204 (No Analysis Tab) - Based on Problem 2-1A LO A1, C3,
C4, P1, P2
Ken Hughes opens a web consulting business called Security First and
completes the following transactions in its first month of operations.
Prepare journal entries for each transaction and identify the financial
statement impact of each entry.
The financial statements are automatically generated based on the journal
entries recorded.
Apr.
1
Hughes invested $149,000 cash along with office equipment valued at
$37,500 in the company.
Apr.
2
The company prepaid $22,800 cash for 12 months' rent for office space. The
company's policy is record prepaid expenses in balance sheet accounts.
Apr.
3
The company made credit purchases for $10,300 in office equipment and
$5,900 in office supplies. Payment is due within 10 days.
Apr.
6
The company completed services for a client and immediately received
$10,900 cash.
Apr.
9
The company completed a $17,500 project for a client, who must pay within
30 days.
Prepare journal entries for each transaction and identify the financial
statement impact of each entry.
The financial statements are automatically generated based on the journal
entries recorded.
Jan. 1 Juan Perez, owner, invested $127,750 cash in the company.
Jan. 2 The company purchased office supplies for $2,150 cash.
Jan. 3 The company purchased $12,050 of office equipment on credit.
Jan. 4 The company received $17,300 cash as fees for services provided to a
customer.
Jan. 5 The company paid $12,050 cash to settle the payable for the office equipment
purchased on January 3.
Jan. 6 The company billed a customer $3,600 as fees for services provided.
Jan. 7 The company paid $2,125 cash for the monthly rent.
Jan. 8 The company collected $1,800 cash as partial payment for the account
receivable created on January 6.
Jan. 9 Juan Perez withdrew $10,900 cash from the company for personal use.
GL0204 (No Analysis Tab) - Based on Problem 2-1A LO A1, C3,
C4, P1, P2
Ken Hughes opens a web consulting business called Security First and
completes the following transactions in its first month of operations.
Prepare journal entries for each transaction and identify the financial
statement impact of each entry.
The financial statements are automatically generated based on the journal
entries recorded.
Apr.
1
Hughes invested $149,000 cash along with office equipment valued at
$37,500 in the company.
Apr.
2
The company prepaid $22,800 cash for 12 months' rent for office space. The
company's policy is record prepaid expenses in balance sheet accounts.
Apr.
3
The company made credit purchases for $10,300 in office equipment and
$5,900 in office supplies. Payment is due within 10 days.
Apr.
6
The company completed services for a client and immediately received
$10,900 cash.
Apr.
9
The company completed a $17,500 project for a client, who must pay within
30 days.
Apr.
13
The company paid $16,200 cash to settle the account payable created on April
3.
Apr.
19
The company paid $7,920 cash for the premium on a 12-month insurance
policy. The company's policy is record prepaid expenses in balance sheet
accounts.
Apr.
22
The company received $10,500 cash as partial payment for the work
completed on April 9.
Apr. 25 The company completed work for another client for $6,200 on credit.
Apr. 28 Hughes withdrew $6,200 cash from the company for personal use.
Apr. 29 The company purchased $2,900 of additional office supplies on credit.
Apr. 30 The company paid $3,300 cash for this month’s utility bill.
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 4 - Practice: Connect Knowledge Check
Exercise 3-7 Preparing adjusting entries LO P1, P3, P4
a. Wages of $7,000 are earned by workers but not paid as of December
31.
b. Depreciation on the company’s equipment for the year is $10,840.
c. The Office Supplies account had a $480 debit balance at the
beginning of December. During December, $4,816 of office supplies
are purchased. A physical count of supplies at December 31 shows
$532 of supplies available.
d. The Prepaid Insurance account had a $5,000 balance at the beginning
of December. An analysis of insurance policies shows that $2,900 of
unexpired insurance benefits remain at December 31.
e. The company has earned (but not recorded) $650 of interest revenue
for the year ended December 31. The interest payment will be
received on 10 days after the year-end January 10.
f. The company has a bank loan and has incurred (but not recorded)
interest expense of $4,500 for the year ended December 31. The
company will pay the interest five days after the year-end on January
5.
For each of the above separate cases, prepare adjusting entries required of
financial statements for the year ended (date of) December 31.
13
The company paid $16,200 cash to settle the account payable created on April
3.
Apr.
19
The company paid $7,920 cash for the premium on a 12-month insurance
policy. The company's policy is record prepaid expenses in balance sheet
accounts.
Apr.
22
The company received $10,500 cash as partial payment for the work
completed on April 9.
Apr. 25 The company completed work for another client for $6,200 on credit.
Apr. 28 Hughes withdrew $6,200 cash from the company for personal use.
Apr. 29 The company purchased $2,900 of additional office supplies on credit.
Apr. 30 The company paid $3,300 cash for this month’s utility bill.
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 4 - Practice: Connect Knowledge Check
Exercise 3-7 Preparing adjusting entries LO P1, P3, P4
a. Wages of $7,000 are earned by workers but not paid as of December
31.
b. Depreciation on the company’s equipment for the year is $10,840.
c. The Office Supplies account had a $480 debit balance at the
beginning of December. During December, $4,816 of office supplies
are purchased. A physical count of supplies at December 31 shows
$532 of supplies available.
d. The Prepaid Insurance account had a $5,000 balance at the beginning
of December. An analysis of insurance policies shows that $2,900 of
unexpired insurance benefits remain at December 31.
e. The company has earned (but not recorded) $650 of interest revenue
for the year ended December 31. The interest payment will be
received on 10 days after the year-end January 10.
f. The company has a bank loan and has incurred (but not recorded)
interest expense of $4,500 for the year ended December 31. The
company will pay the interest five days after the year-end on January
5.
For each of the above separate cases, prepare adjusting entries required of
financial statements for the year ended (date of) December 31.
GL0302 - Based on Problem 3-3A LO P1, P2, P3, P4, P6
Parker Technical Institute (PTI), a school owned by Paula Parker, provides
training to individuals who pay tuition directly to the school. PTI also offers
training to groups in off-site locations. Its unadjusted trial balance as of
December 31, is found on the trial balance tab. PTI initially records prepaid
expenses and unearned revenues in balance sheet accounts. Descriptions of
items a through h that require adjusting entries on December 31.
a. An analysis of PTI’s insurance policies shows that $2,650 of
coverage has expired.
b. An inventory count shows that teaching supplies costing $3,720 are
available at year-end.
c. Annual depreciation on the equipment is $4,600.
d. Annual depreciation on the professional library is $8,600.
e. On September 1, PTI agreed to do five courses for a client for $3,000
each. Two courses will start immediately and finish before the end of
the year. Three courses will not begin until next year. The client paid
$15,000 cash in advance for all five courses on September 1, and PTI
credited Unearned Training Fees.
f. On October 15, PTI agreed to teach a four-month class (beginning
immediately) for an executive with payment due at the end of the
class. At December 31, $8,500 of the tuition has been earned by PTI.
g. PTI’s two employees are paid weekly. As of the end of the year, two
days’ salaries have accrued at the rate of $160 per day for each
employee.
h. The balance in the Prepaid Rent account represents rent for
December.
GL0301 - Based on the... LO A1, P1, P3
The unadjusted trial balance of the Sweet Homes Company as of December
31, 2019 is found on the trial balance tab. The following information is
required to prepare the necessary adjusting entries for the Sweet Homes
Company.
1) The balance in Prepaid insurance represents a 24-month policy that
went into effect on December 1, 2019. Review the unadjusted balance
in Prepaid insurance, and prepare the necessary adjusting entry, if
any.
2) Based on a physical count, supplies on hand total $4,200. Review
the unadjusted balance in Supplies, and prepare the necessary
adjusting entry, if any.
Parker Technical Institute (PTI), a school owned by Paula Parker, provides
training to individuals who pay tuition directly to the school. PTI also offers
training to groups in off-site locations. Its unadjusted trial balance as of
December 31, is found on the trial balance tab. PTI initially records prepaid
expenses and unearned revenues in balance sheet accounts. Descriptions of
items a through h that require adjusting entries on December 31.
a. An analysis of PTI’s insurance policies shows that $2,650 of
coverage has expired.
b. An inventory count shows that teaching supplies costing $3,720 are
available at year-end.
c. Annual depreciation on the equipment is $4,600.
d. Annual depreciation on the professional library is $8,600.
e. On September 1, PTI agreed to do five courses for a client for $3,000
each. Two courses will start immediately and finish before the end of
the year. Three courses will not begin until next year. The client paid
$15,000 cash in advance for all five courses on September 1, and PTI
credited Unearned Training Fees.
f. On October 15, PTI agreed to teach a four-month class (beginning
immediately) for an executive with payment due at the end of the
class. At December 31, $8,500 of the tuition has been earned by PTI.
g. PTI’s two employees are paid weekly. As of the end of the year, two
days’ salaries have accrued at the rate of $160 per day for each
employee.
h. The balance in the Prepaid Rent account represents rent for
December.
GL0301 - Based on the... LO A1, P1, P3
The unadjusted trial balance of the Sweet Homes Company as of December
31, 2019 is found on the trial balance tab. The following information is
required to prepare the necessary adjusting entries for the Sweet Homes
Company.
1) The balance in Prepaid insurance represents a 24-month policy that
went into effect on December 1, 2019. Review the unadjusted balance
in Prepaid insurance, and prepare the necessary adjusting entry, if
any.
2) Based on a physical count, supplies on hand total $4,200. Review
the unadjusted balance in Supplies, and prepare the necessary
adjusting entry, if any.
3) The equipment is expected to have a 5-year useful life, and be
worth about $11,000 at the end of five years. Review the unadjusted
balance in Accumulated depreciation, and prepare the necessary
adjusting entry to record the monthly depreciation, if any.
4) On December 26, the client paid a $7,200 60-day fee in advance,
covering December 27 to February 24. Review the unadjusted
balance in Unearned Consulting Revenue, and prepare the necessary
adjusting entry, if any.
5) Sweet Homes's employee earns $130 per day for a five-day
workweek beginning on Monday and ending on Friday. The
employee was last paid on Friday, December 26. Review the
unadjusted balance in Salaries expense, and prepare the necessary
adjusting entry, if any.
6) In the second week of December, Sweet Homes agreed to provide
30 days of consulting services to a local fitness club for a fixed fee of
$6,060. The terms of the initial agreement call for Sweet Homes to
provide services from December 12, 2019, through January 10, 2020,
or 30 days of service. The club agrees to pay Sweet Homes $6,060 on
January 10, 2020, when the service period is complete. Review the
unadjusted balance in Consulting revenue, and prepare the necessary
adjusting entry, if any.
Exercise 3-6 Preparing adjusting entries LO P1, P2, P3
a. Depreciation on the company's equipment for the year is computed to
be $17,000.
b. The Prepaid Insurance account had a $7,000 debit balance at
December 31 before adjusting for the costs of any expired coverage.
An analysis of the company’s insurance policies showed that $1,590
of unexpired insurance coverage remains.
c. The Office Supplies account had a $230 debit balance at the
beginning of December; and $2,680 of office supplies were
purchased in December. The December 31 physical count showed
$271 of supplies available.
d. One-third of the work related to $15,000 of cash received in advance
was performed this period.
e. The Prepaid Rent account had a $5,800 debit balance at December 31
before adjusting for the costs of any expired coverage. An analysis of
rental policies showed that $4,210 of rental coverage had expired.
f. Wage expenses of $5,000 have been incurred but are not paid as of
December 31.
worth about $11,000 at the end of five years. Review the unadjusted
balance in Accumulated depreciation, and prepare the necessary
adjusting entry to record the monthly depreciation, if any.
4) On December 26, the client paid a $7,200 60-day fee in advance,
covering December 27 to February 24. Review the unadjusted
balance in Unearned Consulting Revenue, and prepare the necessary
adjusting entry, if any.
5) Sweet Homes's employee earns $130 per day for a five-day
workweek beginning on Monday and ending on Friday. The
employee was last paid on Friday, December 26. Review the
unadjusted balance in Salaries expense, and prepare the necessary
adjusting entry, if any.
6) In the second week of December, Sweet Homes agreed to provide
30 days of consulting services to a local fitness club for a fixed fee of
$6,060. The terms of the initial agreement call for Sweet Homes to
provide services from December 12, 2019, through January 10, 2020,
or 30 days of service. The club agrees to pay Sweet Homes $6,060 on
January 10, 2020, when the service period is complete. Review the
unadjusted balance in Consulting revenue, and prepare the necessary
adjusting entry, if any.
Exercise 3-6 Preparing adjusting entries LO P1, P2, P3
a. Depreciation on the company's equipment for the year is computed to
be $17,000.
b. The Prepaid Insurance account had a $7,000 debit balance at
December 31 before adjusting for the costs of any expired coverage.
An analysis of the company’s insurance policies showed that $1,590
of unexpired insurance coverage remains.
c. The Office Supplies account had a $230 debit balance at the
beginning of December; and $2,680 of office supplies were
purchased in December. The December 31 physical count showed
$271 of supplies available.
d. One-third of the work related to $15,000 of cash received in advance
was performed this period.
e. The Prepaid Rent account had a $5,800 debit balance at December 31
before adjusting for the costs of any expired coverage. An analysis of
rental policies showed that $4,210 of rental coverage had expired.
f. Wage expenses of $5,000 have been incurred but are not paid as of
December 31.
Prepare adjusting journal entries for the year ended (date of) December 31
for each of these separate situations.
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 4 - Apply: Homework
QS 3-2 Computing accrual and cash income LO C1
In its first year of operations, Roma Company reports the following.
Earned revenues of $52,000 ($44,000 cash received from customers).
Incurred expenses of $29,000 ($22,700 cash paid toward them).
Prepaid $8,500 cash for costs that will not be expensed until next
year.
Compute the company’s first-year net income under both the cash
basis and the accrual basis of accounting.
QS 3-5 Prepaid (deferred) expenses adjustments LO P1
For each separate case below, follow the three-step process for adjusting the
prepaid asset account at December 31.
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Assume no other adjusting entries are made during the year.
QS 3-6 Prepaid (deferred) expenses adjustments LO P1
For each separate case below, follow the three-step process for adjusting the
Supplies asset account at December 31.
Step 1: Determine what the current account balance equals.
for each of these separate situations.
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 4 - Apply: Homework
QS 3-2 Computing accrual and cash income LO C1
In its first year of operations, Roma Company reports the following.
Earned revenues of $52,000 ($44,000 cash received from customers).
Incurred expenses of $29,000 ($22,700 cash paid toward them).
Prepaid $8,500 cash for costs that will not be expensed until next
year.
Compute the company’s first-year net income under both the cash
basis and the accrual basis of accounting.
QS 3-5 Prepaid (deferred) expenses adjustments LO P1
For each separate case below, follow the three-step process for adjusting the
prepaid asset account at December 31.
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Assume no other adjusting entries are made during the year.
QS 3-6 Prepaid (deferred) expenses adjustments LO P1
For each separate case below, follow the three-step process for adjusting the
Supplies asset account at December 31.
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Assume no other adjusting entries are made during the year.
QS 3-7 Adjusting prepaid (deferred) expenses LO P1
For each separate case, record the necessary adjusting entry.
a. On July 1, Lopez Company paid $1,900 for six months of insurance
coverage. No adjustments have been made to the Prepaid Insurance
account, and it is now December 31.
b. Zim Company has a Supplies account balance of $6,400 at the
beginning of the year. During the year, it purchased $2,700 of
supplies. As of December 31, a physical count of supplies shows
$1,150 of supplies available.
Prepare the year-end adjusting entries to reflect expiration of the insurance
and correctly report the balance of the Supplies account and the Supplies
Expense account as of December 31.
QS 3-8 Accumulated depreciation adjustments LO P1
For each separate case below, follow the three-step process for adjusting the
Accumulated Depreciation account at December 31.
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Assume no other adjusting entries are made during the year.
QS 3-10 Unearned (deferred) revenues adjustments LO P2
Record adjusting journal entries for each of the following for year ended
December 31.
Assume no other adjusting entries are made during the year.
a. Unearned Rent Revenue. The Krug Company collected $13,200
rent in advance on November 1, debiting Cash and crediting
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Assume no other adjusting entries are made during the year.
QS 3-7 Adjusting prepaid (deferred) expenses LO P1
For each separate case, record the necessary adjusting entry.
a. On July 1, Lopez Company paid $1,900 for six months of insurance
coverage. No adjustments have been made to the Prepaid Insurance
account, and it is now December 31.
b. Zim Company has a Supplies account balance of $6,400 at the
beginning of the year. During the year, it purchased $2,700 of
supplies. As of December 31, a physical count of supplies shows
$1,150 of supplies available.
Prepare the year-end adjusting entries to reflect expiration of the insurance
and correctly report the balance of the Supplies account and the Supplies
Expense account as of December 31.
QS 3-8 Accumulated depreciation adjustments LO P1
For each separate case below, follow the three-step process for adjusting the
Accumulated Depreciation account at December 31.
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Assume no other adjusting entries are made during the year.
QS 3-10 Unearned (deferred) revenues adjustments LO P2
Record adjusting journal entries for each of the following for year ended
December 31.
Assume no other adjusting entries are made during the year.
a. Unearned Rent Revenue. The Krug Company collected $13,200
rent in advance on November 1, debiting Cash and crediting
Unearned Rent Revenue. The tenant was paying 12 months’ rent in
advance and occupancy began November 1.
b. Unearned Services Revenue. The company charges $135 per insect
treatment. A customer paid $540 on October 1 in advance for four
treatments, which was recorded with a debit to Cash and a credit to
Unearned Services Revenue. At year-end, the company has applied
three treatments for the customer.
c. Unearned Rent Revenue. On September 1, a client paid the
company $38,400 cash for six months of rent in advance (the client
leased a building and took occupancy immediately). The company
recorded the cash as Unearned Rent Revenue.
QS 3-11 Adjusting for unearned (deferred) revenues LO P2
For each separate case below, follow the three-step process for adjusting the
unearned revenue liability account at December 31.
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Assume no other adjusting entries are made during the year.
QS 3-14 Accrued revenues adjustments LO P4
Record adjusting journal entries for each of the following for year ended
December 31.
Assume no other adjusting entries are made during the year.
a. Accounts Receivable. At year-end, the L. Cole Company has
completed services of $28,500 for a client, but the client has not yet
been billed for those services.
b. Interest Receivable. At year-end, the company has earned, but not
yet recorded, $770 of interest earned from its investments in
government bonds.
c. Accounts Receivable. A painting company collects fees when jobs
are complete. The work for one customer, whose job was bid at
$2,060, has been completed, but the customer has not yet been billed.
advance and occupancy began November 1.
b. Unearned Services Revenue. The company charges $135 per insect
treatment. A customer paid $540 on October 1 in advance for four
treatments, which was recorded with a debit to Cash and a credit to
Unearned Services Revenue. At year-end, the company has applied
three treatments for the customer.
c. Unearned Rent Revenue. On September 1, a client paid the
company $38,400 cash for six months of rent in advance (the client
leased a building and took occupancy immediately). The company
recorded the cash as Unearned Rent Revenue.
QS 3-11 Adjusting for unearned (deferred) revenues LO P2
For each separate case below, follow the three-step process for adjusting the
unearned revenue liability account at December 31.
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Assume no other adjusting entries are made during the year.
QS 3-14 Accrued revenues adjustments LO P4
Record adjusting journal entries for each of the following for year ended
December 31.
Assume no other adjusting entries are made during the year.
a. Accounts Receivable. At year-end, the L. Cole Company has
completed services of $28,500 for a client, but the client has not yet
been billed for those services.
b. Interest Receivable. At year-end, the company has earned, but not
yet recorded, $770 of interest earned from its investments in
government bonds.
c. Accounts Receivable. A painting company collects fees when jobs
are complete. The work for one customer, whose job was bid at
$2,060, has been completed, but the customer has not yet been billed.
Exercise 3-6 Preparing adjusting entries LO P1, P2, P3
a. Depreciation on the company's equipment for the year is computed to
be $11,000.
b. The Prepaid Insurance account had a $7,000 debit balance at
December 31 before adjusting for the costs of any expired coverage.
An analysis of the company’s insurance policies showed that $1,030
of unexpired insurance coverage remains.
c. The Office Supplies account had a $220 debit balance at the
beginning of December; and $2,680 of office supplies were
purchased in December. The December 31 physical count showed
$260 of supplies available.
d. Three-fourths of the work related to $13,000 of cash received in
advance was performed this period.
e. The Prepaid Rent account had a $5,800 debit balance at December 31
before adjusting for the costs of any expired coverage. An analysis of
rental policies showed that $4,770 of rental coverage had expired.
f. Wage expenses of $3,000 have been incurred but are not paid as of
December 31.
Prepare adjusting journal entries for the year ended (date of) December 31
for each of these separate situations.
Exercise 3-7 Preparing adjusting entries LO P1, P3, P4
a. Wages of $12,000 are earned by workers but not paid as of December
31.
b. Depreciation on the company’s equipment for the year is $11,440.
c. The Office Supplies account had a $380 debit balance at the
beginning of December. During December, $4,820 of office supplies
are purchased. A physical count of supplies at December 31 shows
$532 of supplies available.
d. The Prepaid Insurance account had a $5,000 balance at the beginning
of December. An analysis of insurance policies shows that $1,900 of
unexpired insurance benefits remain at December 31.
e. The company has earned (but not recorded) $950 of interest revenue
for the year ended December 31. The interest payment will be
received on 10 days after the year-end January 10.
f. The company has a bank loan and has incurred (but not recorded)
interest expense of $4,000 for the year ended December 31. The
a. Depreciation on the company's equipment for the year is computed to
be $11,000.
b. The Prepaid Insurance account had a $7,000 debit balance at
December 31 before adjusting for the costs of any expired coverage.
An analysis of the company’s insurance policies showed that $1,030
of unexpired insurance coverage remains.
c. The Office Supplies account had a $220 debit balance at the
beginning of December; and $2,680 of office supplies were
purchased in December. The December 31 physical count showed
$260 of supplies available.
d. Three-fourths of the work related to $13,000 of cash received in
advance was performed this period.
e. The Prepaid Rent account had a $5,800 debit balance at December 31
before adjusting for the costs of any expired coverage. An analysis of
rental policies showed that $4,770 of rental coverage had expired.
f. Wage expenses of $3,000 have been incurred but are not paid as of
December 31.
Prepare adjusting journal entries for the year ended (date of) December 31
for each of these separate situations.
Exercise 3-7 Preparing adjusting entries LO P1, P3, P4
a. Wages of $12,000 are earned by workers but not paid as of December
31.
b. Depreciation on the company’s equipment for the year is $11,440.
c. The Office Supplies account had a $380 debit balance at the
beginning of December. During December, $4,820 of office supplies
are purchased. A physical count of supplies at December 31 shows
$532 of supplies available.
d. The Prepaid Insurance account had a $5,000 balance at the beginning
of December. An analysis of insurance policies shows that $1,900 of
unexpired insurance benefits remain at December 31.
e. The company has earned (but not recorded) $950 of interest revenue
for the year ended December 31. The interest payment will be
received on 10 days after the year-end January 10.
f. The company has a bank loan and has incurred (but not recorded)
interest expense of $4,000 for the year ended December 31. The
company will pay the interest five days after the year-end on January
5.
For each of the above separate cases, prepare adjusting entries required of
financial statements for the year ended (date of) December 31.
GL0301 - Based on the... LO A1, P1, P3
The unadjusted trial balance of the Business Mastery Company as of
December 31, 2019 is found on the trial balance tab. The following
information is required to prepare the necessary adjusting entries for the
Business Mastery Company.
1) The balance in Prepaid insurance represents a 24-month policy that
went into effect on December 1, 2019. Review the unadjusted balance
in Prepaid insurance, and prepare the necessary adjusting entry, if
any.
2) Based on a physical count, supplies on hand total $5,400. Review
the unadjusted balance in Supplies, and prepare the necessary
adjusting entry, if any.
3) The equipment is expected to have a 5-year useful life, and be
worth about $11,000 at the end of five years. Review the unadjusted
balance in Accumulated depreciation, and prepare the necessary
adjusting entry to record the monthly depreciation, if any.
4) On December 26, the client paid a $12,000 60-day fee in advance,
covering December 27 to February 24. Review the unadjusted
balance in Unearned Consulting Revenue, and prepare the necessary
adjusting entry, if any.
5) Business Mastery's employee earns $210 per day for a five-day
workweek beginning on Monday and ending on Friday. The
employee was last paid on Friday, December 26. Review the
unadjusted balance in Salaries expense, and prepare the necessary
adjusting entry, if any.
6) In the second week of December, Business Mastery agreed to
provide 30 days of consulting services to a local fitness club for a
fixed fee of $5,100. The terms of the initial agreement call for
Business Mastery to provide services from December 12, 2019,
through January 10, 2020, or 30 days of service. The club agrees to
pay Business Mastery $5,100 on January 10, 2020, when the service
period is complete. Review the unadjusted balance in Consulting
revenue, and prepare the necessary adjusting entry, if any.
5.
For each of the above separate cases, prepare adjusting entries required of
financial statements for the year ended (date of) December 31.
GL0301 - Based on the... LO A1, P1, P3
The unadjusted trial balance of the Business Mastery Company as of
December 31, 2019 is found on the trial balance tab. The following
information is required to prepare the necessary adjusting entries for the
Business Mastery Company.
1) The balance in Prepaid insurance represents a 24-month policy that
went into effect on December 1, 2019. Review the unadjusted balance
in Prepaid insurance, and prepare the necessary adjusting entry, if
any.
2) Based on a physical count, supplies on hand total $5,400. Review
the unadjusted balance in Supplies, and prepare the necessary
adjusting entry, if any.
3) The equipment is expected to have a 5-year useful life, and be
worth about $11,000 at the end of five years. Review the unadjusted
balance in Accumulated depreciation, and prepare the necessary
adjusting entry to record the monthly depreciation, if any.
4) On December 26, the client paid a $12,000 60-day fee in advance,
covering December 27 to February 24. Review the unadjusted
balance in Unearned Consulting Revenue, and prepare the necessary
adjusting entry, if any.
5) Business Mastery's employee earns $210 per day for a five-day
workweek beginning on Monday and ending on Friday. The
employee was last paid on Friday, December 26. Review the
unadjusted balance in Salaries expense, and prepare the necessary
adjusting entry, if any.
6) In the second week of December, Business Mastery agreed to
provide 30 days of consulting services to a local fitness club for a
fixed fee of $5,100. The terms of the initial agreement call for
Business Mastery to provide services from December 12, 2019,
through January 10, 2020, or 30 days of service. The club agrees to
pay Business Mastery $5,100 on January 10, 2020, when the service
period is complete. Review the unadjusted balance in Consulting
revenue, and prepare the necessary adjusting entry, if any.
ACC 290T Wk 5 - Practice: Connect Knowledge Check
GL0404 - Based on Problem 4-6A LO P4
The unadjusted trial balance for People First as December 31 is provided on the trial
balance tab.
Information for adjustments is as follows:
a. As of December 31, employees had earned $1,800 of unpaid and unrecorded
salaries. The next payday is January 4, at which time $2,250 of salaries will be
paid.
b. The cost of supplies still available at December 31 is $2,000.
c. The notes payable requires an interest payment to be made every three months.
The amount of unrecorded accrued interest at December 31 is $2,300. The
next interest payment, at an amount of $2,760, is due on January 15.
d. Analysis of the unearned member fees account shows $2,000 remaining
unearned at December 31.
e. In addition to the member fees included in the revenue account balance, the
company has earned another $10,800 in unrecorded fees that will be collected
on January 31. The company is also expected to collect $11,000 on that same
day for new fees earned in January.
f. Depreciation expense for the year is $21,200.
Exercise 4-11 Preparing financial statements LO C3
The following adjusted year-end trial balance at December 31 of Wilson
Trucking Company.
Account Title Debit Credit
Cash $ 5,900
Accounts receivable 16,500
Office supplies 2,000
Trucks 181,000
Accumulated depreciation—Trucks $ 37,286
Land 75,000
Accounts payable 9,900
Interest payable 3,000
Long-term notes payable 52,000
K. Wilson, Capital 166,351
K. Wilson, Withdrawals 19,000
Trucking fees earned 142,500
GL0404 - Based on Problem 4-6A LO P4
The unadjusted trial balance for People First as December 31 is provided on the trial
balance tab.
Information for adjustments is as follows:
a. As of December 31, employees had earned $1,800 of unpaid and unrecorded
salaries. The next payday is January 4, at which time $2,250 of salaries will be
paid.
b. The cost of supplies still available at December 31 is $2,000.
c. The notes payable requires an interest payment to be made every three months.
The amount of unrecorded accrued interest at December 31 is $2,300. The
next interest payment, at an amount of $2,760, is due on January 15.
d. Analysis of the unearned member fees account shows $2,000 remaining
unearned at December 31.
e. In addition to the member fees included in the revenue account balance, the
company has earned another $10,800 in unrecorded fees that will be collected
on January 31. The company is also expected to collect $11,000 on that same
day for new fees earned in January.
f. Depreciation expense for the year is $21,200.
Exercise 4-11 Preparing financial statements LO C3
The following adjusted year-end trial balance at December 31 of Wilson
Trucking Company.
Account Title Debit Credit
Cash $ 5,900
Accounts receivable 16,500
Office supplies 2,000
Trucks 181,000
Accumulated depreciation—Trucks $ 37,286
Land 75,000
Accounts payable 9,900
Interest payable 3,000
Long-term notes payable 52,000
K. Wilson, Capital 166,351
K. Wilson, Withdrawals 19,000
Trucking fees earned 142,500
Depreciation expense—Trucks 24,049
Salaries expense 66,833
Office supplies expense 8,500
Repairs expense—Trucks 12,255
Totals $ 411,037 $ 411,037
The K. Wilson, Capital account balance was $166,351 at December 31 of
the prior year.
(1) Prepare the income statement for the year ended December 31.
(2) Prepare the statement of owner’s equity for the year ended December 31.
Exercise 4-12 Preparing a classified balance sheet LO C3
Account Title Debit Credit
Cash $ 5,500
Accounts receivable 24,000
Office supplies 6,215
Trucks 160,000
Accumulated depreciation—Trucks $ 32,960
Land 44,000
Accounts payable 9,500
Interest payable 18,000
Long-term notes payable 48,000
K. Wilson, Capital 112,229
K. Wilson, Withdrawals 20,000
Trucking fees earned 128,000
Depreciation expense—Trucks 21,259
Salaries expense 52,997
Office supplies expense 5,000
Repairs expense—Trucks 9,718
Totals $ 348,689 $ 348,689
Use the above adjusted trial balance to prepare Wilson Trucking
Company’s classified balance sheet as of December 31.
For More Classes Please Visit
http://www.uopstudy.com/
Salaries expense 66,833
Office supplies expense 8,500
Repairs expense—Trucks 12,255
Totals $ 411,037 $ 411,037
The K. Wilson, Capital account balance was $166,351 at December 31 of
the prior year.
(1) Prepare the income statement for the year ended December 31.
(2) Prepare the statement of owner’s equity for the year ended December 31.
Exercise 4-12 Preparing a classified balance sheet LO C3
Account Title Debit Credit
Cash $ 5,500
Accounts receivable 24,000
Office supplies 6,215
Trucks 160,000
Accumulated depreciation—Trucks $ 32,960
Land 44,000
Accounts payable 9,500
Interest payable 18,000
Long-term notes payable 48,000
K. Wilson, Capital 112,229
K. Wilson, Withdrawals 20,000
Trucking fees earned 128,000
Depreciation expense—Trucks 21,259
Salaries expense 52,997
Office supplies expense 5,000
Repairs expense—Trucks 9,718
Totals $ 348,689 $ 348,689
Use the above adjusted trial balance to prepare Wilson Trucking
Company’s classified balance sheet as of December 31.
For More Classes Please Visit
http://www.uopstudy.com/
ACC 290T Wk 5 - Apply: Homework
QS 4-6 Preparing closing entries from the ledger LO P2
The ledger of Mai Company includes the following accounts with normal
balances as of December 31: D. Mai, Capital $10,800; D. Mai, Withdrawals
$1,700; Services Revenue $31,000; Wages Expense $17,400; and Rent
Expense $5,200.
Prepare its December 31 closing entries.
Required information
Use the following information for Quick Studies below.
[The following information applies to the questions displayed below.]
The following is the adjusted trial balance of Sierra Company.
Account Title Debit Credit
Cash $ 29,000
Prepaid insurance 1,700
Notes receivable (due in 5 years) 6,400
Buildings 80,000
Accumulated depreciation–Buildings $ 24,000
Accounts payable 8,500
Notes payable (due in 3 years) 9,000
H. Sierra, Capital 28,500
H. Sierra, Withdrawals 7,000
Consulting revenue 69,500
Wages expense 4,700
Depreciation expense–Buildings 8,000
Insurance expense 2,700
Totals $ 139,500 $ 139,500
QS 4-10 Preparing financial statements LO C2
Required
(1) Prepare an income statement for the year ended December 31.
(2) Prepare a statement of owner’s equity for the year ended December 31.
QS 4-6 Preparing closing entries from the ledger LO P2
The ledger of Mai Company includes the following accounts with normal
balances as of December 31: D. Mai, Capital $10,800; D. Mai, Withdrawals
$1,700; Services Revenue $31,000; Wages Expense $17,400; and Rent
Expense $5,200.
Prepare its December 31 closing entries.
Required information
Use the following information for Quick Studies below.
[The following information applies to the questions displayed below.]
The following is the adjusted trial balance of Sierra Company.
Account Title Debit Credit
Cash $ 29,000
Prepaid insurance 1,700
Notes receivable (due in 5 years) 6,400
Buildings 80,000
Accumulated depreciation–Buildings $ 24,000
Accounts payable 8,500
Notes payable (due in 3 years) 9,000
H. Sierra, Capital 28,500
H. Sierra, Withdrawals 7,000
Consulting revenue 69,500
Wages expense 4,700
Depreciation expense–Buildings 8,000
Insurance expense 2,700
Totals $ 139,500 $ 139,500
QS 4-10 Preparing financial statements LO C2
Required
(1) Prepare an income statement for the year ended December 31.
(2) Prepare a statement of owner’s equity for the year ended December 31.
Exercise 4-2 Extending accounts in a work sheet LO P1
The Adjusted Trial Balance for Planta Company follows. Complete the
work sheet by extending the account balances into the appropriate financial
statement columns and by entering the amount of net income for the
reporting period.
Exercise 4-6 Completing the income statement columns and preparing
closing entries LO P1, P2
These Income Statement columns from a 10-column work sheet are for
Brown’s Bike Rental Company.
Account Title Debit Credit
Rent earned 102,000
Salaries expense 45,288
Insurance expense 6,426
Office supplies expense 14,994
Bike repair expense 3,162
Depreciation expense—Bikes 19,482
(1) Determine the amount that should be entered on the net income line of
the work sheet.
(2) Prepare the company's closing entries. The owner, H. Brown, did not
make any withdrawals this period.
Exercise 4-7 Preparing a work sheet and recording closing entries LO P1, P2
The following unadjusted trial balance contains the accounts and balances of
Dylan Delivery Company as of December 31.
a. Unrecorded depreciation on the trucks at the end of the year is
$6,036.
b. The total amount of accrued interest expense at year-end is $8,000.
c. The cost of unused office supplies still available at year-end is
$1,400.
The Adjusted Trial Balance for Planta Company follows. Complete the
work sheet by extending the account balances into the appropriate financial
statement columns and by entering the amount of net income for the
reporting period.
Exercise 4-6 Completing the income statement columns and preparing
closing entries LO P1, P2
These Income Statement columns from a 10-column work sheet are for
Brown’s Bike Rental Company.
Account Title Debit Credit
Rent earned 102,000
Salaries expense 45,288
Insurance expense 6,426
Office supplies expense 14,994
Bike repair expense 3,162
Depreciation expense—Bikes 19,482
(1) Determine the amount that should be entered on the net income line of
the work sheet.
(2) Prepare the company's closing entries. The owner, H. Brown, did not
make any withdrawals this period.
Exercise 4-7 Preparing a work sheet and recording closing entries LO P1, P2
The following unadjusted trial balance contains the accounts and balances of
Dylan Delivery Company as of December 31.
a. Unrecorded depreciation on the trucks at the end of the year is
$6,036.
b. The total amount of accrued interest expense at year-end is $8,000.
c. The cost of unused office supplies still available at year-end is
$1,400.
1. Use the above information about the company’s adjustments to complete
a 10-column work sheet.
2a. Prepare the year-end closing entries for Dylan Delivery Company as of
December 31.
2b. Determine the capital amount to be reported on the December 31,
balance sheet. Note: S. Dylan, Capital was $322,440 on December 31 of
the prior year.
Exercise 4-9 Preparing closing entries and a post-closing trial balance LO
P2, P3
The following adjusted trial balance contains the accounts and year-end
balances of Cruz Company as of December 31.
No. Account Title Debit Credit
101 Cash $ 18,000
126 Supplies 14,400
128 Prepaid insurance 2,000
167 Equipment 23,000
168 Accumulated depreciation—Equipment $ 6,500
301 A. Cruz, Capital 45,425
302 A. Cruz, Withdrawals 6,000
404 Services revenue 49,000
612 Depreciation expense—Equipment 2,000
622 Salaries expense 28,567
637 Insurance expense 2,058
640 Rent expense 3,283
652 Supplies expense 1,617
Totals $ 100,925 $ 100,925
1. Prepare the December 31, closing entries for Cruz Company. Assume the
account number for Income Summary is 901.
2. Prepare the December 31, post-closing trial balance for Cruz
Company. Note: A. Cruz, Capital was $45,425 on December 31 of
the prior year.
Exercise 4-11 Preparing financial statements LO C3
The following adjusted year-end trial balance at December 31 of Wilson
Trucking Company.
Account Title Debit Credit
Cash $ 9,200
a 10-column work sheet.
2a. Prepare the year-end closing entries for Dylan Delivery Company as of
December 31.
2b. Determine the capital amount to be reported on the December 31,
balance sheet. Note: S. Dylan, Capital was $322,440 on December 31 of
the prior year.
Exercise 4-9 Preparing closing entries and a post-closing trial balance LO
P2, P3
The following adjusted trial balance contains the accounts and year-end
balances of Cruz Company as of December 31.
No. Account Title Debit Credit
101 Cash $ 18,000
126 Supplies 14,400
128 Prepaid insurance 2,000
167 Equipment 23,000
168 Accumulated depreciation—Equipment $ 6,500
301 A. Cruz, Capital 45,425
302 A. Cruz, Withdrawals 6,000
404 Services revenue 49,000
612 Depreciation expense—Equipment 2,000
622 Salaries expense 28,567
637 Insurance expense 2,058
640 Rent expense 3,283
652 Supplies expense 1,617
Totals $ 100,925 $ 100,925
1. Prepare the December 31, closing entries for Cruz Company. Assume the
account number for Income Summary is 901.
2. Prepare the December 31, post-closing trial balance for Cruz
Company. Note: A. Cruz, Capital was $45,425 on December 31 of
the prior year.
Exercise 4-11 Preparing financial statements LO C3
The following adjusted year-end trial balance at December 31 of Wilson
Trucking Company.
Account Title Debit Credit
Cash $ 9,200
Accounts receivable 16,500
Office supplies 2,000
Trucks 164,000
Accumulated depreciation—Trucks $ 33,784
Land 75,000
Accounts payable 13,200
Interest payable 3,000
Long-term notes payable 52,000
K. Wilson, Capital 155,932
K. Wilson, Withdrawals 19,000
Trucking fees earned 135,000
Depreciation expense—Trucks 21,791
Salaries expense 63,315
Office supplies expense 10,500
Repairs expense—Trucks 11,610
Totals $ 392,916 $ 392,916
The K. Wilson, Capital account balance was $155,932 at December 31 of
the prior year.
(1) Prepare the income statement for the year ended December 31.
(2) Prepare the statement of owner’s equity for the year ended December 31.
GL0401 - Based on... LO C3, P2, P3
The OnPoint Company began operations on December 1, 2019. The
unadjusted trial balance of the OnPoint Company as of December 31, 2019
is found on the trial balance tab. The following information is required to
prepare the necessary adjusting entries for the OnPoint Company found in
chapter 3.
1. 1) The balance in Prepaid insurance represents a 24-month policy that
went into effect on December 1, 2019. Review the unadjusted
balance in Prepaid insurance, and prepare the necessary adjusting
entry, if any.
2. 2) Based on a physical count, supplies on hand total $3,450. Review
the unadjusted balance in Supplies, and prepare the necessary
adjusting entry, if any.
3. 3) The equipment is expected to have a 4-year useful life, and be
worth about $10,000 at the end of four years. Review the unadjusted
balance in Accumulated depreciation, and prepare the necessary
adjusting entry, if any.
4. 4) On December 26, the client paid a $4,200 60-day fee in advance,
covering December 27 to February 24. Review the unadjusted
Office supplies 2,000
Trucks 164,000
Accumulated depreciation—Trucks $ 33,784
Land 75,000
Accounts payable 13,200
Interest payable 3,000
Long-term notes payable 52,000
K. Wilson, Capital 155,932
K. Wilson, Withdrawals 19,000
Trucking fees earned 135,000
Depreciation expense—Trucks 21,791
Salaries expense 63,315
Office supplies expense 10,500
Repairs expense—Trucks 11,610
Totals $ 392,916 $ 392,916
The K. Wilson, Capital account balance was $155,932 at December 31 of
the prior year.
(1) Prepare the income statement for the year ended December 31.
(2) Prepare the statement of owner’s equity for the year ended December 31.
GL0401 - Based on... LO C3, P2, P3
The OnPoint Company began operations on December 1, 2019. The
unadjusted trial balance of the OnPoint Company as of December 31, 2019
is found on the trial balance tab. The following information is required to
prepare the necessary adjusting entries for the OnPoint Company found in
chapter 3.
1. 1) The balance in Prepaid insurance represents a 24-month policy that
went into effect on December 1, 2019. Review the unadjusted
balance in Prepaid insurance, and prepare the necessary adjusting
entry, if any.
2. 2) Based on a physical count, supplies on hand total $3,450. Review
the unadjusted balance in Supplies, and prepare the necessary
adjusting entry, if any.
3. 3) The equipment is expected to have a 4-year useful life, and be
worth about $10,000 at the end of four years. Review the unadjusted
balance in Accumulated depreciation, and prepare the necessary
adjusting entry, if any.
4. 4) On December 26, the client paid a $4,200 60-day fee in advance,
covering December 27 to February 24. Review the unadjusted
balance in Unearned Consulting Revenue, and prepare the necessary
adjusting entry, if any.
5. 5) OnPoint's sole employee earns $90 per day for a five-day
workweek beginning on Monday and ending on Friday. The
employee was last paid on Friday, December 26. Review the
unadjusted balance in Salaries payable, and prepare the necessary
adjusting entry, if any.
6. 6) In the second week of December, OnPoint agreed to provide 30
days of consulting services to a local fitness club for a fixed fee of
$3,180. The terms of the initial agreement call for OnPoint to provide
services from December 12, 2019, through January 10, 2020, or 30
days of service. The club agrees to pay OnPoint $3,180 on January 10,
2020, when the service period is complete. Review the unadjusted
balance in Consulting revenue, and prepare the necessary adjusting
entry, if any.
Prepare the required adjusting and closing entries for the OnPoint Company.
GL0404 - Based on Problem 4-6A LO P4
The unadjusted trial balance for Comic Stand as December 31 is provided on the trial
balance tab.
Information for adjustments is as follows:
a. As of December 31, employees had earned $1,500 of unpaid and unrecorded
salaries. The next payday is January 4, at which time $1,875 of salaries will be
paid.
b. The cost of supplies still available at December 31 is $1,700.
c. The notes payable requires an interest payment to be made every three months.
The amount of unrecorded accrued interest at December 31 is $1,000. The
next interest payment, at an amount of $1,200, is due on January 15.
d. Analysis of the unearned member fees account shows $1,400 remaining
unearned at December 31.
e. In addition to the member fees included in the revenue account balance, the
company has earned another $14,800 in unrecorded fees that will be collected
on January 31. The company is also expected to collect $15,000 on that same
day for new fees earned in January.
f. Depreciation expense for the year is $26,000.
adjusting entry, if any.
5. 5) OnPoint's sole employee earns $90 per day for a five-day
workweek beginning on Monday and ending on Friday. The
employee was last paid on Friday, December 26. Review the
unadjusted balance in Salaries payable, and prepare the necessary
adjusting entry, if any.
6. 6) In the second week of December, OnPoint agreed to provide 30
days of consulting services to a local fitness club for a fixed fee of
$3,180. The terms of the initial agreement call for OnPoint to provide
services from December 12, 2019, through January 10, 2020, or 30
days of service. The club agrees to pay OnPoint $3,180 on January 10,
2020, when the service period is complete. Review the unadjusted
balance in Consulting revenue, and prepare the necessary adjusting
entry, if any.
Prepare the required adjusting and closing entries for the OnPoint Company.
GL0404 - Based on Problem 4-6A LO P4
The unadjusted trial balance for Comic Stand as December 31 is provided on the trial
balance tab.
Information for adjustments is as follows:
a. As of December 31, employees had earned $1,500 of unpaid and unrecorded
salaries. The next payday is January 4, at which time $1,875 of salaries will be
paid.
b. The cost of supplies still available at December 31 is $1,700.
c. The notes payable requires an interest payment to be made every three months.
The amount of unrecorded accrued interest at December 31 is $1,000. The
next interest payment, at an amount of $1,200, is due on January 15.
d. Analysis of the unearned member fees account shows $1,400 remaining
unearned at December 31.
e. In addition to the member fees included in the revenue account balance, the
company has earned another $14,800 in unrecorded fees that will be collected
on January 31. The company is also expected to collect $15,000 on that same
day for new fees earned in January.
f. Depreciation expense for the year is $26,000.
Categories
EducationDownload
Download Slideshow Get the original presentation fileQuick Actions
Statistics
- Views 174
- Slides 31
- Age 1927 days
Related Slideshows
11
TLE-9-Prepare-Salad-and-Dressing.pptxkkk
MaAngelicaCanceran
31 views
12
LESSON 1 ABOUT MEDIA AND INFORMATION.pptx
JojitGueta
24 views
60
GRADE-8-AQUACULTURE-WEEKQ1.pdfdfawgwyrsewru
MaAngelicaCanceran
39 views
26
Feelings PP Game FOR CHILDREN IN ELEMENTARY SCHOOL.pptx
KaistaGlow
39 views
![Jeopardy_Figures_of_Speech_Template.pptx [Autosaved].pptx](https://slidepub.com/thumb/5828/284015828.jpg)
54
Jeopardy_Figures_of_Speech_Template.pptx [Autosaved].pptx
acecamero20
23 views
7
Jeopardy_Figures_of_Speech.pptxvdsvdsvsdvsd
acecamero20
24 views