E3-11 A partial adjusted trial balance of Frangesch Company at January 31, 2017, shows the following.

FRANGESCH COMPANY

Adjusted Trial Balance

January 31, 2017

Debit Credit

Supplies $ 850

Prepaid Insurance 2,400

Salaries and Wages Payable $ 920

Unearned Service Revenue 750

Supplies Expense 950

Insurance Expense 400

Salaries and Wages Expense 2,900

Service Revenue 2,000

Instructions

Answer the following questions, assuming the year begins January 1.

(a) If the amount in Supplies Expense is the January 31 adjusting entry, and $1,000 of supplies was purchased in January, what was the balance in Supplies on January 1?

(b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for one year, what was the total premium and when was the policy purchased?

(c) If $3,800 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2016?

Journalize basic transactions and adjusting entries.

(LO 2, 3)

E3-12 Selected accounts of Holly Company are shown as follows.

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Instructions

After analyzing the accounts, journalize (a) the July transactions and (b) the adjusting entries that were made on July 31. (Hint: July transactions were for cash.)

Prepare adjusting entries from analysis of trial balances.

(LO 2, 3, 4)

E3-13 The trial balances before and after adjustment for Turnquist Company at the end of its fiscal year are presented below.

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Instructions

Prepare the adjusting entries that were made.

Prepare financial statements from adjusted trial balance.

(LO 4)

E3-14 The adjusted trial balance for Turnquist Company is given in E3-13.

Instructions

Prepare the income and owner's equity statements for the year and the balance sheet at August 31.

Record transactions on accrual basis; convert revenue to cash receipts.

(LO 2, 3)

E3-15 The following data are taken from the comparative balance sheets of Bundies Billiards Club, which prepares its financial statements using the accrual basis of accounting.

December 31

2017

2016

Accounts receivable from members $16,000 $ 8,000

Unearned service revenue 17,000 25,000

Members are billed based upon their use of the club's facilities. Unearned service revenues arise from the sale of gift certificates, which members can apply to their future use of club facilities. The 2017 income statement for the club showed that service revenue of $161,000 was earned during the year.

Instructions

(Hint: You will probably find it helpful to use T-accounts to analyze these data.)

(a) Prepare journal entries for each of the following events that took place during 2017.

Accounts receivable from 2016 were all collected.

Gift certificates outstanding at the end of 2016 were all redeemed.

An additional $38,000 worth of gift certificates were sold during 2017. A portion of these was used by the recipients during the year; the remainder was still outstanding at the end of 2017.

Services performed for members for 2017 were billed to members.

Accounts receivable for 2017 (i.e., those billed in item [4] above) were partially collected.

(b) Determine the amount of cash received by the club, with respect to member services, during 2017.

Journalize adjusting entries.