Exercise 3.4 (Algo) Classifying adjusting entries LO P1, P2, P3, P4 For journal entries 1 through 30 , identily the expianabion that mostly closely describes it. A. To record this leenods depreciation experse 8. To record accrued salaries expense. C. To record this periods usie of a prepaid experide. D. To record accrued interest revenue. E. To rocord occrued intesest expense F. To recold the earming of previously unearned income. 6. To record cash receipt of unearned revenue. H. To record cash payment of an accrued expense. 1. To record cash receipt of an accrued revenue. 1. To iecord cach payment of a prepoid expense. Exercise 3-8 (Algo) Adjusting and paying accrued expenses LO P3 0. On April 1, the company hired an attomey for April for a flat fee of $2.500. Payment for April legal services was made by the company on May 12. b. As of April 30,$2,400 of interest expense has accrued on a note payable. The full interest payment of $7,200 on the note is due on May 20 c. Total weokly salaries expense for all employees is $13,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, which means that the employees had worked two days since the last payday. The next payday is May 3. The above three separate situations require adjusting journal entries to prepare financial statements as of April 30 . For each situation. present both the April 30 adjusting entry and the subsequent entry during May to record payment of the accrued expenses. (Do not round intermediate calculations.) Journal entry worksheet 23456 On April 1, the company hired an attomey for April for a flat fee of $2,500. Payment for April legal services was made by the company on May 12. Prepare the required adjusting entry, If any. Nate: Enter debits before credits. Exercise 3-4 (Algo) Classifying adjusting entries LO P1, P2, P3, P4 Forjournat enanes tinrough to. identify the expianation thot mostly closely describes it: A. To recard this period s deprectation expense B. To record accrued salaries expense. c. To record this period's use of a prepaid expense: D. To tecord accrued interest reverive: E. To record accrued interest expense. F. To record the eaming of previously unearned income. G. To record cash receipt of uncarned revenue. H. To record cash payment of an accrued expense. 1. To record cash receipt of an accrued revenue. d. To record cash payment of a prepaid expense. Required linformation Use the following information for the Exercises below. (Algo) (The' folowing intonnation appiles to the questions dispiloyed beiciv) a. Wogos of $10,000 are earned by workers but not paid as of December 31. b. Depiecoation on the company's equiprment for the year is $10120 c. The 5 upplos account had a $420 debit batence at the beginring of the year. During the yeac 56,305 of supples are purchased. A physical count of supplies at December 31 shows 5681 of supplies awailabile. d. The Prepilid Insurance account had a $5.000 balance at the beginning of the yeat. An analysis of insurance policies showr that $2500 of unewpirod insurance behefiss remain ar December 31. e. The company hars earned (but not recorded) $550 of interest revenue for the year ended Decembet 31 I the interest payment will be rectived 10 days atter the year-end on Jariuary 10 . f. The compary has a benk loon and has incuered fbut not recorded) interest expense at 54,500 for the year ended December 3t. The comparyy will pay the interest five days after the year-end on lanuary 5. Exercise 3-9 (Algo) Preparing adjusting entries LO P1, P3, P4 For cach or the above separate cases, prepare adjusting eatries required of financial statements for the year ended December 3 Journal entry worksheet \begin{tabular}{lllllll} \hline 1 & 2 & 3 & 4 & 5 & 6 \end{tabular} Required intormation Use the following information for the Exercises below. (Algo) (The finsuring informanion applies io the questions oisplayeif Aplow.) a. Wages of $10000 ace eamed by workers but not paid as of December 31 b. Doprexiation on the compary s oquipment for the year is 510120 . c. The Supples accouat had a $420 debit bolance at the beginning of the year. During the year. 56,305 of supplies ari purchased A physical count of supplies at Decerbber ar shows 5681 of supplies available d. The Prepaid insurance account had a $5,000 balance at the begining of the yoar. An analysis. of insurance. policies shows that $2:500 of uncexpired insurance benelits remain at December 31. e. The company has earmed (hut not recorded) $550 of interest revenue for the yeaf ended December 31 . The interest payment will be recfled 10 days after the year-end on January 10 . f. The compary 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-ernd on January 5. Exercise 3.9 (Algo) Preparing adjusting entries LO P1, P3, P4 For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended December 31 , Required information Use the following information for the Exercises below. (Statie) a. Wages of $4.000 are earnad ty workers but not paid as of December 31 b. Depreciation on the company's equipment for the year is $18000. c. The Suppies account had a $240 debit balance at the boginning of the year. During the year, $5, 200 of supplos are purchased. A priysical count of supplies at December 31 shows $440 of supglies ilvieable: d. The Prepili insurance account had a $4.000 balance at the begining of the year. Ans andelysis of incurance policies shows that 51200 of upoxpired insurance bonetits remain at December 31 . e. The compary has earned fbut not iecoided) $1.050 of interest revenue for the year ended December 31 . The interest Parment will be recelved 10 days after the year-end on Janaary 10. 8. The compary has a bank loan and has incured tout not eccorefedi interest expense of $2,500 for the year ended December 31 . The company wil pay the interest five doys after the year-erd on January 5. Exercise 310 (Static) Analyzing adjusting entries using accounting equation LO P1, P3, P4 For eoch of the above separate cases, analyze each adjusting entry by showing its effects on the accounting equation-specifically. identify the accounts and amounts (including (+) increase or () decrease) for each transaction or event. Exercise 315 (Algo) Analyzing and preparing adjusting entries LO P5 Folowing are two income Eatements for Awess Compary for the year enced December 3t the lett number columi is prepared belore peyments teateed to tinearned and prenaid items in bolance sheot accounts. Anayze the statements and prepore the seven adjusting entries a. through g. that likely were recorded. Hint The entry for a. tafers to revenue that has been eamed but not yot billed. No adjusting entry involves cash. Tableau DA 3-4: Quick Study, Classifying balance sheet items LO C2 The CEO of Jitho requests our heip in preparing yea-end finaricial reports. The CFO explains that they are having difficulty classitying accounts. the fablesu doshiboard shows Decomber 31 year-end daea from the company's accounting system 1. folentify the compary/s current assets and thioif amotnits. 2. Aferatify the compary's cuyrent liabilies and their amoutits: 3. Calcutate the what amerunt ifecoiled for plent assets an the balance stheef: Complete this question by entering your answers in the tabs below. towntif the companyk current assiets and their amounts. Problem 3-6A (Algo) Determining balance sheet classifications LO C2 typicaly would best appoar H an ittem foes not appear an the bolancet sheec indicise that instead Exercise 3.24 (Algo) Preparing a clossified balance sheet LO C2 Whe the folonny relected accnonts and ampunes with normat batances from Andrea Compary's adgusted triat baiance to prepore its ciassifed butance sheet at December of Exerclse 3.25 (Algo) Computing and interpreting profit margin LO A1 Whe the following information fo connoute profit inargia for ench ceparate company a through e. (Round your answers to 1 decimn! place. Which of the tive companies is the most profitable occording to the profit margin tatio? Covipany a Cornpany b Cornpany c Company d Company e Exorcise 327 (Algo) Computing and analyzing the current ratio LO A1 (a) Carcubae mo cutrent tabo for each of the folvoweng competeng companies. (Round your answers ro 2 decimat piaces.) (b) Which campetifor is in the best position to pay its short-term obligations? Fidison MaXT Chatzert TRU Gieeson On Apiil 1. Kay Whght created a new tawel agency. Wright Travol. The following transactions occurred during the compary's first month. Gigril 2 wrieht inyested 936,000 cash and coscuter equipeent worth 517 , wat in the coepuny in exchange for its connon stock. Aoril 1 The corpeny rented furnished office space by payine 52 , 000 cash for the first nonth's (Apri1) rent. Aveil 4 the conpany purchased $1,800 of office supplies for cash. April 14 the coepany paid $2,100 cash for two wreks' salaries earned by enplayees. Aprili 24 the coepacy collected 512 , 6ea cash for conelssians revenue. Aordi 28 The conpery paid $2, 1e0 cash for two weets' salaries earned by eployees. Aorll 20 The conpany paid s8ae caih for minor repalis to conputer equigenent. foril 30 the cospary paid ssse cath for this month"s telephone bill. forif 30 the compaty pald 52,190 cash in elvidends. Information for month-end adjustments follows: a. Prepald insurance of 5180 expired this month. b. At the ead of the month, $1100 of office supplies are still available. c. This month's depreciation on computer equipment is $290. d. Emplayees earned $840 of unpaid and unrecorded salaries as of month.end. e. The comparty earned $1.830 of commissions revenue that is not yet recorded at month-end. Prepare the required journal entries, adjusting entries, and closing entries for Wright Travel. Journal entry worksheet