Name Class ACC 101 Chapter 3 and 4 Quiz Part I Directions: Prepare general journal entries on December 31 to record the following year-end adjustments. a. Estimated depreciation on office equipment for the year, $4,000. b. The Prepaid Insurance account has a $3,680 debit balance before adjustment. An examination of insurance policies shows $950 of insurance expired. c. The company has three office employees who each earn $100 per day for a five- day workweek that ends on Friday. The employees were paid on Friday, December 26, and have worked full days on Monday, Tuesday, and Wednesday, December 29, 30, and 31. d. On November 1, the company received 6 months' rent in advance from a tenant whose rent is $700 per month. The $4,200 was credited to the Unearned Rent account. e. The company collects rent monthly from its tenants. One tenant whose rent is $750 per month has not paid his rent for December 162 Chapter 4 Completing the Accounting Cycle Required 1. Complete the six-column table by entering adjustments that reflect the following information: a. As of December 31, employees had earned $400 of unpaid and unrecorded wages. The next payday is January 4, at which time $1.200 in wages will be paid. b. The cost of supplies still available at December 31 is $3,450. c. The notes payable require an interest payment to be made every three months. The amount of unre- corded accrued interest at December 31 is $800. The next interest payment, at an amount of $900, is due on January 15. d. Analysis of the uncarned rental fees shows that $3,200 remains unearned at December 31. e. In addition to the machinery rental fees included in the revenue account balance, the company has earned another $2,450 in unrecorded fees that will be collected on January 31. The company is also expected to collect $5,400 on that same day for new fees earned in January t. Depreciation expense for the year is $3,800 2. Prepare journal entries for the adjustments entered in the six-column table for part I. 3. Prepare journal entries to reverse the effects of the adjusting entries that involve accruals. 4. Prepare journal entries to record the cash payments and cash collections described for January Check (1) Adjusted trial balance to 5111300 SERIAL PROBLEM Business Solutions P2 P3 This serial problem began in Chapter I and continues through most of the book. If previous chapter seg ments were not completed, the serial problem can begin at this point, SP 4 The December 31, 2019, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2019) follows. No Account Title Debit Credit $ 48,372 5,668 580 825 8.000 $ 400 20,000 101 106 126 128 131 163 164 167 168 201 210 236 301 300 400 612 613 623 Cash Accounts receivable Computer supplies Prepaldimance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation Computer equipment Accounts payable Wages payable Uneared computer Services revenue SyCapital S. Rey. Withdrawal Computer services even Deprecwione peme-once equipment Depren pense-Computer equipment 1.250 1.100 500 1.500 73.000 7.100 31.284 400 1.250 3,875 Computer ses expense 640 652 655 675 677 2.475 3,065 2.753 Mese expense Repas peme-Computer 901 1105 Required 1. Record and post the necessary closing entries as of December 31, 2019, 2. Prepare a post-closing trial balance as of December 31, 2019, balance 15.110
