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Prepare a schedule that converts Dr. Dunbar's excess of cash collected over cash disbursed for the year 2022 to net income on an accrual basis

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Prepare a schedule that converts Dr. Dunbar's "excess of cash collected over cash disbursed" for the year 2022 to net income on an accrual basis for the year 2022. P3.2 (LO 3, 4) (Adiusting Entries and Financial Statements) Mason Advertising Agency was founded in January 2018. The following are adjt E3-5 ( LO3 ) (Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. An analysis of the accounts shows the following. 1. The equipment depreciates 250 per month. 2. One-third of the unearned rent was earned during the quarter. 3. Interest of 500 is accrued on the notes payable. 4. Supplies on hand total 650. 5. Insurance expires at the rate of 300 per month. Instructions Prepare the necessary closing entries. 'E3.18 (LO 6) (Cash to Accrual Basis) Corinne Dunbar, M.D., maintains the accounting records of Dunbar Clinic on a cash basis. During 2022, Dr. Dunbar collected 142,600 from her patients and paid 60,470 in expenses. At January 1, 2022, and December 31,2022, she had accounts receivable, unearned service revenue, acerued expenses, and prepaid expenses as follows. (All long-lived assets are rented.) E3.1 ( LO 2) (Transaction Analysis-Service Company) Kai Edo is a licensed public accountant. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred (amounts in thousands). April 2 Invested 30,000 cash and equipment valued at 14,000 in the business. 2 Hired administrative assistant at a salary of 290 per week payable monthly. 3 Purchased supplies on account Y700. (Debit an asset account.) 7 Paid office rent of 600 for the month. 11 Completed a tax assignment and billed client 11,100 for services rendered. (Use Service Revenue account.) 12 Received 3,200 advance on a management consulting engagement. 17 Received cash of 2,300 for services completed for Ferengi Co. 21 Paid insurance expense Y110. 30 Paid administrative assistant 1,160 for the month. 30 A count of supplies indicated that Y120 of supplies had been used. 30 Purchased a new computer for 5,100 with personal funds. (The computer will be used exclusively for business purposes.) Journalize the transactions in the general journal. (Omit explanations.) E3.4 ( LO2) (Corrected Trial Balance) The following trial balance of Oalley NV does not balance. Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors. 1. Cash received from a customer on account was debited for 370, and Accounts Receivable was credited for the same amount. The actual collection was for C730. 2. The purchase of a computer printer on account for 500 was recorded as a debit to Supplies for 500 and a credit to Accounts Payable for 500. 3. Services were performed on account for a client for C890. Accounts Receivable was debited for 80 and Service Revenue was credited for 89. 4. A payment of 65 for telephone charges was recorded as a debit to Office Expense for 65 and a debit to Cash for 65. 5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to 225 was performed prior to June 30 . 6. A debit posting to Salaries and Wages Expense of 670 was omitted. 7. A payment on account for 206 was credited to Cash for 206 and credited to Accounts Payable for 260. 8. A dividend of 575 was debited to Salaries and Wages Expense for 575 and credited to Cash for 575. 5. Insurance expires at the rate of 300 per month. Instructions Prepare the adjusting entries at March 31 , assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. (Omit explanations.) E3.11 (LO 4) (Prepare Financial Statements) The adjusted trial balance of Cavamanlis Co. as of December 31, 2022, contains the following. Instruetions a. Prepare an income statement. b. Prepare a retained earnings statement. c. Prepare a classified statement of financial position. E3-5 ( LO3 ) (Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. An analysis of the accounts shows the following. 1. The equipment depreciates 250 per month. 2. One-third of the unearned rent was earned during the quarter. 3. Interest of 500 is accrued on the notes payable. 4. Supplies on hand total 650. 5. Insurance expires at the rate of 300 per month. E3.1 ( LO2) (Transaction Analysis-Service Company) Kai Edo is a licensed public accountant. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred (amounts in thousands). April 2 Invested 30,000 cash and equipment valued at 14,000 in the business. 2 Hired administrative assistant at a salary of 290 per week payable monthly. 3 Purchased supplies on account 700. (Debit an asset account.) 7 Paid office rent of 600 for the month. 11 Completed a tax assignment and billed client 1,100 for services rendered. (Use Service Revenue account.) 12 Received 3,200 advance on a management consulting engagement. 17 Received cash of 2,300 for services completed for Ferengi Co. 21 Paid insurance expense 110. 3o Paid administrative assistant Y1,160 for the month. 30 A count of supplies indicated that 120 of supplies had been used. 3o Purchased a new computer for 5,100 with personal funds. (The computer will be used exclusively for business purposes.) Instructions Journalize the transactions in the general journal. (Omit explanations.)

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