t Format Tools Table Window Help 98% Module 2 - Chapter 3 - Excercise 3 [Compatibility Mode] Layout References Mailings Review View - A A x ADA EM AaBb AaBbce AaBb CcDe Aalbcdi Heading Heading a Headings Heading ABCD 1. Listed below are accounts to use for transactions (a) through (), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box 1. Accounts Payable 2 Accounts Receivable 3. Accumulated Depreciation Office Equipment 4. Building 5. Owner's Capital 6. Cash 7. Depreciation Expense-Office Equipment 8. Owner's Drawing 9. Fees Earned 10 Insurance Expense Insurance Payable 12 Interest Expense 13 Interest Payable 14 Interest Receivable 15. Land 16. Notes Payable 17 Office Supplies 18 Office Supplies Expense 19 Prepaid Insurance 20. Uneamed Fees 21. Utilities Expense Utilities Payable Transactions Account Debited Account(s) Credited 2. Utility bill is received: payment will be made in 10 days b. Paid the utility bill previously recorded in Fransaction() c. Bought a three-year insurance policy and Made an entry to adjust for the expired portion of the insurance premium Received 57.000 from a contract to perform accounting services over the bextiwe years NHU CU Lland - Bali Hu 80 UDC DW 56 54 $ % & ( 3 4 5 6 7 9 - Layout References Mailings Review View - A A A A A-D-Av 211 Heading Heading 2 Headings Heading 4 Account's) Debited Accounts) Credited Transactions a. Utility bill is received; payment will be made in 10 days b. Paid the utility bill previously recorded in transaction (0) c. Bought a three-year insurance policy and paid in full d. Made an entry to adjust for the expiked portion of the insurance premium. e. Received $7,000 from a contract to perform accounting services over the next two years f. Made an entry to adjust for half of the services performed in (e) 2. Purchased office supplies, paying part cash and charging the balance on account h. Borrowed money from a bank and signed a note payable due in six months Recorded one month's accrued interest on the note payable Depreciation is recorded on office equipment Papo 2. Prepare adjusting entries for the following transactions () The beginning balance of the supplies account was $245. During the month the Seos 200 DM $ % 2 3 ( 4 5 6 & 7 00 ) 0 9 W E R T Y U ADA Heading 1 Heading 2 Heading 3 Heading 4 2. Prepare adjusting entries for the following transactions: (a) The beginning balance of the supplies account was $245. During the month the company bought additional supplies in the amount of $735. At the end of the month a physical inventory showed $343 of unused supplies. (6) The company has a 12% note payable in the amount of $17,000 due in six months. The interest expense of $170 for the month has not been recorded. (c) The company has two employdes. The manager is paid on the fifteenth of every month for work performed during the first half of the month and on the first of the following month for the work performed during the second half of the month. His monthly salary is $5,500. The other employee is paid $650 for each five-day work week (Monday- Friday). The last day of the month fell on Thursday. (d) The uneared foes account shows a balance of S46,000. According to the manager 60% of that amount has been carned. At the end of the month $5,700 of services had been performed but not yet billed. 3. REM Consulting is completing the accounting information processing at the end of the fiscal year, December 31. The following trial balances are available. Accounts Unadjusted Adjusted Trial Balance Trial Balance Debit Credit Debit Credit Cash 13,000 13,000 Accounts Receivable 1,500 1,800 Prepaid Insurance 600 200 Supplies 3,800 3,000 Machines 30,000 30.000 Accumulated Depreciation 12.000 17,500 Wages Payable Unearned Fees 6.700 6,500 Owner's Capital 24,000 24,000 Owner's Drawing 4. NOO 4,800 Fees Earned 25.000 25,500 Wages Expense 14.000 14,900 Depreciation Expense 5.500 Supplies Expense Insurance Expense 400 6720,0 74.400 74.400 900 800 English (United States 80 . 988 FE ca DO Tv & l 3 4 5 6 7 8 9 0 V E R T Y U 1 0 References Mailings Review ign Layout View 1 VA A AO E 21 Aav AaBb AaBbCc AaBbCcDe Aalbo Heading 1 Heading 2 Heading Heading 2 25,000 25,500 14,000 Fees Earned Wages Expense Depreciation Expense Supplies Expense Insurance Expense 14,900 5,500 80d 400 74.400 674700 67.700 74.400 (a) Reconstruct the adjusting entries and give a brief explanation of each (b) What is the amount of net income? Page English nited States RS So sk do DIL FB DO 19 50 $ % 2 3 ) 5 & 7 6 8 9 W E R T Y C
