T.5.1 Accounting

EX 3-1 Classifying types of adjustments OBJ. 1, 2,3 Classify the following items as (a) accrued revenue, (b) accrued expense, (c) unearned revenue, or (d) prepaid expense: 1. Bill for ads that appeared in prior month's local newspaper. 2. Fees received but not yet earned. 3. Fees earned but not yet received. 4. Premium paid on a one-year insurance policy. 5. Rent received in advance for rental of office space. 6. Supplies on hand. 7. Rent paid in advance. 8. Wages owed but payable in the following period.EX 3-26 Adjusting entries from trial balances OBJ. 6 The unadjusted and adjusted trial balances for American Leaf Company on October 31, 20Y2, follow:146 Chapter 3 The Adjusting Process American Leaf Company Trial Balances October 31, 20Y2 Unadjusted Adjusted Debit Credit Debit Credit Balances Balances Balances Balances 16 16 Accounts Receivable ..... .. ..... 38 44 Supplies........ 12 10 Prepaid Insurance.. 20 Land... . 26 26 Equipment .... 40 40 Accumulated Depreciation-Equipment........ ....! ! 8 12 Accounts Payable ....... 26 26 Wages Payable... 0 2 Les Huff, Capital .... 92 92 Les Huff, Drawing .. 8 Fees Earned . .....!:18..! 74 80 Wages Expense .... .. ..... .... 24 26 Rent Expense... Insurance Expense.. Utilities Expense .. 4 Depreciation Expense...... 4 Supplies Expense .... .... . .... 2 Miscellaneous Expense..... 200 200 212 212 Journalize the five entries that adjusted the accounts at October 31, 20Y2. None of the accounts were affected by more than one adjusting entry