Wiley Chapter 3 Homework Strayer ACC 100

Brief Exercise 3-4 At the end of its first year, the trial balance of Nygaard Company shows Equipment $30,802 and zero balances in Accumulated DepreciationEquipment and Depreciation Expense. Depreciation for the year is estimated to be $4,579. Prepare the adjusting entry for depreciation at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Dec. 31 Post the adjustments to T-accounts. Depreciation Expense Accumulated Depreciation Equipment Indicate the balance sheet presentation of the equipment at December 31. NYGAARD Company Balance Sheet (Partial) : *Brief Exercise 3-5 On July 1, 2014, Dobbs Co. pays $15,000 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Dobbs Co., journalize and post the entry on July 1 and the adjusting entry on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Brief Exercise 3-6 On July 1, 2014, Dobbs Co. pays $20,400 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. Journalize and post the entry on July 1 and the adjusting entry on December 31 for Kalter Insurance Co. Kalter uses the accounts Unearned Service Revenue and Service Revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Unearned Service Revenue Service Revenue Question Attempts: 0 o Exercise 3-7 The ledger of Perez Rental Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared. Debit Prepaid Insurance Supplies Equipment Accumulated DepreciationEquipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense Credit $ 12,420 2,696 27,500 $ 8,800 23,000 11,400 59,830 0 16,125 An analysis of the accounts shows the following 1 . 2 . 3 . 4 . 5 . The equipment depreciates $440 per month. One-third of the unearned rent revenue was earned during the quarter. Interest of $575 is accrued on the notes payable. Supplies on hand total $787. Insurance expires at the rate of $690 per month. 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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date 1. Mar. 31 2. Mar. 31 3. Mar. 31 4. Mar. 31 5. Account Titles and Explanation Mar. 31 Q Exercise 3-12 Selected accounts of Koffman Company are shown below. Supplies Expense 7/31 728 Supplies 7/1 Bal. 7/10 1,513 7/31 728 696 Accounts Receivable 7/31 474 Salaries and Wages Expense 7/15 1,229 7/31 1,229 Salaries and Wages Payable 7/31 1,229 Unearned Service Revenue 7/31 1,430 7/1 Bal. 1,152 7/20 1,570 Service Revenue 7/14 2,620 7/31 474 7/31 1,430 (a) After analyzing the accounts, journalize the July transactions. (Hint: July transactions were for cash.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (b) After analyzing the accounts, journalize the adjusting entries that were made on July 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation July 31 (To record supplies used) July 31 (To record accrued revenue) July 31 (To record accrued salaries) July 31 (To record revenue earned) Debit Q Brief Exercise 3-2 Moteki Company accumulates the following adjustment data at December 31. Indicate the type of adjustment (prepaid expenses, accrued revenues and so on), and the status of accounts before adjustment (overstated or understated). (Enter answers in alphabetical order.) 1 . 2 . 3 . 4 . Supplies of $100 are on hand. Services provided but not recorded total $900. Interest of $200 has accumulated on a note payable. Rent collected in advance totaling $650 has been earned. Type of Adjustment Item Account Balances before Adjustment 1. 2. 3. 4. Q Brief Exercise 3-7 The bookkeeper for Bradbury Company asks you to prepare the following accrued adjusting entries at December 31. 1 Interest on notes payable of $400 is accrued. . 2 Services provided but not recorded total $1,900. . 3 Salaries earned by employees of $900 have not been recorded. . Use the following account titles: Service Revenue, Accounts Receivable, Interest Expense, Interest Payable, Salaries and Wages Expense, and Salaries and Wages Payable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date 1. Dec. 31 2. Dec. 31 3. Account Titles and Explanation Dec. 31 Q Brief Exercise 3-9 The adjusted trial balance of Parsons Company at December 31, 2014, includes the following accounts: Owner's Capital $15,600, Owner's Drawings $7,000, Service Revenue $37,000, Salaries and Wages Expense $16,000, Insurance Expense $2,000, Rent Expense $4,000, Supplies Expense $1,500, and Depreciation Expense $1,300. Prepare an income statement for the year. PARSONS COMPANY Income Statement For the Year Ended December 31, 2014 Q Exercise 3-3 Primo Industries collected $105,000 from customers in 2014. Of the amount collected, $25,000 was from services performed in 2013. In addition, Primo performed services worth $40,000 in 2014, which will not be collected until 2015. Primo Industries also paid $72,000 for expenses in 2014. Of the amount paid, $30,000 was for expenses incurred on account in 2013. In addition, Primo incurred $42,000 of expenses in 2014, which will not be paid until 2015. (a) Compute 2014 cash-basis net income. Cash-basis net income $ (b) Compute 2014 accrual-basis net income. Accrual-basis net income $ Q Exercise 3-6 Lei Company accumulates the following adjustment data at December 31. 1 . 2. 3 . 4 . 5. 6 . Services provided but not recorded total $1,000. Supplies of $300 have been used. Utility expenses of $225 are unpaid. Services related to Unearned service revenue of $260 were performed Salaries of $800 are unpaid. Prepaid insurance totaling $350 has expired. For each of the above items indicate the following. (Enter answers in alphabetical order.) (a) The type of adjustment (prepaid expenses, unearned revenues, accrued revenues, or accrued expenses). (b The status of accounts before adjustment (overstatement or understatement). ) Item Type of Adjustment 1. 2. 3. 4. 5. 6. Q Exercise 3-13 The trial balances before and after adjustment for Frinzi Company at the end of its fiscal year are presented below. FRINZI COMPANY Trial Balance August 31, 2014 Before Adjustment Dr. Cr. Cash $10,400 Accounts Receivable 8,800 Supplies 2,300 Prepaid Insurance 4,000 Equipment 14,000 Accumulated DepreciationEquipment $ 3,600 Accounts Payable 5,800 Salaries and Wages Payable 0 Unearned Rent Revenue 1,500 Owner's Capital 15,600 Service Revenue 34,000 Rent Revenue 11,000 Salaries and Wages Expense 17,000 Supplies Expense 0 Rent Expense 15,000 Insurance Expense 0 Depreciation Expense 0 $71,500 $71,500 After Adjustment Dr. Cr. $10,400 10,800 900 2,500 14,000 $ 4,500 5,800 1,100 600 15,600 36,000 11,900 18,100 1,400 15,000 1,500 900 $75,500 $75,500 Accounts before Adjustment Prepare the adjusting entries that were made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Aug. 31 (To record accrued revenue) Aug. 31 (To record supplies used) Aug. 31 (To record expired insurance) Aug. 31 (To record depreciation) Aug. 31 (To record accrued salaries) Aug. 31 (To record rent earned) Q Debit