Week2Practice - Practice 1 What are the two generally...

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Practice 1What are the two generally accepted accounting principles that relate to adjusting the accounts?12Practice 2Jane is a CPA and accepts an audit engagement in July, performs the audit in August and is paidby her client in September. If Jane's accounting firm prepares monthly financial statements using thewhen should it recognize revenue from the engagement? Why?Practice 3What is the difference between accural-basis financial statements and cash-basis financial statementsHow do accrual-basis financial statements provide more useful information than cash-basis financial sPractice 4What are the two categories of adjusting entries? Identify the types of adjustments applicable to eacPractice 5
Cole Rental Agency's ledger on June 30 of the current year includes the following selected accounts badjusting entries have been preparedDebitSupplies3,000 Prepaid Insurance2,500 Machinery29,000 Accumulated Depreciation - MachineryNotes PayableUnearned RentRent RevenueInterest Expense- Salaries Expense17,860 An analysis of the accounts shows the following:1. One quarter of the unearned rent was earned during the quarter2. Supplies remaning on hand at the end of the quarter total $1,2003. The machinery depreciates at $500 per month4. Insurance expires at the rate of $300 per month5. Interest of $600 is accured on the notes payableAdditional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies ExpGeneral JournalDateAccount TitleRef.Instructions: Prepare the adjusting entries at June 30, assuming that the adjusting entries are made
Practice 6Samantha Cook, CPA opened a public accounting practice on January 1, 2014. During the first monththe following transactions occurred.1. Performed accounting services for clients. At January 31, 2014, $5,000 of the accounting services but not yet recorded2. Purchased computer equipment during January for $25,000, paying $5,000 in cash and signing a $payable. The computer equipment depreciates at $700 per month. Interest is $50 per month.3. The utility expenses incurred but not yet paid prior to January 31 totaled $950.4. Purchased $4,000 of office supplies during January. On January 31, determined that $1,200 of the5. On January 1, purchased a malpractice insurance policy for one year for $9,000Instructions: Prepare the adjusting entries on January 31.
Practice 7

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