excel_text_files - Exercise: E3-5, Adjusting Entries, File...

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Exercise: E3-5, Adjusting Entries, File 3e-5 The ledger of Duggan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit Credit Prepaid Insurance $3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation - Equipment $8,400 Notes Payable 20,000 Unearned Rent Revenue 9,300 Rent Revenue 60,000 Interest Expense 0 Wage Expense $14,000 Totals: $45,400 $97,700 An analysis of the accounts shows the following: 1. The equipment depreciation per month is: $250 2. One-third of the unearned rent was earned during the quarter. 3. Interest accrued for the month on notes payable is: $500 4. Supplies on hand total: $850 5. The monthly insurance expiration rate is: $300 Instructions: Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense Interest Payable Insurance Expense Supplies Expense E3-8, Adjusting Entries, File 3e-8 Andy Roddick is the new owner of Ace Computer Services. At the end of August 2007, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August. 1. At August 31, Mr. Roddick owed his employees wages that will be paid on September 1 in the amount of $1,900. 2. At the end of the month he had not yet received the monthly utility bill. Based on past experience, he estimated the bill would be approximately: $600 3. On August 1, Mr. Roddick borrowed money from a local bank. The amount was $30,000. The duration of the mortgage was 15 years with an annual interest rate of 8%. 4. A telephone bill for August is unpaid as of August 31 in the amount of $117. Instructions: Prepare the adjusting entries as of August 31, 2007, suggested by the information above. Problem: P3-2 Adjusting Entries and Financial Statements, File 3p-2 Yount Advertising Agency was founded in January 2003. Presented below are the adjusted and unadjusted trial balances as of December 31, 2007:
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YOUNT ADVERTISING AGENCY Trial Balance December 31, 2007 Unadjusted Adjusted Debit Credit Debit Credit Cash 11,000 11,000 Accounts Receivable 20,000 21,500 Art Supplies 8,400 5,000 Prepaid Insurance 3,350 2,500 Printing Equipment 60,000 60,000 Accumulated Depreciation - Equip 28,000 35,000 Accounts Payable 5,000 5,000 Interest Payable 0 150 Notes Payable 5,000 5,000 Unearned Advertising Revenue 7,000 5,600 Salaries Payable 0 1,300 Common Stock 10,000 10,000 Retained Earnings 3,500 3,500 Advertising Revenue 58,600 61,500 Salaries Expense 10,000 11,300 Insurance Expense 850 Interest Expense 350 500 Depreciation Expense 7,000 Art Supplies Expense 3,400 Rent Expense 4,000 4,000 Totals: $117,100 $117,100 $127,050 $127,050 Instructions: (a) Journalize the annual adjusting entries that were made. (b)
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This note was uploaded on 06/22/2009 for the course ACCOUNTING 3 taught by Professor Kaas during the Spring '09 term at CUNY Brooklyn.

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excel_text_files - Exercise: E3-5, Adjusting Entries, File...

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