Chapter 4 Homework Problems_FORMATTED

Chapter 4 Homework Problems_FORMATTED - Chapter 4 Homework...

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Unformatted text preview: Chapter 4 Homework Problems E4-18 Recording Four Adjusting Entries and Completing the Trial Balance Worksheet LO1, 2 Red River Company prepared the following trial balance at the end of its first year of operations ending December 31, 2011. To simplify the case, the amounts given are in thousands of dollars. UNADJUSTED Account Titles Debit Credit Cash 35 Accounts receivable 9 Prepaid insurance 6 Machinery 80 Accumulated depreciation Accounts payable 9 Wages payable Income taxes payable Contributed capital (4,000 shares) 73 Retained earnings 4 Revenues (not detailed) 84 Expenses (not detailed) 32 Totals 166 166 Other data not yet recorded at December 31, 2011 include: a. Insurance expired during 2011, $4. b. Wages payable, $5. c. Depreciation expense for 2011, $8. d. Income tax expense, $9. Required: 1) Prepare the adjusting entries for 2011. General Journal Debit Credit a. Insurance Expense 4 Prepaid Insurance 4 b. Wages Expense 5 Wages Payable 5 c. Depreciation Expense 8 Accumulated Depreciation 8 d. Income Tax Expense 9 Income Tax Payable 9 Required: 2) Complete the trial balance Adjustments and Adjusted columns. RED RIVER COMPANY Trial Balance December 31, 2011 Unadjusted Adjustments Adjusted Cash 35 0 0 35 Accounts receivable 9 0 0 9 Prepaid insurance 6 0 4 2 Machinery 80 0 0 80 Accumulated depreciation 0 8 0 8 Accounts payable 9 0 0 0 9 Wages payable 0 5 0 5 Income taxes payable 0 9 0 9 Contributed capital (4,000 shares) 73 0 0 0 73 Retained earnings 4 0 0 4 Revenues (not detailed) 84 0 0 0 84 Expenses (not detailed) 32 26 0 58 Totals 166 166 26 26 188 188 E4-6 Recording Seven Typical Adjusting Entries LO2 Dittman's Variety Store is completing the accounting process for the year just ended, December 31, 2011. The transactions during 2011 have been journalized and posted. The following data with respect to adjusting entries are available: a. Wages earned by employees during December 2011, unpaid and unrecorded at December 31, 2011, amounted to $3,600. The last payroll was December 28; the next payroll will be January 6, 2012. b. Office supplies on hand at January 1, 2011, totaled $480. Office supplies purchased and debited to Office Supplies during the year amounted to $590. The year-end count showed $255 of supplies on hand. c. One-fourth of the basement space is rented to Heald's Specialty Shop for $620 per month, payable monthly. On December 31, 2011, the rent for November and December 2011 had not been collected or recorded. Collection is expected January 10, 2012. d. The store used delivery equipment that cost $67,000; $11,500 was the estimated depreciation for 2011....
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This note was uploaded on 11/03/2011 for the course AEM 2210 at Cornell University (Engineering School).

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Chapter 4 Homework Problems_FORMATTED - Chapter 4 Homework...

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