By how muc h did sweeney as s oc iates net inc ome

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Unformatted text preview: 00 2,400 b. By how muc h did Sweeney & As s oc iates ' net inc ome inc reas e or dec reas e as a res ult of the adjus ting entries performed in part a ? (Ignore inc ome tax es .) (Om it the "$" sign in your re sponse .) Net inc ome incre a se $ 62,650 http://ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intview 6/16 1/23/2014 Assig nment Pr int View W orksheet Learning Objective: 04-03 Prepare adjus ting entries to convert as s ets to expens es . Learning Objective: 04-06 Prepare adjus ting entries to accrue uncollected revenue. Learning Objective: 04-01 Explain the purpos e of adjus ting entries . Learning Objective: 04-04 Prepare adjus ting entries to convert liabilities to revenue. Learning Objective: 04-09 Prepare an adjus ted trial balance and des cribe its purpos e. Learning Objective: 04-02 Des cribe and prepare the four bas ic types of adjus ting entries . Learning Objective: 04-05 Prepare adjus ting entries to accrue unpaid expens es . Sweeney & As s oc iates , a large mark eting firm, adjus ts its ac c ounts at the end of eac h month. The following information is available for the y ear ending Dec ember 31, 2011: 1. A bank loan had been obtained on Dec ember 1. Ac c rued interes t on the loan at Dec ember 31 amounts to $1,200. No interes t ex pens e has y et been rec orded. 2. Deprec iation of the firm's offic e building is bas ed on an es timated life of 25 y ears . The building was purc has ed in 2007 for $330,000. 3. Ac c rued, but unbilled, revenue during Dec ember amounts to $64,000. 4. On Marc h 1, the firm paid $1,800 to renew a 12-month ins uranc e polic y . The entire amount was rec orded as Prepaid Ins uranc e. 5. The firm rec eived $14,000 from the King Bis c uit Company in advanc e of developing a s ix -month mark eting c ampaign. The entire amount was initially rec orded as Unearned Revenue. At Dec ember 31, $3,500 had ac tually been earned by the firm. 6. The c ompany 's polic y is to pay its employ ees every Friday . Sinc e Dec ember 31 fell on a W ednes day , there was an ac c rued liability for s alaries amounting to $2,400. a . Rec ord the nec es s ary adjus ting journal entries on Dec ember 31, 2011. (Do not round your inte rm e dia te ca lcula tions. Round your a nsw e rs to the ne a re st w hole dolla r. Om it the "$" sign in your re sponse .) General Journal 1. Debit 1,200 Interes t ex pens e Interes t pay able 2. 1,200 Deprec iation ex pens e: Offic e building 1,100 Ac c umulated deprec iation: Offic e building 3. Ac c ounts rec eivable 1,100 64,000 Mark eting revenue earned 4. 64,000 Ins uranc e ex pens e 150 Prepaid ins uranc e 5. 150 Unearned revenue 3,500 Mark eting revenue earned 6. Credit 3,500 Salaries ex pens e 2,400 Salaries pay able 2,400 b. By how muc h did Sweeney & As s oc iates ' net inc ome inc reas e or dec reas e as a res ult of the adjus ting entries performed in part a ? (Ignore inc ome tax es .) (Om it the "$" sign in your re sponse .) Net inc ome inc reas e $ 62,650 Expla...
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This note was uploaded on 01/23/2014 for the course ACC 111 taught by Professor Angela during the Fall '08 term at Delaware County CC.

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