Learning objective 04 01 explain the purpos e of

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Unformatted text preview: pare 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: 04-07 Explain how the principles of realization and m atching relate to adjus ting entries . 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 . Learning Objective: 04-09 Prepare an adjus ted trial balance and des cribe its purpos e. The unadjus ted and adjus ted trial balanc es for Tink er Corporation on Dec ember 31, 2011, are s hown below: Tink er Corporation Trial Balanc es http://ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intview 13/16 1/23/2014 Assig nment Pr int View Dec ember 31, 2011 Adjus ted Debit Credit $ 35,200 34,120 600 3,600 380 60,000 $ 50,000 900 5,000 250 2,100 2,170 3,800 25,000 30,000 99,530 1,500 7,200 21,600 1,500 4,800 12,000 28,400 250 7,600 $ 210,000 Cas h Ac c ounts rec eivable Unex pired ins uranc e Prepaid rent Offic e s upplies Equipment Ac c umulated deprec iation: equipment Ac c ounts pay able Notes pay able Interes t pay able Salaries pay able Inc ome tax es pay able Unearned revenue Capital s toc k Retained earnings Fees earned Advertis ing ex pens e Ins uranc e ex pens e Rent ex pens e Offic e s upplies ex pens e Repairs ex pens e Deprec iation ex pens e: equipment Salaries ex pens e Interes t ex pens e Inc ome tax es ex pens e Unadjus ted Debit Credit $ 35,200 29,120 1,200 5,400 680 60,000 $ 49,000 900 5,000 200 — 1,570 6,800 25,000 30,000 91,530 1,500 6,600 19,800 1,200 4,800 11,000 26,300 200 7,000 $ 218,750 $ 210,000 $ 218,750 Journaliz e the nine adjus ting entries that the c ompany made on Dec ember 31 2011. (Om it the "$" sign in your re sponse .) General Journal Ac c ounts rec eivable Debit Credit 5000 Fees earned Ins uranc e ex pens e 5000 600 Unex pired ins uranc e Rent ex pens e 600 1800 Prepaid rent Offic e s upplies ex pens e 1800 300 Offic e s upplies Deprec iation ex pens e: Equip 300 1000 Ac c umulated deprec iation: Equip Salaries ex pens e 1000 2100 Salaries pay able Interes t ex pens e 2100 50 Interes t pay able Inc ome tax es ex pens e 50 600 Inc ome tax es pay able Unearned revenue Fees earned http://ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intview 600 3000 3000 14/16 1/23/2014 13. Assig nment Pr int View aw ar d: 1 out of 1.00 point Four ty pes of adjus ting entries were identified in this c hapter: Ty pe I Ty pe II Ty pe III Ty pe IV Converting As s ets to Ex pens es Converting Liabilities to Revenue Ac c ruing Unpaid Ex pens es Ac c ruing Unc ollec ted Revenue Complete the following table by indic ating the effec t of eac h adjus ting entry ty pe on the major elements of the inc ome s tatement and balanc e s heet. Us e the s y mbols I for inc reas e, D for dec reas e, and NE for no effec t. Inc ome Statement Adjus tment Ty pe Ty pe I Ty pe II Ty pe III Ty pe IV Revenue NE I NE I Balanc e Sheet Ex pens es Net Inc ome I NE I NE D I D I As s ets D NE NE I Liabilities NE D I NE W orksheet Learning Objective: 04-03 Prepare adjus ting entries to convert as s ets t...
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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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