Example 1 unearned revenues florida flippers received

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Intermediate Accounting: Reporting and Analysis
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Chapter 3 / Exercise 3-21
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
Example 1 - Unearned Revenues Florida Flippers received $6,600 from customers on November 15, 2013, for diving trips to the Bahamas in December, January, and February. The $6,600 was recorded in Unearned Diving Trip Revenue on that date. By the end of December, one-third of the diving trips had been completed. What adjustment is recorded to Unearned Revenue to recognize the diving revenue earned in December? AJE 1:DebitCreditUnearned Diving Trip Revenue (-L)2,200Diving Trip Revenue (+R, +SE)2,2004-14 Example 2 Accounts Receivable On December 31, 2013, Florida Flippers provided advanced diving instruction to 10 customers who will pay the business $800 in January 2014. No entry was made when the instruction was provided. AJE 2:DebitCreditDiving Instruction Receivable (+A)800Diving Instruction Revenue (+R)800
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Intermediate Accounting: Reporting and Analysis
The document you are viewing contains questions related to this textbook.
Chapter 3 / Exercise 3-21
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
8 4-15 Two Types of Expense Adjustments A deferred expense is an asset that is created when a company pays cash for an expense that it will use up in the future. The adjusting journal entry will increase the expense (decreasing stockholders’ equity) and decrease the asset. Examples: prepaid rent; prepaid insurance, supplies Accrued liabilities are liabilities for expenses that are incurred in the current period but are not billed or paid until the next accounting period The adjusting journal entry will increase an expense (decreasing stockholders’ equity) and increase a liabilityExamples: accrued wages; accrued interest; accrued bonuses
Example 3 - Deferred Expenses On September 1, 2013, Florida Flippers paid $2,400 for insurance for the 12 months beginning on September 1. The amount was recorded as Prepaid Insurance on September 1. What is the adjustment to Prepaid Insurance on December 31 to recognize the four months of expired insurance?
9 4-17 Accrued Liabilities (Continuation) On March 1, 2013, Florida Flippers borrowed $300,000 at 5 percent interest. Interest is payable each March 1. The loan (and any unpaid interest) must be repaid on March 1, 2023. On December 31, Florida made an adjusting journal entry to record the interest payable on that date. What original journal entry will Florida make on March 1, 2014, when it pays its first interest payment? Example 4 Accrued Liabilities On March 1, 2013, Florida Flippers borrowed $300,000 at 5 percent interest. Interest is payable each March 1 for 10 years. The loan (and any unpaid interest) must be repaid on March 1, 2023. What adjusting journal entry is necessary on December 31 to record the interest owed to the bank as of that date?
Example 4 Accrued Liabilities (Continuation) On March 1, 2013, Florida Flippers borrowed $300,000 at 5 percent interest. Interest is payable each March 1. The loan (and any unpaid interest) must be repaid on March 1, 2023. On December 31, Florida made an adjusting journal entry to record the interest payable on that date. What original journal entry will Florida make on March 1, 2014, when it pays its first interest payment?
10 4-19 Reporting Accrued Liabilities in the Balance Sheet Apple 4-20 Depreciation When companies buy assets like cars, buildings, etc., they expect to use the asset for several years.

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