4 the adjusting entry b assume net profit before the

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Intermediate Accounting: Reporting and Analysis
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Chapter 8 / Exercise E8-9
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
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4. The adjusting entry. (b) Assume net profit before the adjustments listed above was $16,500. What is the adjusted net profit
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Intermediate Accounting: Reporting and Analysis
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Chapter 8 / Exercise E8-9
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
Chapter 3 Questions 5 Prepare your answer in the tabular form presented below. Account Balances Before Adjustment Type of Account (Understatement Adjustment Relationship or Overstatement) Adjusting Entry Ex. 2 Match the statements below with the appropriate terms by entering the appropriate letter code in the spaces provided. TERMS: A. Prepaid Expenses B. Unearned Revenues C. Accrued Revenues D. Accrued Expenses STATEMENTS: ____ 1. Goods or services not yet provided; revenue collected in advance. ____ 2. Office supplies on hand that will be used in the next period. ____ 3. Interest revenue collected in advance. . ____ 4. Rent not yet collected; Rental services have been provided. ____ 5. Goods or services received; not yet paid or recorded. ____ 6. Good or service provided; not yet collected or recorded. ____ 7. Good or service not yet received; paid in advance. ____ 8. Interest expense accrued; not yet paid. Ex. 3 Prepare adjusting entries for the following transactions. Omit explanations. 1. Depreciation on equipment is $840 for the accounting period. 2. Interest owed on a loan but not paid or recorded is $175.
Chapter 3 Questions 6 3. There was no beginning balance of supplies. $400 of office supplies were purchased during the period. At the end of the period $70 of supplies were on hand. 4. Prepaid rent had a $1,000 normal balance prior to adjustment. By year end $300 had expired. 5. Accrued salaries at the end of the period amounted to $900. Ex. 4 Prepare the required end-of-period adjusting entries for each independent case listed below. Case 1 Thomas Ltd began the year with a $3,000 balance in the Office Supplies account. During the year, $8,500 worth of additional office supplies were purchased. physical count of office supplies on hand at the end of the year revealed that $6,400 worth of office supplies had been used during the year. No adjusting entry has been made. Case 2 Carson Ltd has a calendar year-end accounting period. On 1 July, the company purchased office equipment for $28,800. It is estimated that the office equipment will depreciate $400 each month. No adjusting entry has been made. Case 3 Yates Realty is in the business of renting several apartment buildings and prepares monthly financial statements. It has been determined that 3 tenants in $600 per month apartments and one tenant in the $1,000 per month apartment had not paid their December rent as of 31 December. A
Chapter 3 Questions 7 Ex. 5 Presented below is the Trial Balance and Adjusted Trial Balance for Jim Lankford Ltd on 31 December. JIM LANKFORD LTD Trial Balances 31 December _____________________________________________________________________________ Before Adjustment After Adjustment Dr. Cr. Dr. Cash $ 2,000 $ 2,000 Accounts Receivable 2,800 3,900 Prepaid Rent 2,100 1,500 Supplies 1,200 800 Motor vehicle 18,000 18,000 Accumulated Depreciation— Motor vehicle $ 1,300 $ 1,500 Electricity Payable 2,700 3,000 Notes Payable 10,000 10,000 Interest Payable 120 Salaries Payable 600 Unearned Service Revenue 4,460 4,360 Share capital 7,200 7,200 Dividends paid 3,200 3,200 Service Revenue 8,000 9,200 Salaries Expense 2,060 2,660 Electricity Expense 1,800 2,100 Rent Expense 500 1,100 Supplies Expense 400 Depreciation Expense— Motor vehicle 200 Interest Expense 120 Totals $33,660 $33,660 $35,980 $35,980 Instructions Prepare, in journal form with explanations, the adjusting entries that explain the changes in the balances from the trial balance to the adjusted trial balance. Cr
Chapter 3 Questions 8 Matching Match the items below by entering the appropriate code letter in the space provided. A. Accounting period concept F. Depreciation B. Cash basis G. Post-Closing Trial Balance C. Revenue recognition principle H. Accrued Expenses D. Prepaid expenses I. Carrying amount E. Accrued revenues

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