Brief Exercise 3-3 Ritter Advertising Company’s trial balance at December 31 shows Supplies $6,700 and Supplies Expense $0. On December 31, there are $2,500 of supplies on hand. Prepare the adjusting entry at December 31, and using T-accounts, enter the

profileFin-Acc-Boss
 (Not rated)
 (Not rated)
Chat

Brief Exercise 3-3

Ritter Advertising Company’s trial balance at December 31 shows Supplies $6,700 and Supplies Expense $0. On December 31, there are $2,500 of supplies on hand.

Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

 

Supplies

Supplies

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

Supplies Expense

   

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

     

Brief Exercise 3-4

At the end of its first year, the trial balance of Nygaard Company shows Equipment $30,000 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $4,000.

Prepare the adjusting entry for depreciation at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 


Post the adjustments to T-accounts.

Depreciation Expense

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

Accumulated Depreciation— Equipment

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif


Indicate the balance sheet presentation of the equipment at December 31.

NYGAARD Company
Balance Sheet (Partial)

http://edugen.wiley.com/edugen/art2/common/pixel.gif

$http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

 

:http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

$http://edugen.wiley.com/edugen/art2/common/pixel.gif

 
    

 

Brief Exercise 3-5

On July 1, 2014, Dobbs Co. pays $14,400 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31.

For Dobbs Co., journalize and post the entry on July 1 and the adjusting entry on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

http://edugen.wiley.com/edugen/art2/common/pixel.gif

   

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

  

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

Prepaid Insurance

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

Insurance Expense

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

rief Exercise 3-6

On July 1, 2014, Dobbs Co. pays $14,400 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31.

Journalize and post the entry on July 1 and the adjusting entry on December 31 for Kalter Insurance Co. Kalter uses the accounts Unearned Service Revenue and Service Revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

http://edugen.wiley.com/edugen/art2/common/pixel.gif

   

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

  
       

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

Unearned Service Revenue

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

Service Revenue

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

Exercise 3-4

Hart Corporation encounters the following situations:

Identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, or accrued revenue) is needed in each situation, at December 31, 2014.

1.

Hart collects $1,300 from a customer in 2014 for services to be performed in 2015.

http://edugen.wiley.com/edugen/art2/common/pixel.gif

2.

Hart incurs utility expense which is not yet paid in cash or recorded.

http://edugen.wiley.com/edugen/art2/common/pixel.gif

3.

Hart’s employees worked 3 days in 2014 but will not be paid until 2015.

http://edugen.wiley.com/edugen/art2/common/pixel.gif

4.

Hart performs services for customers but has not yet received cash or recorded the transaction.

http://edugen.wiley.com/edugen/art2/common/pixel.gif

5.

Hart paid $2,400 rent on December 1 for the 4 months starting December 1.

http://edugen.wiley.com/edugen/art2/common/pixel.gif

6.

Hart received cash for future services and recorded a liability until the services was performed.

http://edugen.wiley.com/edugen/art2/common/pixel.gif

7.

Hart performed consulting services for a client in December 2014. On December 31, it had not billed the client for services provided of $1,200.

http://edugen.wiley.com/edugen/art2/common/pixel.gif

8.

Hart paid cash for an expense and recorded an asset until the item was used up.

http://edugen.wiley.com/edugen/art2/common/pixel.gif

9.

Hart purchased $900 of supplies in 2014; at year-end, $400 of supplies remain unused.

http://edugen.wiley.com/edugen/art2/common/pixel.gif

10.

Hart purchased equipment on January 1, 2014; the equipment will be used for 5 years.

http://edugen.wiley.com/edugen/art2/common/pixel.gif

11.

Hart borrowed $10,000 on October 1, 2014, signing an 8% one-year note payable.

http://edugen.wiley.com/edugen/art2/common/pixel.gif

      

 

 

 

Exercise 3-7

The ledger of Perez Rental Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared.

Debit

Credit

Prepaid Insurance

$ 3,600

Supplies

2,800

Equipment

25,000

Accumulated Depreciation—Equipment

$ 8,400

Notes Payable

20,000

Unearned Rent Revenue

10,200

Rent Revenue

60,000

Interest Expense

0

Salaries and Wages Expense

14,000


An analysis of the accounts shows the following

1.

The equipment depreciates $400 per month.

2.

One-third of the unearned rent revenue was earned during the quarter.

3.

Interest of $500 is accrued on the notes payable.

4.

Supplies on hand total $900.

5.

Insurance expires at the rate of $200 per month.


Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

1.

Mar. 31

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

  

2.

Mar. 31

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

  

3.

Mar. 31

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

  

4.

Mar. 31

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

  

5.

Mar. 31

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

  
 
      

 

Exercise 3-12

Selected accounts of Koffman Company are shown below.

Supplies Expense

7/31

800

Supplies

 

7/1 Bal.

1,100

7/31

800

7/10

650

  

Accounts Receivable

   

7/31

500

  

Salaries and Wages Expense

   

7/15

1,200

  

7/31

1,200

  

Salaries and Wages Payable

   

7/31

1,200

  

Unearned Service Revenue

   

7/31

1,150

7/1 Bal.

1,500

7/20

1,000

  

Service Revenue

   

7/14

2,000

  

7/31

500

  

7/31

1,150

  


(a) After analyzing the accounts, journalize the July transactions. (Hint: July transactions were for cash.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

http://edugen.wiley.com/edugen/art2/common/pixel.gif

   

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

  
       

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

  

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

  

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif


(b) After analyzing the accounts, journalize the adjusting entries that were made on July 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

July 31

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

(To record supplies used)

   

July 31

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

(To record accrued revenue)

   

July 31

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

(To record accrued salaries)

   

July 31

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

http://edugen.wiley.com/edugen/art2/common/pixel.gif

 

(To record revenue earned)

   
 
     

 

    • 8 years ago
    Brief Exercise 3-3 Ritter Advertising Company’s trial balance at December 31 shows Supplies $6,700 and Supplies Expense $0. On December 31, there are $2,500 of supplies on hand. Prepare the adjusting entry at December 31, and using T-accounts, enter the
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      be_3_.docx