Accounting
Jscott61CopyofChapter07c-Problem7-1to7-8Formsj.xls
7-1
Name: | Jatavis Scott | Section: | 16136 | |
#: | 0216157 | |||
Problem 7-1 | ||||
Purchase and Depreciate a New Delivery Truck | ||||
Requirement 1 -- March 1 truck purchase | ||||
Date | Account Name | Debit | Credit | |
3-1 | Cash | 64,800 | ||
Requirement 2 -- Monthly depreciation | ||||
$900 | ||||
Requirement 3 -- March 31 depreciation adjusting entry | ||||
Date | Account Name | Debit | Credit | |
3-21 | Accumulated Depreciation | 13,000 | ||
14,000 | ||||
Requirement 4 -- Balance in "Accumulated Depreciation - Truck" after 18 months | ||||
$16,200 | ||||
Requirement 5 -- Monthly depreciation if life was 4 years | ||||
$338 |
7-2 A
Name: | Section: | |||
#: | ||||
Problem 7-2 | Pg. A | |||
Purchase and Depreciate Two Items of Property, Plant, & Equipment | ||||
Requirement 1 -- April 1 office building purchase | ||||
Date | Account Name | Debit | Credit | |
Requirement 2 -- Monthly depreciation for the office building | ||||
Requirement 3 -- April 30 depreciation adjusting entry for the office building | ||||
Date | Account Name | Debit | Credit | |
Requirement 4 -- May 1 computer system purchase | ||||
Date | Account Name | Debit | Credit |
7-2 B
Name: | Section: | |||
#: | ||||
Problem 7-2 | Pg. B | |||
Purchase and Depreciate Two Items of Property, Plant, & Equipment | ||||
Requirement 5 -- Monthly depreciation for the computer system | ||||
Requirement 6 -- May 31 depreciation adjusting entry for the computer system | ||||
Date | Account Name | Debit | Credit | |
Requirement 7 -- May 31 depreciation adjusting entry for the office building | ||||
Date | Account Name | Debit | Credit | |
Requirement 8 -- Total Depreciation Expense on the May Income Statement |
7-3 A
Name: | Section: | |||
#: | ||||
Problem 7-3 | Pg. A | |||
Purchasing Supplies and the Monthly Supplies Adjusting Entry | ||||
Requirement 1 -- July 1 purchase of supplies | ||||
Date | Account Name | Debit | Credit | |
Requirement 2 -- July 31 supplies on-hand | ||||
Requirement 3 -- "T" Account Analysis for July 31 adjusting entry | ||||
"T" Account Analysis for Asset and Liability Accounts | ||||
Account Name ð | Supplies (asset account) | |||
Debit | Credit | |||
(1) What is the current balance? | ||||
(3) What adjustment is required to adjust from the current balance to the should be balance? | ||||
(2) What should be the balance? | ||||
Requirement 4 -- July 31 supplies adjusting entry | ||||
Date | Account Name | Debit | Credit |
7-3 B
Name: | Section: | |||
#: | ||||
Problem 7-3 | Pg. B | |||
Purchasing Supplies and the Monthly Supplies Adjusting Entry | ||||
Requirement 5 -- August 31 supplies on-hand | ||||
Requirement 6 -- "T" Account Analysis for August 31 adjusting entry | ||||
"T" Account Analysis for Asset and Liability Accounts | ||||
Account Name ð | Supplies (asset account) | |||
Debit | Credit | |||
(1) What is the current balance? | ||||
(3) What adjustment is required to adjust from the current balance to the should be balance? | ||||
(2) What should be the balance? | ||||
Requirement 7 -- August 31 supplies adjusting entry | ||||
Date | Account Name | Debit | Credit | |
Requirement 8 -- Total $ amount of supplies consumed during first 2 months of operation |
7-4 A
Name: | Section: | |||||
#: | ||||||
Problem 7-4 | Pg. A | |||||
Paying Rent in Advance and the Monthly Prepaid Rent Adjusting Entry | ||||||
Requirement 1 -- June 20 advance payment of rent | ||||||
Date | Account Name | Debit | Credit | |||
Requirement 2 -- Prepaid Rent timeline | ||||||
In the boxes above the timeline, indicate the amount of remaining Prepaid Rent for each date | ||||||
on the timeline. | ||||||
Note that the amounts of Prepaid Rent for June 20 (the date the contract was signed) and | ||||||
for October 31 (the last day of the four month rental period) have already been entered. | ||||||
In the boxes below the timeline, indicate the amount of Prepaid Rent that expires | ||||||
(is used-up) during each of the four months. | ||||||
$12,000 | $0 | |||||
ïJune 20 | ïJuly 1 | ïJuly 31 | ïAug. 31 | ïSept. 30 | ïOct. 31 | |
July | August | September | October | |||
ñ | ñ | ñ | ñ | |||
Month 1 | Month 2 | Month 3 | Month 4 |
7-4 B
Name: | Section: | |||
#: | ||||
Problem 7-4 | Pg. B | |||
Paying Rent in Advance and the Monthly Prepaid Rent Adjusting Entry | ||||
Requirement 3 -- "T" Account Analysis for the July 31 adjusting entry | ||||
"T" Account Analysis for Asset and Liability Accounts | ||||
Account Name ð | Prepaid Rent | |||
Debit | Credit | |||
(1) What is the current balance? | ||||
(3) What adjustment is required to adjust from the current balance to the should be balance? | ||||
(2) What should be the balance? | ||||
Requirement 4 -- July 31 Prepaid Rent adjusting entry | ||||
Date | Account Name | Debit | Credit | |
Requirement 5 | ||||
Amount of Prepaid Rent on the August 31 Balance Sheet | ||||
Amount of Rent Expense on the August 1 to August 31 Income Statement |
7-5 A
Name: | Section: | |||||
#: | ||||||
Problem 7-5 | Pg. A | |||||
Prepaid Insurance and the Monthly Prepaid Insurance Adjusting Entry | ||||||
Requirement 1 -- September 1 advance payment of the two insurance policies | ||||||
Date | Account Name | Debit | Credit | |||
Requirement 2 -- Auto and Truck Prepaid Insurance timeline | ||||||
In the boxes above the timeline, indicate the amount of remaining Prepaid Insurance related | ||||||
to the Auto and Truck insurance policy for each date on the timeline. | ||||||
In the boxes below the timeline, indicate the amount of Prepaid Insurance that expires | ||||||
(is used-up) during each of the three months. | ||||||
ïSept. 1 | ïSept. 30 | ïOct. 31 | ïNov. 30 | |||
September | October | November | ||||
ñ | ñ | ñ | ||||
Month 1 | Month 2 | Month 3 | ||||
Requirement 3 -- Business Liability Prepaid Insurance timeline | ||||||
In the boxes above the timeline, indicate the amount of remaining Prepaid Insurance related | ||||||
to the Business Liability insurance policy for each date on the timeline. | ||||||
In the boxes below the timeline, indicate the amount of Prepaid Insurance that expires | ||||||
(is used-up) during each of the four months. | ||||||
ïSept. 1 | ïSept. 30 | ïOct. 31 | ïNov. 30 | ïDec. 31 | ||
September | October | November | December | |||
ñ | ñ | ñ | ñ | |||
Month 1 | Month 2 | Month 3 | Month 4 |
7-5 B
Name: | Section: | |||
#: | ||||
Problem 7-5 | Pg. B | |||
Prepaid Insurance and the Monthly Prepaid Insurance Adjusting Entry | ||||
Requirement 4 -- "T" Account Analysis for the Sept. 30 Prepaid Insurance adjusting entry | ||||
Note that the Prepaid Insurance account contains the total amount of prepaid insurance | ||||
for both the Auto and Truck insurance policy and the Business Liability insurance policy. | ||||
"T" Account Analysis for Asset and Liability Accounts | ||||
Account Name ð | Prepaid Insurance | |||
Debit | Credit | |||
(1) What is the current balance? | ||||
(3) What adjustment is required to adjust from the current balance to the should be balance? | ||||
(2) What should be the balance? | ||||
Requirement 5 -- September 30 Prepaid Insurance adjusting entry | ||||
Date | Account Name | Debit | Credit | |
Requirement 6 | ||||
Amount of Prepaid Insurance on the October 31 Balance Sheet | ||||
Amount of Insurance Expense on the October 1 to October 31 Income Statement |
7-6
Name: | Section: | |||
#: | ||||
Problem 7-6 | ||||
Weekly Wage Payment Entries and the Month-End Wages Payable Adjusting Entry | ||||
Requirement 1 -- Wage payment on Friday June 25th | ||||
Date | Account Name | Debit | Credit | |
6/25/xx | ||||
Requirement 2 | ||||
Total amount earned by the employees for: | ||||
Monday June 28th + Tuesday June 29th + Wednesday June 30th | ||||
Requirement 3 -- June 30 Wages Payable adjusting entry | ||||
Date | Account Name | Debit | Credit | |
6/30/xx | ||||
Requirement 4 -- Wage payment on Friday July 2nd | ||||
Date | Account Name | Debit | Credit | |
7/02/xx |
7-7
Name: | Section: | |||
#: | ||||
Problem 7-7 | ||||
Take-Out a Loan -- Accrue Interest on the Loan -- Pay Interest | ||||
Requirement 1 -- April 1 get the loan from the bank | ||||
Date | Account Name | Debit | Credit | |
Requirement 2 -- April 30 interest accrual adjusting entry | ||||
Date | Account Name | Debit | Credit | |
Requirement 3 -- May 31 interest accrual adjusting entry | ||||
Date | Account Name | Debit | Credit | |
Requirement 4 -- Payment of the April, May, and June interest to the bank | ||||
Date | Account Name | Debit | Credit |
7-8
Name: | Section: | |||
#: | ||||
Problem 7-8 | ||||
Accrue Rent Payable -- Pay Rent the Following Month | ||||
Requirement 1 -- September 1 entry to record signing the contract | ||||
Date | Account Name | Debit | Credit | |
Requirement 2 -- September 30 rent payable accrual adjusting entry | ||||
Date | Account Name | Debit | Credit | |
Requirement 3 -- October 5 payment of September's rent | ||||
Date | Account Name | Debit | Credit |