Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4, Problem 4.3BPR
Income: $27,350
accounts,
The unadjusted
The data needed to determine >ear-end adjustments are as follows:
(a) Wages accrued but not paid at August 31 are $2,200.
(b)
(c) Laundry supplies on hand at August 31 are $2,000.
(d) Insurance premiums expired during the year are $5,300.
Instructions
1. For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as “Aug. 51 Bal.” In addition, add T accounts for Wages Payable. Depreciation Expense, Laundry Supplies Expense, and Insurance Expense.
2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (1) as needed.
3. Journalize and post the adjusting entries. Identify the adjustments by “Adj.” and the new balances as “Adj. Bal.”
4. Prepare an adjusted trial balance.
5. Prepare an income statement, a statement of stockholders’ equity, and a
6. Journalize and
7. Prepare a post-closing trial balance.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Year-end adjusting journal entries
Prepare budgetary and proprietary journal entries to record the following year-end adjustments:
Note: If a journal entry is not required, select No entry as your answers and leave the Debit and Credit answers blank (zero).
4. The agency recorded depreciation of $25,000 on its equipment.
Selected account balances before adjustment for Intuit Realty at November 30, the end of the current year, follow:
Debits
Credits
Accounts Receivable
$52,310
Equipment
81,000
Accumulated Depreciation - Equipment
$8,060
Prepaid Rent
6,600
Supplies
1,570
Wages Payable
_
Unearned Fees
7,220
Fees Earned
305,490
Wages Expense
103,050
Rent Expense
_
Depreciation Expense
_
Supplies Expense
_
Data needed for year-end adjustments are as follows:
Supplies on hand at November 30, $470.
Depreciation of equipment during year, $780.
Rent expired during year, $4,810.
Wages accrued but not paid at November 30, $1,520.
Unearned fees at November 30, $3,030.
Unbilled fees at November 30, $3,610.
Required:
Question Content Area
1. Journalize the six adjusting entries required at November 30, based on the data presented.
Nov. 30
Supplies Expense
Supplies
30…
On November 1, 2022, Zora Company had the following account balances. The company uses the
perpetual inventory method.
Credit
Debit
$ 9,000 Accumulated Depreciation
Cash
Accounts Receivable 2,240 Equipment
Supplies
Equipment
860 Accounts Payable
25,000
$37,100
Unearned Service Revenue
Salaries and Wages Payable
Owner's Capital
$ 1,000
3,400
4,000
1,700
27,000
$37,100
During November, the following transactions were completed.
Nov. Paid $3,550 for salaries and wages, of which $1,850 is for November and $1,700 is for
8 October.
10 Received $1,900 cash from customers in payment of account. No discount was allowed.
11 Purchased merchandise on account from Dimas Discount Supply for $8,000, terms 2/10,
n/30.
12 Sold merchandise on account for $5,500, terms 2/10, n/30. The cost of the merchandise sold
was $4,000.
15 Received credit from Dimas Discount Supply for merchandise returned $300.
19 Received collections in full, less discounts, from customers billed on sales of $5,500 on
November 12.…
Chapter 4 Solutions
Corporate Financial Accounting
Ch. 4 - Prob. 1DQCh. 4 - Describe the nature of the assets that compose the...Ch. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Why are closing entries required at the end of an...Ch. 4 - Prob. 6DQCh. 4 - What is the purpose of the post-closing trial...Ch. 4 - Prob. 8DQCh. 4 - Which step of the accounting cycle is optional?Ch. 4 - Prob. 10DQ
Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Statement of stockholders equity Scott Lockhart...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Closing entries After the accounts have been...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Working capital and current ratio Current assets...Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Classifying accounts Balances for each of the...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Income statement The following account balances...Ch. 4 - Income statement; net loss The following revenue...Ch. 4 - Income statement FedEx Corporation (FDX) had the...Ch. 4 - Statement of stockholders equity Climate Control...Ch. 4 - Statement of stockholders equity; net loss...Ch. 4 - Classifying assets Identify each of the following...Ch. 4 - Balance sheet classification At the balance sheet...Ch. 4 - Balance sheet Dynamic Weight Loss Co. offers...Ch. 4 - Balance sheet The following balance sheet was...Ch. 4 - Identifying accounts to be closed From the list...Ch. 4 - Closing entries with net income Automation...Ch. 4 - Closing entries with net loss Summit Services Co....Ch. 4 - Identifying permanent accounts Which of the...Ch. 4 - Post-closing trial balance An accountant prepared...Ch. 4 - Steps in the accounting cycle Rearrange the...Ch. 4 - Appendix 1 Completing an end-of-period spreadsheet...Ch. 4 - Appendix 1 Adjustment data on an end-of-period...Ch. 4 - Prob. 4.22EXCh. 4 - Appendix 1 Financial statements from an...Ch. 4 - Appendix 1 Adjusting entries from an end-of-period...Ch. 4 - Appendix 1 Closing entries from an end-of-period...Ch. 4 - Appendix 2 Reversing entry The following adjusting...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Financial statements and closing entries 8.Net...Ch. 4 - Financial statements and closing entries Foxy...Ch. 4 - accounts, adjusting entries, financial statements,...Ch. 4 - Net Income: 51,150 Ledger accounts, adjusting...Ch. 4 - Net income: 43,475 Complete accounting cycle For...Ch. 4 - Financial statements and closing entries Last...Ch. 4 - Financial statements and closing entries The...Ch. 4 - Income: 27,350 accounts, adjusting entries,...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Net income: 53,77S Complete accounting cycle For...Ch. 4 - Comprehensive Problem 1 8 Net income. 31,425...Ch. 4 - Working Capital and Current Ratio Analyze and...Ch. 4 - Analyze and compare Zynga, Electronic Arts, and...Ch. 4 - Analyze and compare Foot Locker and The Finish...Ch. 4 - Analyze Under Armour The following year-end data...Ch. 4 - Prob. 4.5MADCh. 4 - Analyze and compare Alphabet (Google) and...Ch. 4 - Prob. 4.1TIFCh. 4 - Prob. 4.3TIFCh. 4 - Financial statements The following is an excerpt...Ch. 4 - Prob. 4.5TIF
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Prepare adjusting journal entries, as needed, considering the account balances excerpted from the unadjusted trial balance and the adjustment data. A. supplies actual count at year end, $6,500 B. remaining unexpired insurance, $6,000 C. remaining unearned service revenue, $1,200 D. salaries owed to employees, $2,400 E. depreciation on property plant and equipment, $18,000arrow_forwardPrepare adjusting journal entries, as needed, considering the account balances excerpted from the unadjusted trial balance and the adjustment data. A. amount due for employee salaries, $4,800 B. actual count of supplies inventory, $ 2,300 C. depreciation on equipment, $3,000arrow_forwardAdjusting Entries The following information is available for Drake Company, which adjusts and closes its accounts every December 31: 1. Salaries accrued but unpaid total 2,840 on December 31. 2. The 247 December utility bill arrived on December 31 and has not been paid or recorded. 3. Buildings with a cost of 78,000, 25-year life, and 9,000 residual value are to be depreciated; equipment with a cost of 44,000, 8-year life, and 2,000 residual value is also to be depreciated. The straight linemethod is to be used. 4. A count of supplies indicates that the Store Supplies account should be reduced by 128 and the Office Supplies account reduced by 397 for supplies used during the year. 5. The company holds a 6,000, 12% (annual rate), 6 month note receivable dated September 30, from a customer. The interest is to be collected on the maturity date. 6. Bad debts expense is estimated to be 1% of annual sales. Sales total 65,000. 7. An analysis of the company insurance policies indicates that the Prepaid Insurance account is to be reduced for 528 of expired insurance. 8. A review of travel expense reports indicates that 310 has been paid for airfare for a salesperson (and recorded as Travel Expenses), but has not yet been used. 9. The income tax rate is 30% on current income and will be paid in the first quarter of next year. The pretax income of the company before adjustments is 18,270. Required: Journalize the necessary year-end adjusting entries for Drake. Show supporting calculations in your journal entry explanations.arrow_forward
- Complete the work sheet for Ramey Company, dated December 31, 20, through the adjusted trial balance using the following adjustment information: a. Expired or used-up insurance, 460. b. Depreciation expense on equipment, 870. (Remember to credit the Accumulated Depreciation account for equipment, not Equipment.) c. Wages accrued or earned since the last payday, 120 (owed and to be paid on the next payday). d. Supplies remaining, 80.arrow_forwardThe following accounts appear in the ledger of Celso and Company as of June 30, the end of this fiscal year. The data needed for the adjustments on June 30 are as follows: ab.Merchandise inventory, June 30, 54,600. c.Insurance expired for the year, 475. d.Depreciation for the year, 4,380. e.Accrued wages on June 30, 1,492. f.Supplies on hand at the end of the year, 100. Required 1. Prepare a work sheet for the fiscal year ended June 30. Ignore this step if using CLGL. 2. Prepare an income statement. 3. Prepare a statement of owners equity. No additional investments were made during the year. 4. Prepare a balance sheet. 5. Journalize the adjusting entries. 6. Journalize the closing entries. 7. Journalize the reversing entry as of July 1, for the wages that were accrued in the June adjusting entry. Check Figure Net income, 14,066arrow_forwardPrepare adjustment entries of followingmCompany A at January 31st. 1. Office supplies having original cost $4,320 were unused till the end of the period. Office supplies having original cost of $22,800 are shown on unadjusted trial balance. 2. Prepaid rent of $36,000 was paid for the months January, February and March. 3. The equipment costing $80,000 has useful life of 5 years and its estimated salvage value is $14,000. Depreciation is provided using the straight line depreciation method. 4. The interest rate on $20,000 note payable is 9%. Accrue the interest for one month. 5. $3,000 worth of service has been provided to the customer who paid advance amount of $4,000.arrow_forward
- ADJUSTMENTS AND WORK SHEET SHOWING NET INCOME The trial balance after one month of operation for Mason's Delivery Services as of september 30,20--, is shown below. Data to complete the adjustments are as follows: (a) Supplies inventory as of september 30 , $90. (b) Insurance expired (used), $650, (c) Depreciation on delivery equipment, $600. (d) Wages earned by employees but not paid as of september 30, $350 Required 1. Enter the adjustments in the Adjustments columns of the work sheet. 2. Complete the work sheet.arrow_forwardInstructions: Prepare an Adjusted Trial balance. Your guide is the new ending balance after adjustments for each account. Additional Information a. Physical count of unused supplies on December 31 were conducted and amounted to P900. b. Equipment is being depreciated over a 10 year period without salvage value. The equipment was purchased two years ago. c. Prepaid rent reflected in the unadjusted trial balance was paid on September 1 to cover six-month period. d. Last two-week salary at P2,750 per week for the month of December will be paid on January 3 of the following year. e. The balance of unearned fees at December 31 should be P5,500. f. Lopez additional fee of P12,250 from his last client was still unrecorded and remained uncollected at year-end.arrow_forwardInstructions: Prepare an Income Statement. Your guide is the new ending balance after adjustments for each account. Additional Information a. Physical count of unused supplies on December 31 were conducted and amounted to P900. b. Equipment is being depreciated over a 10 year period without salvage value. The equipment was purchased two years ago. c. Prepaid rent reflected in the unadjusted trial balance was paid on September 1 to cover six-month period. d. Last two-week salary at P2,750 per week for the month of December will be paid on January 3 of the following year. e. The balance of unearned fees at December 31 should be P5,500. f. Lopez additional fee of P12,250 from his last client was still unrecorded and remained uncollected at year-end.arrow_forward
- Required 1. Prepare and complete a 10-column work sheet for fiscal year 2019, starting with the unadjusted trial balance and including adjustments based on these additional facts. a. The supplies available at the end of fiscal year 2019 had a cost of $7,900. b. The cost of expired insurance for the fiscal year is $10,600. c. Annual depreciation on equipment is $7,000. d. The April utilities expense of $800 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded. e. The company’s employees have earned $2,000 of accrued and unpaid wages at fiscal year-end. f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $3,000. g. Additional property taxes of $550 have been assessed for this fiscal year but have not been paid or recorded in the accounts. h. The $300 accrued interest for April on the long-term notes payable has not yet been paid or recorded. 2. Using information…arrow_forwardvd subject-Accounting EnviroWaste’s year-end is December 31. The information in (a) to (e) is available at year-end for the preparation of adjusting entries: Of the $17,600 balance in Unearned Revenue, $2,600 remains unearned. The annual building depreciation is $13,700. The Spare Parts Inventory account shows an unadjusted balance of $1,020. A physical count reveals a balance on hand of $890. Unbilled and uncollected services provided to customers totalled $13,700. The utility bill for the month of December was received but is unpaid; $1,200. The accrued revenues of $13,700 recorded in (d) were collected on January 4, 2024. The $1,200 utility bill accrued in (e) was paid on January 14, 2024. Required: Prepare the required adjusting entries at December 31, 2023, for (a) to (e) and the subsequent cash entries required for (f) and (g).arrow_forwardAdjusting and Closing Entries and Post-Closing Trial BalanceAccounts of Pioneer Heating Corporation at the end of the first year of operationsshowed the following balances. In addition, prepaid operating expenses are $4,000,and accrued sales commissions payable are $5,900. Investment revenue receivable is$1,000. Depreciation for the year on buildings is $4,500 and on machinery, $5,000.Federal and state income taxes for the year are estimated at $18,100.Debit CreditCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 39,000Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000Buildings . . . . . . . . . . . . . . .…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY