Horngren's Accounting (11th Edition)
11th Edition
ISBN: 9780133856781
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem E3.25E
Journalizing
I h unadjusted
FIRST CLASS MAIDS COMPANY
Unadjusted Trial Balance
December 31, 2016
| Balance | ||
| Account Title | Debit | Credit |
| Cash | $ 1.200 | |
| Office Supplies | 3,000 | |
| Prepaid Insurance | 700 | |
| Equipment | 20.000 | |
| S 6.000 | ||
| Accounts Payable | 2,200 | |
| Salaries Payaole | ||
| Unearned Revenue | 600 | |
| Maltos, Capital | 8,100 | |
| Maltos. Withdrawals | 3.000 | |
| Service Revenue | 17.000 | |
| Salar.es Expense | 6,000 | |
During the 12 months ended December 31,2016, First Class Maids:
- used office supplies of $ 1,900.
- used prepaid insurance of $560.
- depreciated equipment, $510.
- accrued salaries expense of $250 that hasn’t been paid yet.
- earned $420 of unearned revenue.
Requirements
- Open a T-account for each account using the unadjusted balances.
- Journalize the adjusting entries using the letter and December 31 date in the date column.
- Post the adjustments to the T-accounts, entering each adjustment by letter. Show each accounts adjusted balance.
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Complete the accounting cycle using the adjusted trial balance below.
JM PHOTOCOPYING CENTER
Adjusted Trial Balance
December 31, 2019
Account Title
Debit
Credit
Cash
P 16.500.00
Accounts Receivable
7.500.00
Allowance for doubtful accounts
P 150.00
Note Receivable
5,527.50
3.000.00
Unused Supplies
Prepaid rent
5.000.00
Photocopying Equipment
30,000.00
450.00
Accumulated Depreciation - Photocopying
Equipment
Furniture and Fixtures
5.000.00
Accumulated Depreciation - Furniture & Fixtures
75.00
Accounts payable
2.500.00
Loan payable
50,000.00
Notes payable
5.000.00
Salaries Payable
816.67
Unearned Photocopying Revenues
1,800.00
Mercado, Capital
10,000.00
Mercado, Drawing
500.00
Photocopying Revenues
24,227.50
Taxes and Licenses Expense
2,000.00
Salaries expense
4.800.00
Supplies expense
7,000.00
Utilities expense
2,500.00
Rent expense
5,000.00
525.00
Depreciation Expense
Bad debts expense
166.67
P 95,019.17 P 95,019.17
Totals
Requirements:
1. Prepare Financial Statements: Profit and loss…
Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts
A review of open invoices of Sketchers Inc. results in the following report.
Invoice
Amount
Date(Each from this year)
#496
$458.48
5-Dec
#495
685.77
2-Dec
#427
274.16
5-Nov
#100
109.06
28-Jun
#300
741.43
3-Oct
#410
670.26
31-Oct
#204
62.69
25-Aug
#498
760.84
28-Dec
#499
276.15
28-Dec
#487
747.28
28-Nov
#310
207.65
8-Oct
#178
643.21
7-Aug
#497
335.03
5-Dec
#488
142.90
29-Nov
#105
18.73
5-Jul
$6,133.64
Required
a. Organize the list of open invoices as of December 31 into a table with the following aging categories across the top: (1) less than 30 days, (2) 31-60 days, (3) 60-90 days, and (4) greater than 90 days.
b. Assume that the company estimates the allowance for doubtful accounts based upon the following percentages applied to the appropriate aging categories: (1) 1% for less than 30 days, (2) 5% for 31-60 days, (3) 30% for 60-90 days, and (4) 60% for greater…
Chapter 3 Solutions
Horngren's Accounting (11th Edition)
Ch. 3 - Prob. 1QCCh. 3 - Get Fit Now gains a client who prepays S540 for a...Ch. 3 - The revenue recognition principle requires...Ch. 3 - Adjusting the accounts is the process of Learning...Ch. 3 - Which of the following is an example of a deferral...Ch. 3 - Assume that the weekly payroll of In the Woods...Ch. 3 - Prob. 7QCCh. 3 - A equity overstated income statement: expense...Ch. 3 - A worksheet Learning Objective 6 is a journal used...Ch. 3 - On February 1, Clovis Wilson Law Firm contracted...
Ch. 3 - What is the difference between cash basis...Ch. 3 - Which method of accounting (cash or accrual basis)...Ch. 3 - Prob. 3RQCh. 3 - What is a fiscal year? Why might companies choose...Ch. 3 - Under the revenue recognition principle, when is...Ch. 3 - Under the matching principle, when are expenses...Ch. 3 - When are adjusting entries completed and what is...Ch. 3 - What are the two basic categories of adjusting...Ch. 3 - What is a deferred expense? Provide an example.Ch. 3 - What is the process of allocating the cost of a...Ch. 3 - What is a contra account?Ch. 3 - Prob. 12RQCh. 3 - What does accumulated depreciation represent?Ch. 3 - Prob. 14RQCh. 3 - What is a deferred revenue? Provide an example.Ch. 3 - What is an accrued expense? Provide an example.Ch. 3 - What is an accrued revenue? Provide an example.Ch. 3 - What are the two rules to remember about adjusting...Ch. 3 - When is an adjusted trial balance prepared, and...Ch. 3 - Prob. 20RQCh. 3 - What is a worksheet, and how is it used to help...Ch. 3 - If a payment of a deferred expense was recorded...Ch. 3 - If a payment of a deferred expense was recorded...Ch. 3 - Prob. S3.1SECh. 3 - Prob. S3.2SECh. 3 - Prob. S3.3SECh. 3 - Prob. S3.4SECh. 3 - S3-5 Identifying types of adjusting entries...Ch. 3 -
S3-6 Journalizing and posting adjusting entries...Ch. 3 - Prob. S3.7SECh. 3 - Prob. S3.8SECh. 3 - Prob. S3.9SECh. 3 - Prob. S3.10SECh. 3 - Prob. S3.11SECh. 3 - Journalizing an adjusting entry for accrued...Ch. 3 - Prob. S3.13SECh. 3 - Determining the effects on financial statements...Ch. 3 - Prob. S3.15SECh. 3 - Prob. S3A.16SECh. 3 - Prob. S3A.17SECh. 3 - E3-18 Comparing cash and accrual basis accounting...Ch. 3 - Comparing cash and accrual basis accounting and...Ch. 3 - Prob. E3.20ECh. 3 - Prob. E3.21ECh. 3 -
E3-22) Journalizing adjusting entries
Consider...Ch. 3 - Prob. E3.23ECh. 3 - Journalizing adjusting entries and posting to...Ch. 3 - Journalizing adjusting entries and posting to...Ch. 3 - Prob. E3.26ECh. 3 - Prob. E3.27ECh. 3 - Journalizing adjusting entries and analyzing their...Ch. 3 - Prob. E3.29ECh. 3 - Prob. E3.30ECh. 3 - Prob. E3A.31ECh. 3 - Prob. E3A.32ECh. 3 - Prob. P3.33APGACh. 3 - Prob. P3.34APGACh. 3 - Prob. P3.35APGACh. 3 - Prob. P3.36APGACh. 3 - Prob. P3.37APGACh. 3 - Prob. P3A.38APGACh. 3 - Prob. P3.39BPGBCh. 3 - Prob. P3.40BPGBCh. 3 - Prob. P3.41BPGBCh. 3 - Prob. P3.42BPGBCh. 3 - Prob. P3.43BPGBCh. 3 - Understanding the alternative treatment of prepaid...Ch. 3 - Prob. P3.45CPCh. 3 - Prob. P3.46PSCh. 3 - One year ago, Tyler Stasney founded Swift...Ch. 3 - Prob. 3.1EICh. 3 - Prob. 3.1FCCh. 3 - Prob. 3.1FSC
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