Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Chapter 2, Problem 2.3DMP
Communication Case 2–3
• LO2–4
“I don’t understand,” complained Chris, who responded to your bulletin board posting for tutoring in introductory accounting. The complaint was in response to your statements that recording adjusting entries is a critical step in the accounting processing cycle, and the two major classifications of adjusting entries are prepayments and accruals.
Required:
Respond to Chris.
1. When do prepayments occur? Accruals?
2. Describe the appropriate adjusting entry for prepaid expenses and for deferred revenues. What is the effect on net income, assets, liabilities, and shareholders’ equity of not recording a required adjusting entry for prepayments?
3. Describe the required adjusting entry for accrued liabilities and for accrued receivables. What is the effect on net income, assets, liabilities, and shareholders’ equity of not recording a required adjusting entry for accruals?
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Chegg Home Expert Q&A
Chapter Summary Assignment #3 (Ch 5 & 6) D2L quiz questions will be asked in
class based on your completion of this preparation guide. Example in class question: What is
the debit account in Question 2? You will not have time to complete this guide in class! You
are required to handwrite your answers to this assignment.
My answers
Part 1: Prepare Bluth Co.'s journal entries for each of the following transactions. Assume that
a perpetual inventory method is used.
Recording Purchases of Merchandise
1. Bluth Co. purchases $75,000 of inventory on account, terms 2/10 net
30 from Sitwell Enterprise.
2. Bluth Co. returns $5,000 of inventory to Sitwell Enterprise from the
initial purchase.
3
3. Bluth Co. pays the balance owed to Sitwell Enterprise, taking the
discount.
Recording Sales of Merchandise (new scenario)
4. Bluth Co. sells merchandise on account for $29,000 (terms 3/10 net
30) to Franklin Inc. The merchandise had cost Bluth Co. $15,500.
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Question Completion Status:
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Question 20
Analyzing the transactions using the accounting equation is the second step in processing transactions.
True
O False
A Moving to another question will save this response.
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PARRISH Pg 140Please calculate the following amounts from an adjusted Trial Balance and tell me the Net Income or Net Loss.
***Please do not put the answers in an Excel spreadsheet with the total's showing incorrect formulas instead of the totals. I don't know if it is a copy and paste issue, however everytime an answer like that is given I have to reask the question because the Excel Sheet did not paste correctly. If this happens again I will have to report this answer to Bartleby as not being properly answered and request an additional questions. ***DEBITSCASH $14,500ACCOUNTS RECEIVABLE 7,000LAND 67,000BUILDING 72,000OFFICE EQUIPMENT 24,000DIVIDENDS…
Chapter 2 Solutions
Intermediate Accounting, 10 Ed
Ch. 2 - Explain the difference between external events and...Ch. 2 - Each economic event or transaction will have a...Ch. 2 - What is the purpose of a journal? What is the...Ch. 2 - Explain the difference between permanent accounts...Ch. 2 - Describe how debits and credits affect assets,...Ch. 2 - Describe how debits and credits affect temporary...Ch. 2 - What is the first step in the accounting...Ch. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 2.10Q
Ch. 2 - What is an unadjusted trial balance? An adjusted...Ch. 2 - Define adjusting entries and discuss their...Ch. 2 - Define closing entries and their purpose.Ch. 2 - Define prepaid expenses and provide at least two...Ch. 2 - Deferred revenues represent liabilities recorded...Ch. 2 - Define accrued liabilities. What adjusting journal...Ch. 2 - Prob. 2.17QCh. 2 - [Based on Appendix A] What is the purpose of a...Ch. 2 - [Based on Appendix B] Define reversing entries and...Ch. 2 - [Based on Appendix C] What is the purpose of...Ch. 2 - Prob. 2.21QCh. 2 - Transaction analysis LO21 The Marchetti Soup...Ch. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Prob. 2.3BECh. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; income determination LO24,...Ch. 2 - Prob. 2.12BECh. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Prob. 2.7ECh. 2 - Prob. 2.8ECh. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.24ECh. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Prob. 2.8PCh. 2 - Prob. 2.12PCh. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Prob. 2.1DA
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