Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Chapter 2, Problem 2.8P
• LO2–5
Excalibur Corporation sells video games for personal computers. The unadjusted
| Account Title | Debits | Credits |
| Cash | 23,300 | |
| Accounts receivable | 32,500 | |
| Supplies | –0– | |
| Prepaid rent | –0– | |
| Inventory | 65,000 | |
| Office equipment | 75,000 | |
| 10,000 | ||
| Accounts payable | 26,100 | |
| Salaries and wages payable | 3,000 | |
| Note payable | 30,000 | |
| Common stock | 80,000 | |
| 16,050 | ||
| Sales revenue | 180,000 | |
| Cost of goods sold | 95,000 | |
| Interest expense | –0– | |
| Salaries and wages expense | 32,350 | |
| Rent expense | 14,000 | |
| Supplies expense | 2,000 | |
| Utility expense | 6,000 | |
| Totals | 345,150 | 345,150 |
Information necessary to prepare the year-end adjusting entries appears below.
1. The office equipment was purchased in 2016 and is being depreciated using the straight-line method over an eight-year useful life with no salvage value.
2. Accrued salaries and wages at year-end should be $4,500.
3. The company borrowed $30,000 on September 1, 2018. The principal is due to be repaid in 10 years. Interest is payable twice a year on each August 31 and February 28 at an annual rate of 10%.
4. The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $500.
5. Prepaid rent at year-end should be $1,000.
Required:
Prepare the necessary December 31, 2018, adjusting entries.
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Homework
Question 10 of 11
Account Titles and Explanation
Pharoah Company buys merchandise on account from Shamrock Company. The selling price of the goods is $1,385 and the cost of the
goods sold is $650. Both companies use perpetual inventory systems.
Journalize the transactions on the books of both companies. (If no entry is required, select "No Entry" for the account titles and enter O for
the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Pharoah
Shamrock
(To record sale of merchandise)
-/1
Debit
=
Credit
:
!
Required information
Problem 6-3B Record transactions and prepare a partial income statement using a perpetual inventory
system (LO6-2, 6-5)
[The following information applies to the questions displayed below.]
At the beginning of June, Circuit Country has a balance in inventory of $2,450. The following transactions occur during the
month of June.
2 Purchase radios on account from Radio World for $2,150, terms 2/15, n/45.
4 Pay cash for freight charges related to the June 2 purchase from Radio World, $290.
8 Return defective radios to Radio World and receive credit, $300.
June
June
June
June 10 Pay Radio World in full.
June 11 Sell radios to customers on account, $3,900, that had a cost of $2,650.
June 18 Receive payment on account from customers, $2,900.
June 20 Purchase radios on account from Sound Unlimited for $3,250, terms 2/10, n/30.
June 23 Sell radios to customers for cash, $4,750, that had a cost of $3,050.
June 26 Return damaged radios to Sound Unlimited and receive credit…
8:36 1
2. The estimated cost of the inventory sold
this year and expected to be returned by
customers next year is $5,900.
Open T accounts and enter the balances for the
above accounts. Make appropriate adjustments
to the T accounts.
Answer |
E 14-11A Journalize Adjusting Entry for
Inventory Shrinkage: Perpetual
Inventory System
(LO5) On December 31, Anup Enterprises
completed a physical count of its inventory.
Although the merchandise inventory account
shows a balance of $350,000, the physical
count comes to $325,000. Prepare the
appropriate adjusting entry under the perpetual
inventory system.
Series A Problems
P 14-12A Preparation of Adjustments on
a Spreadsheet for a Merchandising
Business: Periodic Method
(LO1/2/3/4) The trial balance for the Venice
Beach Kite Shop, a business owned by Molly
Young is shown belowon page 552. Year-end
adjustment information is as follows:
(a, A physical count shows that merchandise
b)
inventory costing $85,000 is on hand as of
December 31, 20--.
(c,…
Chapter 2 Solutions
Intermediate Accounting
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 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Income determination LO24 If none of the...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Closing entries LO27 The year-end adjusted trial...Ch. 2 - Prob. 2.13BECh. 2 - Transaction analysis LO21 The following...Ch. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Journal entries LO22 The following transactions...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Transaction analysis; debits and credits LO22...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; solving for unknowns LO24,...Ch. 2 - Adjusting entries LO25 The Mazzanti Wholesale...Ch. 2 - Financial statements and closing entries LO26,...Ch. 2 - Closing entries LO27 American Chip Corporations...Ch. 2 - Prob. 2.14ECh. 2 - Cash versus accrual accounting; adjusting entries ...Ch. 2 - External transactions and adjusting entries LO22,...Ch. 2 - Accrual accounting income determination LO24,...Ch. 2 - Cash versus accrual accounting LO28 Stanley and...Ch. 2 - Prob. 2.19ECh. 2 - Worksheet Appendix 2A The December 31, 2018,...Ch. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.25ECh. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Adjusting entries LO25 Pastina Company sells...Ch. 2 - Accounting cycle; adjusting entries through...Ch. 2 - Adjusting entries LO25 Howarth Companys fiscal...Ch. 2 - Accounting cycle LO22 through LO27 The general...Ch. 2 - Adjusting entries and income effects LO22, LO25...Ch. 2 - Adjusting entries LO25 Excalibur Corporation...Ch. 2 - Accounting cycle; unadjusted trial balance through...Ch. 2 - Prob. 2.10PCh. 2 - Prob. 2.11PCh. 2 - Cash versus accrual accounting LO28 Zambrano...Ch. 2 - Worksheet Appendix 2A Using the information from...Ch. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Prob. 2.2BYPCh. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Continuing Cases Target Case LO24, LO28 Target...
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