Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Textbook Question
Chapter 3, Problem 10AP
On March 31, the end of the current fiscal year, the following information is available to assist Zun Cleaning Company’s accountants in making
- a. Zun’s Supplies account shows a beginning balance of $5,962. Purchases during the year were $10,294. The end-of-year inventory reveals supplies on hand of $3,105.
- b. The Prepaid Insurance account shows the following on March 31:
The beginning balance represents the unexpired portion of a one-year policy purchased in January of the previous year. The September 1 entry represents a new oneyear policy, and the January 1 entry represents additional coverage in the form of a three-year policy.
- c. The following table contains the cost and annual depreciation for buildings and equipment, all of which Zun purchased before the current year:
- d. On December 1, the company completed negotiations with a client and accepted an advance of $32,000 for services to be performed monthly for a year. The $32,000 was credited to Unearned Services Revenue. (Round to the nearest dollar.)
- e. The company calculated that, as of March 31, it had earned $9,200 on a $17,000 contract that would be completed and billed in January.
- f. Among the liabilities of the company is a note payable in the amount of $600,000. On March 31, the accrued interest on this note amounted to $17,470.
- g. On Saturday, April 3, the company, which is on a six-day workweek, will pay its regular employees their weekly wages of $22,000. (Round to the nearest dollar.)
- h. On March 31, the company completed negotiations and signed a contract to provide services to a new client at an annual rate of $19,000, beginning April 1.
REQUIRED
- 1. Prepare adjusting entries for each item listed above.
- 2. CONCEPT ▶ Explain how the conditions for revenue recognition are applied to transactions e and h.
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Chapter 3 Solutions
Principles of Accounting
Ch. 3 - Prob. 1DQCh. 3 - Will the carrying value of a long-term asset...Ch. 3 - If, at the end of the accounting period, you were...Ch. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Match the concepts of accrual accounting that...Ch. 3 - The Prepaid Insurance account began the year with...Ch. 3 - The Supplies account began the year with a balance...Ch. 3 - Prob. 4SE
Ch. 3 - Prob. 5SECh. 3 - During the month of August, deposits in the amount...Ch. 3 - Prob. 7SECh. 3 - Malesherbes Companys adjusted trial balance on...Ch. 3 - Prob. 9SECh. 3 - Prob. 10SECh. 3 - Carlos Companys accountant makes the assumptions...Ch. 3 - Four conditions must be met before revenue should...Ch. 3 - Prob. 3EACh. 3 - Prob. 4EACh. 3 - Prob. 5EACh. 3 - Prob. 6EACh. 3 - Prob. 7EACh. 3 - Prob. 8EACh. 3 - Prepare year-end adjusting entries for each of the...Ch. 3 - Prob. 10EACh. 3 - Prob. 11EACh. 3 - Wipro Companys income statement included the...Ch. 3 - At the end of the first three months of operation,...Ch. 3 - On November 30, the end of the current fiscal...Ch. 3 - Kinokawa Consultants Companys trial balance on...Ch. 3 - Hertz Limo Service was organized to provide...Ch. 3 - At the end of its fiscal year, Berwyn Cleaners...Ch. 3 - Brave Advisors Services trial balance on December...Ch. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9APCh. 3 - On March 31, the end of the current fiscal year,...Ch. 3 - Lee Technology Corporations trial balance on...Ch. 3 - Prob. 12APCh. 3 - Prob. 13APCh. 3 - Scoop Consulting Services trial balance on...Ch. 3 - Prob. 15APCh. 3 - Prob. 16APCh. 3 - Never Flake Company provided a rust-prevention...Ch. 3 - Prob. 2CCh. 3 - Prob. 3CCh. 3 - Prob. 4CCh. 3 - Prob. 5CCh. 3 - Prob. 6C
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