Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 3, Problem 10EA
To determine
Prepare the monthly income statement, monthly statement of owner’s equity, and the
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Sheridan Company earned net income of $63,840 during 2020. The company had owner drawings totalling $39,900 during the period.
Prepare the entries to close Income Summary and the Owner's Drawings account. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Account Titles and Explanation
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Beacon Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacon Signals Company prepared the following end-of-period spreadsheet at December 31, 2019, the end of the fiscal year:
Required:
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Prepare a statement of owner’s equity for the year ended December 31. No additional investments were made during the year.
Prepare a balance sheet as of December 31.
Based upon the end-of-period spreadsheet, journalise the closing entries.
Prepare a post-closing trial balance.
Below are four transactions that were completed during 2016 by Timber Lodge. Provide any related journal entries (including both active and passive entries) for the fiscal year ended on December 31.
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B. On December 31, 2016, a tenant renting some storage space from Timber Lodge had not paid the rent of $750 for December.
C. On September 1, 2016, Timber Lodge borrowed $25,000 cash and gave a one-year, 6 percent, note payable. The interest is payable on the note's due date of August 31, 2017.
D. On October 1, 2016, Timber Lodge collected $10,000 from a tenant for two years rent beginning October 1, 2016.
E. On Jan 1, 2016, Timber Lodge had $1000 supplies at hand. It purchased $6000 on Oct 23. On December 31, the annual physical count shows it had $2000 remaining supplies.
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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