Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 3, Problem 17RQ
17. Global Printing publishes several types of magazines. Customers are required to pay for magazines in advance. On November 5, Global receives cash of $120,000 for prepaid subscriptions. By the end of November, Global has distributed $20,000 of magazines to customers. Record the month-end
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b. Caden started a new publication called Contest News. Its subscribers pay $36 to receive 12 monthly issues. With every new
subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100
new subscribers as of July 1. It sends Contest News to each of these subscribers every month from July through December.
Assuming no changes in subscribers, prepare the year-end journal entry that Caden must make as of December 31 to adjust
the Subscription Revenue account and the Unearned Subscription Revenue account.
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Unearned subscription
revenue
$
During December 2020, Apartment Publishing sold 3,180 12-month annual magazine subscriptions at a rate of $20 each. The first issues were mailed in February 2021. Prepare the entries on Apartment’s books to record the sale of the subscriptions and the mailing of the first issues. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Make the corresponding journal entries to report short-term liabilities.
Make the journal entries.
Make the adjusting entries for each expense accrued at the end of the year. The cost of the product warranty is $7,000. a. Journalizes the remaining interest on the Home Depot account.
Date
Transaction
2 February
Merchandise was purchased on credit for $310,000 with a term of n/45 at Pueblo Caribe.
4 March
Air Caribe provided a 5% note for $120,000 to Pueblo Caribe with a term of 30 days on credit.
6 May
Air Caribe provided a 5% note for $120,000 to Pueblo Caribe with a term of 30 days on credit.
10 May
Consoles were purchased from Aire al Mayor for $75,000 on a 90-day note with a 4% discount. With payments of 25,000 per month.
12 June
Borrowed (short term note/note payable) 30 days at 3% for $240,000 from Banco del Pueblo.
15 June
The past due amount of the May 10 transaction was paid. A customer purchased…
Chapter 3 Solutions
Financial Accounting
Ch. 3 - Prob. 1RQCh. 3 - 2.Discuss the major principle that describes...Ch. 3 - 3.Samantha is a first-year accounting student. She...Ch. 3 - 4.Describe when revenues and expenses are...Ch. 3 - Rip Side of Question 7 5.Executive Lawn provides...Ch. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Consider the information in Question 7. Using...Ch. 3 - Prob. 9RQCh. 3 - There are two basic types of adjusting...
Ch. 3 - 11.Provide an example of a prepaid expense. The...Ch. 3 - Provide an example of a deferred revenue. The...Ch. 3 - 13.Provide an example of an accrued expense. The...Ch. 3 - Provide an example of an accrued revenue. The...Ch. 3 - Sequoya Printing purchases office supplies for 75...Ch. 3 - Jackson Rental receives its September utility bill...Ch. 3 - 17.Global Printing publishes several types of...Ch. 3 - At the end of May, Robertson Corporation has...Ch. 3 - Fill in the blank associated with each adjusting...Ch. 3 - Prob. 20RQCh. 3 - Prob. 21RQCh. 3 - Prob. 22RQCh. 3 - Prob. 23RQCh. 3 - Prob. 24RQCh. 3 - Describe the debits and credits for the three...Ch. 3 - In its first four years of operations, Chance...Ch. 3 - Prob. 27RQCh. 3 - Prob. 28RQCh. 3 - Determine revenues to be recognized (LO31) Below...Ch. 3 - Prob. 3.2BECh. 3 - Prob. 3.3BECh. 3 - Analyze the impact of transactions on the balance...Ch. 3 - Prob. 3.5BECh. 3 - At the beginning of May, Golden Gopher Company...Ch. 3 - Record the adjusting entry for prepaid rent (LO33)...Ch. 3 - Prob. 3.8BECh. 3 - Prob. 3.9BECh. 3 - Record the adjusting entry for deferred revenue...Ch. 3 - Prob. 3.11BECh. 3 - Midshipmen Company borrows 15,000 from Falcon...Ch. 3 - Prob. 3.13BECh. 3 - For each of the following accounts, indicate...Ch. 3 - Prob. 3.15BECh. 3 - Prob. 3.16BECh. 3 - Prob. 3.17BECh. 3 - The following account balances appear in the 2018...Ch. 3 - Prob. 3.19BECh. 3 - Prob. 3.20BECh. 3 - Consider the following situations: 1.American...Ch. 3 - Consider the following situations: 1.American...Ch. 3 - Refer to the situations discussed in E31....Ch. 3 - Differentiate cash-basis expenses from...Ch. 3 - Prob. 3.5ECh. 3 - Listed below are all the steps in the accounting...Ch. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Prob. 3.10ECh. 3 - Refer to the information in E310. Calculate the...Ch. 3 - Prob. 3.12ECh. 3 - Below are transactions for Hurricane Company...Ch. 3 - Prepare an adjusted trial balance (LO33, 34) The...Ch. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - On January 1, 2018, Red Flash Photography had the...Ch. 3 - Prob. 3.21ECh. 3 - Consider the following transactions. Required: For...Ch. 3 - Prob. 3.2APCh. 3 - Record adjusting entries (LO3-3) The information...Ch. 3 - Crimson Tide Music Academy offers lessons in...Ch. 3 - Prob. 3.5APCh. 3 - The year-end financial statements of Rattlers Tax...Ch. 3 - Complete the accounting cycle after adjusting...Ch. 3 - The general ledger of Red Storm Cleaners at...Ch. 3 - The general ledger of Zips Storage at January 1,...Ch. 3 - Consider the following transactions. Required: For...Ch. 3 - Prob. 3.2BPCh. 3 - Prob. 3.3BPCh. 3 - Prob. 3.4BPCh. 3 - Prob. 3.5BPCh. 3 - FIGHTING ILLINI Income Statement Service revenue...Ch. 3 - Prob. 3.7BPCh. 3 - The general ledger of Pipers Plumbing at January...Ch. 3 - The general ledger of Jackrabbit Rentals at...Ch. 3 - You may refer to the opening story of Tony and...Ch. 3 - Prob. 3.2APFACh. 3 - Prob. 3.3APFACh. 3 - Prob. 3.4APCACh. 3 - Prob. 3.5APECh. 3 - Prob. 3.7APWC
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- Make the corresponding journal entries to report short-term liabilities. Make the journal entries. Make the adjusting entries for each expense accrued at the end of the year. The cost of the product warranty is $7,000. a. Journalizes the remaining interest on the Home Depot account. Date Transaction 2 February Merchandise was purchased on credit for $310,000 with a term of n/45 at Pueblo Caribe. 4 March Air Caribe provided a 5% note for $120,000 to Pueblo Caribe with a term of 30 days on credit. 6 May Pueblo Caribe paid the amount of the March 4 note. 10 May Consoles were purchased from Aire al Mayor for $75,000 on a 90-day note with a 4% discount. With payments of 25,000 per month. 12 June Borrowed (short term note/note payable) 30 days at 3% for $240,000 from Bank City. 15 June The past due amount of the May 10 transaction was paid. A customer purchased $2,000 of merchandise in cash. 18 July The…arrow_forwardon november 1, 2018, Downtown Jewelers accepted a 3-month, 15% note for $6,000 in sttlement of an averdue account receivable. the account period ends on december 31. prepare the journal entry to record the accrued interest at the year end.arrow_forwardSwathmore Clothing Corporaton grants ts customers 30 deys' credit. The compeny uses the allowance method for tos uncollectible accounts receivable. During the year, a monthly bed debt accrual Is made by multiplying 2% times the amount of credt sales for the month. At the fiscal year-end of December 31, an aging of accounts recelveble schedule is prepared and the allowance for uncollectible accounts Is adjusted accordingly. Se & B S At the end of 2017, accounts recelvable were $592,000 and the allowance account had a credit balance of $56,000. Accounts recelvable activity for 2018 was as follows: Beginning balance Credit sales Collections $ 592,000 2,710,000 (2,573,000) (48,000) Write-offs Ending balance $ 681,000 The company's controller prepared the following aging summary of year-end accounts receivable: Summary Percent Uncollectible Age Group 0-60 days 61-90 days 91-120 days Over 120 days Amount $415,000 98,000 58,000 110,000 12 28 39 Total $681,000 Required: - Prepare a summary…arrow_forward
- Uncle Paul's Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on November 1 in the amount of $75700 with annual interest of 12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest? A) Interest Expense 1514 Notes Payable 1514 B) Interest Expense 2271 Interest Payable 2271 C) Interest Expense 1514 Cash 1514 D) Interest Expense 1514 Interest Payable 1514arrow_forward) Included in Gonzalez Company’s December 31 trial balance is a note receivable of $12,000. The note is a 4-month, 10% note dated October 1. Prepare Gonzalez’s December 31 adjusting entry to record $300 of accrued interest, and the February 1 journal entry to record receipt of $12,400 from the borrower.arrow_forwardOn December 1, XYZ Limited introduces a new product that includes a one-year warranty on parts. In November, 1000 units are sold. Management believes that 15% of the units will be defective and that the average warranty costs will be $50 per unit. Prepare the adjusting entry at November 30 to accrue the estimated warranty cost.arrow_forward
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