Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Chapter 3, Problem 1COP
Journalizing, Posting, Adjusting, Preparing, and Closing Financial Statements
Brava Landscaping, Inc., completed the following transactions during its first month of operations for January 2018:
- a. Gabrielle Brava invested $8,500 cash and a truck valued at $16,000 to start Brava Landscaping, Inc.; the business issued common stock in exchange for these assets.
- b. Purchased $450 of supplies on account.
- c. Paid $1,800 for a six-month insurance policy.
- d. Performed landscape services for a customer and received $925 cash.
- e. Completed a $5,300 landscaping job on account.
- f. Paid employee salary, $820.
- g. Received $1,560 cash for performing landscaping services.
- h. Collected $1,350 in advance for landscaping service to be performed later.
- i. Collected $2,800 cash from a customer on account.
- j. Purchased fuel for the truck, paying $110 with a company credit card; credit Accounts Payable.
- k. Performed landscaping services on account. $2,130.
- l. Paid the current month's office rent. $1,150.
- m. Paid $400 on account.
- n. Paid cash dividends of $1,000.
Requirements
- 1. Record each transaction in the general journal. Use the letter corresponding to each transaction as the transaction date. Explanations are not required.
- 2. Post the transactions you recorded in Requirement 1 in the following T-accounts.
| Cash | Salaries Payable | Service Revenue |
| Unearned Service Revenue | Salaries Expense | |
| Supplies | Common Stock | Depreciation Expense, Truck |
| Prepaid Insurance | Insurance Expense | |
| Truck | Dividends | Fuel Expense |
| Accumulated Depreciation, Truck | Rent Expense | |
| Accounts Payable | Supplies Expense |
- 3. Prepare an unadjusted
trial balance as of January 31, 2018. - 4. Journalize and post the
adjusting journal entries on January 31, 2018, based on the following information:- a. Accrued salaries expense. $470.
- b. Depreciation expense, $330.
- c. Record the expiration of one month’s insurance.
- d. Supplies on hand, $85.
- e. Earned two-thirds of the Unearned Service Revenue during January.
- 5. Prepare an adjusted trial balance as of January 31, 2018. Use the adjusted trial balance to prepare Brava Landscaping’s income statement and statement of retained earnings for the month ending January 31, 2018, and a
balance sheet at January 31, 2018. On the income statement, list expenses in decreasing order by amount—that is the largest expense first and the smallest expense last. - 6. Journalize and
post the closing entries. - 7. Prepare a post-closing trial balance at January 31, 2018.
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Journal entries
a. $30,000 cash was borrowed on a five-year 10% note payable, dated 5/1/2021.
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c. Earned $118,000 in service revenues for 2020. $53,000 on account and the remainder in cash.
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Chapter 3 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 3 - If XYZ Consulting performs a consulting service,...Ch. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - What kind of account is accumulated depreciation?...Ch. 3 - Prob. 10DQ
Ch. 3 - Prob. 1SCCh. 3 - Adjusting the accounts is the process of a....Ch. 3 - Which of the following terms describes the types...Ch. 3 - Assume the weekly payroll of ASR, Inc., is 4,500....Ch. 3 - Prob. 5SCCh. 3 - Prob. 6SCCh. 3 - Prob. 7SCCh. 3 - What do closing entries accomplish? a. Bring the...Ch. 3 - Prob. 9SCCh. 3 - Which correctly represents the flow of information...Ch. 3 - Prob. 11SCCh. 3 - Prob. 12SCCh. 3 - Prob. 1SECh. 3 - Prob. 2SECh. 3 - Prob. 3SECh. 3 - Adjusting journal entryprepaid rent (Learning...Ch. 3 - Prob. 5SECh. 3 - Prob. 6SECh. 3 - Prob. 7SECh. 3 - Adjusting journal entrysalaries, accrued revenue,...Ch. 3 - Prob. 9SECh. 3 - Closing entries (Learning Objective 4) 5-10 min....Ch. 3 - Prob. 11SECh. 3 - Prob. 12SECh. 3 - Preparing a post-closing trial balance (Learning...Ch. 3 - Exercises (Group A) E3-14A. Adjusting journal...Ch. 3 - Adjusting journal entry-prepaid insurance...Ch. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 17AECh. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 19AECh. 3 - Prob. 20AECh. 3 - Prob. 21AECh. 3 - Prob. 22AECh. 3 - Preparing a financial statement (Learning...Ch. 3 - Prob. 24AECh. 3 - Prob. 25AECh. 3 - Prob. 26AECh. 3 - Prob. 27AECh. 3 - Prob. 28BECh. 3 - Prob. 29BECh. 3 - Prob. 30BECh. 3 - Analyzing errors (Learning Objective 2) 10-15 min....Ch. 3 - Common adjusting journal entries (Learning...Ch. 3 - Prob. 33BECh. 3 - Prob. 34BECh. 3 - Prob. 35BECh. 3 - Prob. 36BECh. 3 - Prob. 37BECh. 3 - Prob. 38BECh. 3 - Prob. 39BECh. 3 - Prob. 40BECh. 3 - Preparing closing entries (Learning Objective 4)...Ch. 3 - Problems (Group A) Common adjusting journal...Ch. 3 - Prob. 43APCh. 3 - Prob. 44APCh. 3 - Prob. 45APCh. 3 - Prob. 46APCh. 3 - Prob. 47APCh. 3 - Problems (Group B) Common adjusting journal...Ch. 3 - Re-creating adjusting journal entries from a trial...Ch. 3 - Preparing adjusting journal entries and an...Ch. 3 - Effects of adjusting journal entries on income...Ch. 3 - Preparing financial statements (Learning Objective...Ch. 3 - Preparing closing entries and a post-closing trial...Ch. 3 - This exercise continues the accounting process for...Ch. 3 - This problem continues the accounting process for...Ch. 3 - Prob. 1CFSAPCh. 3 - Prob. 1EIACh. 3 - Case 2. Brent Robertson and his banker were...Ch. 3 - Prob. 1FACh. 3 - Prob. 1IACh. 3 - Prob. 1SBACh. 3 - Written Communication You have received a letter...Ch. 3 - Journalizing, Posting, Adjusting, Preparing, and...
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