Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 1CP
This problem continues the accounting process for Fitness Equipment Doctor, Inc., from the Continuing Problem in Chapter 2. The
| Fitness Equipment Doctor, Inc. Trial Balance April 30, 2018 |
|||
| ACCOUNT | DEBIT | CREDIT | |
| Cash | $23,485 | ||
| 5,600 | |||
| Supplies | 1,350 | ||
| Land | 16,000 | ||
| Furniture | 2,100 | ||
| Equipment | 3,600 | ||
| Vehicles | 35,800 | ||
| Accounts Payable | $ 2,850 | ||
| Notes Payable | 35,800 | ||
| Common Stock | 45,000 | ||
| Dividends | 3,800 | ||
| Service Revenue | 13,300 | ||
| Salaries Expense | 2,645 | ||
| Rent Expense | 1,500 | ||
| Advertising Expense | 500 | ||
| Utilities Expense | 495 | ||
| Miscellaneous Expense | 75 | ||
| Total | $96,950 | $96,950 | |
| May 1 | Paid four months’ rent, $6,400. |
| 4 | Performed service for a customer and received cash, $2,500 |
| 9 | Received $3,600 from customers for services to be performed later. |
| 12 | Purchased $650 of supplies on account. |
| 15 | Billed customers for services performed, $3,400. |
| 16 | Paid receptionist’s salary, $675. |
| 22 | Received $3,800 on account. |
| 25 | Paid $2,500 on account. |
| 28 | Received $1,600 cash for services performed. |
| 30 | Paid $2,000 of dividends. |
Requirements
- 1. Journalize the transactions that occurred in May. No explanations are necessary.
- 2. Using the four-column accounts from the continuing problem in Chapter 2, post the transactions to the ledger, creating new ledger accounts as necessary Omit posting references. Calculate the new account balances at May 31.
- 3. Prepare the unadjusted trial balance for Fitness Equipment Doctor, Inc., at May 31.
- 4. Journalize and post the
adjusting entries for May based on the following adjustment information.- a. Record the expired rent.
- b. Supplies on hand, $450.
- c. Depreciation: equipment. $450; furniture, $115; vehicles $1,200.
- d. Services performed but unbilled, $2,800.
- e. Accrued salaries, $675.
- f. Unearned service revenue earned as of May 31, $700.
- 5. Prepare an adjusted trial balance for Fitness Equipment Doctor, Inc., at the end of May.
- 6. Prepare the income statement and statement of
retained earnings for the three-month period March 1 through May 31, 2018. Also prepare abalance sheet at May 31, 2018. - 7. Prepare and
post closing entries. - 8. Prepare a post-closing trial balance at May 31, 2018.
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II. The following information is obtained from a review of the record keeping process. Analyze the given
information and prepare a modified trial balance. Show your solutions. (**
Ricanor Accounting Services
Trial Balance
Dec. 31, 2021
Debit
Credit
Cash
P189,000
284,600
66,400
40.000
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Supplies
Prepaid Insurance
Office Equipment
Notes Payable
Accounts Payable
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Ricanor. Withdrawals
Service Income
Salaries Expense
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526,800
P130,000
195,400
297,200
100,000
821,400
348,700
12.200
P1.467.700
Totals
P1.544.000
a. An account receivable for P 24,300 was incorrectly added as P 23,400 when computing the
balance of the Accounts Receivable account.
b. A debit posting from the journal for P5,200 is missing from the Salaries Expense account.
C.A debit posting of P15.000 to Notes Payable should have been made to Accounts Payable.
d. A debit posting of P25,000 to Supplies was incorrectly posted as P2,500.
C
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Journalizing transactions and posting to T-accounts
Roland Poster Optical Dispensary completed the following transactions during the latter part of March:
Requirements
Journalize the transactions of Roland Foster Optical Dispensary. Include an explanation with each journal entry.
Open the following accounts (use T-account format): Cash (Beginning Balance of $21,000), Office Supplies, and Accounts Payable. Post the journal entries from Requirement 1 to the accounts, and compute the balance in each account.
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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