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 3.14E
Prepare an adjusted
The December 31, 2018, unadjusted trial balance for Demon Deacons Corporation is presented below.
| Accounts | Debit | Credit |
| Cash | $10,000 | |
| Accounts Receivable | 15,000 | |
| Prepaid Rent | 7,200 | |
| Supplies | 4,000 | |
| Deferred Revenue | $ 3,000 | |
| Common Stock | 11,000 | |
| 6,000 | ||
| Service Revenue | 51,200 | |
| Salaries Expense | 35,000 | |
| $71,200 | $71,200 |
At year-end, the following additional information is available:
a. The balance of Prepaid Rent, $7,200, represents payment on October 31, 2018, for rent from November 1, 2018, to April 30, 2019.
b. The balance of Deferred Revenue, $3,000, represents payment in advance from a customer. By the end of the year, $750 of the services have been provided.
c. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2019.
d. The balance of Supplies, $4,000, represents the amount of office supplies on hand at the beginning of the war of $1,700 plus an additional $2,300 purchased throughout 2018. By the end of 2018, only $800 of supplies remains.
Required:
1. Update account balances for the year-end information by recording any necessary
2. Prepare an adjusted trial balance as of December 31, 2018.
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On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:
Accounts
Debit
Credit
Cash
$
27,300
Accounts Receivable
15,300
Allowance for Uncollectible Accounts
$
4,200
Supplies
4,200
Notes Receivable (6%, due in 2 years)
21,000
Land
80,600
Accounts Payable
9,100
Common Stock
101,000
Retained Earnings
34,100
Totals
$
148,400
$
148,400
During January 2021, the following transactions occur:
January
2
Provide services to customers for cash, $52,100.
January
6
Provide services to customers on account, $89,400.
January
15
Write off accounts receivable as uncollectible, $3,900.
January
20
Pay cash for salaries, $33,100.
January
22
Receive cash on accounts receivable,…
A company reports net accounts receivable of $251,000 on its December 31, 2019 balance sheet. The Allowance for Bad Debts account has a credit balance of $22,000. What is the balance of Accounts
Receivable?
$273.000
O$251.000
$229,000
$22.000
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0
7
+
CI
On January 1, 2019, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,338. During the first 11 months of the year,
bad debts expense of $21,593 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2019, was
$9,887.
Required:
a. What was the total of accounts written off during the first 11 months? (Hint Make a T-account for the Allowance for Bad Debts
account.)
Bad debts write-Off
b. As the result of a comprehensive analysis, it is determined that the December 31, 2019, balance of the Allowance for Bad Debts
account should be $9,365. Show the adjustment required in the journal entry format. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
Record the entry to adjust the allowance account to the appropriate balance.
Note: Enter debits before credits.
Event
General Journal
Debit
Credit
1
Chapter 3 Solutions
Financial Accounting
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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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