Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment. The adjustment entry assuming T records the purchase of office supplies initially by debiting asset account.

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Answer 1

Question

Chapter 3, Problem 3.31E

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting asset account.

2.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting the expense account.

3.

To determine

Concept Introduction: Adjusting entries are recorded at the end of the accounting period and record revenues to the period in which they are earned and expenses to the period in which they occur. Adjustment entries also update assets and liabilities. Adjustment entries are also required to present true and fair financial statements.

The comparison of the ending balance of the T-accounts under both approaches: when the asset account is debited and when the expense account is debited initially

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During the year ended 30 September 20X9, H recorded the following cash transactions: (1) A payment of an annual insurance premium of $6,000. This covered the period to 31 December 20X9. (2) Receipt of $3,000 in respect of rent from a tenant covering the three-month period to 30 November 20X9. What is the impact on profit and net assets of making the year-end adjustments for deferred income and prepayments at 30 September 20X9? Profit Net assets A. Decrease of $500 Increase of $500 B. Decrease of $1,000 Increase of $1,000 C. Decrease of $500 Decrease of $500 D. Increase of $1,000 Increase of $1,000

Prepare journal entries to adjust the books of Raymond Corp. at December 31, 2020 based on the following information: " just 2. savir Interest earned during the month on a savings account totaled $300. a. b. Received the utility bill for December of $3,200, which will be paid on January 4th. C. The office supplies account at the beginning of 2020 was $800. During the year, Raymond Corp. made two purchases of office supplies for $3,000 and $4,000. Office supplies on hand at the end of the year totaled $400. Prepare the AJE (adjusting journal entry) to adjust the supplies account. d. On July 1, 2020, Raymond Corp. paid a two-year insurance premium in the amount of $6,000. This amount was debited to insurance expense when the premium was paid. Prepare the end-of-year adjusting entry. e. On October 1, 2020, Raymond Corp. received cash of $7,500 from a customer for work to be performed over the next few months. As of the end of the year, one-third of the work had been completed. Prepare the…

Adjusting Entries: Prepare the correct adjusting entries using the following information.1) The warehouse employees counted the ending inventory on hand at December 31, 2003. Their ending inventory balance is $40,000. (Remember we are using the periodic inventory method.)2) The supplies department counted the supplies on hand. The balance of supplies at December 31 is $600. 3) The note payable is due in 5 years and was initiated on April 1, 2003. The note payable requires annual interest payments of 10% payable on March 31 of each year. (Note: I used 275 days out of 365 to prorate the interest expense on the note payable)4) The company has estimated that bad debt expense is equal to one half of a percent (.005) of net sales (sales less sales discounts and returns) .5) December salaries and wages will be paid on January 5, 2004. December salaries and wages are $5,000. 6) Two of the fixed assets have not been completely depreciated. These two items are a…

Answer 2

Question

Chapter 3, Problem 3.31E

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting asset account.

2.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting the expense account.

3.

To determine

Concept Introduction: Adjusting entries are recorded at the end of the accounting period and record revenues to the period in which they are earned and expenses to the period in which they occur. Adjustment entries also update assets and liabilities. Adjustment entries are also required to present true and fair financial statements.

The comparison of the ending balance of the T-accounts under both approaches: when the asset account is debited and when the expense account is debited initially

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 3, Problem 3.31E

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting asset account.

2.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting the expense account.

3.

To determine

Concept Introduction: Adjusting entries are recorded at the end of the accounting period and record revenues to the period in which they are earned and expenses to the period in which they occur. Adjustment entries also update assets and liabilities. Adjustment entries are also required to present true and fair financial statements.

The comparison of the ending balance of the T-accounts under both approaches: when the asset account is debited and when the expense account is debited initially

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 3, Problem 3.31E

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting asset account.

2.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting the expense account.

3.

To determine

Concept Introduction: Adjusting entries are recorded at the end of the accounting period and record revenues to the period in which they are earned and expenses to the period in which they occur. Adjustment entries also update assets and liabilities. Adjustment entries are also required to present true and fair financial statements.

The comparison of the ending balance of the T-accounts under both approaches: when the asset account is debited and when the expense account is debited initially

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 3.31E

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting asset account.

2.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting the expense account.

3.

To determine

Concept Introduction: Adjusting entries are recorded at the end of the accounting period and record revenues to the period in which they are earned and expenses to the period in which they occur. Adjustment entries also update assets and liabilities. Adjustment entries are also required to present true and fair financial statements.

The comparison of the ending balance of the T-accounts under both approaches: when the asset account is debited and when the expense account is debited initially

Answer 6

Chapter 3, Problem 3.31E

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting asset account.

Answer 7

Chapter 3, Problem 3.31E

1.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting asset account.

Answer 8

2.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting the expense account.

Answer 9

2.

To determine

Concept Introduction: Deferred expenses are advance payments for future expenses. When a business prepays an expense, it can debit an asset account and defer the recognition of the expense. Deferring an expense creates an asset, thus the account is debited to recognize this prepayment.

The adjustment entry assuming T records the purchase of office supplies initially by debiting the expense account.

Answer 10

3.

To determine

Concept Introduction: Adjusting entries are recorded at the end of the accounting period and record revenues to the period in which they are earned and expenses to the period in which they occur. Adjustment entries also update assets and liabilities. Adjustment entries are also required to present true and fair financial statements.

The comparison of the ending balance of the T-accounts under both approaches: when the asset account is debited and when the expense account is debited initially

Answer 11

3.

To determine

Concept Introduction: Adjusting entries are recorded at the end of the accounting period and record revenues to the period in which they are earned and expenses to the period in which they occur. Adjustment entries also update assets and liabilities. Adjustment entries are also required to present true and fair financial statements.

The comparison of the ending balance of the T-accounts under both approaches: when the asset account is debited and when the expense account is debited initially

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 3 - Which of the following is true of accrual basis...Ch. 3 - Get Fit Now gains a client who prepays 540 for a...Ch. 3 - The revenue recognition principle requires a. time...Ch. 3 - Adjusting the accounts is the process of a....Ch. 3 - Which of the following is an example of a deferral...Ch. 3 - Assume that the weekly payroll of In the Woods...Ch. 3 - The adjusted trial balance shows a. amounts that...Ch. 3 - A D Window Cleaning performed 450 of services but...Ch. 3 - A worksheet a. is a journal used to record...Ch. 3 - On February 1, Clovis Wilson Law Firm contracted...

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