Financial Accounting
3rd Edition
ISBN: 9780078025549
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 3.6AP
The year-end financial statements of Rattlers Tax Services are provided below.
| RATTLERS TAX SERVICES Income Statement |
||
| Service revenue | $77,500 | |
| Expenses: | ||
| Salaries | $46,000 | |
| Utilities | 8,200 | |
| Insurance | 5,800 | |
| Supplies | 2,100 | 62,100 |
| Net income | $15,400 | |
Required:
1. Record year-end closing entries.
2. Prepare a post-closing
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The adjusted trial balance for the year of Dreamer Corporation at July 31, 2021, follows.
(Click the icon to view the adjusted trial balance.)
Read the requirements
Requirement 1. Prepare Dreamer Corporation's 2021 single-step income statement, statement of retained earnings, and balance sheet.
Begin by preparing Dreamer's 2021 income statement.
Dreamer Corporation
Income Statement
Year Ended July 31, 2021
Income before tax
Data table
Dreamer Corporation
Adjusted Trial Balance
July 31, 2021
Account
Debit
Credit
Cash
$
17,000
Accounts receivable
18,800
Supplies
2,000
Prepaid rent
1,100
Equipment
37,000
Accumulated depreciation-equipment
4,300
Accounts payable
9,400
Interest payable
200
Unearned service revenue
900
Income tax payable
2,000
Note payable
18,000
Common stock
11,000
Retained earnings
4,000
Dividends
7,000
Service revenue
103,500
Depreciation expense-equipment
1,900
Salary expense
40,300
11,200
Interest expense
3,400
Insurance expense
Sunnline axnance
3,700
2.700
Now prepare…
A business like NetSolutions estimates customer refunds and allowances for each year’s sales that might be owed to customers the following year. The year-end balance is recorded on the ___________ as a ______________.
Group of answer choices
Statement of Owner's Equity; decrease in owner's equity
Income Statement; current liability (Customer Refunds Payable)
Balance Sheet; current liability (Customer Refunds Payable)
Statement of Cash Flows; Operating Activity
Selected accounts from Lue Co.'s adjusted trial balance for the year ended December 31 follow. Prepare a
classified balance sheet. Total equity.....
....$30,000 Employee federal income taxes payable
$9000
Equipment...
Salaries payable .....
40,000 Federal unemployment taxes payable ... 200
34,000 FICA–Medicare taxes payable...
5,100 FICA–Social Security taxes payable ..
. 50,000 Employee medical insurance payable ...
. 4,000 State unemployment taxes payable..
10,000 Sales tax payable (due in 2 weeks) .....
. 725
Accounts receivable .
.3,100
Cash...
.2,000
Curent portion of long-term debt.
Notes payable (due in 6 years) ..
1,800
.....
.......
.275
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 - Prob. 19RQCh. 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 - Prob. 3.10BECh. 3 - Prob. 3.11BECh. 3 - Prob. 3.12BECh. 3 - Prob. 3.13BECh. 3 - Prob. 3.14BECh. 3 - Prob. 3.15BECh. 3 - Prob. 3.16BECh. 3 - Prob. 3.17BECh. 3 - Prob. 3.18BECh. 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 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.20ECh. 3 - Consider the following transactions. Required: For...Ch. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Prob. 3.4APCh. 3 - Prob. 3.5APCh. 3 - The year-end financial statements of Rattlers Tax...Ch. 3 - Prob. 3.7APCh. 3 - Prob. 3.8APCh. 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 - Prob. 3.8BPCh. 3 - Prob. 3.1APCPCh. 3 - Prob. 3.2APFACh. 3 - Prob. 3.3APFACh. 3 - Prob. 3.4APCACh. 3 - Prob. 3.5APECh. 3 - Prob. 3.7APWC
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