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 48BP
Problems (Group B)
Common adjusting
Journalize the
- a. Before making the adjusting entry on December 31, the balance in Prepaid Insurance is $6,000. Canyon Motorsports, Inc., pays liability insurance each year on July 1.
- b. Canyon Motorsports, Inc., pays employees each Friday. The amount of the weekly payroll Is $8,500 for a five-day workweek. December 31, the fiscal year-end, is a Wednesday.
- c. Canyon Motorsports, Inc., received notes receivable from some customers for services provided. For the current year, accrued interest amounts to $875 and will be collected next year.
- d. The beginning balance of Supplies was $1,750. During the year, $3,175 of supplies were purchased. At December 31, the supplies on hand total $1,300.
- e. During the year, Canyon Motorsports, inc., received $15,400 in advance for services to be provided at a later date. As of December 31, Canyon Motorsports, Inc., earned $13,800 of the total fees received in advance during the current year.
- f. Depreciation for the current year includes Vehicles, $2,170, and Equipment, $1,100.
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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
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