Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 3, Problem 5BP
1.
a.
To determine
Prepare an income statement of S Courier for the year ended December 31.
b.
To determine
Prepare the statement of owner’s equity of S Courier for the year ended December 31.
c.
To determine
Prepare the
2.
To determine
Compute the profit margin for the year.
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Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file Use the following accounts as appropriate:
Cash. Land. Notes Payable. Depreciation Expense. Accounts Receivable. Accumulated Depreciation. Common Stock. Salaries Expense. Supplies. Accounts Payable. Retained Earnings. Supplies Expense. Prepaid Insurance. Deferred Revenue. Dividends. Rent Expense. Equipment. Salaries Payable. Service Revenue. Insurance Expense
1-Dec: Issue common stock in exchange for cash of $6,000.
1-Dec: Paid the premium in advance on a one-year insurance policy, $480.
1-Dec: Purchased Equipment for $3,600 cash.
5-Dec: Purchased office supplies from XYZ Company on account, $400.
15-Dec: Provided services to customers for $5,400 cash.
16-Dec: Provided services to customer ABC Inc. on account, $2,500.
17-Dec: Received $800 cash in advance from a customer for services to be provided in January.
22-Dec: Paid $220 to XYZ company for the Dec 5 purchase on…
For journal entries 1through 12, indicate the explanation that most closely describes it. You can use explanations more than
once.
A. To record receipt of unearned revenue.
B. To record this period's earning of prior unearned revenue.
C. To record payment of an accrued expense.
D. To record receipt of an accrued revenue.
E. To record an accrued expense.
F. To record an accrued revenue.
G. To record this period's use of a prepaid expense.
H. To record payment of a prepaid expense.
1. To record this period's depreciation expense.
Sorensen Company
Lucas Company
Dr.
Cr.
Dr.
Cr.
Cash
$14,000
$12,000
Accounts receivable
17,500
26,000
Allowance for doubtful accounts
$3,000
$4,400
Inventory
26,500
18,400
Equipment
45,000
29,000
Accumulated depreciation-equipment
24,000
11,000
Notes payable
18,000
15,000
22,000
31,000
Accounts payable
Sorensen, capital
36,000
24,000
Lucas, capital
$103,000
$103,000
$85,400
$85,400
Sorensen and Lucas decide to form a partnership, Solu Company, with the following agreed upon valuations for noncash assets.
Sorensen Company
Lucas Company
$17,500
$26,000
Accounts receivable
4,500
4,000
Allowance for doubtful accounts
28,000
20,000
Inventory
25,000
15,000
Equipment
All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships.
Chapter 3 Solutions
Principles of Financial Accounting.
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - What is the difference between the cash basis and...Ch. 3 - Prob. 2DQCh. 3 - What type of business is most likely to select a...Ch. 3 - What is a prepaid expense and where is it reported...Ch. 3 - What type of assets requires adjusting entries to...
Ch. 3 - What contra account is used when recording and...Ch. 3 - Prob. 7DQCh. 3 - If a company initially records prepaid expenses...Ch. 3 - Prob. 9DQCh. 3 - Prob. 10DQCh. 3 - Samsung Assume Samsung has unearned revenue. What...Ch. 3 - Prob. 12DQCh. 3 - Question: QUICK STUDY Periodic reporting C1 Choose...Ch. 3 - Prob. 2QSCh. 3 - Identifying accounting adjustments Classify the...Ch. 3 - Prob. 4QSCh. 3 - Prepaid (deferred) expenses adjustments For each...Ch. 3 - Prob. 6QSCh. 3 - Prob. 7QSCh. 3 - Prob. 8QSCh. 3 - Prob. 9QSCh. 3 - Prob. 10QSCh. 3 - Prob. 11QSCh. 3 - Accrued expenses adjustments For each separate...Ch. 3 - Prob. 13QSCh. 3 - Accrued revenues adjustments For each separate...Ch. 3 - Prob. 15QSCh. 3 - Prob. 16QSCh. 3 - Preparing an adjusted trial balance P5 Following...Ch. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Prob. 21QSCh. 3 - Prob. 22QSCh. 3 - Prob. 1ECh. 3 - Classifying adjusting entries P1 P2 P3 P4 In the...Ch. 3 - Question: Adjusting and paying accrued wages P3...Ch. 3 - Question: Determining cost flows through accounts...Ch. 3 - Prob. 5ECh. 3 - Preparing adjusting entries P1 P2 P3 Prepare...Ch. 3 - Prob. 7ECh. 3 - Analyzing and preparing adjusting entries P5...Ch. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Question: Computing and interpreting profit margin...Ch. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Preparing adjusting entries P1 P2 P3 P4 For each...Ch. 3 - Prob. 1APCh. 3 - Prob. 2APCh. 3 - Prob. 3APCh. 3 - Prob. 4APCh. 3 - Prob. 5APCh. 3 - Prob. 1BPCh. 3 - Prob. 2BPCh. 3 - Prob. 3BPCh. 3 - Prob. 4BPCh. 3 - Prob. 5BPCh. 3 - Question: SERIAL PROBLEM Business Solutions P1 P2...Ch. 3 - Prob. 1AACh. 3 - Prob. 2AACh. 3 - Prob. 3AACh. 3 - Question: TAKING IT TO THE NET A1 Access EDGAR...
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