Principles of Financial Accounting.
22nd Edition
ISBN: 9780077632892
Author: John J. Wild
Publisher: McGraw Hill
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Chapter 3, Problem 8E
Analyzing and preparing
Following are two income statements for Alexis Co. for the year ended December 31. The left number column is prepared before adjusting entries are recorded, and the right column is prepared after adjusting entries. Analyze the statements and prepare the seven adjusting entries a through g that likely were recorded. Hint: The entry for a refers to fees that have been earned but not yet billed. None of the entries involve cash.
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Adjusting Entries for Unearned and Accrued Fees
The balance in the unearned fees account, before adjustment at the end of the year, is $119,790. Of these fees, $74,270 have been earned. In addition, $14,370 of fees have been earned but have not been billed.
a. Journalize the adjusting entry to adjust the unearned fees account. If an amount box does not require an entry, leave it blank.
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b. Journalize the adjusting entry to record the accrued fees. If an amount box does not require an entry, leave it blank.
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Adjusting Entries for Unearned and Accrued Fees
The balance in the unearned fees account, before adjustment at the end of the year, is $123,110. Of these fees, $76,330 have been earned. In addition, $14,770 of fees have been earned but have not been billed
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b. Journalize the adjusting entry to record the accrued fees. If an amount box does not require an entry, leave it blank.
Adjustment for Accrued Revenues
At the end of the current year, $15,070 of fees have been earned but have not been
billed to clients.
Journalize the adjusting entry to record the accrued fees. If an amount box does not
require an entry, leave it blank.
Accounts Receivable v
88
Fees Earned
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At the end of an accounting period, there may be revenue that has been
eamed but has not been recorded. In such cases, the revenue is increased.
What account is used when you are receiving cash later?
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. 8DQCh. 3 - If a company initially records prepaid expenses...Ch. 3 - Prob. 10DQCh. 3 - Prob. 11DQCh. 3 - Samsung Assume Samsung has unearned revenue. What...Ch. 3 - Prob. 12DQCh. 3 - Prob. 1QSCh. 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 - Prob. 17QSCh. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Prob. 1ECh. 3 - Classifying adjusting entries P1 P2 P3 P4 In the...Ch. 3 - Prob. 3ECh. 3 - Question: Determining cost flows through accounts...Ch. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Analyzing and preparing adjusting entries P5...Ch. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Prob. 11ECh. 3 - Prob. 12ECh. 3 - Prob. 1APCh. 3 - Prob. 2APCh. 3 - Prob. 3APCh. 3 - Prob. 4APCh. 3 - Prob. 5APCh. 3 - Prob. 6APCh. 3 - Prob. 1BPCh. 3 - Prob. 2BPCh. 3 - Prob. 3BPCh. 3 - Prob. 4BPCh. 3 - Prob. 5BPCh. 3 - Prob. 6BPCh. 3 - Prob. 3SPCh. 3 - Prob. 1BTNCh. 3 - Prob. 2BTNCh. 3 - Prob. 5BTNCh. 3 - Prob. 7BTNCh. 3 - Prob. 9BTN
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