Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem S3.1SE
Comparing cash and accrual basis accounting for expenses
| Learning Objective 1 |
The Pink Peonies Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $3,000 for 10 months of advertising.
How much advertising expense should Pink Peonies Law Firm record for the twos months ending February 28 under the
- cash basis?
- accrual basis?
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Learning Objective 2
S9-3 Applying the direct write-off method to account for uncollectibles
S
Shawna Valley is an attorney in Los Angeles. Valley uses the direct write-off methoin
account for uncollectible receivables.
At April 30, 2018, Valley's accounts receivable totaled $19,000. During May, she eama
revenue of $22,000 on account and collected $15,000 on account. She also wrote off
uncollectible receivables of $1,100 on May 31, 2018.
Requirements
1. Use the direct write-off method to journalize Valley's write-off of the uncollecihe
receivables.
2. What is Valley's balance of Accounts Receivable at May 31, 2018?
EVALUATION (100%)
Make a video of yourself while answering /discussing in detail the following question. Upload this video
clip to a designated folder in Google classroom:
Lesson 6:
On July 1, 2021, Emilia Clarke opened a small paint shop called "Emilia Clarke Paint Shop." The
following were the transactions during the month:
Date
Transactions
1
3
Invested P100,000 cash in the business
Obtained a P30, 000 loan from a bank.
Purchased equipment for P20,000 cash.
5
7
10
Purchased goods for P20,000 cash. (Use perpetual inventory system)
Sold goods for P10,000 cash. The cost of the goods sold was of P7,000.
Withdrew cash P5,000
15
25
Paid utilities expense amounting to P3,000
Paid P5,000 salaries.
31
Requirements:
a.
Record the transactions in the journal.
b.
Post the transaction in the ledger.
c. Prepare the unadjusted trial balance on July 31, 2021
MANAGEMENT DEPARTMENT, FACULTY
PROBLEM
On January 1 of the current year, Juan David opened the “ J.D Men's Wear Shop", and
during the month, the following transactions were completed:
Jan.
1
Juan David invested cash P 80,000 in the business.
He bought two sewing machines amounting P 30,000 each from Patio
Merchandising, the he gave P15,000 down and the balance is payable within 60 days.
Paid a three month rental of the shop, P30,000. This was charged to
1
1
prepaid Rent account.
1
Paid a one year insurance policy, P 5,700.
Bought sewing tools P 5,900 and sewing supplies P 2,700 from Jomar
Trading on credit.
Received P 1,200 from customer for a short delivered.
Billed to Maricris Acosta, P 5,000 for two-pair of pants and polo barong
7
delivered.
10
Purchased clothing materials from Baclaran Market and paid P 15,000
cash.
13
Received P 12,500 from various customers for pants and barong made
and delivered.
14
Gave Patio Merchandising P 15,000 and issued a 60-day, 6% note for the
balance.…
Chapter 3 Solutions
Horngren's Accounting (12th Edition)
Ch. 3 - Prob. 1QCCh. 3 - Get Fit Now gains a client who prepays S540 for a...Ch. 3 - The revenue recognition principle requires...Ch. 3 - Adjusting the accounts is the process of Learning...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 - Prob. 7QCCh. 3 - A equity overstated income statement: expense...Ch. 3 - A worksheet Learning Objective 6 is a journal used...Ch. 3 - On February 1, Clovis Wilson Law Firm contracted...
Ch. 3 - What is the difference between cash basis...Ch. 3 - Which method of accounting (cash or accrual basis)...Ch. 3 - Prob. 3RQCh. 3 - What is a fiscal year? Why might companies choose...Ch. 3 - Under the revenue recognition principle, when is...Ch. 3 - Under the matching principle, when are expenses...Ch. 3 - When are adjusting entries completed and what is...Ch. 3 - What are the two basic categories of adjusting...Ch. 3 - What is a deferred expense? Provide an example.Ch. 3 - What is the process of allocating the cost of a...Ch. 3 - What is a contra account?Ch. 3 - Prob. 12RQCh. 3 - What does accumulated depreciation represent?Ch. 3 - Prob. 14RQCh. 3 - What is a deferred revenue? Provide an example.Ch. 3 - What is an accrued expense? Provide an example.Ch. 3 - What is an accrued revenue? Provide an example.Ch. 3 - What are the two rules to remember about adjusting...Ch. 3 - When is an adjusted trial balance prepared, and...Ch. 3 - Prob. 20RQCh. 3 - What is a worksheet, and how is it used to help...Ch. 3 - If a payment of a deferred expense was recorded...Ch. 3 - If a payment of a deferred expense was recorded...Ch. 3 - Comparing cash and accrual basis accounting for...Ch. 3 - Comparing cash and accrual basis accounting for...Ch. 3 - Applying the revenue recognition principle...Ch. 3 - S3-4 Applying the matching principle Learning...Ch. 3 - S3-5 Identifying types of adjusting entries...Ch. 3 - Journalizing and posting adjusting entries for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Journalizing and posting an adjusting entry for...Ch. 3 - Prob. S3.11SECh. 3 - Journalizing an adjusting entry for accrued...Ch. 3 - Preparing an adjusted trial balance Learning...Ch. 3 - Determining the effects on financial statements...Ch. 3 - Preparing a partial worksheet Learning Objective 6...Ch. 3 - Prob. S3A.16SECh. 3 - Prob. S3A.17SECh. 3 - E3-18 Comparing cash and accrual basis accounting...Ch. 3 - Comparing cash and accrual basis accounting and...Ch. 3 - Determining the amount of prepaid expenses...Ch. 3 - E3-21 Journalizing adjusting entries Learning...Ch. 3 - E3-22 Journalizing adjusting entries Learning...Ch. 3 - Journalizing adjusting entries Learning Objective...Ch. 3 - Journalizing adjusting entries and posting to...Ch. 3 - Journalizing adjusting entries and posting to...Ch. 3 - Preparing an adjusted trial balance Learning...Ch. 3 - Identifying the impact of adjusting entries on the...Ch. 3 - Journalizing adjusting entries and analyzing their...Ch. 3 - Using the worksheet to record the adjusting...Ch. 3 - Using the worksheet to prepare the adjusted trial...Ch. 3 - Understanding the alternative treatment of prepaid...Ch. 3 - Understanding the alternative treatment of...Ch. 3 - Journalizing adjusting entries and subsequent...Ch. 3 - Journalizing adjusting entries and identifying the...Ch. 3 - Journalizing and posting adjustments to the...Ch. 3 - Journalizing and posting adjustments to the...Ch. 3 - Using the worksheet to record the adjusting...Ch. 3 - Prob. P3A.38APGACh. 3 - Prob. P3.39BPGBCh. 3 - P3-40B Journalizing adjusting entries and...Ch. 3 - P3-41B Journalizing and posting adjustments to the...Ch. 3 - Prob. P3.42BPGBCh. 3 - Prob. P3.43BPGBCh. 3 - Prob. P3A.44BPGBCh. 3 - Using Excel to journalize and post adjusting...Ch. 3 - Prob. P3.46CPCh. 3 - Prob. P3.47PSCh. 3 - Tying It All Together Case 3-1
Before you begin...Ch. 3 - One year ago, Tyler Stasney founded Swift...Ch. 3 - Prob. 3.1EICh. 3 - Prob. 3.1FCCh. 3 - Prob. 3.1FSC
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