Description
Brief Exercise 3-3
Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
Dec. 31 | |||
Supplies | |||
Supplies Expense | |||
Brief Exercise 3-4
Prepare the adjusting entry for depreciation at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
Dec. 31 | |||
Post the adjustments to T-accounts.
Depreciation Expense | |||
Accumulated Depreciation— Equipment | |||
Indicate the balance sheet presentation of the equipment at December 31.
NYGAARD Company | ||
$ | ||
: | $ |
Brief Exercise 3-5On July 1, 2014, Dobbs Co. pays $14,400 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Dobbs Co., journalize and post the entry on July 1 and the adjusting entry on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
rief Exercise 3-6On July 1, 2014, Dobbs Co. pays $14,400 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. Journalize and post the entry on July 1 and the adjusting entry on December 31 for Kalter Insurance Co. Kalter uses the accounts Unearned Service Revenue and Service Revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Exercise 3-4Hart Corporation encounters the following situations: Identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, or accrued revenue) is needed in each situation, at December 31, 2014.
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Exercise 3-7
Debit | Credit |
Prepaid Insurance | $ 3,600 |
Supplies | 2,800 |
Equipment | 25,000 |
Accumulated Depreciation—Equipment | $ 8,400 |
Notes Payable | 20,000 |
Unearned Rent Revenue | 10,200 |
Rent Revenue | 60,000 |
Interest Expense | 0 |
Salaries and Wages Expense | 14,000 |
An analysis of the accounts shows the following
1. | The equipment depreciates $400 per month. |
2. | One-third of the unearned rent revenue was earned during the quarter. |
3. | Interest of $500 is accrued on the notes payable. |
4. | Supplies on hand total $900. |
5. | Insurance expires at the rate of $200 per month. |
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No. | Date | Account Titles and Explanation | Debit | Credit |
1. | Mar. 31 | |||
2. | Mar. 31 | |||
3. | Mar. 31 | |||
4. | Mar. 31 | |||
5. | Mar. 31 | |||
Exercise 3-12
Supplies Expense | |||
7/31 | 800 | ||
Supplies | |||
7/1 Bal. | 1,100 | 7/31 | 800 |
7/10 | 650 | ||
Accounts Receivable | |||
7/31 | 500 | ||
Salaries and Wages Expense | |||
7/15 | 1,200 | ||
7/31 | 1,200 | ||
Salaries and Wages Payable | |||
7/31 | 1,200 | ||
Unearned Service Revenue | |||
7/31 | 1,150 | 7/1 Bal. | 1,500 |
7/20 | 1,000 | ||
Service Revenue | |||
7/14 | 2,000 | ||
7/31 | 500 | ||
7/31 | 1,150 |
(a) After analyzing the accounts, journalize the July transactions. (Hint: July transactions were for cash.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Date | Account Titles and Explanation | Debit | Credit |
(b) After analyzing the accounts, journalize the adjusting entries that were made on July 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
July 31 | |||
(To record supplies used) | |||
July 31 | |||
(To record accrued revenue) | |||
July 31 | |||
(To record accrued salaries) | |||
July 31 | |||
(To record revenue earned) |