33:382:103 Lecture Notes - Lecture 3: Accrual, Debits And Credits, Net Income

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ambermammoth368

26 Sep 2016

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Accounting for entre & sb: lecture #3 (chapter 3 and 4) An adjustment entry was made to show how much money is taken out of prepaid rent to pay the rent for that month. It"s the same for all prepaid items, like ads, insurance, etc. Sometimes you don"t know how much you are paying each period, like when you buy a whole bunch of supplies in advance. At the end of the period, you have to nd out how much supplies" worth in cash got used up, and put that down as your expense. It"s not going to be the same even month. The landlord took the years" worth of rent - ,000 - before he gives the payer service for a year. This also works for magazine subscriptions and such. Money is paid up front before service is given.

Related Questions

Bravo Unlimited
Unadjusted Trial Balance
December 31, 2016
Account Title	Debit	Credit
Cash	$88,450
Accounts Receivable	231,860
Supplies	6,255
Prepaid Rent	12,000
Equipment	395,285
Accumulated Depreciation		$224,260
Accounts Payable		73,555
Wages Payable		0
Capital Stock		220,000
Retained Earnings		111,145
Service Revenue		893,105
Interest Income		1,500
Rent Expense	60,500
Wages Expense	527,260
Supplies Expense	42,520
Utilities Expense	8,595
Depreciation Expense	144,000
Interest Expense	6,840	________
Totals	$1,523,565	$1,523,565

Adjusting Items:

1. A physical inventory shows supplies on hand of $2,500 at year end.

2. The prepaid rent covers December 2016 thru March 2017 rents.

3. December depreciation on equipment is $11,500 per month.

4. At year end Wages of $12,000 were earned but unpaid.

Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment. If no entry is required then write "No Entry Required."

General Journal

	Date	Accounts	Debit	Credit
1.	12/31/16


2.	12/31/16


3.	12/31/16


4.	12/31/16

beigeeagle976

Question 1

The following is the Bravo Unlimited unadjusted Trial Balance.

Bravo Unlimited
Unadjusted Trial Balance
December 31, 2016
Account Title	Debit	Credit
Cash	$88,450
Accounts Receivable	231,860
Supplies	6,255
Prepaid Rent	12,000
Equipment	395,285
Accumulated Depreciation		$224,260
Accounts Payable		73,555
Wages Payable		0
Capital Stock		220,000
Retained Earnings		111,145
Service Revenue		893,105
Interest Income		1,500
Rent Expense	60,500
Wages Expense	527,260
Supplies Expense	42,520
Utilities Expense	8,595
Depreciation Expense	144,000
Interest Expense	6,840	________
Totals	$1,523,565	$1,523,565

Adjusting Items:

1. A physical inventory shows supplies on hand of $2,500 at year end.

2. The prepaid rent covers December 2016 thru March 2017 rents.

3. December depreciation on equipment is $11,500 per month.

4. At year end Wages of $12,000 were earned but unpaid.

Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment. If no entry is required then write "No Entry Required."

skyelephant463

PART ONE: The accounts in the ledger of Hickory FurnitureCompany as of December 31, 2016, are listed in alphabetical orderas follows. All accounts have normal balances. The balance of thecash account has been intentionally omitted. I AMMISSING CASH (DEBIT) and Debit TOTAL---only

Accounts Payable $ 42,880

Notes Payable $ 41,000

Accounts Receivable 115,430

Prepaid Insurance 20,400

Cash ?

Rent Expense 45,000

Common Stock 15,000

Retained Earnings 51,000

Dividends 22,500

Supplies 4,940

Fees Earned 746,050

Supplies Expense 6,070

Insurance Expense 3,100

Unearned Rent 13,200

Land 41,000

Utilities Expense 26,840

Miscellaneous Expense 9,900

Wages Expense 572,100

Prepare an unadjusted trial balance and insert the missingfigure for cash.

Hickory FurnitureCompany

UNADJUSTED TRIAL BALANCE

Score: 68/75

December 31,2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable	â
3	Supplies
4	Prepaid insurance	â
5	Land	â
6	Accounts Payable		â
7	Unearned Rent		â
8	Notes Payable		â
9	Common Stock		â
10	Retained Earnings		â
11	Dividends	â
12	Fees Earned		â
13	Wages Expense	â
14	Rent Expense	â
15	Utilities Expense	â
16	Supplies Expense	â
17	Insurance Expense	â
18	Miscellaneous Expense	â
19	Totals		â

PART TWO:

On July 24, it was discovered that the following errors tookplace in journalizing and posting transactions:

a.	Cash of $8,100 received on accountwas recorded as a debit to Fees Earned and a credit to Cash.
b.	A $1,560 purchase of supplies forcash was recorded as a debit to Supplies Expense and a credit toAccounts Payable.

Journalize the entries on July 24 to correct the errors. Use twotransactions to correct the error described in b. (That is, recordan entry to reverse the incorrect entry and a second entry torecord the correct entry.) Refer to the Chart of Accounts for exactwording of account titles.

JOURNAL

	DESCRIPTION	DEBIT
1		XXXX
2
3
4
5	XXXX	XXX
6	XXXX
7	XXXX

CHARTOF ACCOUNTS

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Rent
15	Land
16	Office Equipment
17	Automobiles

	LIABILITIES
21	Accounts Payable
22	Salaries Payable
23	Notes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Advertising Expense
52	Automobile Expense
53	Insurance Expense
54	Rent Expense
55	Salaries Expense
56	Supplies Expense
57	Utilities Expense
58	Miscellaneous Expense

orangedolphin170

33:382:103 Lecture Notes - Lecture 3: Accrual, Debits And Credits, Net Income

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