ACC 110 Chapter 3: A Critical Approach 3e _ Chapter 3 Answers

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erinmosquito696

14 Apr 2011

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E3 1: adjusting entry b, no entry or adjusting (allowed by ifrs, adjusting entry, no entry f, adjusting entry h. i. j, no entry transactional entry transactional entry transactional entry. 850,000: the primary purposes of closing entries are to reset the balances in the temporary (income statement) accounts to zero and to transfer the amounts in those accounts to retained earnings. 900 a b c d e f g h i j. Professional fees b c d e f g h i j. E3 13: equipment was purchased for . 1 million, with ,000 paid in cash and the remainder on credit. b. Cash is to be received in a later period: land was sold for cash and an amount that is to be paid in the future. ,000 of services provided at the time of payment: supplies that were used during the period were expensed. The spreadsheet for this exercise is shown twice.

Related Questions

Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Inc.) on January 1, 2014. The annual reporting period ends December 31. The trial balance on January 1, 2015, appears below (amounts are rounded to thousands of dollars to simplify).

Account Titles	Debit		Credit
Cash	$	5
Accounts Receivable		4
Supplies		1
Equipment		6
Accumulated Depreciation			$	0
Software		12
Accumulated Amortization				5
Accounts Payable				7
Notes Payable (long-term)				0
Salaries and Wages Payable				0
Interest Payable				0
Income Tax Payable				0
Unearned Revenue				0
Common Stock				12
Retained Earnings				4
Service Revenue				0
Supplies Expense		0
Depreciation Expense		0
Salaries and Wages Expense		0
Amortization Expense		0
Interest Expense		0
Income Tax Expense		0

Totals	$	28	$	28

Transactions during 2015 (summarized in thousands of dollars) follow:
1.	Borrowed $26 cash on July 1, 2015, signing a six-month note payable.
2.	Purchased equipment for $23 cash on July 1, 2015.
3.	Issued additional shares of common stock for $6.
4.	Earned revenues for 2015 in the amount of $68, including $7 on credit and $61 received in cash.
5.	Recognized salaries and wages expenses for 2015 of $40, paid in cash.
6.	Purchased additional equipment, $2 cash.
7.	Collected accounts receivable, $9.
8.	Paid accounts payable, $12.
9.	Purchased on account supplies for future use, $8.
10.	Received a $5 cash deposit on work to start January 15, 2016.

Data for adjusting journal entries:

11.	Amortization for 2015, $5.
12.	Supplies of $6 were counted on December 31, 2015.
13.	Depreciation for 2015, $3.
14.	Accrued interest on notes payable of $1.
15.	Wages earned since the December 24 payroll not yet paid, $4.
.	16.Income tax for 2015 was $2 and will be paid in 2016. Q1 Record journal entries for transactions (1) through (10) Q2Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions 1-10, adjusting entries 11-16, and closing entry Q3Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance Q4Record the adjusting journal entries (11) through (16) Q5Post the adjusting entries from requirement 4 and prepare an adjusted trial balance Q6Prepare an income statement. and Prepare statement of retained earnings and Prepare balance sheet Q7Prepare the closing journal entry. Q8Post the closing entry from requirement 7 and prepare a post-closing trial balance

bronzewater-buffalo862

On December 31, 2016, Ditka Inc. had Retained Earnings of $281,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $182,100 and interest revenue of $88,300. The company used supplies in the amount of $94,900, advertising expenses were $17,800, salaries and wages totaled $20,400, and income tax expense was calculated as $16,500. During the year, the company declared and paid dividends of $7,400. Required: a. Prepare the closing entries dated December 31, 2016. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

brownmole788

The general ledger of the Karlin Company, aconsulting company, at January 1, 2013, contained the following account balances:

Account Title	Debits	Credits
Cash	30,000
Accounts receivable	15,000
Equipment	20,000
Accumulated depreciation		6,000
Salaries payable		9,000
Common stock		40,500
Retained earnings		9,500

Total	65,000	65,000

The following is a summary of the transactions for theyear:

a.	Sales of services, $100,000, of which $30,000was on credit.
b.	Collected on accounts receivable, $27,300.
c.	Issued shares of common stock in exchange for$10,000 in cash.
d.	Paid salaries, $50,000 (of which $9,000 wasfor salaries payable).
e.	Paid miscellaneous expenses, $24,000.
f.	Purchased equipment for $15,000 in cash.
g.	Paid $2,500 in cash dividends to shareholders.

1.	Accrued salaries at year-end amounted to$1,000.
2.	Depreciation for the year on the equipment is$2,000.

Required:

1.	Prepare a general journal entry for each ofthe summary transactions listed above.

2.	Prepare the adjusting journal entries.

	3.	Prepare the closing entries.

4.	Post the opening balances, transactions,adjusting and closing entries into the appropriatet-accounts.

5.	Prepare an unadjusted trial balance.

6.	Prepare an adjusted trial balance.

7.	Prepare an income statement for 2013.

Prepare a balance sheet as of December 31,2013.

Prepare a post-closing trial balance.

ACC 110 Chapter 3: A Critical Approach 3e _ Chapter 3 Answers

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