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ACCT1021 Chapter Notes - Chapter 4: Asset Turnover, Accrual, Deferral

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School
Boston College
Department
Accounting
Course
ACCT1021
Professor
Divya Khaitan

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Document Summary

listing of all the balance sheet and income statement accounts, usually in financial statement order. ending debit or credit balances are listed in two separate columns. total debit account balance should equal total credit account balance. arise when a company receives cash advance from a customer. The amount should be recorded as a liability because the amount has not been earned yet. over time, as the cash advance is earned, revenue should be recognized. On dec 1, 2013, the company received a check for ,000, for two months of service beginning dec 1, 2013 from a new customer. The adjustment on december 31, 2013, to reduce the liability and record the revenue earned would be: arise when revenue has been earned but customer has not paid. On december 31st, a customer informed the company that they will make the payment of. ,000 in january 2014 for services rendered in.

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Related Questions

Good Note Company specializes in the repair of music equipmentand is owned and operated by Robin Stahl. On November 30, 2016, theend of the current year, the accountant for Good Note Companyprepared an unadjusted trial balance and an adjusted trialbalance.

Good Note Company UNADJUSTED TRIAL BALANCE November 30, 2016ACCOUNT TITLE DEBIT CREDIT 1 Cash 38,080.00 2 Accounts Receivable90,280.00 3 Supplies 11,100.00 4 Prepaid Insurance 14,720.00 5Equipment 290,735.00 6 Accumulated Depreciation-Equipment 94,385.007 Automobiles 128,730.00 8 Accumulated Depreciation-Automobiles54,060.00 9 Accounts Payable 25,760.00 10 Salaries Payable 11Unearned Service Fees 17,410.00 12 Robin Stahl, Capital 321,035.0013 Robin Stahl, Drawing 74,980.00 14 Service Fees Earned 739,500.0015 Salaries Expense 518,000.00 16 Rent Expense 54,365.00 17Supplies Expense 18 Depreciation Expense-Equipment 19 DepreciationExpense-Automobiles 20 Utilities Expense 12,615.00 21 Taxes Expense7,790.00 22 Insurance Expense 23 Miscellaneous Expense 10,755.00 24Totals 1,252,150.00 1,252,150.00 Compare the unadjusted trialbalance to the adjusted trial balance. Journalize the seven entriesthat adjusted the accounts at November 30. None of the accountswere affected by more than one adjusting entry. Refer to the Chartof Accounts for exact wording of account titles.

Adjusted Trial Balance Good Note Company ADJUSTED TRIAL BALANCENovember 30, 2016 ACCOUNT TITLE DEBIT CREDIT 1 Cash 38,080.00 2Accounts Receivable 90,280.00 3 Supplies 1,920.00 4 PrepaidInsurance 3,580.00 5 Equipment 290,735.00

Compare the unadjusted trial balance to the adjusted trialbalance. Journalize the seven entries that adjusted the accounts atNovember 30. None of the accounts were affected by more than oneadjusting entry. Refer to the Chart of Accounts for exact wordingof account titles.

Prepare adjusting journal entries and an adjusted trialbalance.

Ad MenAdvertising, Inc.
Trial Balance
November 30, 2012
Account Debit Credit
Cash $ 30,100
Accounts Receivable 22,800
Prepaid Insurance 2,700
Supplies 1,200
Equipment 59,000
Accumulated Depreciation, Equipment $ 50,000
Accounts Payable 3,100
Salaries Payable
Unearned Service Revenue 2,900
Common Stock 25,000
Retained Earnings 25,300
Dividends 1,000
Service Revenue 13,900
Salaries Expense 3,400
Insurance Expense
Depreciation Expense, Equipment
Utilities Expense
Supplies Expense
Total $120,200 $120,200

Insurance coverage still remaining at November 30, $700.

Supplies used during the month, $400.

Depreciation for the month, $3,400.

Accrued utilities expense at November 30, $700. (use AccountsPayable as the liability account needed)

Accrued salaries at November 30, $1,000.

Service revenue still unearned at November 30, $1,300.

Part A

Open T-accounts for the accounts listed in the trial balance andinsert their November 30 unadjusted balances. Journalize theadjusting entries and post them to the T-accounts. Reference theposted amounts by letter, (a) through (f). Calculate the adjustedbalance in each account.

Part B

Prepare the adjusted trial balance at November 30, 2012.

Part C

How will the company use the adjusted trial balance?

I need help with the Post References of the Sales and Cash Journal as well as posting them to the General ledger accounts in the End of Month Posting:

Now that you have finished recording all of the transactions for the month of June, you are ready to perform the end of month posting procedure. The purpose of this end of month posting is to transfer the totals from the special journals to the appropriate general ledger accounts so that the balances in those ledger accounts reflect all of the transactions that occurred throughout the period.

Instructions for end of month posting

1)Total the columns in the special journals. Record the amount in the Total row of each journal.

2)Post the totals of the columns in the special journals to their corresponding ledger account. To confirm that the posting has been performed, a posting reference is recorded in the last row of the special journals. If the total of a column is not required to be posted, you need to record anĀ XĀ in the post reference field for that column.

3)Record the final unadjusted balance of each ledger account in the Unadjusted Balance row of each ledger, even for ledgers with a balance of zero. Although each ledger already has a running balance, the Unadjusted Balance row must still be filled out in order to receive full points.

SALES JOURNAL

Date Account Invoice
No.		 Post
Ref.		 Accounts Receivable Sales Tax Sales Revenue Cost of Goods Sold Ā 
Jun 6 ARC - Great Sports 362 110-3 5,712 272 5,440 2,880 Ā 
Jun 12 ARC - The Locker Room 363 110-6 21,147 1,007 20,140 9,820 Ā 
Jun 17 ARC - Mick's Sporting 364 110-5 20,202 962 19,240 10,560 Ā 
Jun 28 ARC - The Locker Room 365 110-6 1,197 57 1,140 600 Ā 
Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā 
Total ? ? ? ? Ā 
Post Reference (?) (?) (?) (?) / (?) Ā 

CASH PAYMENTS JOURNAL

Date Account Check
No.		 Post
Ref.		 Debit Credit Ā 
Accounts Payable Merchandise Inventory Wages
Expense		 Other Accounts Cash Ā 
Jun 3 Merchandise Inventory 731 X Ā  3,520 Ā  Ā  3,520 Ā 
Jun 4 APC - Sport Borders 732 210-4 9,500 Ā  Ā  Ā  9,500 Ā 
Jun 5 Wages Payable 733 220 Ā  Ā  835 1,000 1,835 Ā 
Jun 6 APC - Addax Sports 734 210-2 5,400 Ā  Ā  Ā  5,400 Ā 
Jun 9 APC - Sports 'R Us 735 210-5 8,700 Ā  Ā  Ā  8,700 Ā 
Jun 12 Electricity Payable 736 221 Ā  Ā  Ā  1,420 1,420 Ā 
Jun 12 Wages Expense 737 X Ā  Ā  2,384 Ā  2,384 Ā 
Jun 15 Prepaid Rent 738 140 Ā  Ā  Ā  2,000 2,000 Ā 
Jun 19 Wages Expense 739 X Ā  Ā  1,695 Ā  1,695 Ā 
Jun 22 APC - Extreme Sports 740 210-3 49,313 Ā  Ā  Ā  49,313 Ā 
Jun 24 APC - J. J. Spud 741 210-1 10,215 Ā  Ā  Ā  10,215 Ā 
Jun 26 Wages Expense 742 X Ā  Ā  2,320 Ā  2,320 Ā 
Jun 30 Merchandise Inventory 743 X Ā  3,200 Ā  Ā  3,200 Ā 
Jun 30 Salary Expense 744 545 Ā  Ā  Ā  5,300 5,300 Ā 
Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā 
Total ? ? ? ? ? Ā 
Post Reference (?) (?) (?) (?) (?) Ā 

GENERAL LEDGER

Account:Ā Cash
Account No. 100

Date Description Ref. Debit Credit Balance Ā 
May 31 Balance Ā  Ā  Ā  65,589 DR Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Unadjusted Balance Ā  Ā 

Account:Ā ARC - Accounts Receivable Control
Account No. 110

Date Description Ref. Debit Credit Balance Ā 
May 31 Balance Ā  Ā  Ā  66,657 DR Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā Ā  Ā Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Unadjusted Balance Ā  Ā 

Account:Ā Merchandise Inventory
Account No. 120

Date Description Ref. Debit Credit Balance Ā 
May 31 Balance Ā  Ā  Ā  66,640 DR Ā 
Jun 21 Purchase return to Extreme Sports Inc GJ Ā  320 66,320 DR Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā Ā  Ā 
Jun 30 Unadjusted Balance Ā  Ā 

Account:Ā APC - Accounts Payable Control
Account No. 210

Date Description Ref. Debit Credit Balance Ā 
May 31 Balance Ā  Ā  Ā  78,148 CR Ā 
Jun 21 Purchase return to Extreme Sports Inc GJ 320 Ā  77,828 CR Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā  Ā  Ā  DRCRĀ Ā  Ā Ā  Ā Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Unadjusted Balance Ā Ā  Ā 

Account:Ā Sales Tax Payable
Account No. 240

Date Description Ref. Debit Credit Balance Ā 
May 31 Balance Ā  Ā  Ā  14,073 CR Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā Ā  Ā 
Jun 30 Ā  Ā  Ā  Ā  Ā Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Unadjusted Balance Ā  Ā 

Account:Ā Sales Revenue
Account No. 400

Date Description Ref. Debit Credit Balance Ā 
May 31 Balance Ā  Ā  Ā  0 Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā Ā  Ā 
Jun 30 Ā  Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā Ā  Ā 
Jun 30 Unadjusted Balance Ā  Ā 

Account:Ā Cost of Goods Sold
Account No. 500

Date Description Ref. Debit Credit Balance Ā 
May 31 Balance Ā  Ā  Ā  0 Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā  Ā  Ā  Ā Ā  Ā 
Jun 30 Unadjusted Balance Ā  Ā 

Account:Ā Wages Expense
Account No. 516

Date Description Ref. Debit Credit Balance Ā 
May 31 Balance Ā  Ā  Ā  0 Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā Ā  Ā 
Jun 30 Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Ā  Ā Ā  Ā Ā  Ā  Ā  Ā  Ā 
Jun 30 Unadjusted Balance Ā Ā  Ā