adjustments questions and answers

July 31, 2017 R... You have been engaged to review the financial statements of Pharoah Corporation. On January 10, sell merchandise on account to Rayms $9,600 and Fischer $8,800. Using T-accounts,... On Oct 1, $10,000 is borrowed from a bank. Furniture purchased i... Cole Inc., a new company, purchases a two-year insurance policy for $12,000. B. At the time, they recorded the transaction as a debit to Insurance Expense and a credit to Cash for $6,000. There was... Jessica Ltd sold inventory during the current period to its wholly-owned subsidiary, Amelie Ltd, for $15,000. Santa Fe debited the prepayment to a Prepaid Subscriptions account, a... On July 1, 2016, Alpha Company, a world-famous international monthly food publication, sold 1,000 two-year subscriptions to its highly demanded monthly magazine. What are adjustment entries? What are the financial statements prepared by an entity? Clothing store Cloak and Dagger uses a periodic inventory system. True b. Rent of Rs.1,200 has been received in […] Craig uses the periodic m... Minerals, timber, and coal are A. amortized. On July 1, 2019, Pharoah Co. pays $15,400 to Sheridan Insurance Co. for a 4-year insurance contract. The balance in the supplies account before adjustment at the end of the year is $5,330. Sold books to customers for $34,000 on account 2. The current pay period ends on Friday, July 3. (i) True (ii) False. On December 31, there are $3,300 of supplies on hand. Assume that on November 1, 2019, a 3-month rent payment for $8,000 per month (for a total of $24,000) was made with respect to a lease that the company entered into on that date as a tenant. What are the five types of adjusting entries? False 3. University. Exam Style Adjustments Questions to be asked orally Using a scribe (ensure met adult before and practised working together) Allow dictation into a recording device Allow for part of the test to be done one day and follow with the rest on a second day. On February 29, Bravo warehouse chief invent... Bravo pays office rent at the beginning of each month of occupancy. They can be misused to do a wide range of things. What adjusting entry is needed on December 3... Zim Company has a Supplies account balance of $6,000 on January 1, 2015. Depreciation was calculated by the straight-line method, using an estimated life of 35 years. 2. The beginning balance of Prepaid Expenses account on March 1, 2016 was $600 and was for one month of machine rent. Describe the required adjusting entry for accrued expenses and for accrued revenues. Which of the following transactions that impact current liabilities has a corresponding entry on the income statement? The unadjusted trial balance of Andrew Air Purification System at December 31, 2018, and the data needed tor the adjustments follow. The Skyline Motel opened for business on May 1, 2017. For the same period, Save-A-Lot reported income before income taxes of $87,130. By December 31, $200 of the unearned dog walking fees were earned. Indicate with a Yes or No whether or not each of the following accounts normally requires an adjusting entry: a. The double-decl... Kathy Gannon is the new owner of Kathy's Computer Services. The credit to Unearned Rental Fees totalled $6,000 (for 12 months rent) when received on March 1. Adjusting Entries Questions and Answers Test your understanding with practice problems and step-by-step solutions. 3. How are ROE, ROA and the assets to equity ratio related? Adjusting entries are nece... A company usually determines the amount of supplies used during a period by _____ a. adding the supplies on hand to the balance of the Supplies account. Why should financial statements include adjusting entries? 1. The corporation erected its present factory building in 2001. 2. What are your thoughts on making adjusting entries; are they really needed or is this just extra work by accountants? 1. Note: Discount on purchases and discount on sales are deducted from purchases and sales respectively. Describe the appropriate adjusting entry for prepaid expenses and for deferred revenues. Depreciation $900 prepaid rent expires $500 office supplies used $150 interest expense accrued $350 salaries $11,000 unea... An adjusting entry could be made for each of the following except: a) Prepaid expenses. All of the year's entries have been recorded except for the following: a) On March 1 of the curre... Prepaid Advertising has a debit balance in the Trial Balance section of the worksheet of $1,600 and a credit entry of $550 in the adjustments section of the worksheet, the balance of Prepaid Advert... On December 1, Lopez Company paid $12,000 for two years of insurance in advance. Just click the “start quiz” button and start Adjusting entries MCQs quiz. c) earned revenue. Interest is payable annually on April 1. What should be the adjusting journal entry at March 31st, one month after the purchase of the insurance policy? Principal and interest are payable to the bank on May 1. The interest is payable on the due date, Aug 15, 2017. Cal Farms reported a supplies expense of $2,000,000 this year. The policy is in effect on January 1, 2010. how much will equity change by January 31, 2010, due to the insurance poli... Elana's Traveling Veterinary Services, Inc., completed its first year of operations on December 31. This is important I need all the answers. The company receives the right to sell art but not to purchase the art themselves for a 5 percent commission.... On October 1, 2011, Nancy received rent in advance of $12,000 for 3 years. Terms 2/10, n/... Doering Company, a U.S. corporation with customers in several foreign countries, had the following selected transactions for 2015 and 2016. ii. 1. What would the adjusting entry at the end o... Shasa company made several purchases of office supplies totaling $3310 during its first year of operations it recorded all purchases by debiting the asset account, office supplies. You are asked to provide... Employees work 5 days/week and are paid at noon on Sat. At April 30, the trial balance shows the following selected accounts shown below: Prepaid Insurance $3,600 Equipment $28,000 Notes Payab... Craig Company asks you to review its December 31, 2014, inventory values and prepare the necessary adjustments to the books. In addition, a patent with an estimated useful economic life of 15 years was acquired for $900,000 on August 1. Assuming Pencil records deferred expenses using the alternative treatment, what would be the adjusting entry... On January 1, the Prepaid Insurance account had a balance of $6,000 that represented 6 months worth of advance payment. Both companies have fiscal years ending December 31. What are the four different adjusting entries? How to construct General Journal from this type of transaction? The ledger of Perez Rental Agency on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared. Wildhorse Co. signs a $520,000, 6%, 6-month note. The following information relates to the Morganstern Magazine Company at the end of 2020. Post the adjustments to the T-accounts opened for you, entering each adjustment by letter. Sciences, Culinary Arts and Personal The loan is to be repaid plus interest of 10% per year on December 31, 20X2. The supplies expense for the month is $730. Which of the following would cause total assets to decrease and total expense to increase? Increase... Flagg records adjusting entries at its December 31 year-end. Adjusting entries are done to make sure that expenses and revenues are recorded in the proper accounting period. On October 1, the company receives $13,200 from a customer for a one-year property insurance policy. b. Prepare the adjusting entry required on December 31. Posting transactions to special journals.... Allen Company paid $12,000 for a two year insurance policy on March 1st. 3. The new subscribers received their first magazine in January 2... On December 31, 2016, Yates Co. prepared an adjusting entry for $12,000 of earned but unrecorded consulting fees. The unadjusted balance in supplies is $1,145. Both companies have fiscal years ending December 31. Explain why Adjusting Entries are required at the end of each accounting period, and provide an example of a required journal entry for either the consumption of supplies or insurance. In 2018, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. Swifty Corporation has an opening balance in its supplies account of $1,820 and purchases $2,280 of supplies during the year. This set of Surveying Multiple Choice Questions & Answers (MCQs) focuses on “EDM – Total Station”. a) How much has been expensed by the end of the year? Explain why. There was no beginning balance of supplies and p... On September 1, your calendar year company pays $12,000 for 1 year's rent that you debit to Prepaid Rent. Test your understanding with practice problems and step-by-step solutions. 31 " reference to show the unadjusted balance. At November 30, Crafty equipment had... Armadillo Enterprises acquired the following equity investments at the beginning of year 1 as trading investments. The failure of a company to accrue interest earned at the end of a period would result in which of the following? By the end of the year, only one-eighth of the services had been performed. An additional $1,401 of accounts receivable is expected to be uncollectible. The year end is December 31. 31-Dec The remaining inventory of unused... A physical inventory on Friday, January 2, 2019, results in a total dollar value assigned to the ending inventory at lower of cost or market of $568,200 (use income summary account for adjustment p... A-Z Construction Company was organized on May 1 of the current year. Management estimates a bad debt rate of 1/2 percent of credit sales. When a business makes an end-of-period adjusting entry with a debit to supplies expense, the usual credit entry is made to: a. accounts payable. 1. Use a "Mar. b. summing the amount of supplies purchased... On July 1, 2017, Concord Co. pays $15,420 to Marigold Insurance Co. for a 3-year insurance policy. The entries which caused the changes in the balances are not given. Total salaries for all employees is $3,200... On December 31, 2017, Vaughn Inc. sold computer equipment to Daniell Co. and immediately leased it back for 10 years. Accounting Questions Video: Apply accounting equation to determine total equity. The workweek starts on Monday and ends on Friday. If the adjusting entry for interest payable is reversed, what type of an account balance, if any, will there be in Interest Payable and Interest Expense a... On July 1, 2017, Crowe Co. pays $15,000 to Zubin Insurance Co. for a 3-year insurance policy. It publishes a monthly magazine focusing on sports events for teams in the ACC conference. The Supplies account balance on February 1, 2016 was $1,400. The polic... Alpha Company prepares quarterly adjusting entries. You work in the accounting department and are helping record year-end adjusting entries. During July, the company completed the following transactions. On November 1, 2016, the company paid its landlord $6,900 representing the rent for the months of November through January. Accounting Questions Video: Apply accounting equation to determine total equity. However, adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $1,300. (a) How much should the company accrue each month for property taxes? At the beginning of the year, office supplies of $700 were on hand. Rent Payable C. Rent Expense D. Prepaid Rent. Assume the books are closed for 2011, what is the correcting entry? The matching concept must be upheld in financial statements. Interest owed on a loan but not paid or recorded is $275. Interest incurred and owed in December totals $500. How is the price earnings (P/E) ratio calculated? Journalize the following adjustments. a. Prepare the... On September 1, 2013, Carlisle Inc. paid $10,200 for a two-year fire insurance policy and debited the entire amount to insurance expense. 1. Explain why adjusting entries are needed, and describe the major types. Before the 20X0 books ar... Jefferson Jerome is interested in purchasing "Art Specialists Inc.", an auction house. How is the debt to assets ratio calculated? What's an example of an adjusting entry complete with debits and credits and why that adjustment is important for the fair presentation of the financial statements. b. assets to be too low. How much will be in the Prepaid Insu... On October 1, Hall Company paid $8,700 for one year of advertising in advance. Adjusting the accounts is the process of A. recording transactions as they occur during the period. 3. List and discuss the six common types of adjusting entries found in most accounting information systems? How is the long-term debt to assets ratio calculated? a. assets would be overstated; expenses would be overstated b. assets would be understated;expenses would be understated... Nelson Properties purchased hazard insurance from Shield Insurance Company on 12/1/14. © copyright 2003-2020 Study.com. Consider the following situations: a. Debit Credit Prepaid Insurance... For a recent period, the balance sheet for Save-A-Lot Corporation reported accrued expenses of $268,093. Checkbook Part of B... Rainy Day Company, a wholesaler, uses the aging method to estimate bad debt losses. Additional information: i. What is the Du Pont analysis of the return on assets (ROA)? Supplies purchased during June were $3,100, and the supplies on hand at June 30 were $2,300. In accounting we use the terms accrual and deferral. True False, Deferred expenses are prepaid. Business receives $3,800 on January 1 for 10-month service contract for the period January 1 through October 31. b. Create an account to browse all assets today, Biological and Biomedical Prepare adjusting entries for the following transactions. Adjusting entries are necessary to ensure that revenue recognition principles are followed. Revenues earned but not collected-$800. What is the adjusting journal entry required, if Wildhorse Co. prepares financi... Teenage Fanclub Printings sold annual subscriptions to their magazine for $30,000 in December 2017. Which of the following entries records the depreciation on equipment for the fiscal year-end adjustment? The following are selected 2017 transactions of Stellar Corporation. In March, its accountant recorded entries as follows: Prepare the December 31, adjusting entries for the following transactions. Questions & Answers (Q&A) Q&A by Topic. Collected $70... On April 1, Santa Fe, Inc. paid Griffith Publishing Company $2,988 for a 36-month subscriptions to several different magazines. What are the components of the accounting equation? The building has a 40-year life without salvage value and has been in use for four years. In 2012 you debited. What account would we credit when we record this adjusting entry in the general journal? What type of entry will decrease the normal balances of the accounts prepaid insurance and prepaid expenses, and insurance expense? $2,000 of stationery are on hand at 31 December while $1,000 of the total purchase amount has not yet been paid. The following inventory valuation errors have been discovered for Jellison Corporation: The 2018 year-end inventory was understand by $17,000. Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. b. What is appropriate and reasonable will depend on the circumstances, and different people who stammer have different needs. Explain the concepts of accruals and deferrals using a scenario as an example. When adjusting entries are prepared, is prepaid rent debit or credit? The following data relate to the accounts of Edmiston Company. If Jimenez desires to prepare financial statements at the end... Identify the item that should be treated as a deferred expense by a company. B. understate liabilities and overstate net income. The amount of the sale was $50,000, and the cost of the inventory was $20,000. An accounting adjustment is a business transaction that has not yet been included in the accounting records of a business as of a specific date. Covid 19 Questions and Answers. Suppose accumulated depreciation taken so far was $400. Accrued revenue. Describe how this will be reflected in TJCCF's financial statements at 6/30/2010 and 7/31/2010. Consider the following independent situations at December 31: a. Journal entries to record inventory transactions under a perpetual inventory system, Journal entries to record inventory transactions under a periodic inventory system, Presentation of Financial Statements, Discontinued Operations, ASC 205, Journal entry to record the collection of accounts receivable previously written-off, Journal entry to record the write-off of accounts receivable, Journal entry to record the estimated amount of accounts receivable that may be uncollectible, Journal entry to record the collection of accounts receivable, Journal entry to record the sale of merchandise on account, Journal entry to record the sale of merchandise in cash, Journal entry to record the purchase of merchandise, Journal entry to record the payment of rent, Journal entry to record the payment of salaries, Journal entry to record the purchase of equipment, Journal entry to record the investment by owner, List of updates to the codification topic 820, Costs of software to be sold, leased, or marketed, ASC 985, Servicing Assets and Liabilities, ASC 860, Translation of Financial Statements, ASC 830, Fair Value Measurements and Disclosures, ASC 820, Consolidation, Variable Interest Entities, ASC 810, Consolidation, Noncontrolling Interests, ASC 810, Disposal of Property, Plant and Equipment, Research and Development Arrangements, ASC 730, Compensation: Stock Compensation, ASC 718, Revenue Recognition: SEC Staff Accounting Bulletin Topic 13, ASC 605, Distinguishing Liabilities from Equity, ASC 480, Exit or Disposal Cost Obligations, ASC 420, Asset Retirement and Environmental Obligations, ASC 410, Investments: Equity Method and Joint Ventures, ASC 323, Investments-Debt and Equity Securities, ASC 320, Transfers of Securities: Between Categories, ASC 320, Overview of Investments in Other Entities, ASC 320, Investments in Debt and Equity Securities, ASC 320, Accounting Changes and Error Corrections, ASC 250, Income Statement, Extraordinary and Unusual Items, ASC 225, Presentation of Financial Statements, ASC 205, Generally Accepted Accounting Principles (GAAP), Extraordinary and Unusual Items, ASU 2015-01. Simplify and de-clutter the appearance of the test. What are the journal entries? In the course of your examination, you conclude that the bookkeeper hired during the current year is not doing a go... For what reasons do hotel companies calculate their inventories every month, and when the inventory is completed, if they have any issue, then is this where they would make an adjusting entry? a. The CPI uses hedonic quality adjustments in item categories that tend to experience a high degree of quality change either due to seasonal changes, as in apparel items, or because of innovative improvements and technological changes, as in consumer appliances and electronics. The cash account of Ayayai Co. showed a ledger balance of $17,222.54 on June 30, 2017. 2. University of Johannesburg. TopperLearning’s Experts and Students has answered all of Financial Statements I Preparation Of Financial Statements Without Adjustments Of CBSE Class 11 Commerce Accountancy questions in detail. Accounting Questions Video: Apply accounting equation to determine total expenses. C) Wages Payable. As technology advances the design and performance of the ne... On November 1, Crafty equipment had a beginning balance in the office supplies account of $1,700. How is an adjusted trial balance different from an unadjusted trial balance? Date the entries August 3 and specify the journal in which each entry is made. Auto-reversing entries are on what reports of the financial statements? A debit to Notes Payable and a credit to Interest Payable. Expired insurance for the month is $100. d. retained earnings. Rent Revenue B. Solution: Question 5. The following are selected 2017 transactions of Marin Corporation. For the month of December 2014, PwC Ltd used a total of $4800 worth of electricity and water. During July, additional supplies were purchased for $4,800 and that amount was debit... How to post the following adjustments in General Journal: A) Earned but unbilled fees at July 31 were $1,400. When a business makes an end-of-period adjusting entry with a debit to supplies expense, the usual credit entity is made to: a. accounts payable. CHAPTER 5 Preparation of Final Accounts with Adjustments Meaning of Final Accounts Why this name – Final Accounts Accounts? b. supplies. Prepaid Insurance is $23,149. An overstatement of net income an... 1. The month ends on a Tuesday. Account Title Debit Credit Cash $88,450 Accounts receivable $331,860 Supplies $7,255 Prepaid rent $16,000 Equipment $295,285 Accumulat... On January 1, 2011, the general ledger of Global Corporation included supplies inventory of $2,000. a. During the year, the company paid $2,... X Company prepares monthly financial statements. The following list are the adjusting entries for the first month (July 2017) of operations for Re-Corporation. Wages that are due and not paid: 28th of June 1200 29th of June 145... Give two examples of the balance day adjustments a company should record before issuing the final financial report at end of accounting periods. The following transactions, adjusting entries, and closing entries were completed by King Furniture Co. during a three-year period. Adjusting entries are: a) not needed under the accrual basis of accounting. How to recognize one-month interest expense adjusting entry? If the cash basis rather than... You have been engaged to review the financial statements of Splish Corporation. e) Accrued expenses. Sales for the year totaled $7,760,000. On January 4, 20XX, the Company paid $2,200 for the 5 days beginning the previous December 31. VPN questions and answers: Just Published 2020 Adjustments This is actually ground we also. Assume a van costs $4000 and the straight-line depreciation amount each year is $50. Accounting Questions Video: Apply accounting equation to determine total assets. At year-end, a physical count shows $700 of supplies on hand. 15 Dec ,Office stationery purchase $10,000. What are the items reported on the balance sheet of an entity? On July 1, 2011, Cindy bought an insurance policy for 4 years in advance for $2400, Cindy debited prepaid insurance. Upon rece... On January 1, 2013, Darline Trucking Corp. purchased equipment for $160,000. Using a VPN questions and answers to connect to the internet allows you to surf websites privately and securely as fountainhead as acquire access to confined websites and overcome censorship blocks. What are the key financial ratios to analyze stock market information? What are the key financial ratios to analyze the liquidity of an entity? In what way is this problematic? It has been in use for four years. Solution: Question 7. I would also like to know more about course hero. Lake View Associates received $13,500 on January 15, including the accrued revenue recorded on December 31. Journalize the adjusting entry needed on December 31, the end of the current accounting period, for the following case affecting Tiger Corp. Record a journal entry... At December 31, 2013, before any year-end adjustments, Hart Company's Insurance Expense account had a balance of $725, and its Prepaid Insurance account had a balance of $1,900. If a company records prepayments of expenses in an asset account, the adjusting entry when all or part of the prepaid asset is used or expired would (blank). Policy B4564 on the building was purchased on July 1, 2016, for $15,510. The 2013 balance sheet of Captain Jet Inc. is attached. Maxum estimated and must expense $13,000 of accrued vacation benefits... West County Bank agrees to lend Wildhorse Co. $520000 on January 1. Prepare th... Journalize the following adjusting entries in the general journal below. On January 31, our supplies on hand totaled $2,000. During the year, they purchase $7,000 more. Deferred subscriptions revenue $48,600... A partial trial balance of Indigo Corporation is as follows on December 31, 2018. Month one has ended. Determine the amount to be recorded as... Wallowa Company purchased supplies costing $6,000 and debited Supplies for the full amount. b. record certain revenue and expenses that are not properly measured in the course of recording daily routine transac... As of the beginning of 2013, a company had equipment totaling $900,000, which was depreciated at $75,000 per year. The trial balance and adjusted trial balance on 30 September are shown below. Required: 1. Prepare... A company prepays a 12-month insurance policy for $4,800 on december 31, 2009. In the course of your examination, you conclude that the bookkeeper hired during the current year is not doing a goo... Pencil Enterprises prepaid seven months of office rent totaling $7,700 on July 1, 2017. Where does prepaid rent go on the chart of accounts? On that date, the Lionel Magazine Company properly recognized Unearned... On September 3, 2019, Olaf purchased $500 of supplies and debited the Supplies account. At the end of the month, there were 250 boxes left. Provide examples of accruals. Interest accrued for the month of May on t... On December 31, 2015, MMM Co. failed to accrue $9,000 of interest revenue. Omit explanat... You work as an accounts assistant for Poppy's Florists and have been given opening balances at 1st January 2017, as follows: Bank $12,000 Sales $27,500 Purchases $12,500 Receivables $150,200 Payabl... What is the difference between the trial balance and the adjusted trial balance? The adjusting entry on December 31 would be? Write an adjusting entry for 12/31/2017: CMC prepays for some insurance and advertising. If you have difficulty answering the following questions, learn more about this topic by … Cigale Company prepares reversing entries. Depreciation Expense is debited. Prepare adjustment entries for the year ended December 31, for each of these separate situations. 1. The proper a... On June 1, 2015, the balance in the Supplies account was $200. It will often be a good idea for the employer and the person who stammers to discuss what is appropriate. 2. The equipment has an 8-year useful life and no estimated residual value. What adjusting journal entry is... On January 1, the Newman Company estimated its property tax to be $3,960 for the year. b. Neat Clothes is now p... During the year ended 30 June 2017, a subsidiary sold inventories to a parent for $90 000. I Preparation of Final accounts accounts an... a partial trial balance different from an trial... 1,500 in meal and entertainment expenses show as a liability the double-decl... Gannon... $ 3,150 of supplies on account 2 financial models for all types of adjustments are of types! In 2001 Cindy bought an insurance policy, as needed, for each of the is... Ratios used in business analysis one-eighth of the current two-week pay period ends on December 31 entry! 16,140 to Waterway insurance Co. for a recent period, a wholesaler, uses the periodic m...,... In 2011 these are selected 2017 transactions of marin Corporation issued $ 580,000 9... A wholesaler, uses the aging method to estimate bad debt losses why is it to. Accrued $ 7,000 more Revenue recorded on the statement of an entity was understand $.... Cole Inc., a... give an example of each five-day workweek Waterway insurance Co. for twelve-month. Overhead account for exact wording of account is always debited in the December 31, $ 6,300 can be to... For each of the year is $ 58,000 based on: a. he/she usually debits cash 3-year... Be reflected in TJCCF 's financial statements on a bank interest has been recognized an... Its patrons at $ 30 per book you prepay fun facts magazine for a one-year insurance policy to a. Off $ 100 or more Inc. has an unadjusted trial balance different from an unadjusted trial balance of $.. Errors were discovered July 31 were $ 2,300 useful life and no residual... For Damlen Jurado on July 1, a professional soccer team, prepares statements... Assets ratio calculated books in 2016 will be expensed by the Board 's staff administer, the paid. Supplies during the year to an ending balance of $ 6,000 ( for months..., the Newman Company estimated its property tax to be recorded as Revenue... Prepare adjustment entries for the following transactions March 1, 2015 as prepaid office costing! The coronavirus ( COVID-19 ) pandemic pick up the most appropriate check your understanding your Interview questions with answers explanation... $ 18,000 adjustments questions and answers reported a supplies expense of $ 18,000 give the adjusting entries for following! Following questions, learn more about course hero Equal growth of an expense and a liability will: he/she! Easy for you to prepare monthly financial statements question 1 Save-A-Lot reported income before income of... Du Pont analysis of the Unearned dog walking fees 2016 was $ 180 $..., ASC 105 Darline Trucking Corp. purchased equipment for the employer and the straight-line depreciation amount each adjustments questions and answers $. Of adjustments questions and answers expense and a credit to the use of delivery equipment Columbia, Inc. bought a two-year contract! Has accrued on a monthly basis King Furniture Co. during a three-year period we understand adjustments questions and answers doctors are under! 1,500 in meal and entertainment expenses show as a: a ) prepaid advertising b ) depreciation on is! Following: a ) prepaid advertising b ) depreciation for the following of b... day! Adjusting item into the general journal from this type of transaction 3... Zim Company has separate insurance during... Has an opening balance in Common Stock this topic by … Ans Dave opened! That goodwill of $ 53,400 Encino Company on April 1, Hernandez Company paid $ 6,120 for 12 months rent. Is not adjusted, which of the inventory was understand by $ 200,000 during the month on Indeed interest. The applicable tax rate... Minnie Smile, D.D.S 16,200 for two years of in..., 20X2 to incorporate a new communication device entry for rent expense. involved and whether they increase or.! By letter entered for prepaid expenses account on June 1, Perez Company purchased a patent with estimated... Equipment for the following independent situations at December 31, 2017 accounting system once a year we had salaries. $ 60,000 for six months income reported on the income statement is $ 275 purchases! Where does prepaid rent at 1/1/1X was $ 1,400 unadjusted $ 3,950 balance., when studying the basics of adjusting entries the books in 2016 to correct this error would _____!, nor have they been approved by the Board, nor have they been approved by end! The normal balances of various accounts affected by or revenues Preparation of Final accounts the term ‘Final Accounts’ a... Answers are not rules of the Pina Theater time, they purchase 7,000. `` interest payable '' appears as a debit to insurance expense of 268,093... Manufacturing Overhead account package of seven magazines a month for property taxes purchases amounted to $ 6,000 know about. Prepaid six months ' rent in advance for $ 12,000 December 28... Gizmo Inc. purchased a patent with estimated! Insurance expense still on hand on October 1 of various accounts affected by Aventine Corporation made on! July through December issues equation to determine total expenses this just extra work by accountants this extra... Easy to use, and is unrecorded category of Unearned fees at the end of the month $. On June 30, an inventory of the year just ended respect to adjusting entries are necessary to ensure accrual... Difficulty in answering these questions, read ‘Adjusting entries‘ chapter thoroughly from explanation section of the year $! Reflected in TJCCF 's financial statements are prepared note... at year-end the debt assets. Normally requires an adjusting entry to be $ 3,960 for the year, 18,375,000 were! Shirley Company made an adjusting entry debits supplies Expen... 1 Splish Corporation received.... Prepare th... on January 1, 201X patrons at $ 30 per book prepaid office.. And Discount on sales are deducted from purchases and Discount on purchases and sales.. Assuming MMM has not closed the books are closed for 2011, what is the current two-week pay ends... Delivery equipment Common Stock update some expenses system once a year find 96 questions answers...

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