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The Adjusting Process

Adjusting Journal Entries

P15-1A On May 1, 2010, Newby Corporation issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2010, and pay interest semiannually on May 1 and November 1. Financial statements are prepared annually on December 31. A). Prepare the journal entry to record the issuance of the bonds. B). Prep

P3-9 Nancy Drew Boutique - Adjusting and Closing Journal Entries

P3-9 Adjusting and Closing Presented below is the December 31 trial balance of Nancy Drew Boutique: Nancy Drew Boutique Trial Balance For the Year Ended December 31, 20XX Debit Credit Cash $18,500 Accounts Receivable 42,000 Allowance for Doubtful Accounts $700 Inventory, December 31 80,000

Accounting Cycles: Four types of Adjusting entries

You are an accountant in a medium-sized manufacturing company. You have been asked to mentor an accounting clerk who is new to your accounting department. -Explain why adjusting entries are necessary. -Describe the 4 types of adjusting entries, and provide a manufacturing industry example of each. -Describe how these entrie

Provide the missing adjusting entry for the Allowance for Doubtful Accounts

Adjusting Entries: Allowance for Doubtful Accounts made on 1/1/10 was $70,000. The balance in the allowance account on 12/31/10 after making the annual adjusting entry was $100,000 and during 2010 bad debts written off amounted to $50,000. You are to provide the missing adjusting entry. For each journal entry write Dr for de

adjusting entries for an advertising agency

You are an accountant working for an advertising agency and you are working on the adjusting entries for the year ending December 31st. You notice that the prepaid insurance account is too high, because the policy has now been used up based on time. You paid for another year on January 1st, so the December 31 balance did not req

Prepaid rent at 1/1/10 was $70,000. During 2010 rent payments of $120,000 were made and charged to "rent expense." The 2010 income statement shows as a general expense the item "rent expense" in the amount of $124,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.

Prepaid rent at 1/1/10 was $70,000. During 2010 rent payments of $120,000 were made and charged to "rent expense." The 2010 income statement shows as a general expense the item "rent expense" in the amount of $124,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not mad

Piper Rental Agency: Adjusting Entries

E3-7 The ledger of Piper Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit: Prepaid Insurance $ 3,600 Supplies 2,800 Equipment 25,000 Interest Expense 0 Wages Expense 14,000 Credit: Accumulated Depreciation--Equipment $ 8,400 No

What are the four types of adjusting entries? Why are they used?

What are the four different adjusting entries? What accounting assumptions necessitate the use of adjusting entries? What accounts are subject to adjusting journal entries? What are the advantages and disadvantages of using automated accounting systems to do adjusting entries? What are your thoughts on making adjusting entries;

Types of Adjusting Entries for Manufacturing

If you were an accountant in a manufacturing company, explain why adjusting entries are necessary. - Describe the 4 types of adjusting entries, and provide a manufacturing industry example of each. - Describe how these entries would be recorded in a computerized accounting system. No direct quotes please. Be sure to in

Financial Accounting - Adjusting journal entries

On November 1, 2010 the following were the account balances of Montana Equipment Repair. Debits Credits Cash $2,790 Accumulated Depreciation $500 Accounts Receivable $2,910 Accounts Payable $2,300 Supplies $1,120 Unearned Service Revenue$400

Do you really need adjusting entries?

The recording of prepaid expenses, unearned revenue, accrued revenues, and accrued expenses is very important. There has been some really good explanations provided to justify these actions. Accounts need to be adjusted at period end in order to get a more accurate picture of a company's financial condition. However, how accu

Financial Accounting: adjusting entries; practice exam

1. Adjusting entries. Present, in journal form, the adjustments that would be made on July 31, 2011, the end of the fiscal year, for each of the following. 1.The supplies inventory on August 1, 2010 was $7,350. Supplies costing $20,150 were acquired during the year and charged to the supplies inventory. A count on July 31

The answer to Financial Accounting: adjusting entries

1. A trial balance prepared after the closing entries have been journalized and posted is the: A. Unadjusted trial balance. B. Post-closing trial balance. C. General ledger. D. Adjusted trial balance. E. Work sheet. 2. How would the accounting equation of Austin Company be affec

Financial Accounting: adjusting entries; practice exam

1. If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is: A. Debit Cash and credit Legal Fees Earned. B. Debit Cash and cred

Financial Accounting: adjusting entries; practice exam

Question 1 A company shows a $600 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired insurance of $200. This adjusting entry results in: A. $200 less in net income. B. $200 more in net income. C. $200 difference between

Financial Accounting: Two adjusting entries; practice exam

An NBA basketball team sells season tickets worth $48 million before the basketball season starts late in the year. Assume this $48 million is debited to Cash and credited to Unearned Ticket Revenue. By the end of the calendar year, which also happens to be the end of the team's accounting period, 25% of the games have been play

Adjusting entries for allowance for doubtful accounts

Adjusting Entries: Allowance for doubtful accounts on 1/1/10 was $40,000. The balance in the allowance account on 12/31/10 after making the annual adjusting entry was $60,000 and during 2010 bad debts written off amounted to $30,000. You are to provide the missing adjusting entry. For each journal entry write Dr for debit and Cr

Adjusting Entries for Unearned Revenues

Cash received from subscribers is credited to an account called magazines subscriptions received in advance. On December 31, 20x7, the end of the company's fiscal year, the balance of the account is $750,000. Expiration of subscriptions is as follows: During 20x7 150,000 20x8 375,000 20x9 225000 P

Menachem Inc: Notes Receivable Journal Entries from Begin Corporation

On December 31, 2008, Menachem Inc. rendered services to Begin Corporation at an agreed price of $$91,844.10, accepting $36,000 down and agreeing to accept the balance in four equal installments of $18,000 receivable each December 31. An assumed interest rate of 11% is imputed. Prepare the entries that would be recorded by Me

Jane Alexander Treater: Preparing Adjusting Entries

P3-5 (adjusting Entries) The accounts listed appeared in December 31 trial balance of the Jane Alexander Theater. (a) From the account balances listed above and the information given below, prepare the annual adjusting entries necessary on December 31. (b) What amounts should be shown for each of the following on the inc

Estimating and reporting bad debts

At December 31, 2008, Aaliyah Company records show the following results for the calendar -year: cash sales $ 1,591, 700 credit sales 2,389,000 In addition, its unadjusted trial balance includes the following items: accounts receivable $ 1,630,846 debit allowance for

Smith Rental Agency: Prepare adjusting entries

The ledger of Smith Rental Agency of June 30 of the current year includes the following selected accounts before adjusting entries have been prepared: Debit Credit Prepaid Insurance $3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation - Equipment $8,400 Notes Pa

Tennessee Performing Arts Theatre: Prepare adjusting entries

The account below appear in the December 31 trial balance of the Tennessee Performing Arts Theatre. Debit Credit Equipment $215,000 Accumulated Depreciation - Equipment $60,000 Notes Payable 120,000 Admissions Revenue 380,000 Advertising Expense

Preparing and Adjusting Journal Entries

Please help prepare journal entries/adjusting entries for the following data. Hormel Co. follows the practice of recording prepaid expenses and unearned revenues in balance sheet accounts. The company's annual accounting period ends on December 31, 2009. The following information concerns the adjusting entries to be recorded