E12-4 Rantzow-Lear Company buys and sells securities expecting to earn profits on short-term difference in price. The company's fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear's trading account occurred during December 2011 and the first week of 2012. 2011 Dec 17 Purchased
At December 31, 2010, the trading securities for Natoli, Inc. are as follows: Security Cost Fair Value A $17,500 $16,000 B 12,500 14,000 C 23,000 19,000 Totals $53,000 $49,000 1). Prepare the adjusting entry at December 31, 2010, to report the sec
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 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
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
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
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 mad
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 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;
Also see attached file for assignment P4-3B - Happy Trails Resort. HAPPY TRAILS RESORT Trial Balance August 31, 2007
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
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
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
There are only 4 broad types of adjusting entries. Adjusting entries serve a generic purpose of matching revenues and expenses to the period incurred. It is to give the users of the accounting statements a clearer picture of the financial condition of the company. At on time, all of these adjusting transactions were don
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
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
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
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
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: 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
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
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
Milner Family Importers sold goods to Tung Decorators for $30,000 on November 1, 2010, accepting Tung's $30,000, 6-month, 6% note. Prepare Milner's November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest.
E7-25 (Bank Reconciliation and Adjusting Entries) Aragon Company has just recieved the August 31, 2010, bank statement, which is summarized below. Country national Bank Disbursements Receipts Balance -Balance, August 1
The ledger of Dugan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared: Debit Credit Prepaid Insurance
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
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
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
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