Chapter 3: Q. 3-7RQ (page 157)
When are adjusting entries completed, and what is their purpose?
Adjusting entries are recorded at the end of the accounting year. The purpose is to report net income (loss), and assets and liabilities accurately.
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On September 1, Big Fan of Toledo prepaid six months of rent, $3,300. Requirements 1. Record the journal entry for the September 1 payment. 2. Record the adjusting entry required at September 30. 3. Using T-accounts, post the journal entry and adjusting entry to the accounts involved and show their balances at September 30. (Ignore the Cash account.)
Question :Birch Park Senior Center has a weekly payroll of
On November 1, Carlisle Equipment had a beginning balance in the Office Supplies account of
Question :A select list of transactions for Anuradha’s Goals follows:
April 1 Paid six months of rent, \(4,800.
10 Received \)1,200 from customer for six-month service contract that
began April 1.
15 Purchased a computer for \(1,000.
18 Purchased \)300 of office supplies on account.
30 Work performed but not yet billed to customer, \(500.
30 Employees earned \)600 in salaries that will be paid May 2
For each transaction, identify what type of adjusting entry would be needed. Select from the following four types of adjusting entries: deferred expense, deferred revenue, accrued expense, and accrued revenue.
On October 1, Orlando Gold Exchange paid cash of $57,600 for computers that are expected to remain useful for three years. At the end of three years, the value of the computers is expected to be zero. Requirements 1. Calculate the amount of depreciation for the month of October using the straightline depreciation method. 2. Record the adjusting entry for depreciation on October 31. 3. Post the purchase of October 1 and the depreciation on October 31 to T-accounts for the following accounts: Computer Equipment, Accumulated Depreciation— Computer Equipment, and Depreciation Expense—Computer Equipment. Show their balances at October 31. 4. What is the computer equipment’s book value on October 31?
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