Adjustment required on December31:
Dr Salaries Expense 10,000
Cr Salaries Payable 10,000
AdjustingEntries for Estimated Items
Expenses relating to impaired accounts receivable estimated in the period and relating to revenue that has been earned
Investments – Fair Value...
statements of Pea
Corporation and Subsidiary for each of the following items:
1. Goodwill at December31, 2015
2. Noncontrolling interest share for 2015
3. Consolidated retained earnings at December31, 2014
4. Consolidated retained earnings at December31, 2015
5. Consolidated net income for 2015
items, and earnings per share.
e. This is a change in estimate resulting from a change in accounting principle and is accounted for prospectively.
No entry is needed to record the change
Depreciation expense (calculated below) 57,600
purchase of $80,000 of inventory. The maturity value of the note was $81,200, based on the bank’s discount rate of 6%. The adjustingentry prepared on December31, 2014 in connection with this note will include a
a. debit to Note Payable for $800.
b. credit to Note Payable for $800.
c. debit to...
the City of Smithville as of December31, 2010, is shown on the following page. Select the [Journal] tab and create a journal entry to enter the balance sheet accounts and amounts shown in the trial balance (review software operating procedures in Chapter 1 of these instructions if necessary). Be...
by the bank for $155. The June 30 bank reconciliation contained only two reconciling items: deposits in transit $7,000 and outstanding checks of $6,200.
(a) Adjusted balance per books $25,354
Instructions (a) Prepare a bank reconciliation at July 31. (b) Journalize the adjustingentries to be...
the T-accounts. Use the transaction letters to identify each debit and credit entry.
Spin Master Toys showed the following selected transactions for the month ended May 31, 2005:
Preparing General Journal entries
May 1 2 3 4 6 10 15 20 25 313131
Purchased new equipment...
Journalize the above transactions, post them to the general ledger and extract a trial balance as at 31 May 2011.
3. Journalize the transactions of BMX below, post to the general ledger and construct a trial balance as at 31December 2011.
a. On December1 2011, BMX invested...
38.) On July 1, 2010, Crowe Co. pays $15,000 to Zubin insurance for a 3 year insurance contract. Both companies have fiscal years ending December31. For Crowe Co. journalize the adjustingentry on December31: Debit insurance expense $2,500/credit prepaid insurance $2,500.
, the concepts that are needed to understand that information were introduced in Chapter 1.”
DEBBIE BENSON, KENNESAW STATE UNIVERSITY
Typically, we show the statements model immediately after each journal entry. For example, the settlement of a liability for interest would be shown as follows...
Purchases 14,600 17,700
Dec 31 Inventories (closing) 4,500 Dec 31 Balance c/f 13,200 17,700
In a typical question where you would be tested on adjusting and closing entries, the question would give you T-accounts (as above) or a trial balance, and then give you...
unearned at Dec. 31, $1,500.
1. Journalize the adjustingentries. Add additional accounts as needed.
2. Determine the balances of the accounts affected by the adjustingentries and prepare an adjusted trial balance.
Amount of insurance coverage expired
Amount of supplies that have been used
Amount of Revenue that have been earned...
Prepare the necessary journal entries for the following transactions:
(a) On September 1, Cole Company borrowed $150,000 from National Bank on a 6-month, 8% note.
(b) On December31, Cole Company accrued interest (assume adjustingentries are only made at the end of the year).
beginning of the new accounting period. Reversing entries are an optional step in the accounting cycle. The steps that involve journalizing are: (1) journalize the transactions, (2) journalize the adjustingentries, and (3) journalize the closing entries. The three trial balances are the: (1) trial...
Calculation of Interest Expense
For the Year Ended December31, 2013
Capital lease obligation
Jan. 1 – Dec. 31: ($73,667* x 10%)
* The balance at Dec. 31, 2013, would be $73,677. The entries at the
end of 2012 and beginning of 2013 were:
Interest expense (10...
fair value of Aguirre bonds is $372,726 on December31, 2013, prepare the necessary adjustingentry. (Assume the fair value adjustment balance on January 1, 2013, is a debit of $3,375.) (e) Prepare the journal entry to record the sale of the bonds on January 1, 2014.
journal paper is provided for use in journalizing the following entry. Prepare the adjustingentry as of December31 to record the salaries and wages that have accrued but remain unpaid as of the end of the year. When calculating the amount of the accrual for each hourly worker, assume each employee...
8. Closing entries are not needed if the business plans to continue operating in the future and issue financial statements each year.
9. The dividends account is closed to the Income Summary account in order to properly determine net income (or loss) for...
entries can be classified as either prepayments or accruals. Each of these classes has two subcategories.
Study Objective 4 -Prepare AdjustingEntries for Prepayments
Prepayments fall into two categories--prepaid expenses and unearned revenues.
1. Prepaid expenses - expenses paid in cash and...