Chapter 3 Homework 1

Topics: Balance sheet, Credit / Pages: 77 (3486 words) / Published: Apr 12th, 2015
AssignmentPrint View

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Page1 of26

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i. Oepreciation for 2011is computed to be $1O,OOO. on the company's equipment beforeadjusting
b. The PrepaidInsurance accounthad a $6,000debitbalanceat December31,2011, for the costsof any expiredcoverage.
An analysisof the company'sinsurancepoliciesshowedthat insurance coverageremains.
$720of unexpired
c. The OfficeSuppliesaccounthad a $570debitbalanceon December31,2010; and $2,680of office supplieswere purchasedduringthe year.The December31,2011,physicalcountshowed$673of supplies available. thisperiod. d. One-fifth of the workrelatedto $10,000of cashreceivedin advancewas performed
e. The PrepaidInsurance accounthad a $5,100debitbalanceat December31,2011,beforeadjusting for the costs of any expiredcoverage.An analysisof insurancepoliciesshowedthat $4,380of coveragehadexpired. f. Wageexpensesof $6,000havebeenincurredbutare not paidas of December31,2011.
Prepareadjustingjournalentriesfor the year ended(dateof) December31,2011,for eachof the
Assumethat prepaidexpensesare initiallyrecordedin assetaccounts. aboveseparatesituations. (Omitthe "$"
Alsoassumethatfeescollectedin advanceof workare initiallyrecordedas liabilities. sign in your response.)
Credit

Debit
10,000

GeneralJournal
a.
ry

10,000

depreciation-equipment
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lAccumulated

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b.

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d.

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Explanation:
= ($6,000-$720) = $5,280
b. PrepaidInsurance
c. OfficeSupplies= ($570+ $2,680- $673)= $2,577
= ($10,000 x 'l15)= $2,000
d. FeeRevenue
Notes:
PrepaidInsurance

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02106112

AssienmentPrint View

Beg.Bal.

Page2of26
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6,000
Used

End.Bal.

Beg.Bal.
Purch.
Used
End,Baf,

673

ViewHint#1

Worksheet

Difficulty:
Medium

LearningObjective:03-Pl Prepare andexplainadjusting entries.

award:

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1opoints
a. On April1, the companyretainedan attorneyfor a flatmonthlyfee of $3,000.Thisamountis pJiO monthin whichit was

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