Chapter 3 Homework 1
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.
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.)
f*?52 f ;
= ($6,000-$720) = $5,280
c. OfficeSupplies= ($570+ $2,680- $673)= $2,577
= ($10,000 x 'l15)= $2,000
LearningObjective:03-Pl Prepare andexplainadjusting entries.
a. On April1, the companyretainedan attorneyfor a flatmonthlyfee of $3,000.Thisamountis pJiO monthin whichit was