CASE STUDY #2 – DARDEN RESTAURANTS‚ INC. – TRANSACTIONS AND ADJUSTMENTS Concepts a. To prepare accrual-based financial statements‚ a company must adjust its accounts. This is accomplished with periodic adjustments (also known as adjusting journal entries or accounting adjustments). For each account below‚ explain the types of transactions or events that necessitate periodic adjustments to the account for the typical company. i. “Inventories‚ net.” – If a company purchases products to be resold
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journal entries to the ledger accounts. The fourth step of the accounting cycle is preparing an unadjusted trial balance. A company will normally prepare a trial balance at the end of the accounting period. This trial balance list all of the accounts in the order in which they appear on the ledger‚ the debt balances are listed in the left column and the credit balances are listed in the right column. The fifth step of the accounting cycle is adjusting entries. By conducting adjusting entries it makes
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CHAPTER 2 The Recording Process ASSIGNMENT CLASSIFICATION TABLE Study Objectives 1. Explain what an account is and how it helps in the recording process. Define debits and credits and explain their use in recording business transactions. Identify the basic steps in the recording process. Explain what a journal is and how it helps in the recording process. Explain what a ledger is and how it helps in the recording process. Explain what posting is and how it helps in the recording process. Prepare
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Assignment Print View http://ezto.mhecloud.mcgraw-hill.com/hm.tpx?todo=printview Score: 100 out of 100 points (100%) 1. award: 5 out of 5.00 points On November 1‚ Bahama Cruise Lines borrows $3 million and issues a six month‚ 6% note payable. Interest is payable at maturity. Record the issuance of the note and the appropriate adjustment for interest expense at December 31‚ the end of the reporting period. (Enter your answers in dollars not in millions. Do not round intermediate
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closing entries are journalized and posted‚ which of the following accounts would NOT have a balance? a. Cash b. Office Equipment c. Notes Payable d. Delivery Fees ANS: D DIF: Easy OBJ: LO 6-2 MSC: AACSB Communication 9. A form of balance sheet that lists the liabilities and the owner’s equity sections below the assets section is called the a. account form. b. journal form. c. report form. d. current form. ANS: C DIF: Easy OBJ: LO 6-1 MSC: AACSB Communication 10. After the closing entries have
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300 Answer: Bad debt expense ($4‚300) = 5% of accounts of accounts receivable (5% $110‚000) - allowance for doubtful accounts credit balance ($1‚200). 3) Which of the following journal entries correctly records bad debt expense? A. Option A B. Option B C. Option C D. Option D Answer: The journal entry to record bad debt expense involves a debit to bad debt expense and a credit to allowance for doubtful accounts 4) A company had the following partial list of account balances at year-end:
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Activity #1 (2 or more errors will result in 3 points) Identify whether each item would appear on the balance sheet (BS) or the income statement (IS) Cash Equipment Rent Expense Insurance Expense Accounts Receivable Supplies Expense Unearned Revenue Supplies Sales Revenue Retained Earnings Identify each item as an “Asset”‚ “Liability” or “Equity”
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adjusting entries‚ preparing an adjusted trial balance‚ preparing the financial statements‚ recording and posting closing entries‚ preparing a post-closing trial balance‚ and perhaps recording reversing entries” (p. 1). The accounting cycle is made op of eight basic steps witch include The basic steps in the accounting cycle are (1) identifying and measuring transactions and other events; (2) journalizing; (3) posting; (4) preparing an unadjusted trial balance; (5) making adjusting entries; (6) preparing
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HW 8 – 1 ACCOUNTS RECEIVABLE JOURNAL ENTRIES Prepare journal entries to record the following transactions: (1) On December 15‚ 2008‚ the company recorded $150‚000 sales on credit. (2) On December 31‚ 2008‚ the company estimated bad debt expenses of $15‚000. (3) On January 12‚ 2009‚ collect $100‚000 worth of accounts receivable. (4) After many collection attempts‚ the Company determined on June 15‚ 2009 that it would not collect $10‚000 in accounts receivables from Pendant Publishing
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displayed below.] Tyrell Co. entered into the following transactions involving short-term liabilities in 2012 and 2013. 2012 Apr. 20 Purchased $36‚500 of merchandise on credit from Locust‚ terms are 1/10‚ n/30. Tyrell uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Locust with a 90-day‚ $35‚000 note bearing 7% annual interest along with paying $1‚500 in cash. July 8 Borrowed $60‚000 cash from National Bank by signing a 120-day‚ 11% interest-bearing note with a
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