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ACC/290T PRINCIPLES OF ACCOUNTING I The Latest Version A+ Study Guide **********************************************

ACC 290T Entire Course Link http://www.uopstudy.com/ACC-290 ********************************************** ACC 290T Wk 1 - Practice: Connect Knowledge Check

Required information Use the following information for exercise 15 to 18 LO P2 [The following information applies to the questions displayed below.]

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,360 in assets to launch the business. On October 31, the company’s records show the following items and amounts.

Cash $ 7,010 Accounts receivable 15,360 Office supplies 4,480 Land 46,040 Office equipment 19,360 Accounts payable 9,740 Owner investments 85,360

Cash withdrawals by owner$ 3,390 Consulting revenue 15,360 Rent expense 4,820 Salaries expense 8,370 Telephone expense 910 Miscellaneous expenses 720

Exercise 1-15 Preparing an income statement LO P2

Using the above information prepare an October income statement for the business.

Exercise 1-16 Preparing a statement of owner's equity LO P2

Using the above information prepare an October statement of owner's equity for Ernst Consulting.

Exercise 1-18 Preparing a statement of cash flows LO P2

Also assume the following: a. The owner’s initial investment consists of $39,320 cash and $46,040 in land. b. The company’s $19,360 equipment purchase is paid in cash. c. The accounts payable balance of $9,740 consists of the $4,480 office supplies purchase and $5,260 in employee salaries yet to be paid. d. The company’s rent, telephone, and miscellaneous expenses are paid in cash. e. No cash has been collected on the $15,360 consulting fees earned.

Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)

Using your earlier attempt(s) as study attempts is highly recommended, if needed.

True or False

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Study Attempt

It's highly recommended that you use your first attempt as a study attempt, if needed.

True or False

S 1-8 Applying the accounting equation LO A1

1. Use the accounting equation to compute the missing financial statement amounts.

2. Use the expanded accounting equation to compute the missing financial statement amounts.

Exercise 1-8 Using the accounting equation LO A1

Determine the missing amount from each of the separate situations given below.

Required information

Exercise 1-9 Using the accounting equation LO A1 [The following information applies to the questions displayed below.]

Answer the following questions. Hint: Use the accounting equation.

Exercise 1-9 Part a

a. At the beginning of the year, Addison Company's assets are $206,000 and its equity is $154,500. During the year, assets increase $80,000 and liabilities increase $51,000. What is the equity at year-end?

Exercise 1-9 Part b

b. Office Store has assets equal to $240,000 and liabilities equal to $209,000 at year-end. What is the equity for Office Store at year-end?

Exercise 1-9 Part c

b. At the beginning of the year, Quaker Company's liabilities equal $48,000. During the year, assets increase by $60,000, and at year-end assets equal $190,000. Liabilities decrease $18,000 during the year. What are the beginning and ending amounts of equity? c.

QS 1-10 Identifying effects of transactions using accounting equation-Revenues and Expenses LO P1

The following transactions were completed by the company. a. The company completed consulting work for a client and immediately collected $6,200 cash earned.

b. The company completed commission work for a client and sent a bill for $4,700 to be received within 30 days. c. The company paid an assistant $1,750 cash as wages for the period. d. The company collected $2,350 cash as a partial payment for the amount owed by the client in transaction b. e. The company paid $840 cash for this period's cleaning services.

Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)

QS 1-11 Identifying effects of transactions using accounting equation-Assets and Liabilities LO P1

The following transactions were completed by the company. a. The owner (Alex Carr) invested $18,800 cash in the company. b. The company purchased supplies for $1,450 cash. c. The owner (Alex Carr) invested $11,900 of equipment in the company. d. The company purchased $390 of additional supplies on credit. e. The company purchased land for $10,900 cash.

Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)

Required information Use the following information for exercise 15 to 18 LO P2 [The following information applies to the questions displayed below.]

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,470 in assets to launch the business. On October 31, the company’s records show the following items and

amounts.

Cash $ 9,750 Accounts receivable 14,480 Office supplies 3,710 Land 45,970 Office equipment 18,450 Accounts payable 8,900 Owner investments 84,470

Cash withdrawals by owner$ 2,530 Consulting revenue 14,480 Rent expense 4,070 Salaries expense 7,450 Telephone expense 810 Miscellaneous expenses 630

Exercise 1-15 Preparing an income statement LO P2

Using the above information prepare an October income statement for the business.

Exercise 1-16 Preparing a statement of owner's equity LO P2

Using the above information prepare an October statement of owner's equity for Ernst Consulting.

Exercise 1-17 Preparing a balance sheet LO P2

Using the above information prepare an October 31 balance sheet for Ernst Consulting.

Exercise 1-18 Preparing a statement of cash flows LO P2

Also assume the following: a. The owner’s initial investment consists of $38,500 cash and $45,970 in land. b. The company’s $18,450 equipment purchase is paid in cash. c. The accounts payable balance of $8,900 consists of the $3,710 office supplies purchase and $5,190 in employee salaries yet to be paid.

d. The company’s rent, telephone, and miscellaneous expenses are paid in cash. e. No cash has been collected on the $14,480 consulting fees earned.

Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)

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Exercise 2-19 Analyzing changes in a company's equity LO P3

Compute the missing amount for each of the following separate companies in columns B through E. (Losses and amounts to be deducted should be indicated with a minus sign.)

Exercise 2-7 Preparing general journal entries LO P1

Following are the transactions of a new company called Pose-for-Pics.

Aug. 1 Madison Harris, the owner, invested $8,750 cash and $37,625 of photography equipment in the company.

2 The company paid $3,100 cash for an insurance policy covering the next 24 months.

5 The company purchased office supplies for $1,663 cash.

20 The company received $3,400 cash in photography fees earned.

31 The company paid $875 cash for August utilities.

Prepare general journal entries for the above transactions.

Required information Use the following information for Exercises 16-18 below.

[The following information applies to the questions displayed below.]

Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s records show the following accounts and amounts for the month of August.

Cash $25,270 Accounts receivable 22,280 Office supplies 5,150 Land 43,940 Office equipment 19,910 Accounts payable 10,700

C. Camry, Withdrawals $ 5,910 Consulting fees earned 26,920 Rent expense 9,460 Salaries expense 5,510 Telephone expense 760 Miscellaneous expenses 430

Exercise 2-16 Preparing an income statement LO C3, P3

Use the above information to prepare an August income statement for the business.

Exercise 2-17 Preparing a statement of owner's equity LO P3

Use the above information to prepare an August statement of owner’s equity for Help Today. The owner’s capital account balance at July 31 was $0, and the owner invested $101,000 cash in the company on August 1.

Exercise 2-18 Preparing a balance sheet LO P3

Use the above information to prepare an August 31 balance sheet for Help Today. Hint: Compute the owner’s capital account balance as of August 31.

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QS 2-6 Analyzing transactions and preparing journal entries LO P1 For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696). a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $82,000 in cash along with equipment having a $42,000 value. b. On May 21, Elegant Lawns purchases office supplies on credit for $520. c. On May 25, Elegant Lawns receives $9,000 cash for performing landscaping services. d. On May 30, Elegant Lawns receives $2,200 cash in advance of providing landscaping services to a customer.

QS 2-10 Computing T-account balance LO C4 Determine the ending balance of each of the following T-accounts.

Exercise 2-7 Preparing general journal entries LO P1

Following are the transactions of a new company called Pose-for-Pics.

Aug. 1 Madison Harris, the owner, invested $10,500 cash and $45,150 of photography equipment in the company.

2 The company paid $2,700 cash for an insurance policy covering the next 24 months.

5 The company purchased office supplies for $1,995 cash.

20 The company received $3,500 cash in photography fees earned.

31 The company paid $878 cash for August utilities.

Prepare general journal entries for the above transactions.

Exercise 2-9 Recording effects of transactions in T-accounts LO A1 The transactions of Spade Company appear below. a. b. c. d. e.

f. g. h.

i.

Kacy Spade, owner, invested $17,250 cash in the company.

The company purchased office supplies for $500 cash.

The company purchased $9,539 of office equipment on credit.

The company received $2,035 cash as fees for services provided to a customer.

The company paid $9,539 cash to settle the payable for the office equipment purchased in transaction c.

The company billed a customer $3,657 as fees for services provided.

The company paid $520 cash for the monthly rent.

The company collected $1,536 cash as partial payment for the account receivable created in transaction f.

Kacy Spade withdrew $1,000 cash from the company for personal use.

Required: 1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; K. Spade, Capital; K. Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries.

2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.

Required information Use the following information for the Quick Studies below.

[The following information applies to the questions displayed below.]

Liu Zhang operates Lawson Consulting, which began operations on June 1. On June 30, the company’s records show the following accounts and amounts for the month of June.

Cash $11,000 Accounts receivable 5,700 Accounts payable 4,700 L. Zhang, Withdrawals 2,700

Service revenue $15,600 Equipment 7,700 Rent expense 3,200 Wages expense 8,000

QS 2-12 Preparing an income statement LO P3

Use the above information to prepare a June income statement for the business.

QS 2-13 Preparing a statement of owner's equity LO P3 Use the above information to prepare a June statement of owner’s equity for Lawson Consulting. The owner’s capital account balance at May 31 was $0, and the owner invested $18,000 cash in the company on June 1.

QS 2-14 Preparing a balance sheet LO P3 Use the above information to prepare a June 30 balance sheet for Lawson Consulting. Hint: Compute the owner’s capital account balance as of June 30.

Exercise 2-15 Computing net income LO A1

A sole proprietorship had the following assets and liabilities at the beginning and end of this year.

Assets Beginning of the year $ 77,000 End of the year 135,000

Liabilities $33,010 54,675

a. Owner made no investments in the business, and no withdrawals were made during the year. b. Owner made no investments in the business, but withdrew $1,000 cash per month for personal use. c. Owner made no withdrawals during the year, but the owner did invest an additional $45,000 cash. d. Owner withdrew $1,000 cash per month for personal use, and the owner invested an additional $35,000 cash.

Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.)

Required information Use the following information for Exercises 16-18 below.

[The following information applies to the questions displayed below.]

Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s records show the following accounts and amounts for the month of August.

Cash $25,390 Accounts receivable 22,390 Office supplies 5,280 Land 44,030 Office equipment 20,030 Accounts payable 10,580

C. Camry, Withdrawals $ 6,030 Consulting fees earned 27,020 Rent expense 9,580 Salaries expense 5,630 Telephone expense 900 Miscellaneous expenses 540

Exercise 2-16 Preparing an income statement LO C3, P3

Use the above information to prepare an August income statement for the business.

Exercise 2-17 Preparing a statement of owner's equity LO P3 Use the above information to prepare an August statement of owner’s equity for Help Today. The owner’s capital account balance at July 31 was $0, and the owner invested $102,200 cash in the company on August 1.

Exercise 2-18 Preparing a balance sheet LO P3 Use the above information to prepare an August 31 balance sheet for Help Today. Hint: Compute the owner’s capital account balance as of August 31.

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Study Attempts

You should use your earlier attempt(s) as study attempts.

True or False

2.GL0204 (No Analysis Tab) - Based on Problem 2-1A LO A1, C3, C4, P1, P2

Grace Labeille opens a web consulting business called Travel Smart and completes the following transactions in its first month of operations.

Prepare journal entries for each transaction and identify the financial statement impact of each entry.

The financial statements are automatically generated based on the journal entries recorded.

Apr. 1 Labeille invested $92,000 cash along with office equipment valued at $28,000 in the company.

Apr. 2 The company prepaid $11,400 cash for 12 months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts.

Apr. 3 The company made credit purchases for $8,400 in office equipment and $4,000 in office supplies. Payment is due within 10 days.

Apr. 6 The company completed services for a client and immediately received $5,200 cash.

Apr. 9 The company completed a $8,000 project for a client, who must pay within 30 days.

Apr. 13 The company paid $12,400 cash to settle the account payable created on April 3.

Apr. 19 The company paid $3,360 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts.

Apr. 22 The company received $4,800 cash as partial payment for the work completed on April 9.

Apr. 25 The company completed work for another client for $4,300 on credit.

Apr. 28 Labeille withdrew $5,900 cash from the company for personal use.

Apr. 29 The company purchased $1,000 of additional office supplies on credit.

Apr. 30 The company paid $1,100 cash for this month’s utility bill.

GL0202 (No Analysis Tab) - Based on Exercise 2-9 LO A1

Prepare journal entries for each transaction and identify the financial statement impact of each entry.

The financial statements are automatically generated based on the journal entries recorded.

Jan. 1 Sarah Walker, owner, invested $118,750 cash in the company.

Jan. 2 The company purchased office supplies for $1,850 cash.

Jan. 3 The company purchased $14,050 of office equipment on credit.

Jan. 4 The company received $16,700 cash as fees for services provided to a customer.

Jan. 5 The company paid $14,050 cash to settle the payable for the office equipment purchased on January 3.

Jan. 6 The company billed a customer $3,300 as fees for services provided.

Jan. 7 The company paid $1,825 cash for the monthly rent.

Jan. 8 The company collected $1,575 cash as partial payment for the account receivable created on January 6.

Jan. 9 Sarah Walker withdrew $10,600 cash from the company for personal use.

1.

General Journal Tab - For each transaction, prepare the required journal entry on the General Journal tab. List debits before credits.

2.

General Ledger Tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab.

3.

Trial Balance Tab - General ledger software also automates the preparation of trial balances.

A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits.

4.

Income Statement Tab - The revenue and expense balances from the trial balance appear on the income statement, along with their balance as of the date selected. Review the income statement and indicate how the income statement is linked to the other financial statements.

5.

Statement of Owner's Equity Tab - Owner investments and withdrawals, as reported on the trial balance, appear on the statement of owner's equity. Review the statement of owner's equity and indicate how the statement of owner's equity is linked to the other financial statements.

6.

Balance Sheet Tab - Each asset and liability account balance, as reported on the trial balance, appears on the balance sheet, along with the ending capital balance. Review the balance sheet and then indicate how the balance sheet is linked to the other financial statements.

ACC 290T Wk 3 - Apply: Homework

GL0201 - (No Analysis Tab) - Based on the FastForward Company LO A1, C3, C4, P1, P2, P3

This problem is based on the transactions for the FastForward Company in your text. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded.

Dec. 1 On December 1, Chas Taylor forms a consulting business, named FastForward. FastForward receives $30,000 cash from Chas Taylor as an owner contribution.

Dec. 2 FastForward pays $2,500 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts.

Dec. 3 FastForward pays $26,000 cash for equipment.

Dec. 4 FastForward purchases $7,100 of supplies on credit from a supplier, CalTech Supply.

Dec. 5 FastForward provides consulting services and immediately collects $4,200 cash.

Dec. 6 FastForward pays $1,000 cash for December rent.

Dec. 7 FastForward pays $700 cash for employee salary.

Dec. 8 FastForward provides consulting services of $1,600 and rents its test facilities for $300. The customer is billed $1,900 for these services.

Dec. 9 FastForward receives $1,900 cash from the client billed on December 8.

Dec. 10 FastForward pays CalTech Supply $900 cash as partial payment for its December 4 $7,100 purchase of supplies.

Dec. 11 Chas Taylor withdraws $200 cash from FastForward for personal use.

Dec. 12 FastForward receives $3,000 cash in advance of providing consulting services to a customer. The company's policy is to record fees collected in advance in a balance sheet account.

Dec. 13 FastForward pays $2,400 cash (insurance premium) for a 24-month insurance policy. Coverage begins on December 1. The company's policy is to record all prepaid expenses in a balance sheet account.

Dec. 14 FastForward pays $120 cash for supplies.

Dec. 15 FastForward pays $305 cash for December utilities expense.

Dec. 16 FastForward pays $700 cash in employee salary for work performed in the latter part of December.

GL0202 (No Analysis Tab) - Based on Exercise 2-9 LO A1

Prepare journal entries for each transaction and identify the financial statement impact of each entry.

The financial statements are automatically generated based on the journal entries recorded.

Jan. 1 Juan Perez, owner, invested $127,750 cash in the company.

Jan. 2 The company purchased office supplies for $2,150 cash.

Jan. 3 The company purchased $12,050 of office equipment on credit.

Jan. 4 The company received $17,300 cash as fees for services provided to a customer.

Jan. 5 The company paid $12,050 cash to settle the payable for the office equipment purchased on January 3.

Jan. 6 The company billed a customer $3,600 as fees for services provided.

Jan. 7 The company paid $2,125 cash for the monthly rent.

Jan. 8 The company collected $1,800 cash as partial payment for the account receivable created on January 6.

Jan. 9 Juan Perez withdrew $10,900 cash from the company for personal use.

GL0204 (No Analysis Tab) - Based on Problem 2-1A LO A1, C3, C4, P1, P2

Ken Hughes opens a web consulting business called Security First and completes the following transactions in its first month of operations.

Prepare journal entries for each transaction and identify the financial statement impact of each entry.

The financial statements are automatically generated based on the journal entries recorded.

Apr. 1 Hughes invested $149,000 cash along with office equipment valued at $37,500 in the company.

Apr. 2 The company prepaid $22,800 cash for 12 months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts.

Apr. 3 The company made credit purchases for $10,300 in office equipment and $5,900 in office supplies. Payment is due within 10 days.

Apr. 6 The company completed services for a client and immediately received $10,900 cash.

Apr. 9 The company completed a $17,500 project for a client, who must pay within 30 days.

Apr. 13 The company paid $16,200 cash to settle the account payable created on April 3.

Apr. 19 The company paid $7,920 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts.

Apr. 22 The company received $10,500 cash as partial payment for the work completed on April 9.

Apr. 25 The company completed work for another client for $6,200 on credit.

Apr. 28 Hughes withdrew $6,200 cash from the company for personal use.

Apr. 29 The company purchased $2,900 of additional office supplies on credit.

Apr. 30 The company paid $3,300 cash for this month’s utility bill.

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Exercise 3-7 Preparing adjusting entries LO P1, P3, P4

a. Wages of $7,000 are earned by workers but not paid as of December 31. b. Depreciation on the company’s equipment for the year is $10,840. c. The Office Supplies account had a $480 debit balance at the beginning of December. During December, $4,816 of office supplies are purchased. A physical count of supplies at December 31 shows $532 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of December. An analysis of insurance policies shows that $2,900 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $650 of interest revenue for the year ended December 31. The interest payment will be received on 10 days after the year-end January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $4,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.

For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31.

GL0302 - Based on Problem 3-3A LO P1, P2, P3, P4, P6

Parker Technical Institute (PTI), a school owned by Paula Parker, provides training to individuals who pay tuition directly to the school. PTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, is found on the trial balance tab. PTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31.

a. An analysis of PTI’s insurance policies shows that $2,650 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,720 are available at year-end. c. Annual depreciation on the equipment is $4,600. d. Annual depreciation on the professional library is $8,600. e. On September 1, PTI agreed to do five courses for a client for $3,000 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $15,000 cash in advance for all five courses on September 1, and PTI credited Unearned Training Fees. f. On October 15, PTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $8,500 of the tuition has been earned by PTI. g. PTI’s two employees are paid weekly. As of the end of the year, two days’ salaries have accrued at the rate of $160 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December.

GL0301 - Based on the... LO A1, P1, P3

The unadjusted trial balance of the Sweet Homes Company as of December 31, 2019 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the Sweet Homes Company.  1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2019. Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry, if any.  2) Based on a physical count, supplies on hand total $4,200. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any.  3) The equipment is expected to have a 5-year useful life, and be worth about $11,000 at the end of five years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciation, if any.  4) On December 26, the client paid a $7,200 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any.





5) Sweet Homes's employee earns $130 per day for a five-day workweek beginning on Monday and ending on Friday. The employee was last paid on Friday, December 26. Review the unadjusted balance in Salaries expense, and prepare the necessary adjusting entry, if any.

6) In the second week of December, Sweet Homes agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $6,060. The terms of the initial agreement call for Sweet Homes to provide services from December 12, 2019, through January 10, 2020, or 30 days of service. The club agrees to pay Sweet Homes $6,060 on January 10, 2020, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any.

Exercise 3-6 Preparing adjusting entries LO P1, P2, P3

a. Depreciation on the company's equipment for the year is computed to be $17,000. b. The Prepaid Insurance account had a $7,000 debit balance at December 31 before adjusting for the costs of any expired coverage.

An analysis of the company’s insurance policies showed that $1,590 of unexpired insurance coverage remains. c. The Office Supplies account had a $230 debit balance at the beginning of December; and $2,680 of office supplies were purchased in December. The December 31 physical count showed $271 of supplies available. d. One-third of the work related to $15,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $5,800 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of rental policies showed that $4,210 of rental coverage had expired. f. Wage expenses of $5,000 have been incurred but are not paid as of December 31.

Prepare adjusting journal entries for the year ended (date of) December 31 for each of these separate situations.

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ACC 290T Wk 4 - Apply: Homework

QS 3-2 Computing accrual and cash income LO C1

In its first year of operations, Roma Company reports the following.   

Earned revenues of $52,000 ($44,000 cash received from customers).

Incurred expenses of $29,000 ($22,700 cash paid toward them).

Prepaid $8,500 cash for costs that will not be expensed until next year.

Compute the company’s first-year net income under both the cash basis and the accrual basis of accounting.

QS 3-5 Prepaid (deferred) expenses adjustments LO P1

For each separate case below, follow the three-step process for adjusting the prepaid asset account at December 31.

Step 1: Determine what the current account balance equals.

Step 2: Determine what the current account balance should equal.

Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.

Assume no other adjusting entries are made during the year.

QS 3-6 Prepaid (deferred) expenses adjustments LO P1

For each separate case below, follow the three-step process for adjusting the Supplies asset account at December 31.

Step 1: Determine what the current account balance equals.

Step 2: Determine what the current account balance should equal.

Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.

Assume no other adjusting entries are made during the year.

QS 3-7 Adjusting prepaid (deferred) expenses LO P1

For each separate case, record the necessary adjusting entry. a. On July 1, Lopez Company paid $1,900 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. b. Zim Company has a Supplies account balance of $6,400 at the beginning of the year. During the year, it purchased $2,700 of supplies. As of December 31, a physical count of supplies shows $1,150 of supplies available.

Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31.

QS 3-8 Accumulated depreciation adjustments LO P1

For each separate case below, follow the three-step process for adjusting the Accumulated Depreciation account at December 31.

Step 1: Determine what the current account balance equals.

Step 2: Determine what the current account balance should equal.

Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.

Assume no other adjusting entries are made during the year.

QS 3-10 Unearned (deferred) revenues adjustments LO P2

Record adjusting journal entries for each of the following for year ended December 31.

Assume no other adjusting entries are made during the year. a. Unearned Rent Revenue. The Krug Company collected $13,200 rent in advance on November 1, debiting Cash and crediting Unearned Rent Revenue. The tenant was paying 12 months’ rent in advance and occupancy began November 1.

b. Unearned Services Revenue. The company charges $135 per insect

treatment. A customer paid $540 on October 1 in advance for four treatments, which was recorded with a debit to Cash and a credit to Unearned Services Revenue. At year-end, the company has applied three treatments for the customer. c. Unearned Rent Revenue. On September 1, a client paid the company $38,400 cash for six months of rent in advance (the client leased a building and took occupancy immediately). The company recorded the cash as Unearned Rent Revenue.

QS 3-11 Adjusting for unearned (deferred) revenues LO P2

For each separate case below, follow the three-step process for adjusting the unearned revenue liability account at December 31.

Step 1: Determine what the current account balance equals.

Step 2: Determine what the current account balance should equal.

Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.

Assume no other adjusting entries are made during the year.

QS 3-14 Accrued revenues adjustments LO P4

Record adjusting journal entries for each of the following for year ended December 31.

Assume no other adjusting entries are made during the year. a. Accounts Receivable. At year-end, the L. Cole Company has

completed services of $28,500 for a client, but the client has not yet been billed for those services. b. Interest Receivable. At year-end, the company has earned, but not yet recorded, $770 of interest earned from its investments in government bonds. c. Accounts Receivable. A painting company collects fees when jobs are complete. The work for one customer, whose job was bid at $2,060, has been completed, but the customer has not yet been billed.

Exercise 3-6 Preparing adjusting entries LO P1, P2, P3

a. Depreciation on the company's equipment for the year is computed to be $11,000. b. The Prepaid Insurance account had a $7,000 debit balance at December 31 before adjusting for the costs of any expired coverage.

An analysis of the company’s insurance policies showed that $1,030 of unexpired insurance coverage remains. c. The Office Supplies account had a $220 debit balance at the beginning of December; and $2,680 of office supplies were purchased in December. The December 31 physical count showed $260 of supplies available. d. Three-fourths of the work related to $13,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $5,800 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of rental policies showed that $4,770 of rental coverage had expired. f. Wage expenses of $3,000 have been incurred but are not paid as of December 31.

Prepare adjusting journal entries for the year ended (date of) December 31 for each of these separate situations.

Exercise 3-7 Preparing adjusting entries LO P1, P3, P4

a. Wages of $12,000 are earned by workers but not paid as of December 31. b. Depreciation on the company’s equipment for the year is $11,440. c. The Office Supplies account had a $380 debit balance at the beginning of December. During December, $4,820 of office supplies are purchased. A physical count of supplies at December 31 shows $532 of supplies available. d. The Prepaid Insurance account had a $5,000 balance at the beginning of December. An analysis of insurance policies shows that $1,900 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $950 of interest revenue for the year ended December 31. The interest payment will be received on 10 days after the year-end January 10.

f. The company has a bank loan and has incurred (but not recorded) interest expense of $4,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.

For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31.

GL0301 - Based on the... LO A1, P1, P3

The unadjusted trial balance of the Business Mastery Company as of December 31, 2019 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the Business Mastery Company.  1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2019. Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry, if any.  2) Based on a physical count, supplies on hand total $5,400. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any.  3) The equipment is expected to have a 5-year useful life, and be worth about $11,000 at the end of five years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciation, if any.  4) On December 26, the client paid a $12,000 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any.  5) Business Mastery's employee earns $210 per day for a five-day workweek beginning on Monday and ending on Friday. The employee was last paid on Friday, December 26. Review the unadjusted balance in Salaries expense, and prepare the necessary adjusting entry, if any.  6) In the second week of December, Business Mastery agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $5,100. The terms of the initial agreement call for Business Mastery to provide services from December 12, 2019, through January 10, 2020, or 30 days of service. The club agrees to pay Business Mastery $5,100 on January 10, 2020, when the service

period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any.

ACC 290T Wk 5 - Practice: Connect Knowledge Check

GL0404 - Based on Problem 4-6A LO P4

The unadjusted trial balance for People First as December 31 is provided on the trial balance tab.

Information for adjustments is as follows: a. As of December 31, employees had earned $1,800 of unpaid and unrecorded salaries. The next payday is January 4, at which time $2,250 of salaries will be paid. b. The cost of supplies still available at December 31 is $2,000. c. The notes payable requires an interest payment to be made every three months. The amount of unrecorded accrued interest at December 31 is $2,300.

The next interest payment, at an amount of $2,760, is due on January 15. d. Analysis of the unearned member fees account shows $2,000 remaining unearned at December 31. e. In addition to the member fees included in the revenue account balance, the company has earned another $10,800 in unrecorded fees that will be collected on January 31. The company is also expected to collect $11,000 on that same day for new fees earned in January. f. Depreciation expense for the year is $21,200.

Exercise 4-11 Preparing financial statements LO C3

The following adjusted year-end trial balance at December 31 of Wilson Trucking Company.

Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation—Trucks Land

Debit $ 5,900 16,500 2,000 181,000

Credit

$ 37,286 75,000

Accounts payable Interest payable Long-term notes payable K. Wilson, Capital K. Wilson, Withdrawals Trucking fees earned Depreciation expense—Trucks Salaries expense Office supplies expense Repairs expense—Trucks

9,900 3,000 52,000 166,351 19,000 142,500 24,049 66,833 8,500 12,255

Totals

$ 411,037

$ 411,037

The K. Wilson, Capital account balance was $166,351 at December 31 of the prior year.

(1) Prepare the income statement for the year ended December 31.

(2) Prepare the statement of owner’s equity for the year ended December 31.

Exercise 4-12 Preparing a classified balance sheet LO C3

Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation—Trucks Land Accounts payable Interest payable Long-term notes payable K. Wilson, Capital K. Wilson, Withdrawals Trucking fees earned Depreciation expense—Trucks Salaries expense Office supplies expense Repairs expense—Trucks Totals

Debit $ 5,500 24,000 6,215 160,000

Credit

$ 32,960 44,000 9,500 18,000 48,000 112,229 20,000 128,000 21,259 52,997 5,000 9,718 $348,689

$348,689

Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31.

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http://www.uopstudy.com/ ACC 290T Wk 5 - Apply: Homework QS 4-6 Preparing closing entries from the ledger LO P2 The ledger of Mai Company includes the following accounts with normal balances as of December 31: D. Mai, Capital $10,800; D. Mai, Withdrawals $1,700; Services Revenue $31,000; Wages Expense $17,400; and Rent Expense $5,200.

Prepare its December 31 closing entries.

Required information Use the following information for Quick Studies below.

[The following information applies to the questions displayed below.]

The following is the adjusted trial balance of Sierra Company.

Account Title Cash Prepaid insurance Notes receivable (due in 5 years) Buildings Accumulated depreciation–Buildings Accounts payable Notes payable (due in 3 years) H. Sierra, Capital H. Sierra, Withdrawals Consulting revenue Wages expense Depreciation expense–Buildings Insurance expense

Debit $ 29,000 1,700 6,400 80,000

Credit

$ 24,000 8,500 9,000 28,500 7,000 69,500 4,700 8,000 2,700

Totals

$ 139,500 $ 139,500

QS 4-10 Preparing financial statements LO C2 Required (1) Prepare an income statement for the year ended December 31.

(2) Prepare a statement of owner’s equity for the year ended December 31.

Exercise 4-2 Extending accounts in a work sheet LO P1 The Adjusted Trial Balance for Planta Company follows. Complete the work sheet by extending the account balances into the appropriate financial statement columns and by entering the amount of net income for the reporting period.

Exercise 4-6 Completing the income statement columns and preparing closing entries LO P1, P2 These Income Statement columns from a 10-column work sheet are for Brown’s Bike Rental Company.

Account Title Rent earned Salaries expense Insurance expense Office supplies expense Bike repair expense Depreciation expense—Bikes

Debit

Credit 102,000

45,288 6,426 14,994 3,162 19,482

(1) Determine the amount that should be entered on the net income line of the work sheet.

(2) Prepare the company's closing entries. The owner, H. Brown, did not make any withdrawals this period.

Exercise 4-7 Preparing a work sheet and recording closing entries LO P1, P2 The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31. a. Unrecorded depreciation on the trucks at the end of the year is $6,036. b. The total amount of accrued interest expense at year-end is $8,000. c. The cost of unused office supplies still available at year-end is $1,400.

1. Use the above information about the company’s adjustments to complete a 10-column work sheet.

2a. Prepare the year-end closing entries for Dylan Delivery Company as of December 31.

2b. Determine the capital amount to be reported on the December 31, balance sheet. Note: S. Dylan, Capital was $322,440 on December 31 of the prior year.

Exercise 4-9 Preparing closing entries and a post-closing trial balance LO P2, P3 The following adjusted trial balance contains the accounts and yearend balances of Cruz Company as of December 31.

No. 101 126 128 167 168 301 302 404 612 622 637 640 652

Account Title Cash Supplies Prepaid insurance Equipment Accumulated depreciation—Equipment A. Cruz, Capital A. Cruz, Withdrawals Services revenue Depreciation expense—Equipment Salaries expense Insurance expense Rent expense Supplies expense Totals

Debit $ 18,000 14,400 2,000 23,000

Credit

$

6,500 45,425

6,000 49,000 2,000 28,567 2,058 3,283 1,617 $100,925 $100,925

1. Prepare the December 31, closing entries for Cruz Company. Assume the

account number for Income Summary is 901.

2. Prepare the December 31, post-closing trial balance for Cruz Company. Note: A. Cruz, Capital was $45,425 on December 31 of the prior year.

Exercise 4-11 Preparing financial statements LO C3 The following adjusted year-end trial balance at December 31 of Wilson Trucking Company.

Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation—Trucks Land Accounts payable Interest payable Long-term notes payable K. Wilson, Capital K. Wilson, Withdrawals Trucking fees earned Depreciation expense—Trucks Salaries expense Office supplies expense Repairs expense—Trucks Totals

Debit $ 9,200 16,500 2,000 164,000

Credit

$ 33,784 75,000 13,200 3,000 52,000 155,932 19,000 135,000 21,791 63,315 10,500 11,610 $392,916 $392,916

The K. Wilson, Capital account balance was $155,932 at December 31 of the prior year.

(1) Prepare the income statement for the year ended December 31.

(2) Prepare the statement of owner’s equity for the year ended December 31.

GL0401 - Based on... LO C3, P2, P3 The OnPoint Company began operations on December 1, 2019. The unadjusted trial balance of the OnPoint Company as of December 31, 2019 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the OnPoint Company found in chapter 3.

1. 1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2019. Review the unadjusted

balance in Prepaid insurance, and prepare the necessary adjusting entry, if any.

2. 2) Based on a physical count, supplies on hand total $3,450. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any.

3. 3) The equipment is expected to have a 4-year useful life, and be worth about $10,000 at the end of four years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry, if any.

4. 4) On December 26, the client paid a $4,200 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any.

5. 5) OnPoint's sole employee earns $90 per day for a five-day workweek beginning on Monday and ending on Friday. The employee was last paid on Friday, December 26. Review the unadjusted balance in Salaries payable, and prepare the necessary adjusting entry, if any.

6. 6) In the second week of December, OnPoint agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $3,180. The terms of the initial agreement call for OnPoint to provide services from December 12, 2019, through January 10, 2020, or 30 days of service. The club agrees to pay OnPoint $3,180 on January 10, 2020, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any.

Prepare the required adjusting and closing entries for the OnPoint Company.

GL0404 - Based on Problem 4-6A LO P4 The unadjusted trial balance for Comic Stand as December 31 is provided on the trial balance tab.

Information for adjustments is as follows: a. As of December 31, employees had earned $1,500 of unpaid and unrecorded salaries. The next payday is January 4, at which time $1,875 of salaries will be paid. b. The cost of supplies still available at December 31 is $1,700. c. The notes payable requires an interest payment to be made every three months. The amount of unrecorded accrued interest at December 31 is $1,000.

The next interest payment, at an amount of $1,200, is due on January 15.

d. Analysis of the unearned member fees account shows $1,400 remaining unearned at December 31. e. In addition to the member fees included in the revenue account balance, the company has earned another $14,800 in unrecorded fees that will be collected on January 31. The company is also expected to collect $15,000 on that same day for new fees earned in January. f. Depreciation expense for the year is $26,000.