Messages
Proposals
Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.
Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support
E3-19
E3−19
Requirements
1. Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the following table. (Expenses should be shown in parentheses.) Also, indicate the dollar amount of the revenue or expense. The May 1 transaction has been completed as an example.
Amount of Revenue (Expense) for May
Date Cash Basis Amount of Revenue (Expense) Accrual Basis Amount of Revenue (Expense)
May 1 ($1,800) $ 0
2. After completing the table, calculate the amount of net income or net loss for Fantastic Catering under the accrual basis and cash basis accounting systems for
for May.
3. Considering your results from Requirement 2, which method gives the best picture of the true earnings of Fantastic Catering? Why?
Solution:
Requirement 1
Amount of Revenue (Expense) for May
Date Cash Basis Amount of Revenue (Expense) Accrual Basis Amount of Revenue (Expense)
May 1 $(1,800) $ 0
5
9
14
23
31
31
31
Requirement 2
Requirement 3
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition&R&"Arial,Bold"&12
&L&"Arial,Bold"Chapter 3: The Adjusting Process&R&"Arial,Bold"Page &P of &N
E3-27
E3-27
Indicate if an adjusting entry is needed for each item on October 31 for the month of October. Assuming the adjusting entry is not made, indicate which specific category or categories of accounts on the financial statements are misstated and if they are overstated or understated. Use the following table as a guide. Item (a) is completed as an example:
Specific Category of Accounts on the Balance Sheet Specific Category of Accounts on the Income Statement
Adjusting Entry Needed? Over / Understated Over / Understated
Item
(a) Yes Liability Over Revenue Under
Equity Under
Solution:
Item Adjusting Entry Needed? Specific Category of Accounts on the Balance Sheet Over / Understated Specific Category of Accounts on the Income Statement Over / Understated
(a)
(b)
(c)
(d)
(e)
(f)
(g)
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition&R&"Arial,Bold"&12
&L&"Arial,Bold"Chapter 3: The Adjusting Process&R&"Arial,Bold"Page &P of &N
P3-35A
P3-35A
Requirements
1. Journalize the adjusting entries on December 31.
2. Using the unadjusted trial balance, open the T-accounts with the unadjusted balances. Post the adjusting entries to the T-accounts.
3. Prepare the adjusted trial balance.
4. How will Aurora Air Purification System use the adjusted trial balance?
Solution:
Requirement 1
Date Accounts and Explanation Debit Credit
Requirement 2
Cash Accounts Payable
Service Revenue Accounts Receivable
Salaries Payable Salaries Expense
Prepaid Rent Unearned Revenue
Rent Expense Office Supplies
Aurora, Capital Aurora, Withdrawals
Depreciation Expense—Equipment Accumulated Depreciation—Equipment
Equipment Advertising Expense
Supplies Expense
Requirement 3
AURORA AIR PURIFICATION SYSTEM
Adjusted Trial Balance
December 31, 2016
Balance
Account Title Debit Credit
Requirement 4
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition&R&"Arial,Bold"&12
&L&"Arial,Bold"Chapter 3: The Adjusting Process&R&"Arial,Bold"Page &P of &N
P3-37A
P3-37A
Requirements
1. Analyze the worksheet to determine the adjusting entries that account for the differences between the unadjusted trial balance and the adjusted trial balance. Complete the worksheet. Use letters a through e to label the five adjustments.
2. Journalize the adjusting entries.
Solution:
Requirement 1
GANVILLE THEATER PRODUCTION COMPANY
Worksheet
December 31, 2016
Unadjusted Trial Balance Adjustments Adjusted Trial Balance
Account Names Debit Credit Debit Credit Debit Credit
Cash $ 4,000 $ 4,000
Accounts Receivable 6,000 7,000
Of‚fice Supplies 1,300 400
Prepaid Insurance 3,600 3,150
Equipment 28,000 28,000
Accumulated Depreciation—Equipment $ 8,800 $ 12,600
Accounts Payable 5,000 5,000
Salaries Payable 100
Common Stock 13,500 13,500
Dividends 31,000 31,000
Service Revenue 76,000 77,000
Depreciation Expense—Equipment 3,800
Supplies Expense 900
Utilities Expense 5,400 5,400
Salaries Expense 24,000 24,100
Insurance Expense 450
Total $ 103,300 $ 103,300 $ 108,200 $ 108,200
Requirement 2
Date Accounts and Explanation Debit Credit
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition&R&"Arial,Bold"&12
&L&"Arial,Bold"Chapter 3: The Adjusting Process&R&"Arial,Bold"Page &P of &N
P3A-38A
P3A-38A
Requirements
1. Journalize the transactions assuming that Night Flyer debits an asset account for prepaid expenses and credits a liability account for unearned revenues.
2. Journalize the related adjusting entries at December 31, 2016.
3. Post the journal and adjusting entries to the T-accounts, and show their balances at December 31, 2016. (Ignore the Cash account.)
4. Repeat Requirements 1–3. This time debit an expense account for prepaid expenses and credit a revenue account for unearned revenues.
5. Compare the account balances in Requirements 3 and 4. They should be equal.
Solution:
Requirement 1
Date Accounts and Explanation Debit Credit
Requirement 2
Date Accounts and Explanation Debit Credit
Requirement 3
Prepaid Rent Rent Expense
Prepaid Insurance Insurance Expense
Unearned Revenue Service Revenue
Requirement 4
Date Accounts and Explanation Debit Credit
Prepaid Rent Rent Expense
Prepaid Insurance Insurance Expense
Unearned Revenue Service Revenue
Requirement 5
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition&R&"Arial,Bold"&12
&L&"Arial,Bold"Chapter 3: The Adjusting Process&R&"Arial,Bold"Page &P of &N
Decision Case 3-1
Decision Case 3-1
Help Swift Classified Ads compute its net income for the year. Advise Stasney whether to continue operating Swift Classified Ads.
Solution:
Swift Classified Ads
Income Statement
Year Ended December 31
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition&R&"Arial,Bold"&12
&L&"Arial,Bold"Chapter 3: The Adjusting Process&R&"Arial,Bold"Page &P of &N
Ethical Issue 3-1
Ethical Issue 3-1
Requirements
1. Compute the overall effects of these transactions on the company’s reported net income for 2016.
2. Why is Steinbach taking this action? Is his action ethical? Give your reason, identifying the parties helped and the parties harmed by Steinbach’s action.
3. As a personal friend, what advice would you give the accountant?
Solution:
Requirement 1
Requirement 2
Requirement 3
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition&R&"Arial,Bold"&12
&L&"Arial,Bold"Chapter 3: The Adjusting Process&R&"Arial,Bold"Page &P of &N
E4-17
E4-17
Requirements
1. Prepare the classified balance sheet of Penny O'Hara Dance Studio Company at August 31, 2016. Use the report form. You must compute the ending balance of O'hara, Capital.
2. Compute O’Hara’s current ratio at August 31, 2016. One year ago, the current ratio was 1.57. Indicate whether O’Hara’s ability to pay current debts has improved, deteriorated, or remained the same.
Solution:
Requirement 1
PENNY O'HARA DANCE STUDIO COMPANY
Balance Sheet
August 31, 2016
Assets
Liabilities
Owner's Equity
Requirement 2
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"Chapter 4: Completing the Accounting Cycle&R&"Arial,Bold"Page &P of &N
E4-18
E4-18
Requirements
1. Complete Voice Link’s worksheet for the month ended November 30, 2016.
2. How much was net income for November?
Solution:
Requirement 1
VOICE LINK
Worksheet
November 30, 2016
Account Names Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Requirement 2
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"Chapter 4: Completing the Accounting Cycle&R&"Arial,Bold"Page &P of &N
E4-19
E4-19
Requirements
1. Complete the income statement for the month ended November 30, 2016.
2. Complete the statement of owner's equity for the month ended November 30, 2016. Assume there were no contributions made by the owner during the month.
3. Complete the unclassified balance sheet as of November 30, 2016. Use the account form.
Solution:
Requirement 1
VOICE LINK
Income Statement
Month Ended November 30, 2016
Requirement 2
VOICE LINK
Statement of Owner's Equity
Month Ended November 30, 2016
Requirement 3
VOICE LINK
Balance Sheet
November 30, 2016
Assets Liabilities
Owner's Equity
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"Chapter 4: Completing the Accounting Cycle&R&"Arial,Bold"Page &P of &N
P4-32A
P4-32A
Requirements
1. Prepare the journal entries and post to the T-accounts.
2. Prepare an unadjusted trial balance.
3. Complete the worksheet for the month ended December 31, 2016. (optional)
4. Prepare the adjusting entries and post to the T-accounts.
5. Prepare an adjusted trial balance.
6. Prepare the income statement, the statement of owner's equity, and the unclassified balance sheet in account form.
7. Prepare the closing entries and post to the T-accounts.
8. Prepare a post-closing trial balance.
Solution:
Requirement 1
Date Accounts and Explanation Debit Credit
Date Accounts and Explanation Debit Credit
Requirement 1, 4, and 7
Cash Wonder, Withdrawals
Income Summary
Accounts Receivable Service Revenue
Office Supplies Salaries Expense
Prepaid Insurance Rent Expense
Equipment Utilities Expense
Accumulated Depreciation—Equipment Advertising Expense
Land Supplies Expense
Accounts Payable Insurance Expense
Utilities Payable Interest Expense
Interest Payable Depreciation Expense—Equipment
Unearned Revenue Notes Payable
Wonder, Capital
Requirement 2
WONDER’S QUALITY AUTOMOTIVE
Unadjusted Trial Balance
December 31, 2016
Balance
Account Title Debit Credit
Requirement 4
Date Accounts and Explanation Debit Credit
Requirement 5
WONDER’S QUALITY AUTOMOTIVE
Adjusted Trial Balance
December 31, 2016
Balance
Account Title Debit Credit
Requirement 3
WONDER’S QUALITY AUTOMOTIVE
Worksheet
December 31, 2016
Account Names Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Requirement 6
WONDER’S QUALITY AUTOMOTIVE
Income Statement
Month Ended December 31, 2016
WONDER’S QUALITY AUTOMOTIVE
Statement of Owner’s Equity
Month Ended December 31, 2016
WONDER’S QUALITY AUTOMOTIVE
Balance Sheet
December 31, 2016
Assets Liabilities
Owner's Equity
Requirement 7
Date Accounts and Explanation Debit Credit
Requirement 8
WONDER’S QUALITY AUTOMOTIVE
Post-Closing Trial Balance
December 31, 2016
Balance
Account Title Debit Credit
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"Chapter 4: Completing the Accounting Cycle&R&"Arial,Bold"Page &P of &N
Fraud Case 4-1
Fraud Case 4-1
Requirements
1. How did the fraudulent accounting just described affect the current ratio?
2. Can you think of any reasons why someone in the company would want to take this kind of action?
Solution:
Requirement 1
Requirement 2
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"Chapter 4: Completing the Accounting Cycle&R&"Arial,Bold"Page &P of &N
Applied Sciences
Architecture and Design
Biology
Business & Finance
Chemistry
Computer Science
Geography
Geology
Education
Engineering
English
Environmental science
Spanish
Government
History
Human Resource Management
Information Systems
Law
Literature
Mathematics
Nursing
Physics
Political Science
Psychology
Reading
Science
Social Science
Home
Blog
Archive
Contact
google+twitterfacebook
Copyright © 2019 HomeworkMarket.com
| Writer | Writer Name | Amount | Client Comments & Rating |
|---|---|---|---|
ONLINE |
Instant Homework Helper |
$36 |
She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up! |
Custom Original Solution And Get A+ Grades
Custom Original Solution And Get A+ Grades
Custom Original Solution And Get A+ Grades
| Writer | Writer Name | Offer | Chat |
|---|---|---|---|
ONLINE |
Helping HandI am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements. |
$100 | Chat With Writer |
ONLINE |
Custom Coursework ServiceHey, Hope you are doing great :) I have read your project description. I am a high qualified writer. I will surely assist you in writing paper in which i will be explaining and analyzing the formulation and implementation of the strategy of Nestle. I will cover all the points which you have mentioned in your project details. I have a clear idea of what you are looking for. The work will be done according to your expectations. I will provide you Turnitin report as well to check the similarity. I am familiar with APA, MLA, Harvard, Chicago and Turabian referencing styles. I have more than 5 years’ experience in technical and academic writing. Please message me to discuss further details. I will be glad to assist you out. |
$95 | Chat With Writer |
ONLINE |
University Coursework HelpHi dear, I am ready to do your homework in a reasonable price. |
$102 | Chat With Writer |
ONLINE |
Top Essay TutorI have more than 12 years of experience in managing online classes, exams, and quizzes on different websites like; Connect, McGraw-Hill, and Blackboard. I always provide a guarantee to my clients for their grades. |
$105 | Chat With Writer |
ONLINE |
Homework GuruHi dear, I am ready to do your homework in a reasonable price and in a timely manner. |
$102 | Chat With Writer |
ONLINE |
Instant AssignmentsGood day dear client, I am a full-time freelance writer with years of experience. My strongest strengths are strong dedication to duty, reliability, quality and excellence. I am going to do an outstanding job for you, kindly PM me and let us commence. Thank you so much in anticipation of your positive response. Thank you very much. |
$95 | Chat With Writer |
Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.