Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 3AP
1.
To determine
Set up T-accounts for the general ledger accounts with the unadjusted balances.
1.
Expert Solution
Explanation of Solution
T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this account is known as debit, and the right hand side is known as credit.
Table (1)
Table (2)
Table (3)
Table (4)
Table (5)
Table (6)
Table (7)
Table (8)
Table (9)
Table (10)
Table (11)
Table (12)
Table (13)
Table (14)
Table (15)
Table (16)
Table (17)
Table (18)
Table (19)
Table (20)
Table (21)
Table (22)
Table (23)
Table (24)
2.
To determine
Journalize the
2.
Expert Solution
Explanation of Solution
Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and
a.
Table (25)
b.
Table (26)
c.
Table (27)
d.
Table (28)
e.
Table (29)
f.
Table (30)
g.
Table (31)
h.
Table (32)
Table (33)
Table (34)
Table (35)
Table (36)
Table (37)
Table (38)
Table (39)
Table (40)
Table (41)
Table (42)
Table (43)
Table (44)
Table (45)
Table (46)
Table (47)
Table (48)
3.
To determine
Prepare an adjusted
3.
Expert Solution
Explanation of Solution
Adjusted trial balance:
Adjusted trial balance is that statement which contains complete list of accounts with their adjusted balances, after all relevant adjustments have been made. This statement is prepared at the end of every financial period.
Table (49)
4.
To determine
Prepare income statement, owner’s equity and balance sheet of WT Institute for the year ended December 31.
4.
Expert Solution
Explanation of Solution
Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.
Table (50)
Statement of owner’s equity for WT Institute for the year ended December 31.
Table (51)
Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.
Note: Refer to income statement for value and computation of net income.
Table (52)
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
An insurance company MUST take which of the following actions when one of its producers replace an existing life policy.
Notify the existing insurance producer about the proposed replacement within seven
working days after receiving the application for the new policy
2.Notify the existing insurance company about the proposed replacement within three
working days after receiving the application for the new policy
3.Extend the new policy's Free Look period to a maximum of sixty days
4.Maintain records of the replacement for a minimum of one year
Below is the trial balance which was extracted from the books of the Ready Hospital Supplies on June 30, the end of the company’s financial year. You are required to collaborate and analyse the problem at hand then apply the accrual basis of accounting in the preparation of the company’s financial statements.
Ready Hospital Supplies
Trial Balance as at June 30, 2020
Dr $
Cr $
Cash
127,000.00
Accounts Receivable
151,000.00
Allowance for Bad-Debts
12,500.00
Merchandise Inventory
187,500.00
Store Supplies
58,000.00
Prepaid Insurance
72,000.00
Prepaid Rent
56,000.00
Furniture & Fixtures
800,000.00
Accumulated Depreciation: Furniture & Fixtures
256,000.00
Computer Equipment
450,000.00
Accumulated Depreciation: Computer Equipment
Accounts Payable
133,500.00
Salaries Payable
Interest Payable
27,000.00…
On July 1, 2022, Damlen Jurado Company pays $12.000 to its insurance company fora 2-year insurance pollicy.
Prepare the necessary journal entries for Damlen Jurado on July 1 and December 31. (Credit account titles are automatically Indented
when the amount is entered. Do not Indent manually. If no entry is requlred, select "No Entry" for the account titles and enter O for the amounts
Record journal entries in the order presented in the problem)
Chapter 3 Solutions
Principles of Financial Accounting.
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - What is the difference between the cash basis and...Ch. 3 - Prob. 2DQCh. 3 - What type of business is most likely to select a...Ch. 3 - What is a prepaid expense and where is it reported...Ch. 3 - What type of assets requires adjusting entries to...
Ch. 3 - What contra account is used when recording and...Ch. 3 - Prob. 7DQCh. 3 - If a company initially records prepaid expenses...Ch. 3 - Prob. 9DQCh. 3 - Prob. 10DQCh. 3 - Samsung Assume Samsung has unearned revenue. What...Ch. 3 - Prob. 12DQCh. 3 - Question: QUICK STUDY Periodic reporting C1 Choose...Ch. 3 - Prob. 2QSCh. 3 - Identifying accounting adjustments Classify the...Ch. 3 - Prob. 4QSCh. 3 - Prepaid (deferred) expenses adjustments For each...Ch. 3 - Prob. 6QSCh. 3 - Prob. 7QSCh. 3 - Prob. 8QSCh. 3 - Prob. 9QSCh. 3 - Prob. 10QSCh. 3 - Prob. 11QSCh. 3 - Accrued expenses adjustments For each separate...Ch. 3 - Prob. 13QSCh. 3 - Accrued revenues adjustments For each separate...Ch. 3 - Prob. 15QSCh. 3 - Prob. 16QSCh. 3 - Preparing an adjusted trial balance P5 Following...Ch. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Prob. 21QSCh. 3 - Prob. 22QSCh. 3 - Prob. 1ECh. 3 - Classifying adjusting entries P1 P2 P3 P4 In the...Ch. 3 - Question: Adjusting and paying accrued wages P3...Ch. 3 - Question: Determining cost flows through accounts...Ch. 3 - Prob. 5ECh. 3 - Preparing adjusting entries P1 P2 P3 Prepare...Ch. 3 - Prob. 7ECh. 3 - Analyzing and preparing adjusting entries P5...Ch. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Question: Computing and interpreting profit margin...Ch. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Preparing adjusting entries P1 P2 P3 P4 For each...Ch. 3 - Prob. 1APCh. 3 - Prob. 2APCh. 3 - Prob. 3APCh. 3 - Prob. 4APCh. 3 - Prob. 5APCh. 3 - Prob. 1BPCh. 3 - Prob. 2BPCh. 3 - Prob. 3BPCh. 3 - Prob. 4BPCh. 3 - Prob. 5BPCh. 3 - Question: SERIAL PROBLEM Business Solutions P1 P2...Ch. 3 - Prob. 1AACh. 3 - Prob. 2AACh. 3 - Prob. 3AACh. 3 - Question: TAKING IT TO THE NET A1 Access EDGAR...
Knowledge Booster
Similar questions
- The unadjusted trial balance for Premier Pet Spa at September 30, 2021 is below Premier Pet Spa Trial Balance (Unadjusted) 09/30/2021 1 2 101 106 5 126 6 127 7 128 9 163 8 167 10 201 3 11 236 13 301 14 303 15 403 16 600 17 652 18 655 20 660 21 677 22 680 23 684 24 Account Titles Cash Accounts Receivable Supplies Prepaid Advertising Prepaid Insurance Equipment Furniture Accounts Payable Unearned Service Revenue J. Smith-Capital J. Smith-Draws Service Revenue Advertising Expense Office Expense Rent Expense Repairs and Maintenance Expense Supplies Expense Utilities Expense Wages Expense Totals Dr Trial Balance 5.946 1.175 1,500 200 4,800 14,500 2,800 3,500 400 1,237 7,200 170 1,950 697 3,900 49,975 Cr. 1 2 3 5 6 7 9 8 750 10 1,200 11 31,000 13 14 17,025 15 16 17 18 20 21 22 23 49,975 24 Instructions 1. Prepare a 10-column worksheet. Show the adjustments (a) through (g). Do not modify the top portion of the Unadjusted Trial Balance section of the worksheet. Add the adjustments-related…arrow_forwardList and record each transaction (in 000s) for the Claymont Outpatient Clinic, under the accrual basis of accounting, at December 31, 20X1. You are creating a General Ledger using exhibit 3-6 on page 112 as a guide. Zelman( Workbook) a. The clinic received a $10,000,000 unrestricted cash contribution from the community. b. The clinic purchased $4,500,000 of equipment using cash. c. The clinic borrowed $2,000,000 from the bank on a long-term basis. d. The clinic purchased $550,000 of supplies on credit. e. The clinic provided $8,400,000 of services on credit. f. In the provision of these services, the clinic used $420,000 of supplies. g. The clinic received $800,000 in advance to care for capitated patients. h. The clinic incurred $4,500,000 in labor expenses and paid cash for them. i. The clinic incurred $2,230,000 in general expenses and paid cash for them. j. The clinic received $6,000,000 from patients and their 3rd party payers in payment of outstanding accounts. k.…arrow_forwardDr Erica chan MD owns EC health clinic she prepares annual financial statements and has a December 31 2023 year end A. On October 1, 2023 de chan prepaid 8200 for four months of rent B. On November 1, 2023 dr chan prepaid 156 to renew the clinic magazine subscription. The subscription is for 1 year C. On December 1, 2023 dr chan pays 2025 for supplies at the end of the year 1350 of supplies had not been used Required For the above transactions, records the initial journal entry and the adjusting entry required on December 31,2023arrow_forward
- Prepare the journal entries for the following transactions, provided the chart accounts below: DATE:APRIL 2022TransactionsApril 01 -Completion of a denture worth 6,000 April 02 - Received 7,000 in total from appointed patients for the whole dayApril 03 -received 7,000 in total from appointed patients for the whole dayApril 04 -received 2,500 in total from appointed patientsApril 05- paid 36,000 for car loan for business/personal useApril 06- received 1,500 from one patient that dayApril 07 -received 3,000 from appointed patients that dayApril 08- purchased dental supplies, 4,500April 09- received 4,000 from appointed patients April 10-received 3,000 in total from appointed patients April 11-received 1,500 from one patient that dayApril 12-paid 10,000 for dental laboratory feeApril 13-received 20,000 from a prosthodontic caseApril 15-paid 13,000 for a lot for future investment/businessApril 15 -paid 7,500 for dental assistantApril 16-received 2500 in total from appointed patientsApril…arrow_forwardReviewing insurance policies revealed that a single policy was purchased on August 1, for one year’s coverage, in the amount of $6,000. There was no previous balance in the Prepaid Insurance account at that time. Based on the information provided: Make the initial journal entry for the purchase of the single insurance policy: DR a) Cashb) Prepaid Insurancec) Insurance Expensed) Accounts Payable a) $2,500b) $3,500c) $6,000 CR a) Cashb) Prepaid Insurancec) Insurance Expensed) Accounts Payable a) $2,500b) $3,500c) $6,000 Make the December 31 adjusting journal entry to bring the balances to correct: DR a) Insurance Expenseb) Prepaid Insurancec) Cashd) Accounts Payable a) $3,500b) 6,000c) $2,500 CR a) Insurance Expenseb) Prepaid Insurancec) Cashd) Accounts Payable a) $3,500b) 6,000c) $2,500arrow_forwardPrepare a General Journal entry for the following transaction: On December 17, On Your Mark paid $1,500 to Keystone Insurance Company toward the premium for a six-month insurance policy, check No. 1001.arrow_forward
- Do a journal entry to account for insurance expense incurred in the month of December. Date the journal entry for December 31, 2019. If the insurance was paid on december 10 in the amount of $636 and runs through May 31st. How do I record this in Journal entry?arrow_forwardReviewing insurance policies revealed that a single policy was purchased on August 1, for one year’s coverage, in the amount of $6,000. There was no previous balance in the Prepaid Insurance account at that time. Based on the information provided: A. Make the December 31 adjusting journal entry to bring the balances to correct. If an amount box does not require an entry, leave it blank. B. Show the impact that these transactions had. If an amount box does not require an entry, leave it blank.arrow_forwardSensible Insurance Company collected a premium of $18,000 for a 1-year insurance policy on April 1. What amount should Sensible report as a current liability for Unearned Service Revenue at December 312 Select one: a. $4,500. b. $18,000. C. $0. d. $13,500.arrow_forward
- On November 1, 2019, C Laguna Company paid P36,000 to renew its insurance policy for 3 years. On December 31, 2019, C. Laguna’s unadjusted trial balance showed a balance of P900 for prepaid insurance and P44,100 for insurance expense. What amounts should be reported for prepaid insurance and insurance expense in C. Laguna’s December 31, 2019 financial statements? Prepaid InsuranceP34,900 Insurance Expense P10,100 Prepaid InsuranceP33,000 Insurance Expense P12,000 Prepaid InsuranceP34,000 Insurance Expense P12,000 Prepaid InsuranceP34,000 Insurance Expense P11,000arrow_forwardThe following chart provides information that must be reported at year-end. Under the appropriate form, indicate the correct box letter(s) and/or number(s) and any required codes. INFORMATION RL- T4 T4A 1 Employer-paid medical/dental premiums Wages in lieu of notice Québec Parental Insurance Plan insurable earnings Retiring allowance Federal income tax Quebec Pension Plan contributionsarrow_forwardLisa Anderson, D.D.S., opened a dental practice on January 1, 2020. During the first month of operations, the following transactions ocurred. 1. Performed services for patients who had dental plan insurance. At January 31, $722 of such services was performed but not yet billed to the insurance companies. 2. Utility expenses incurred but not paid prior to january 31 totaled $533. 3. Purchased dental equitment on January 1 for $83,000, paying $21,000 in cash and signing a $62,000, 3-year note payable. a) The equipment depreciates $429 per month. b) Interest is $480 per month. 4. Purchased a one-year malpractice insurance policy on January 1 for $12,360. 5. Purchased $1,445 of dental supplies. On Jnuary 31, determined that $500 of supplies were on hand. Prepare the adjusting entries on January 31. Account titles are Accumulated Depreciation-Equipment, Depreciation Expense,Service Revenue,Account Receivable, Insurance Expense, Interes Expense, Interes Pyable, Prepaid Insurance,…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education