Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 4, Problem 14PB
Prepare an adjusted
Expert Solution & Answer
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Students have asked these similar questions
Select the correct entry to adjust the unadjusted trial balance for
depreciation expense.
Select one:
O a. Debit to Depreciation Expense and a Credit to Accumulated Depreciation
O b. Debit to Equipment and a credit to accumulated depreciation
O c. Debit to Accumulated Depreciation and a credit to Depreciation Expense
O d. Debit to Cash and a Credit to Accumulated Depreciation
Accumulated depreciation account and allowance for doubtful accounts account are two examples of contra asset account. The normal balance of these two accounts would be:
a credit balance
a debit balance
similar to the related normal asset accounts
nil balance
Instruction: Fill in the blank on the type/nature of the adjustment or the pro-forma
entry of the adjustment on the following:
1. The pro-forma adjusting entry to record the interest expense during the reporting
period.
2. The expense account used to record the decline in value of assets due to wear and
tear.
3. The pro-forma entry to record the estimated accounts that are uncollectible using
the allowance method.
4. The expense account used for accounts that could not be collected to bring this
account to its net realizable value.
5. The pro-forma entry to record the expense representing the uncollected accounts
from customers using the direct method.
Chapter 4 Solutions
Principles of Accounting Volume 1
Ch. 4 - Which of the following is any reporting period...Ch. 4 - Which of the following is the federal, independent...Ch. 4 - Revenues and expenses must be recorded in the...Ch. 4 - Which of the following breaks down company...Ch. 4 - Which of the following is a twelve-month reporting...Ch. 4 - Which type of adjustment occurs when cash is...Ch. 4 - Which type of adjustment occurs when cash is not...Ch. 4 - If an adjustment includes an entry to a payable or...Ch. 4 - If an adjustment includes an entry to Accumulated...Ch. 4 - Rent collected in advance is an example of which...
Ch. 4 - Rent paid in advance is an example of which of the...Ch. 4 - Salaries owed but not yet paid is an example of...Ch. 4 - Revenue earned but not yet collected is an example...Ch. 4 - What adjusting journal entry is needed to record...Ch. 4 - Which of these transactions requires an adjusting...Ch. 4 - What critical purpose does the adjusted trial...Ch. 4 - Which of the following accounts balance would be a...Ch. 4 - On which financial statement would the Supplies...Ch. 4 - On which financial statement would the Dividends...Ch. 4 - On which financial statement would the Accumulated...Ch. 4 - On which two financial statements would the...Ch. 4 - Describe the revenue recognition principle. Give...Ch. 4 - Describe the expense recognition principle...Ch. 4 - What parts of the accounting cycle require...Ch. 4 - Why is the adjusting process needed?Ch. 4 - Name two types of adjusting journal entries that...Ch. 4 - Are there any accounts that would never have an...Ch. 4 - Why do adjusting entries always include both...Ch. 4 - Why are adjusting journal entries needed?Ch. 4 - If the Supplies account had an ending balance of...Ch. 4 - When a company collects cash from customers before...Ch. 4 - If the Prepaid Insurance account had a balance of...Ch. 4 - If adjusting entries include these listed...Ch. 4 - What is the difference between the trial balance...Ch. 4 - Why is the adjusted trial balance trusted as a...Ch. 4 - Indicate on which financial statement the...Ch. 4 - Identify whether each of the following...Ch. 4 - Identify whether each of the following...Ch. 4 - Identify which type of adjustment is indicated by...Ch. 4 - The following accounts were used to make year-end...Ch. 4 - Reviewing insurance policies revealed that a...Ch. 4 - On July 1, a client paid an advance payment...Ch. 4 - Reviewing payroll records indicates that employee...Ch. 4 - Supplies were purchased on January 1, to be used...Ch. 4 - Prepare journal entries to record the following...Ch. 4 - Prepare journal entries to record the following...Ch. 4 - Prepare adjusting journal entries, as needed,...Ch. 4 - Prepare an adjusted trial balance from the...Ch. 4 - Prepare an adjusted trial balance from the...Ch. 4 - From the following Company A adjusted trial...Ch. 4 - Identify whether each of the following...Ch. 4 - Identify whether each of the following...Ch. 4 - Indicate what impact the following adjustments...Ch. 4 - What two accounts are affected by the needed...Ch. 4 - Reviewing insurance policies revealed that a...Ch. 4 - On September 1, a company received an advance...Ch. 4 - Reviewing payroll records indicates that one-fifth...Ch. 4 - On July 1, a client paid an advance payment...Ch. 4 - Prepare journal entries to record the business...Ch. 4 - Prepare journal entries to record the following...Ch. 4 - Prepare adjusting journal entries, as needed,...Ch. 4 - Prepare an adjusted trial balance from the...Ch. 4 - Prepare an adjusted trial balance from the...Ch. 4 - From the following Company B adjusted trial...Ch. 4 - Identify whether each of the following...Ch. 4 - To demonstrate the difference between cash account...Ch. 4 - Identify which type of adjustment is indicated by...Ch. 4 - Identify which type of adjustment is associated...Ch. 4 - Indicate what impact the following adjustments...Ch. 4 - What two accounts are affected by each of these...Ch. 4 - Using the following information: A. make the...Ch. 4 - Use the following account T-balances (assume...Ch. 4 - Use the following account T-balances (assume...Ch. 4 - Prepare journal entries to record the following...Ch. 4 - Prepare journal entries to record the following...Ch. 4 - Determine the amount of cash expended for Salaries...Ch. 4 - Prepare adjusting journal entries, as needed,...Ch. 4 - Prepare an adjusted trial balance from the...Ch. 4 - Prepare an adjusted trial balance from the...Ch. 4 - Prepare an adjusted trial balance from the...Ch. 4 - Using the following Company W information, prepare...Ch. 4 - From the following Company Y adjusted trial...Ch. 4 - Identify whether each of the following...Ch. 4 - To demonstrate the difference between cash account...Ch. 4 - Identify which type of adjustment is indicated by...Ch. 4 - Identify which type of adjustment is associated...Ch. 4 - Indicate what impact the following adjustments...Ch. 4 - What two accounts are affected by each of these...Ch. 4 - Using the following information, A. Make the...Ch. 4 - Use the following account T-balances (assume...Ch. 4 - Use the following account T-balances (assume...Ch. 4 - Prepare journal entries to record the following...Ch. 4 - Prepare journal entries to record the following...Ch. 4 - Determine the amount of cash expended for...Ch. 4 - Prepare adjusting journal entries, as needed,...Ch. 4 - Prepare an adjusted trial balance from the...Ch. 4 - Prepare an adjusted trial balance from the...Ch. 4 - Prepare an adjusted trial balance from the...Ch. 4 - Using the following Company X information, prepare...Ch. 4 - From the following Company Z adjusted trial...Ch. 4 - Assume you are the controller of a large...Ch. 4 - Assume you are employed as the chief financial...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following statements is correct? Options: • Prepayments of supplies initially recorded as asset will be adjusted at the end of the period as debit to unused supplies the portion that remains unused • Prepayments of interest expense under asset method should be recorded as debit to unearned interest • If unpaid expenses incurred during the accounting period are not accrued, the income for the period will be overstated • There is no provision for depreciation in cash basis accounting because there is no actual cash involvedarrow_forwardThe accumulated depreciation account is closed to the depreciation expense account. True Falsearrow_forwardChoose the incorrect statement below:A. Recognition for depreciation under the cash basis of accounting is different from that of the accrual basis of accounting.B. Deferred income is income already received but not yet earned.C. At the end of the accounting period, adjustments are made for accruals and prepayments in order to convert the cash records to accrual records.D. To compute for the sales on account, the beginning balance of trade accounts and notes receivable is deducted from the total of trade accounts and notes receivable, ending balance, collection of trade accounts and notes receivable, sales returns, discounts, and allowances and accounts written off.arrow_forward
- Which of the following is not a type of adjusting entry? a. Depreciation of long-term physical assets b. Allocation of unearned revenue c. Correction of an error in the general journal d. Recording of accrued revenuearrow_forwardWhich of the following statements is incorrect? A. Adjustments to prepaid expenses and unearned revenues involve previously recorded assets and liabilities. B. Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded. C. Adjusting entries can be used to record both accrued expenses and accrued revenues. D. Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time. E.Adj usting entries affect only balance sheet accounts.arrow_forwardThe Typhoon Company discovers an understatement of depreciation in a prior year. What are the components of the journal entry required in the current year to correct this error? Select one: O a A debit to Depreciation Expense and a credit to Accumulated Depreciation O b. A debit to Retained Earnings and a credit to Depreciation Expense CA debit to Retained Earnings and a credit to Accumulated Depreciation Od A debit to Depreciation Expense and a credit to Retained Earnings Oe. A debit to Accumulated Depreciation and a credit to Depreciation Expense Clear my choicearrow_forward
- The Accountant for the a Company forgot to make an adjusting entry to record depreciation for the current year. The effect of this error would be: a An overstatement of net income and an understatement of assets. b An overstatement of assets offset by an understatement of owners' equity. c An overstatement of assets, net income, and owners' equity. d An overstatement of assets and of net income and an understatement of owners' equity.arrow_forwardWhich of the following statements is incorrect? A. Adjustments to prepaid expenses and unearned revenues involve previously recorded assets and liabilities. B. Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded. C. Adjusting entries can be used to record both accrued expenses and accrued revenues. D. Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time.arrow_forward1. Which of the following statements is FALSE? A. Prepaid expense is an asset.B. Increase in withdrawal is credited.C. Liabilities are listed in the chart of accounts based on its maturity. 2. Which of the following statements is FALSE?A. Account titles in the chart of accounts are usually arranged alphabetically.B. Assets are classified as current and non-current.C. Land is not subject to depreciation.3. Which of the following statements is FALSE?A. Current liabilities are expected to be settled within twelve months.B. Liabilities must be equal to the sum of assets and owner's equity.C. Accounts payable is a current liability.D. Unearned revenue is a liability.4. Which of the following statements is FALSE?A. Cash includes coins, bills and checks.B. Prepaid expenses are advance payments to cover future expenses such as rent expense.C. Cash is the most liquid asset.D. Current assets are always reasonably expected to be realized in cash or consumed in the business after twelve months…arrow_forward
- Which of the following accounts should be closed? Depreciation expense Allowance for doubtful accounts Bad debt expense Unearned revenue Accumulated depreciation Dividends declaredarrow_forwardThe entry to record depreciation is an example of an adjusting entry: a. to apportion a recorded cost C. To record unrecorded expense b. to apportion unearned revenue D. To record unrecorded revenuearrow_forwardWhich of the following is correct when recording the disposal of equipment for a gain? Group of answer choices A)A debit to a gain account. b)A credit to the equipment account for the asset's net book value. C)A debit to accumulated depreciation for the depreciation accumulated to the date of disposal. D)A credit to cash. e)None of the abovearrow_forward
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