Accounting Homework

l4shaa
Chapter03.Exercises.xlsx
Home>Business & Finance homework help>Accounting homework help>Accounting Homework

E3-20

Financial Accounting
E3-20 Using an adjusted trial balance to prepare adjusting journal entries
LO 4,5 [10 minutes]
Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
First Class Maids Company, the cleaning service, started the preparation of its
adjusted trial balance as follows:
FIRST CLASS MAIDS COMPANY
Preparation of Adjusted Trial Balance
December 31, 2018
Trial Balance
Account Debit Credit
Cash $ 700
Supplies 3,000
Prepaid insurance 800
Equipment 29,000
Accumulated depreciation 7,000
Accounts payable 2,800
Salary payable
Unearned service revenue 500
Molly, capital 7,200
Molly, drawing 3,000
Service revenue 25,000
Salary expense 6,000
Supplies expense
Depreciation expense
Insurance expense
Total $ 42,500 $ 42,500
During the 12 months ended December 31, 2018, First Class Maids
a. used supplies of $1,800.
b. used up prepaid insurance of $620.
c. used up $460 of the equipment through depreciation.
d. accrued salary expense of $310 that First Class Maids hasn’t paid yet.
e. earned $360 of the unearned service revenue.
Requirements
1. Journalize the five adjustments, all dated December 31, 2018. Explanations are
not required.
Test Your Knowledge
E3-20
Req. 1
Journal
DATE ACCOUNTS AND EXPLANATIONS POST.REF. DEBIT CREDIT
Adjusting Entries
a.
b.
c.
d.
e.

Jennie Mitchell April 22, 2011

Print Test Your Knowledge

E3-25

Financial Accounting
E3-25 Preparing the financial statements
LO 6 [20 minutes]
Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
Refer to the adjusted trial balance (repeated below for your convenience) in Exercise 3-21
for the month ended April 30, 2018.
JOBS-4-U EMPLOYMENT SERVICE
Adjusted Trial Balance
April 30, 2018
Trial Balance Adjusted Trial Balance
Account Debit Credit Debit Credit
Cash $ 900 900
Accounts receivable 4,100 5,600
Supplies 1,000 500
Equipment 32,500 32,500
Accumulated depreciation $ 14,400 15,400
Salary payable 1,200
Yost, capital 23,300 23,300
Yost, drawing 4,800 4,800
Service revenue 9,100 10,600
Salary expense 2,500 3,700
Rent expense 1,000 1,000
Depreciation expense 1,000
Supplies expense 500
Total $ 46,800 $ 46,800 $ 50,500 $ 50,500
Requirements
1. Prepare the income statement.
2. Prepare the statement of owner's equity.
3. Prepare the balance sheet.
Test Your Knowledge
E3-25
Req. 1
Jobs-4-U Employment Service
Income Statement
Month Ended April 30, 2018
Revenue:
Service revenue $ 10,600
Expenses:
Salary expense $ 3,700
Total expenses 3,700
Net income $ 6,900
Req. 2
Jobs-4-U Employment Service
Statement of Owner's Equity
Month Ended April 30, 2018
Net income 6,900
6,900
Yost capital, April 30, 2018 $ 6,900
Jobs-4-U Employment Service
Balance Sheet
April 30, 2018
ASSETS LIABILITIES
OWNER'S EQUITY
Equipment 32,500
Total assets $ - 0 Total liabilities and owner's equity $ - 0

Jennie Mitchell 40655

Print Test Your Knowledge

P3-32A

Financial Accounting
P3-32A Journalizing adjusting entries
LO 4 [15-25 minutes]
Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
Laughter Landscaping has the following independent cases at the end of the year on
December 31, 2018.
a. Each Friday, Laughter pays employees for the current week’s work. The amount of the
weekly payroll is $7,000 for a five-day workweek. This year December 31 falls on a
Wednesday.
b. Details of Prepaid insurance are shown in the account:
Prepaid insurance
Jan 1 $4,500
c. The beginning balance of Supplies was $4,000. During the year, Laughter purchased
supplies for $5,200, and at December 31 the supplies on hand total $2,400.
d. Laughter designed a landscape plan, and the client paid Laughter $7,000 at the start of
the project. Laughter recorded this amount as Unearned service revenue. The job will
take several months to complete, and Laughter estimates that the company has earned
60% of the total revenue during the current year.
e. Depreciation for the current year includes Equipment, $3,700; and Trucks, $1,300.
Requirements
1. Journalize the adjusting entry needed on December 31, 2018, for each of the previous
items affecting Laughter Landscaping.
Test Your Knowledge
P3-32A
Req. 1
Journal
DATE POST.REF. DEBIT CREDIT
Adjusting Entries
a. Dec 31
b. 31
c. 31
d. 31
e. 31

Jennie Mitchell April 22, 2011

Print Test Your Knowledge

P3-37A

Financial Accounting
P3-37A Preparing financial statements from an adjusted trial balance
LO 6 [20-30 minutes]
Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
The adjusted trial balance of Party Piano Tuning Service, at fiscal year end
May 31, 2018, follows.
PARTY PIANO TUNING SERVICE
Adjusted Trial Balance
May 31, 2018
Trial Balance
Account Title Debit Credit
Cash $ 12,600
Accounts receivable 10,800
Supplies 1,900
Equipment 25,900
Accumulated depreciation $ 12,500
Accounts payable 3,300
Unearned service revenue 4,700
Salary payble 800
Note payable 14,000
Lindros, capital 13,600
Lindros, drawing 38,000
Service revenue 65,000
Depreciation expense 5,600
Salary expense 9,600
Utilities expense 3,900
Insurance expense 3,700
Supplies expense 1,900
Total 113,900 $ 113,900
Requirements
1. Prepare Party’s 2018 income statement.
2. Prepare the statement of owner's equity for the year.
3. Prepare the year-end balance sheet.
4. Which financial statement reports Party’s results of operations? Were the 2018
operations successful? Cite specifics from the financial statements to support
your evaluation.
5. Which statement reports the company’s financial position?
Test Your Knowledge
P3-37A
Req. 1
Party Piano Tuning Service
Income Statement
Year Ended May 31, 2018
Revenue:
Service revenue $ 65,000
Expenses:
Supplies expense 1,900
Total expenses 1,900
Net income $ 63,100
Req. 2
Party Piano Tuning Service
Statement of Owner's Equity
Year Ended May 31, 2018
Net income 63,100
63,100
Lindros, capital, May 31, 2018 $ 63,100
Req. 3
Party Piano Tuning Service
Balance Sheet
May 31, 2018
ASSETS LIABILITIES
Note payable 14,000
Accumulated Depr. (12,500) (12,500) Total liabilities $ 14,000
OWNER'S EQUITY
Lindors, capital 63,100
Total assets $ (12,500)
Req. 4
Req. 5

Jennie Mitchell April 22, 2011

Print Test Your Knowledge