Accounting

CopyofChapter07c-Problem7-1to7-8Formsj.xls

7-1


Name:	Jatavis Scott	Section:	16136
		#:	0216157
Problem 7-1
Purchase and Depreciate a New Delivery Truck
Requirement 1 -- March 1 truck purchase
Date	Account Name	Debit	Credit
3-1	Cash	64,800
Requirement 2 -- Monthly depreciation
$900
Requirement 3 -- March 31 depreciation adjusting entry
Date	Account Name	Debit	Credit
3-21	Accumulated Depreciation		13,000
			14,000
Requirement 4 -- Balance in "Accumulated Depreciation - Truck" after 18 months
$16,200
Requirement 5 -- Monthly depreciation if life was 4 years
$338


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Problem 7-2			Pg. A
Purchase and Depreciate Two Items of Property, Plant, & Equipment
Requirement 1 -- April 1 office building purchase
Date	Account Name	Debit	Credit
Requirement 2 -- Monthly depreciation for the office building
Requirement 3 -- April 30 depreciation adjusting entry for the office building
Date	Account Name	Debit	Credit
Requirement 4 -- May 1 computer system purchase
Date	Account Name	Debit	Credit


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Problem 7-2			Pg. B
Purchase and Depreciate Two Items of Property, Plant, & Equipment
Requirement 5 -- Monthly depreciation for the computer system
Requirement 6 -- May 31 depreciation adjusting entry for the computer system
Date	Account Name	Debit	Credit
Requirement 7 -- May 31 depreciation adjusting entry for the office building
Date	Account Name	Debit	Credit
Requirement 8 -- Total Depreciation Expense on the May Income Statement


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Problem 7-3			Pg. A
Purchasing Supplies and the Monthly Supplies Adjusting Entry
Requirement 1 -- July 1 purchase of supplies
Date	Account Name	Debit	Credit
Requirement 2 -- July 31 supplies on-hand
Requirement 3 -- "T" Account Analysis for July 31 adjusting entry
	"T" Account Analysis for Asset and Liability Accounts
	Account Name ð	Supplies (asset account)
		Debit	Credit
	(1) What is the current balance?
	(3) What adjustment is required to adjust from the current balance to the should be balance?
	(2) What should be the balance?
Requirement 4 -- July 31 supplies adjusting entry
Date	Account Name	Debit	Credit


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Problem 7-3			Pg. B
Purchasing Supplies and the Monthly Supplies Adjusting Entry
Requirement 5 -- August 31 supplies on-hand
Requirement 6 -- "T" Account Analysis for August 31 adjusting entry
	"T" Account Analysis for Asset and Liability Accounts
	Account Name ð	Supplies (asset account)
		Debit	Credit
	(1) What is the current balance?
	(3) What adjustment is required to adjust from the current balance to the should be balance?
	(2) What should be the balance?
Requirement 7 -- August 31 supplies adjusting entry
Date	Account Name	Debit	Credit
Requirement 8 -- Total $ amount of supplies consumed during first 2 months of operation


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Problem 7-4					Pg. A
Paying Rent in Advance and the Monthly Prepaid Rent Adjusting Entry
Requirement 1 -- June 20 advance payment of rent
Date	Account Name			Debit	Credit
Requirement 2 -- Prepaid Rent timeline
In the boxes above the timeline, indicate the amount of remaining Prepaid Rent for each date
on the timeline.
Note that the amounts of Prepaid Rent for June 20 (the date the contract was signed) and
for October 31 (the last day of the four month rental period) have already been entered.
In the boxes below the timeline, indicate the amount of Prepaid Rent that expires
(is used-up) during each of the four months.
$12,000					$0
ïJune 20	ïJuly 1	ïJuly 31	ïAug. 31	ïSept. 30	ïOct. 31
	July	August	September	October
	ñ	ñ	ñ	ñ
	Month 1	Month 2	Month 3	Month 4


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Problem 7-4			Pg. B
Paying Rent in Advance and the Monthly Prepaid Rent Adjusting Entry
Requirement 3 -- "T" Account Analysis for the July 31 adjusting entry
	"T" Account Analysis for Asset and Liability Accounts
	Account Name ð	Prepaid Rent
		Debit	Credit
	(1) What is the current balance?
	(3) What adjustment is required to adjust from the current balance to the should be balance?
	(2) What should be the balance?
Requirement 4 -- July 31 Prepaid Rent adjusting entry
Date	Account Name	Debit	Credit
Requirement 5
Amount of Prepaid Rent on the August 31 Balance Sheet
Amount of Rent Expense on the August 1 to August 31 Income Statement


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Problem 7-5					Pg. A
Prepaid Insurance and the Monthly Prepaid Insurance Adjusting Entry
Requirement 1 -- September 1 advance payment of the two insurance policies
Date	Account Name			Debit	Credit
Requirement 2 -- Auto and Truck Prepaid Insurance timeline
In the boxes above the timeline, indicate the amount of remaining Prepaid Insurance related
to the Auto and Truck insurance policy for each date on the timeline.
In the boxes below the timeline, indicate the amount of Prepaid Insurance that expires
(is used-up) during each of the three months.
	ïSept. 1	ïSept. 30	ïOct. 31	ïNov. 30
	September	October	November
	ñ	ñ	ñ
	Month 1	Month 2	Month 3
Requirement 3 -- Business Liability Prepaid Insurance timeline
In the boxes above the timeline, indicate the amount of remaining Prepaid Insurance related
to the Business Liability insurance policy for each date on the timeline.
In the boxes below the timeline, indicate the amount of Prepaid Insurance that expires
(is used-up) during each of the four months.
	ïSept. 1	ïSept. 30	ïOct. 31	ïNov. 30	ïDec. 31
	September	October	November	December
	ñ	ñ	ñ	ñ
	Month 1	Month 2	Month 3	Month 4


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Problem 7-5			Pg. B
Prepaid Insurance and the Monthly Prepaid Insurance Adjusting Entry
Requirement 4 -- "T" Account Analysis for the Sept. 30 Prepaid Insurance adjusting entry
Note that the Prepaid Insurance account contains the total amount of prepaid insurance
for both the Auto and Truck insurance policy and the Business Liability insurance policy.
	"T" Account Analysis for Asset and Liability Accounts
	Account Name ð	Prepaid Insurance
		Debit	Credit
	(1) What is the current balance?
	(3) What adjustment is required to adjust from the current balance to the should be balance?
	(2) What should be the balance?
Requirement 5 -- September 30 Prepaid Insurance adjusting entry
Date	Account Name	Debit	Credit
Requirement 6
Amount of Prepaid Insurance on the October 31 Balance Sheet
Amount of Insurance Expense on the October 1 to October 31 Income Statement


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Problem 7-6
Weekly Wage Payment Entries and the Month-End Wages Payable Adjusting Entry
Requirement 1 -- Wage payment on Friday June 25th
Date	Account Name	Debit	Credit
6/25/xx
Requirement 2
Total amount earned by the employees for:
Monday June 28th + Tuesday June 29th + Wednesday June 30th
Requirement 3 -- June 30 Wages Payable adjusting entry
Date	Account Name	Debit	Credit
6/30/xx
Requirement 4 -- Wage payment on Friday July 2nd
Date	Account Name	Debit	Credit
7/02/xx


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Problem 7-7
Take-Out a Loan -- Accrue Interest on the Loan -- Pay Interest
Requirement 1 -- April 1 get the loan from the bank
Date	Account Name	Debit	Credit
Requirement 2 -- April 30 interest accrual adjusting entry
Date	Account Name	Debit	Credit
Requirement 3 -- May 31 interest accrual adjusting entry
Date	Account Name	Debit	Credit
Requirement 4 -- Payment of the April, May, and June interest to the bank
Date	Account Name	Debit	Credit


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Problem 7-8
Accrue Rent Payable -- Pay Rent the Following Month
Requirement 1 -- September 1 entry to record signing the contract
Date	Account Name	Debit	Credit
Requirement 2 -- September 30 rent payable accrual adjusting entry
Date	Account Name	Debit	Credit
Requirement 3 -- October 5 payment of September's rent
Date	Account Name	Debit	Credit