Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Chapter 2, Problem 4R
The
Information for the
- a. Cleaning supplies on hand on December 31, 2012, $18,750.
- b. Insurance premiums expired during the year, $1,800.
- c. Depreciation on equipment during the year, $21,600.
- d. Wages accrued but not paid at December 31, 2012, $1,830.
Suppose you discover that an assistant in your department had misunderstood your instructions and had provided you with the wrong information on two of the adjusting entries. Cleaning supplies consumed during the year should have been $18,750, and insurance premiums unexpired at year-end were $1,800. Make the corrections on your worksheet and save the corrected file as F1WORK4. Reprint the worksheet.
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The information necessary for preparing the 2021 year-end adjusting entries for Bearcat Personal Training Academy appears below. Bearcat’s fiscal year-end is December 31. 1. Depreciation on the equipment for the year is $7,000. 2. Salaries earned (but not paid) from December 16 through December 31, 2021, are $4,000. 3. On March 1, 2021, Bearcat lends an employee $20,000. The employee signs a note requiring principal and interest at 9% to be paid on February 28, 2022. 4. On April 1, 2021, Bearcat pays an insurance company $13,200 for a two-year fire insurance policy. The entire $13,200 is debited to Prepaid Insurance at the time of the purchase. 5. Bearcat uses $1,700 of supplies in 2021. 6. A customer pays Bearcat $2,700 on October 31, 2021, for three months of personal training to begin November 1, 2021. Bearcat credits Deferred Revenue at the time of cash receipt.7. On December 1, 2021, Bearcat pays $6,000 rent to the owner of the building. The payment represents rent for December…
The balance in the prepaid insurance account, before adjustment at the end of the year, is $18,565.
Journalize the March 31 adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of insurance expired during the year is $14,135; (b) the amount of unexpired insurance applicable to future periods is $4,430. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
The prepaid insurance account had a balance of $7,155 at the beginning of the year. The account was debited for $22,025 for premiums on policies
purchased during the year, ending on March 31.
Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of unexpired
insurance applicable to future periods is $8,765; (b) the amount of insurance expired during the year is $20,415. Refer to the Chart of Accounts for exact
wording of account titles.
Chapter 2 Solutions
Excel Applications for Accounting Principles
Ch. 2 - The trial balance of Wikki Cleaners at December...Ch. 2 - The trial balance of Wikki Cleaners at December...Ch. 2 - The trial balance of Wikki Cleaners at December...Ch. 2 - The trial balance of Wikki Cleaners at December...Ch. 2 - The trial balance of Wikki Cleaners at December...Ch. 2 - The trial balance of Wikki Cleaners at December...
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