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The balance in the supplies account, before adjustment at the end of the year, is $2,400_Answer

The balance in the supplies account, before adjustment at the end of the year, is $2,400_Answer

The balance in the supplies account, before adjustment at the end of the year, is $2,400_Answer

The balance in the supplies account, before adjustment at the end of the year, is $2,400_Answer

The balance in the supplies account, before adjustment at the end of the year, is $2,400_Answer

1. Adjusting Entry for Supplies
The balance in the supplies account, before adjustment at the end of the year, is $2,400.

Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $1,128.

2. Determining Supplies Purchased
The supplies and supplies expense accounts at December 31, after adjusting entries have been posted at the end of the first year of operations, are shown in the following T accounts:

Supplies Supplies Expense
Bal. 513 Bal. 2,067

Determine the amount of supplies purchased during the year.
$

3. Adjusting Entries for Prepaid Insurance
The balance in the prepaid insurance account, before adjustment at the end of the year, is $13,390.
Journalize the 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 $10,180.

b.  The amount of unexpired insurance applicable to future periods is $3,210.

4. Adjusting Entries for Prepaid Insurance
The prepaid insurance account had a balance of $5,900 at the beginning of the year. The account was debited for $6,500 for premiums on policies purchased during the year.
Journalize the adjusting entry required at the end of the year for each of the following situations:

a.  The amount of unexpired insurance applicable to future periods is $1,100.

b.  The amount of insurance expired during the year is $11,300.

5. Adjusting Entries for Unearned Fees
The balance in the unearned fees account, before adjustment at the end of the year, is $31,275.

Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $14,075.

6. Adjusting Entry for Accrued Fees
At the end of the current year, $10,600 of fees have been earned but have not been billed to clients.

a.  Journalize the adjusting entry to record the accrued fees.

b.  If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary? 

7. Adjusting Entries for Unearned and Accrued Fees
The balance in the unearned fees account, before adjustment at the end of the year, is $104,520. Of these fees, $64,800 have been earned. In addition, $12,540 of fees have been earned but have not been billed.

a.  Journalize the adjusting entry to adjust the unearned fees account.

b.  Journalize the adjusting entry to record the accrued fees.

8. Adjusting Entries for Accrued Salaries
Torrey Realty Co. pays weekly salaries of $3,700 on Friday for a five-day workweek ending on that day.

a.  Journalize the necessary adjusting entry at the end of the accounting period assuming that the period ends on Tuesday.

b.  Journalize the necessary adjusting entry at the end of the accounting period assuming that the period ends on Thursday.

9. Determining Wages Paid
The wages payable and wages expense accounts at January 31, after adjusting entrieshave been posted at the end of the first month of operations, are shown in the following T accounts:

Wages Payable Wages Expense
Bal. 4,530 Bal. 1,33,820

Determine the amount of wages paid during the month.
$

10. Adjusting Entries for Prepaid and Accrued Taxes
Andular Financial Services was organized on April 1 of the current year. On April 2, Andular prepaid $5,280 to the city for taxes (license fees) for the next 12 months and debited the prepaid taxes account. Andular is also required to pay in January an annual tax (on property) for the previous calendar year. The estimated amount of the property tax for the current year (April 1 to December 31) is $24,385.

a.  Journalize the two adjusting entries required to bring the accounts affected by the two taxes up to date as of December 31, the end of the current year.

 License fees 

 Property tax 

b.   What is the amount of tax expense for the current year?
$

11. Adjustment for Depreciation

The estimated amount of depreciation on equipment for the current year is $3,040. Journalize the adjusting entry to record the depreciation.

12. Determining Fixed Asset’s Book Value
The balance in the equipment account is $759,600, and the balance in the accumulated depreciation—equipment account is $235,500.
a.   What is the book value of the equipment?
$

SELECT OPTIONS:
Yes
No
b.   Does the balance in the accumulated depreciation account mean that the equipment’s loss of value is $235,500? 

SELECT OPTIONS:
Cost
Loss of value
, because depreciation is an allocation of the 
 of the equipment to the periods benefiting from its use.

13. Book Value of Fixed Assets
In a recent balance sheet, Macrohard, Inc. reported Property, Plant, and Equipment of $646,790 and Accumulated Depreciation of $375,100.
a.   What was the book value of the fixed assets? 
$

SELECT OPTIONS:
Yes
No

b.   Would the book values of Macrohard’s fixed assets normally approximate their fair market values? 

14. Effects of Errors on Financial Statements
For a recent period, the balance sheet for Save-A-Lot Corporation reported accrued expenses of $313,443. For the same period, Save-A-Lot reported income before income taxes of $101,869. Assume that the adjusting entry for the accrued expenses was not recorded at the end of the current period. What would have been the income (loss) before income taxes? 
SELECT OPTIONS:
Income before taxes
Loss before taxes $

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