Accounting Principles 10th Edition Weygandt & Kimmel Chapter 3

Chapter 3, Adjusting Entries, pages 103 - 121 reference: Chapter 2, Recording Process, pages 63 - 72

Date

General Journal (pg 117) Account Titles & Explantion

Debit

Credit

Adjusting Entries 1

2

3

4

5

6

7

10/31 Supplies Expense Supplies ($2,500 -$1,000) (to record supplies used)

$

10/31 In Insurance Expense ($600 / 12 = $50) PrePaid Insurance (to record insurance expired)

$

10/31 De Depreciation Expense ($4,800 / 120) Accum Deprec - Equip (to record monthly depreciation expense)

$

10/31 UnEarned Service Revenues Service Revenues (to record revenue earned)

$

10/31 Accounts Receivable Service Revenues (to record revenue earned)

$

10/31 Interest Expense Interest Payable (to record accrued interest $5,000 X 12% X 1/12 = $50)

$

10/31 Salaries & Wage Expense Salaries & Wage Payable (to record accrued salaries)

$

1,500 1,500

50 50

40 40

400 400

200 200

50 50

1,200 1,200

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Chapter 3, Adjusting Entries, pages 103 - 121 reference: Chapter 2, Recording Process, pages 63 - 72 General Ledger

Date 10/1/2013 10/2 10/3 10/4 10/20 10/26 10/31

Cash Debit(+) Credit(-) $ 10,000 1,200 900 600 500 4,000 10,000

Supplies Date Debit(+) Credit(-) 10/5/2013 $ 2,500 1,500

PrePaid Insur Date Debit(+) Credit(-) 10/4/2013 $ 600 50

Equipment Date Debit(+) Credit(-) 10/1/2013 $ 5,000

Date 10/1/2013

Notes Payable Debit(-) Credit(+) $ 5,000

Balance $ 10,000 11,200 10,300 9,700 9,200 5,200 $ 15,200

Balance $ 2,500 $ 1,000

Balance $ 600 $ 550

Balance $ 5,000

Balance $ 5,000

Date 10/2/2013 10/31

UnEarn Ser Rev Debit(-) Credit(+) $ 1,200 400

Balance $ 1,200 $ 800

Date 10/31/2012

Accum Dep - Equip Debit(+) Credit(-) $ 40

Balance $ 40

Date 10/1/2013

Owner's Capital Debit(-) Credit(+) $ 10,000

Balance $ 10,000

-Owner's Drawings Date Debit(+) Credit(-) 10/20/2013 $ 500

Date 10/31/2013 10/31 10/31

Service Revenues Debit(-) Credit(+) $ 10,000 400 200

-Sal & Wages Exp Date Debit(+) Credit(-) 10/26/2013 $ 4,000 10/31 1,200

Balance $ 500

Balance $ 10,000 10,400 $ 10,600

Balance $ 4,000 $ 5,200

































Chapter 3, Adjusting Entries, pages 103 - 121 reference: Chapter 2, Recording Process, pages 63 - 72 General Ledger -Supplies Exp Date Debit(-) Credit(+) 10/31/2012 $ 1,500

-Deprec Exp Date Debit(-) Credit(+) 10/31/2012 $ 40

Date 10/31/2012

Interest Payable Debit(-) Credit(+) $ 50

Balance $ 1,500

-Insurance Exp Date Debit(+) Credit(-) 10/31/2012 $ 50

Balance $ 50

Balance $ 40

Accounts Receivable Date Debit(+) Credit(-) 10/31/2012 $ 200

Balance $ 200

Balance $ 50

-Interest Exp Date Debit(+) Credit(-) 10/31/2012 $ 50

Balance $ 50

Sal & Wages Payable Date Debit(-) Credit(+) Balance 10/31/2012 $ 1,200 $ 1,200

(adjustments in red)

20 Ledger Accounts

































Chapter 3, Adjusting Entries, pages 103 - 121 reference: Chapter 2, Recording Process, pages 63 - 72

Pioneer Company Adjusted Trial Balance, October 31, 2012 Adjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11

Cash Accounts Receivable Supplies PrePaid Insurance Equipment Accum Deprec - Equip

Debit $

15,200 200 1,000 550 5,000 40

Notes Payable Accounts Payable UnEarned Service Revenue Salary & Wage Payable Interest Payable

5,000 2,500 800 1,200 50

12 Owner's Capital 13 Owner's Drawings 14 15 16 17 18 19 20

Credit

10,000 500

Service Revenue Sa Salaries & Wages Expense Supplies Expense Rent Expense Insurance Expense Interest Expense Depreciation Expense

10,600 5,200 1,500 900 50 50 40 $

30,190

$ 30,190

































Chapter 3, Adjusting Entries, pages 103 - 121 reference: Chapter 2, Recording Process, pages 63 - 72 Income Statement month ending October 31, 2012

Revenues Service Revenues Expenses Salaries & Wages Expense Supplies Expense Rent Expense Insurance Expense Interest Expense Depreciation Expense Total Expenses

$ 10,600

(5,200) (1,500) (900) (50) (50) (40) (7,740)

Net Income

$

2,860

$

-

Owner's Equity Statement month ending October 31, 2012

Owner's Capital, October 1 Add: Investments Add: Net Income Less: Drawings Owner's Capital, October 31

10,000 2,860 12,860 (500) $ 12,360

































Chapter 3, Adjusting Entries, pages 103 - 121 reference: Chapter 2, Recording Process, pages pages 63 - 72 Balance Sheet month ending October 31, 2012

Assets Cash Accounts Receivable Supplies PrePaid Insurance Equipment Less: Accumulated Depreciation Total Assets Liabilities & Owner's Equity Liabilities Notes Payable Accounts Payable UnEarned Service Revenues Salaries & Wages Payable Interest Payable Total Liabilities Owner's Equity Owner's Capital Total Liabilities & Owner's Equity

$ 15,200 200 1,000 550 5,000 (40)

4,960 $ 21,910

$

$

5,000 2,500 800 1,200 50 9,550

12,360 $ 21,910



































Chapter 3, Adjusting Entries, pages 103 - 121 reference: Chapter 2, Recording Process, pages pages 63 - 72 Statement of CashFlows month ending October 31, 2012

Cash Flows from Operating Activities Activities cash receipts from revenues cash payments for expenses Net Cash Provided by by Operating Activities

$

11,200 (5,500) 5,700

$

-

$

10,000 (500) 9,500

net change in cash

$

15,200

cash at beginning of period cash at end of period

$ $

15,200

Cash Flow from Investing Activities Purchase of Equipment

$

Cash Flow from Financing Activities Activities Investment by Owners Drawings by Owners

































Chapter 3, Recording Process, pages 63 - 72 the purpose of transaction analysis is to identify the type of account involved, then to determine whether to make a debit or credit to the account General Journal Account Titles & Explantion

Date 1

10/1/2013 Cash

Debit $ 10,000

Owner's Capital (owner's investment of cash in a business) 2

10/1 Equipment

10,000

$ 5,000

Notes Payable (purchase of equipment on account) (issued 3 month, 12% note for equip) 3

10/2 Cash

5,000

$ 1,200

UnEarned Service Revenue (cash received for future service) 4

5

6

Credit

1,200

10/3 Rent Expense Cash (paid october rent)

$

10/4 PrePaid Insurance Cash (paid one year policy, effective October 1)

$

10/5 Supplies

$ 2,500 Accounts Payable

900 900

600 600

2,500

































Chapter 2, Recording Process, pages 63 - 72 General Ledger

Date 10/1/2013 10/2 10/3 10/4 10/20 10/26 10/31

Cash Debit(+) Credit(-) $ 10,000 1,200 900 600 500 4,000 10,000

Supplies Date Debit(+) Credit(-) 10/5/2013 $ 2,500

PrePaid Insur Date Debit(+) Credit(-) 10/4/2013 $ 600

Equipment Date Debit(+) Credit(-) 10/1/2013 $ 5,000

Date 10/2/2013

UnEarn Ser Rev Debit(-) Credit(+) $ 1,200

Balance $ 1,200

Date 10/1/2013


Balance $ 10,000

Balance $ 600

-Owner's Drawings Date Debit(+) Credit(-) 10/20/2013 $ 500

Balance $ 500

Balance $ 5,000

Service Revenues Debit(-) Credit(+) $ 10,000

Balance $ 10,000

Balance $ 10,000 11,200 10,300 9,700 9,200 5,200 $ 15,200

Balance $ 2,500

Date 10/31/2013

































Chapter 2, Recording Process, pages 63 - 72 Pioneer Company Trial Balance, October 31, 2012 Trial Balance Account Title Cash Supplies PrePaid Insurance Equipment

Debit $

Credit

15,200 2,500 600 5,000

Notes Payable Accounts Payable UnEarned Service Revenue

5,000 2,500 1,200

Owner's Capital Owner's Drawings

10,000 500

Service Revenue Salaries & Wages Expense Rent Expense

10,000 4,000 900 $

28,700

$ 28,700

































Chapter 3, P3-1A Adjusting Entries, page 137 McGEE COMPANY

Date

General Journal Account Titles & Explantion

Debit

Credit

Adjusting Entries 1

2

3

4

5

6

6/30/2012 Supplies Expense Supplies ($2000 -$750) (to record supplies used)

$

1,250 1,250

6/30 Utility Expense Accounts payable (to record utility bill to be paid next month)

$

6/30 Insurance Expense ($3000/12) PrePaid Insurance (to record insurance expired)

$

6/30 UnEarned Service Revenues Service Revenue (to record service revenue earned)

$


$

6/30 Depreciation Expense ($15000/60) Accum Deprec - Equip

$

150 150

250 250

2,800 2,800

1,900 1,900

250 250



































Chapter 3, P3-1A Adjusting Entries, page 137 General Ledger

Date

Date

Date

Cash Debit(+) Credit(-) $7,150

Accounts Receivable Debit(+) Credit(-) $ 6,000 1,200

Supplies Debit(+) Credit(-) $ 2,000 1,250

Balance $7,150

Balance $ 6,000 7,200

Balance $ 2,000 750

Date

Date

Date

UnEarn Service Rev Debit(-) Credit(+) $ 4,000 2,800

Balance $ 4,000 1,200


Balance $ 21,750

Service Revenues Debit(-) Credit(+) $ 7,900 2,800 1,200

Balance $ 7,900 10,700 11,900

































Chapter 3, P3-1A Adjusting Entries, page 137 General Ledger

Date

-Supplies Exp Debit(+) Credit(-) $ 1,250

Date

-Deprec Expense Debit(+) Credit(-) $ 250

Date

-Utility Expense Debit(+) Credit(-) $ 150

Balance 1,250

Balance 250

Balance 150

Date

-Insurance Exp Debit(+) Credit(-) $ 250

Balance 250

Date

Accu Deprec Equip Debit(-) Credit(+) $ 250

Balance 250

Date

Sal & Wage Payable Debit(-) Credit(+) $ 1,900

Balance 1,900

































Chapter 3, P3-1A Adjusting Entries, page 137 McGEE COMPANY Adjusted Trial Balance, June 30, 2012 Adjusted Trial Balance Account Title 1 2 3 4 5 6

Cash Accounts Receivable Supplies PrePaid Insurance Equipment Accum Deprec - Equipment

7 Accounts Payable 8 UnEarned UnEarned Service Service Revenue Revenue 9 Salary & Wage Payable

Debit

Credit

$7,150 7,200 750 2,750 15,000 250 4,650 1,200 1,200 1,900

10 Owner's Capital

21,750

11 Service Revenue

11,900

































Chapter 3, Adjusting Entries, pages 103 - 121

Income Statement month ending June 30, 2012

Revenues Service Revenue Expenses Salaries & Wages Expense Rent Expense Utilities Expense Supplies Expense Insurance Expense Depreciation Expense Total Expenses Net Income

11,900

$

-

5,900 1,000 150 1,250 250 250 8,800 $

3,100

































Chapter 3, P3-1A Adjusting Entries, page 137

Balance Sheet month ending June 30, 2012

Assets Cash Accounts Receivable Supplies PrePaid Insurance Equipment Less:Accum Deprec - Equip Total Assets Liabilities & Owner's Equity Liabilities Accounts Payable UnEarned Service Revenues Mortgage Payable Salaries & Wages Payable Interest Payable

$

7,150 7,200 750 2,750

15,000 (250) $

$

14,750 32,600

4,650 1,200 1,900 -



































Chapter 3, P3-1A Adjusting Entries, page 137 P3-1A Tony Masasi started his own consulting fi rm, McGee Company, on June 1, 2012. The trial balance at June 30 is shown below. McGEE COMPANY Trial Balance, June 30, 2012 Trial Balance Account Title Debit Cash Accounts Receivable S li

$7,150 6,000 2 000

Credit





































































































































































































Chapter 3, Adjusting Entries, P3-2A, pages 138-139 Melton River Resort General Journal



































Chapter 3, Adjusting Entries, P3-2A, pages 138-139 General Ledger

Date

Cash Debit(+) Credit( )

Balance

Date

UnEarn Rent Rev Debit( ) Credit(+)

Balance



































Chapter 3, Adjusting Entries, P3-2A, pages 138-139 General Ledger



































Chapter 3, Adjusting Entries, P3-2A, pages 138-139 Melton River Resort Adjusted Trial Balance, August 31, 2012





























































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































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NOT DONE Chapter 3, P3-6A Recording Process, page 141 Olsen Graphics Company General Journal Account Titles & Explantion

Date

Debit

Credit

Adjusting Entries 1

1/31 Supplies

$

1,500

Supplies Expense (to record supplies used) 2

1/31 Interest Expense (20000, 9%, 6 month note)

1,500

$

750

Interest Payable (to record accrued interest) $20,000 X 9% X 1/12 = $150)

750

3 1/31 PrePaid In Insurance ($ ($2700/12*4months=900) Insurance Expense (to record insurance expired)

$

1/31 S

$

1,800 1,800

4 i

R

1 300

































Chapter 3, P3-6A Recording Process, page 141 General Ledger

Date 01/01/2012


Accounts Receivable Date Debit(+) Credit(-) 1/1/2012 $ 14,000 2,000

Equipment Date Debit(+) Credit(-) 1/1/2012 $ 45,000 1/31

Date

Prepaid Insurance Debit(+) Credit( )

Balance $8,600

Balance $14,000 $ 16,000

Balance $45,000

Balance

Date 1/1/2012

Note Payable Debit(-) Credit(+) $20,000

Balance $ 20,000

Date 1/1/2012

Accounts Payable Debit(-) Credit(+) $ 9,000

Balance $ 9,000

Date 1/1/2012


Balance $ 22,000

Date

Sales Revenue Debit(+) Credit( )

Balance


































-Deprec Expense Date Debit(+) Credit(-) 1/31/2012 $ 1,125

Date 1/31/2012

Interest Payable Debit(-) Credit(+) $ 750

Date 1/31/2012

Accu Deprec Equip Debit(-) Credit(+) $ 1,125

Balance $ 1,125

Date

-Insurance Exp Debit(+) Credit(-) 1,800

Balance $ 1,800

Balance $ 750

-Interest Expense Date Debit(+) Credit(-) 1/31/2012 $ 750

Balance $ 1,125

UnEarned Service Revenue Date Debit(-) Credit(+) Balance 1/31/2012 $ 1,300 $ 1,300

Balance $ 750

































Chapter 3, P3-6A Recording Process, page 141 Olsen Graphics Company Adjusted Trial Balance, August 31, 2012 Adjusted Trial Balance Account Title 1 Cash Accounts Receivable Supplies PrePaid Insurance Equipment Accum Deprec - Equipment

Debit

Credit

$8,600 16,000 $1,500 $1,800 45,000 1,125

Note Payable Accounts Payable Interest Payable UnEarned Rent Revenue

20,000 9,000 750 1,300

Owner's Capital Owner's Drawings

22,000


































Income Statement month ending August 31, 2012

Revenues Rent Revenues Expenses Maintenance & Repair Expense Salaries & Wages Expense Utilities Expense Supplies Expense Insurance Expense Interest Expense Depreciation Expense Total Expenses Net Income



































Chapter 3, P3-6A Recording Process, page 141

Balance Sheet month ending August 31, 2012

Assets Cash Accounts Receivable Supplies PrePaid Insurance Land Buildings

































Chapter 3, P3-6A Recording Process, page 141 * P3-6A Olsen Graphics Company was organized on January 1, 2012, by Gwen Olsen. At the end of the fi rst 6 months of operations, o perations, the trial balance contained the accounts shown below. Debits Cash Cash Accounts Receivable Equipment Insurance Expense Salaries and Wages Expense Supplies Expense Advertising Expense Rent Expense Utilities Expense

$8,600 $8,600 14,000 45,000 2,700 30,000 $3,700 1,900 1,500 1,700

Credits Notes Not es Pay Payabl able e Accounts Payable Owner’s Capital Sales Revenue Service Revenue

$20,000 $20,00 0 9,000 22,000 52,100 6,000 $109,100

































Chapter 3, P3-1B Adjusting Entries, pages 141-142 Omiyale Consulting Inc.

Date


Debit

Credit

Adjusting Entries 1

2

5/31 Supplies Expense Supplies ($1900-900) (to record supplies used)

$

5/31 Utility Expense

$

1,000 1,000

250

































Chapter 3, P3-1B Adjusting Entries, pages 141-142 General Ledger

Date 05/01/2012


Supplies Date Debit(+) 08/01/2012 $ 1,900

Credit(-) 1,000

Balance $4,500

Balance $ 1,900 $ 900

Date 08/01/2012

Date

UnEarn Service Rev Debit(-) Credit(+) $2,000 $1,600

Balance $ 2,000 $ 400

Accounts Payable Debit(-) Credit(+) $ 4,500 250

Balance $ 4,500 $ 4,750

































Chapter 3, P3-1B Adjusting Entries, pages 141-142 General Ledger -Supplies Exp Date Debit(+) Credit(-) 8/31/2012 $ 1,000

-Deprec Expense Date Debit(+) Credit(-) 8/31/2012 $ 190

Balance $ 1,000

Balance $ 190

-Utilities Expense Date Debit(+) Credit(-) 8/31/2012 $ 250

Date 8/31/2012

Accu Deprec Furniture Debit(+) Credit(-) 190

Balance $ 250

Balance $ 190



































Chapter 3, P3-1B Adjusting Entries, pages 141-142 Omiyale Consulting Inc. Adjusted Trial Balance, May 31, 2012




































Income Statement month ending May 31, 2012



































Chapter 3, P3-1B Adjusting Entries, pages 141-142

Balance Sheet month ending May 31, 2012



































Chapter 3, P3-1B Adjusting Entries, pages 141-142 Fran Omiyale started her own consulting fi rm, Omiyale Consulting, on May 1, 2012. The trial balance at May 31 is as follows.





























































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































Robinson Equipment Repair Trial Balance, August 31, 2012 Trial Balance Account Title Cash Accounts Receivable Supplies Equipment Accum Deprec Equipment

Debit

Credit

$3,020 2,730 2,500 14,000 $2,000

Accounts Payable UnEarned Service Revenue Salary & Wage Payable

2,600 1,800 0

Owner's Capital

13,950

Service Revenue Rent Expense Salaries & Wage Expense

5,000 400 2,700 $25,350

$

25,350

































Chapter 3, P3-5A Adjusting Entries, page 140 Robinson Equipment Repair

Date


Debit

Credit

Adjusting Entries 1

2

3

4

9/30 Supplies Expense ($2500-1400) Supplies (to record supplies used)

$


$

9/30 Depreciation Expense Accum Deprec - Equip (to record deprec expense, 100/month)

$

9/30 UnEarned Service Revenues Service Revenue (to record service revenue earned)

$

1,100 1,100

350 350

200 200

1,250 1,250


































Date

Date

Date

Date

Date

Date

Cash Debit(+) Credit(-) 2400 1700 3420 3100 2700 400 1700 600 Accounts Receivable Debit(+) Credit(-) 4250 3420 1900 Supplies Debit(+) Credit(-) 1800 700 1,100 Equipment Debit(+) Credit(-) 12000 2000

Accu Deprec Equipment Debit(-) Credit(+) 2000 200

Accounts Payable Debit(-) Credit(+) 2600 2000 2700

Balance 2400 700 4120 7220 4520 4120 2420 3020

Balance 4250 830 2730

Balance 1800 2500 1,400

Balance 12000 14000

Balance 2000 2,200

Balance 2600 4600 1900

Date

Date

Date

Date

Date

Date

Owner's Capital Debit(-) Credit(+) 13,950

Balance 13950

UnEarn Service Revenue Debit(-) Credit(+) Balance 1200 1200 600 1800 $ 1,250 $ 550 Salary & Wage Payable Debit(-) Credit(+) 0 350

Service Revenue Debit(-) Credit(+) 3100 1900 1,250 -Salaries & Wage Expen Debit(+) Credit(-) 1000 1700 $ 350 -Rent Expense Debit(+) Credit(-) 400

Balance 0 350

Balance 3100 5000 6,250

Balance 1000 2700 $ 3,050

Balance 400

































Chapter 3, Recording Recording Process,P3-5B page 144 Robinson Equipment Repair Adjusted Trial Balance, September, 30, 2012 Adjusted Trial Balance Account Title 1 2 3 4 5

Cash Accounts Receivable Supplies Equipment Accum Deprec Equipment

Debit

Credit

3,020 2,730 1,400 14,000 2,200

Accounts Payable UnEarned Service Revenue Salary & Wage Payable

2,600 550 350

Owner's Capital Service Revenue Rent Expense Salaries & Wage Expense Supplies Expense Depreciation Expense

13,950 6,250 400 3,050 1,100 200 25,900

$

25,900

































Chapter 3, Recording Recording Process,P3-5B page 144

Income Statement month ending September 30, 2012

Revenues Service Revenue Expenses Rent Expense Salaries & Wage Expense Supplies Expense Depreciation Expense

$

400 3,050 1,100 200 4,750

6,250

(4,750)

Total Expenses Net Income

$

1,500

$

-

Owner's Equity Statement month ending September 30, 2012

Owner's Capital, Sept 1 Add: Investments Add: Net Income

13,950 1,500 15,450

Less: Drawings Owner's Capital, Sept 30

$

15,450



































Chapter 3, Recording Recording Process,P3-5B page 144

Balance Sheet month ending September 30, 2012

Assets Cash Accounts Receivable Supplies Equipment Less:Accum Deprec - Equip

3,020 2,730 1,400 14,000 (2,200)

Total Assets

$18,950

Liabilities & Owner's Equity Liabilities Accounts Payable UnEarned Service Revenue Salary & Wage Payable Total Liabilities Owner's Equity Owner's Capital Total Liabilities & Owner's Equity

2,600 550 350 $

3,500

$

15,450 18,950

































Chapter 3, Recording Recording Process,P3-5B page 144 P3-5B On November 1, 2012, the account balances of Robinson Equipment Repair were as follows. Debits Credits Cash $2,400 Accum Deprec Equipment $2,000 Accounts Receivable 4,250 Accounts Payable 2,600 Supplies 1,800 Unearned Service Revenue 1,200 Equipment 12,000 Salaries and Wages Payable 700 Owner’s Capital 13,950 $25,400

2 3 4 5 6 7 8 9 10 11

$25,400

During November, the following summary transactions were completed. Nov. 8 Paid $1,700 for salaries salaries due employees, of which $700 $700 is for October salaries. salaries. 10 Received $3,420 cash from customers customers on account. account. 12 Received $3,100 $3,100 cash for services services performed performed in November. 15 Purchased Purchased equipment on account $2,000. $2,000. 17 Purchased Purchased supplies supplies on account $700. $700. 20 Paid creditors on account $2,700. 22 Paid Novemb November er rent rent $400. $400. 25 Paid Paid salaries salaries $1,70 $1,700. 0. 27 Performed services services on account and billed customers customers for services provided provided $1,900. 29 Received $600 from customers for future service. service. Adjustment data consist of: 1. Supplies on hand $1,400. 2. Accrued salaries payable $350. 3. Depreciation for the month is $200. 4. Unearned service revenue of $1,250 is earned. Instructions (a) Enter the November 1 balances in the ledger accounts. (b) Journalize the November transactions.





































































































































































































































































































































































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Accounting Principles 10th Edition Weygandt & Kimmel Chapter 3

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