Accounting principles 10th edition weygandt kimmel chapter 3 pdf PDF

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Chapter 3 of the book Accounting Priniciples 10th edition by Weygandt Kimmel...

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

$

10/31 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

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(-) Balance $ 10,000 $ 10,000 1,200 11,200 900 10,300 600 9,700 500 9,200 4,000 5,200 10,000 $ 15,200

Supplies Date Debit(+) Credit(-) Balance 10/5/2013 $ 2,500 $ 2,500 1,500 $ 1,000

PrePaid Insur Date Debit(+) Credit(-) Balance 10/4/2013 $ 600 $ 600 50 $ 550

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

Balance $ 5,000

Date 10/2/2013 10/31

UnEarn Ser Rev Debit(-) Credit(+) Balance $ 1,200 $ 1,200 400 $ 800

Date 10/31/2012

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

Date 10/1/2013

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

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

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

$

Balance 500

Service Revenues Debit(-) Credit(+) Balance $ 10,000 $ 10,000 400 10,400 200 $ 10,600

Date 10/1/2013

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

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

Date 10/5/2013

Accounts Payable Debit(-) Credit(+) Balance $ 2,500 $ 2,500

-Rent Exp Date Debit(+) Credit(-) 10/3/2013 $ 900

$ $

Balance 4,000 5,200

Balance $ 900

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

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

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

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

Date 10/31/2012

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

Date 10/31/2012

Sal & Wages Payable Debit(-) Credit(+) Balance $ 1,200 $ 1,200

(adjustments in red)

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

20 Ledger Accounts

$

$

Balance 50

Balance 50

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 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 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 63 - 72 Statement of CashFlows month ending October 31, 2012

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

1,200

10/3 Rent Expense Cash (paid october rent)

$

900

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

$

10/5 Supplies

$ 2,500

900

600 600

Accounts Payable (purchased supplies on account) 7

8

9

2,500

10/20 Owner's Drawings Cash (withdrew cash for personal use)

$

10/26 Salaries &Wages Expense Cash (paid salaries to date)

$ 4,000

10/31 Cash

$ 10,000

Service Revenue (received cash for services provided)

Credit

500 500

4,000

10,000

Chapter 2, Recording Process, pages 63 - 72 General Ledger Cash Date Debit(+) Credit(-) Balance 10/1/2013 $ 10,000 $ 10,000 10/2 1,200 11,200 10/3 900 10,300 10/4 600 9,700 10/20 500 9,200 10/26 4,000 5,200 10/31 10,000 $ 15,200

Date 10/2/2013

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

Date 10/1/2013

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

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

Balance $ 2,500

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

Balance $ 600

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

Balance $ 5,000

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

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

Date 10/1/2013

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

Date 10/5/2013

Accounts Payable Debit(-) Credit(+) Balance $ 2,500 $ 2,500

Date 10/31/2013

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

-Rent Exp Date Debit(+) Credit(-) 10/3/2013 $ 900

Balance $ 900

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

7

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 Salaries & Wage Expense Salaries & Wage Payable (to record accrued salaries)

$

6/30 Depreciation Expense ($15000/60) Accum Deprec - Equip (to record monthly depreciation expense)

$

6/30 Accounts receivable Service Revenue (to record service revenue earned)

$

150 150

250 250

2,800 2,800

1,900 1,900

250 250

1,200 1,200

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

Date

Date

Date

Date

Date

Date

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

Balance $7,150

Date

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

Balance $ 6,000 7,200

Date

Supplies Debit(+) Credit(-) Balance $ 2,000 $ 2,000 1,250 750

PrePaid Insur Debit(+) Credit(-) Balance $ 3,000 $ 3,000 250 2,750

Equipment Debit(+) Credit(-) $ 15,000

Balance $ 15,000

Accounts Payable Debit(-) Credit(+) $4,500 $ 150

Balance $4,500 4,650

Date

Date

Date

UnEarn Service Rev Debit(-) Credit(+) Balance $ 4,000 $ 4,000 2,800 1,200

Owner's Capital Debit(-) Credit(+) Balance $ 21,750 $ 21,750

Service Revenues Debit(-) Credit(+) Balance $ 7,900 $ 7,900 2,800 10,700 1,200 11,900

-Salaries & Wage Expen Debit(+) Credit(-) $ 4,000 1,900

-Rent Expense Debit(+) Credit(-) $ 1,000

$

$

Balance 4,000 5,900

Balance 1,000

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

Date

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

Balance 1,250

Date

Date

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

Balance 250

Date

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

Balance 250

Date

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

Date

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

Balance 1,900

Balance 150

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

Balance 250

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

Debit

Credit

$7,150 7,200 750 2,750 15,000 250

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

4,650 1,200 1,900

10 Owner's Capital

21,750

11 12 13 14 15 16 17

11,900

Service Revenue Salaries & Wages Expense Rent Expense Utilities Expense Supplies Expense Insurance Expense Depreciation Expense

5,900 1,000 150 1,250 250 250 $41,650

$

41,650

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

11,900 $

-

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

Net Income

$

3,100

$

-

Owner's Equity Statement month ending June 30, 2012

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

21,750 3,100 24,850

Less: Drawings Owner's Capital, June 30

$

24,850

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 Total Liabilities Owner's Equity Owner's Capital Total Liabilities & Owner's Equity

$

7,150 7,200 750 2,750

15,000 (250) $

$

$

14,750 32,600

4,650 1,200 1,900 7,750

24,850 $ 32,600

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 Supplies PrePaid Insurance Equipment

Credit

$7,150 6,000 2,000 3,000 15,000

Accounts Payable UnEarned Service Revenue

$4,500 4,000

Owner's Capital

21,750

Service Revenue Salaries & Wage Expense Rent Expense

7,900 4,000 1,000 $38,150

$

38,150

In addition to those accounts listed on the trial balance, the chart of accounts for McGee Company also contains the following accounts and account numbers: No. 158 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 732 Utilities Expense. Other data: 1. Supplies on hand at June 30 are $750. 2. A utility bill for $150 has not been recorded and will not be paid until next month. 3. The insurance policy is for a year. 4. $2,800 of unearned service revenue has been earned at the end of the month. 5. Salaries of $1,900 are accrued at June 30. 6. The equipment has a 5-year life with no salvage value. It is being depreciated at $250 per month for 60 months. 7. Invoices representing $1,200 of services performed during the month have not been recorded as of June 30.

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

Date

General Journal Account Titles & Explantion

Debit

Credit

Adjusting Entries 1

2

3

4

5

6

7

8

8/31 Insurance Expense Prepaid Insurance ($300x3, to record insurance expired)

$

8/31 Supplies Expense Supplies ($3,300 -$800) (to record supplies used)

$

8/31 Depreciation Expense ($6,000x1/4) Accum Deprec - Building (to record deprec expens for 3 months)

$

8/31 Depreciation Expense ($2,400x1/4) Accum Deprec - Equip (to record deprec expens for 3 months)

$

8/31 UnEarned Rent Revenues Rent Revenues (to record rent revenue earned)

$

8/31 Salaries & Wage Expense Salaries & Wage Payable (to record accrued salaries)

$

8/31 Accounts Receivable Rent Revenue (to record revenue earned)

$

8/31 Interest Expense Interest Payable (to record accrued interest $80,000 X 9% X 1/12 = $600)

$

900 900

2,500 2,500

1,500 1,500

600 600

4,800 4,800

400 400

4,000 4,000

600 600

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

Balance $19,600

Date 08/01/2012 8/31

UnEarn Rent Rev Debit(-) Credit(+) Balance $ 7,400 $ 7,400 4,800 $ 2,600

Balance $ 3,300 2,500 $ 800

Date 08/01/2012

Mortgage Payable Debit(-) Credit(+) Balance $ 80,000 $ 80,000

PrePaid Insur Date Debit(+) Credit(-) Balance 08/01/2012 $ 6,000 $ 6,000 8/31 900 $ 5,100

Date 08/01/2012

Owner's Capital Debit(-) Credit(+) Balance $ 100,000 $ 100,000

Land Date Debit(+) Credit(-) Balance 08/01/2012 $ 25,000 $ 25,000

-Owner's Drawings Date Debit(+) Credit(-) 08/01/2012 $ 5,000

Date 08/01/2012

Cash Debit(+) Credit(-) $19,600

Supplies Date Debit(+) 08/01/2012 $ 3,300 8/31

Credit(-)

Building Date Debit(+) Credit(-) Balance 08/01/2012 $ 125,000 $ 125,000

Equipment Date Debit(+) Credit(-) Balance 08/01/2012 $ 26,000 $ 26,000

Accounts Payable Debit(-) Credit(+) $6,500

Balance $6,500

-Utilities Expen Date Debit(+) Credit(-) 08/01/2012 $ 9,400

Balance $ 9,400

Date 08/01/2012

Date 08/01/2012 8/31 8/31

Balance $ 5,000

Rent Revenues Debit(-) Credit(+) Balance $ 80,000 $ 80,000 4,800 $ 84,800 4,000 $ 88,800

-Maint & Repair Expense Date Debit(+) Credit(-) Balance 08/01/2012 $ 3,600 $ 3,600

-Salaries & Wage Expen Date Debit(+) Credit(-) 08/01/2012 $ 51,000 8/31 $ 400

$ $

Balance 51,000 51,400

Chapter 3, Adjusting Entries, P3-2A, pages 138-139 General Ledger -Supplies Exp Date Debit(+) Credit(-) 8/31/2012 $ 2,500

-Insurance Exp Date Debit(+) Credit(-) 8/31/2012 $ 900

$

$

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