ACCTG414 Lecture Notes - Operating Expense, Heating Oil, Accounts Payable

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violetchinchilla775

8 Apr 2014

School

University of Alberta

Department

Accounting

Course

ACCTG414

Professor

Jocelyn King

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Document Summary

,600 x 5/12 = ,250 unearned at end of current year. ,600 x 7/12 = ,350 earned during current year: case a. ,200 + ,000 ,600 = ,600 used. ,600 ,200 = decrease in inventory. 3,000: prepaid property tax (,200 x 8/12) 12,800. 5,000: cost of good sold (or pilferage expense) Interest expense (,000 x . 06 x 11/12) + a. (,000 x . 06 x 7/12) Inventory (,140 - ,200): prepaid insurance (,400 x 2/3) Heating oil is assumed to be used up; otherwise, this affects the balance in some prepaid account. Since there is no prepaid account, expense correction is more logical: unearned revenue The ,000 deposit is not yet earned (assuming revenue is recognized on delivery) and is not changed. The ,000 deposit is an obligation to pay money, rather than goods or services, and should be removed from unearned revenue: depreciation expense (,200/2 years recorded to the beginning of 20x2) 12,100.

Related Questions

1-May Issued common stock in exchange for cash $50,000
1-May Purchased a one-year insurance policy to beconsumed evenly over the next 12 months $4,800
1-May Prepaid the next 6 months of rent $3,600
1-May Purchased for cash a truck to be used in thebusiness $18,000
5-May Received prepayment of cash for a contracted jobto be performed in June $4,500
5-May Purchased Office Supplies on credit $1,200
10-May Billed customers for servicesprovided $8,600
12-May Paid advertising expense $1,300
23-May Paid salaries to employees $1,500
31-May Paid dividends to stockholders $1,000

Adjusting Entries: Recognize rent for month ofMay
Recognize insurance for month of May
Recognize Depreciation for on month
Truck has a 5 year useful life and a $3,000 salvageValue
An inventory count of office supplies at may 31 showed$500 of suppies on hand
Employees' salaries earned durning May but not to bepaid until June was $500

REQUIRED: Place in t-account form.

Cash

Accounts payable

Service Revenue

Unearned Revenue

Supplies Expense

Dividend Expense

Accounts Receivable

Truck

Accumplated Dep

Prepaid Insurance

Prepaid rent

Supplies

Salaries payable

Stock

Salaries Expense

Advertising Expense

Dep Exp

Insurance Exp

Rent Exp

REQUIRED: Prepare an income statement:

INCOME STATEMENT

Service Revenue

Expenses: Supplies Expense
Salary Expense
Rent Expense
Insurance Expense
Advertising Expense
Depreciation Expense
NET INCOME
STATEMENT OF RETAINED EARNINGS
Beg Bal Retained earnings $- 0
Plus Net Income
Less Dividends Paid
End bal Retained Earnings

REQUIRED: Prepare the balance sheet:

BALANCE SHEET

ASSETS
Current:
Cash
Acc Rec
Supplies
Prepaid Rent
Prepaid Insur
TOTAL CURRENT ASSETS

Truck
Accum Dep
TOTAL ASSETS

LIABILITIES
Acc. Payable
Unearned Revenue
Salary Payable
EQUITY
Stock
Retained Earnings
TOTAL LIAB. + EQUITY

pinkmammoth601

On May 31, the following data were accumulated to assist theaccountant in preparing the adjusting entries for OceansideRealty:

a.	Fees accrued but unbilled at May 31are $19,750.
b.	The supplies account balance on May31 is $12,300. The supplies on hand at May 31 are $4,150.
c.	Wages accrued but not paid at May31 are $2,700.
d.	The unearned rent account balanceat May 31 is $9,000, representing the receipt of an advance paymenton May 1 of three monthsâ rent from tenants.
e.	Depreciation of office equipment is$3,200.

	Required:
1.	Journalize the adjustingentries required at May 31. Refer to the Chart of Accounts forexact wording of account titles.
2.	What is the difference betweenadjusting entries and correcting entries?

Chart of Accounts

CHARTOF ACCOUNTS

Oceanside Realty

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Insurance
15	Land
16	Equipment
17	AccumulatedDepreciation-Equipment
19	AccumulatedDepreciation-Automobiles

	LIABILITIES
21	Accounts Payable
22	Unearned Rent
23	Wages Payable
24	Taxes Payable

	EQUITY
31	Owner, Capital
32	Owner, Drawing

	REVENUE
41	Fees Earned
42	Rent Revenue

	EXPENSES
51	Advertising Expense
52	Insurance Expense
53	Rent Expense
54	Wages Expense
55	Supplies Expense
56	Utilities Expense
57	Depreciation Expense
59	Miscellaneous Expense

pearwoodchuck107

On December 31 adjusting entries for the following transactions.1. Fees accrued but not billed, $6,300. 2. The Supplies accountbalance on December 31, $4,750; Supplies on hand, $960. 3. Wagesaccrued but not paid, $2,700. 4. Depreciation of office equipment,$1,650. 5. Rent expired during year, $10,800.

CHARTOF ACCOUNTS

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Rent
16	Office Equipment
17	Accumulated Depreciation

	LIABILITIES
21	Accounts Payable
22	Notes Payable
23	Unearned Revenues
24	Wages Payable
25	Interest Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Advertising Expense
52	Insurance Expense
53	Interest Expense
54	Wages Expense
55	Supplies Expense
56	Utilities Expense
57	Depreciation Expense
58	Rent Expense
59	Miscellaneous Expense

CHARTOF ACCOUNTS

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Rent
16	Office Equipment
17	Accumulated Depreciation

	LIABILITIES
21	Accounts Payable
22	Notes Payable
23	Unearned Revenues
24	Wages Payable
25	Interest Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Advertising Expense
52	Insurance Expense
53	Interest Expense
54	Wages Expense
55	Supplies Expense
56	Utilities Expense
57	Depreciation Expense
58	Rent Expense
59	Miscellaneous Expense

General Journal

Prepare the December 31 adjusting entries for each transactions.Refer to the Chart of Accounts for exact wording of accounttitles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST.REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10					need help with a general journal

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ACCTG414 Lecture Notes - Operating Expense, Heating Oil, Accounts Payable

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