[SOLVED] What are the two basic categories of

> On December 1, Bob Waldo began an auto repair shop, Waldoâs Quality Automotive. The following transactions occurred during December: The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insuran

> The unadjusted trial balance of Walton Anvils at December 31, 2018, and the data for the adjustments follow: Adjustment data: a. Unearned Revenue still unearned at December 31, $1,800. b. Prepaid Rent still in force at December 31, $2,100. c. Office Su

> The records of Felix Company show the following at December 31, 2018: Requirements: 1. Compute the missing amount for Felix Company. You will need to determine Retained Earnings, December 31, 2018, and total stockholdersâ equity, Dece

> The unadjusted trial balance of Farish Investment Advisers at December 31, 2018, follows: Adjustment data at December 31, 2018: a. Unearned Revenue earned during the year, $800. b. Office Supplies on hand, $4,500. c. Depreciation for the year, $4,500.

> The adjusted trial balance of Boston Irrigation System at December 31, 2018, follows: Requirements: 1. Prepare the companyâs income statement for the year ended December 31, 2018. 2. Prepare the companyâs statement o

> The adjusted trial balance of Erickson Real Estate Appraisal at June 30, 2018, follows: Requirements: 1. Prepare the companyâs income statement for the year ended June 30, 2018. 2. Prepare the companyâs statement of

> Refer to the Practice Set data provided in Chapters 2 and 3 for Crystal Clear Cleaning. Chapter 2 Consider the following transactional data for the first month of operations for Crystal Clear Cleaning. Chapter 3 This problem continues the Crystal Clea

> This case, based on the balance sheet of Target Corporation, will familiarize you with some of the assets and liabilities of that company. Visit http://www.pearsonhighered.com/Horngren to view a link to Target Corporation’s Fiscal 2015 Annual Report. Use

> Houston Veterinary Hospital completed the following worksheet as of December 31, 2018. Requirements: 1. Complete the worksheet for Houston Veterinary Hospital. 2. Prepare the closing entries. 3. Prepare a post-closing trial balance. H. HOUSTON VETE

> Markâs Bowling Alleyâs adjusted trial balance as of December 31, 2018, is presented below: Requirements: 1. Prepare the closing entries for Markâs Bowling Alley. 2. Prepare a post-closing trial bala

> Cynthia Elmer, CPA, had the following partial worksheet: Requirements: 1. Complete the worksheet. 2. Prepare the closing entries for Cynthia Elmer, CPA. CYNTHIA ELMER, CPA Worksheet 3. December 31, 2018 Adjustments Credit Unadjusted Trial Balance A

> Selected accounts for Kebby Photography at December 31, 2018, follow: Requirements: 1. Journalize Kebby Photographyâs closing entries at December 31, 2018. 2. Determine Kebby Photographyâs ending Retained Earnings ba

> The adjusted trial balance of Stone Sign Company follows: Requirements: 1. Assume Stone Sign Company has a January 31 year-end. Journalize Stoneâs closing entries at January 31. 2. How much net income or net loss did Stone Sign Compan

> During 2018, Flowing Rivers Spa reported revenue of $30,000. Total expenses for the year were $15,000. Flowing Rivers Spa ended the year with total assets of $43,000, and it owed debts totaling $14,000. At year-end 2017, the business reported total asset

> The unadjusted trial balance of Data Solution at November 30, 2018, follows: Additional information at November 30, 2018: a. Accrued Service Revenue, $800. b. Depreciation, $350. c. Accrued Salaries Expense, $650. d. Prepaid Rent expired, $700. e. Offi

> The adjusted trial balance of Melanie OâMallie Dance Studio Company follows: Requirements: 1. Prepare the classified balance sheet of Melanie OâMallie Dance Studio Company at August 31, 2018. Use the report form. You

> For each account listed, identify the category that it would appear on a classified balance sheet. Use the following categories: Current Assets; Long-term Investments; Property, Plant, and Equipment; Intangible Assets; Current Liabilities; Long-term Liab

> The adjusted trial balance for Green Advertising Services is presented below: Requirements: 1. Prepare the income statement for the year ending December 31, 2018. 2. Prepare the statement of retained earnings for the year ending December 31, 2018. 3. P

> Mountain View Services had the following unadjusted balances at December 31, 2018: Salaries Payable, $0; and Salaries Expense, $1,900. The following transactions have taken place at the end of 2018 and beginning of 2019: Requirements: 1. Open T-account

> Lucas Architects recorded the following adjusting entries as of December 31: a. Service Revenue accrued, $2,600. b. Unearned Revenue that has been earned, $1,300. c. Office Supplies on hand, $530. The balance of the Office Supplies account was $880. d.

> McGregor Insurance Agency started the year with a beginning Retained Earnings balance of $27,500. During the year, McGregor Insurance Agency earned $34,000 of Service Revenue and incurred $23,500 of various expenses. Dividends of $12,000 from the busin

> Grant Film Productions wishes to expand and has borrowed $100,000. As a condition for making this loan, the bank requires that the business maintain a current ratio of at least 1.50. Business has been good but not great. Expansion costs have brought the

> This problem continues the Canyon Canoe Company situation from Chapter 3. From Chapter 3: This problem continues the Canyon Canoe Company situation from Chapter 2. You will need to use the unadjusted trial balance and posted T-accounts that you prepare

> Mountain Drycleaners started 2018 with total assets of $19,000 and total liabilities of $14,000. At the end of 2018, Mountain’s total assets stood at $12,000 and total liabilities were $9,000. Requirements: 1. Did the stockholders’ equity of Mountain Dr

> This comprehensive problem is a continuation of Comprehensive Problem 1. Murphy Delivery Service has completed closing entries and the accounting cycle for 2018. The business is now ready to record January 2019 transactions. Requirements: 1. Record eac

> Murphy Delivery Service completed the following transactions during December 2018: 1. Record each transaction in the journal using the following chart of accounts. Explanations are not required. Cash â¦â¦â&

> iHeartMedia, Inc. in their annual report for the year ending December 31, 2015, state that the plant assets reported on its balance sheet includes the following: Plant Asset …………………………………………………………………………………………Useful Life Buildings and improvements ………………

> On October 1, 2018, Kitchen Design paid $15,000 for store rent covering the six- month period ending March 31, 2019. Requirements: 1. Journalize the entry on October 1 by using the alternative treatment of deferred expenses. 2. Record the December 31, 2

> Just Right Hair Stylists has begun the preparation of its worksheet as follows: Year-end data include the following: a. Office supplies on hand, $300. b. Depreciation, $700. c. Accrued interest expense, $800. Complete Just Rightâs wo

> Sethâs Tax Services had the following accounts and account balances after adjusting entries. Assume all accounts have normal balances. Prepare the adjusted trial balance for Sethâs Tax Services as of December 31, 201

> Birch Park Senior Center has a weekly payroll of $12,500. December 31 falls on Wednesday, and Birch Park Senior Center will pay its employees the following Monday (January 5) for the previous full week. Assume Birch Park Senior Center has a five-day work

> Eastside Magazine collects cash from subscribers in advance and then mails the Magazines to subscribers over a one-year period. Requirements: 1. Record the journal entry to record the original receipt of $180,000 cash. 2. Record the adjusting entry that

> On October 1, Orlando Gold Exchange paid cash of $57,600 for computers that are expected to remain useful for three years. At the end of three years, the value of the computers is expected to be zero. Requirements: 1. Calculate the amount of depreciatio

> On November 1, Carlisle Equipment had a beginning balance in the Office Supplies account of $600. During the month, Carlisle purchased $2,300 of office supplies. At November 30, Carlisle Equipment had $500 of office supplies on hand. Requirements: 1. Op

> Wizco Advertisingâs balance sheet data at May 31, 2018, and June 30, 2018, follow: For each of the following situations that occurred in June, 2018 with regard to common stock and dividends of a corporation, compute the amount of net

> On September 1, Big Fan of Toledo prepaid six months of rent, $3,300. Requirements: 1. Record the journal entry for the September 1 payment. 2. Record the adjusting entry required at September 30. 3. Using T-accounts, post the journal entry and adjustin

> Seacoast Magazine sells subscriptions for $36 for 18 issues. The company collects cash in advance and then mails out the magazines to subscribers each month. Apply the revenue recognition principle to determine a. when Seacoast Magazine should record re

> The Pink Peonies Law Firm prepays for advertising in the local newspaper. On January1, the law firm paid $3,000 for 10 months of advertising. How much advertising expense should Pink Peonies Law Firm record for the two months ending February 28 under the

> On September 1, 2018, Salem Landscaping collected $24,000 in advance from Customers for landscaping services. The service revenue will be earned monthly over the 12-month period ending August 31, 2019. Requirements: 1. Journalize the entry on September

> In recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries for the following situations: a. Office supplies on hand, $100. b. Accrued revenues, $5,000. c. Accrued interest expense, $250. d. Depreciation, $800. e. Un

> At the end of June, Gerber Dental had performed $9,000 of dental services but has not yet billed customers. Record the adjusting entry for accrued revenue.

> Resort Travel borrowed $33,000 on September 1, 2018, by signing a one-year note payable to State One Bank. Resort’s interest expense on the note payable for the remainder of the fiscal year (September through November) is $355. Requirements: 1. Record t

> A select list of transactions for Anuradhaâs Goals follows: For each transaction, identify what type of adjusting entry would be needed. Select from the following four types of adjusting entries: deferred expense, deferred revenue, ac

> Suppose on January 1, Andrew’s Tavern prepaid rent of $16,800 for the full year. At November 30, how much rent expense should be recorded for the period January 1 through November 30?

> Protection Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the year, Protection Home has coll

> Compute the missing amount in the accounting equation for each entity from the financial information presented: Assets Liabilities Equity Hair Styles $ ? $ 36,000 $ 36,000 Style Cuts 90,000 48,000 Your Basket 101,000 68,000 ?

> The tobacco companies have paid billions because of smoking-related illnesses. In particular, Philip Morris, a leading cigarette manufacturer, paid more than $3,000,000,000 in settlement payments in one year. Requirements: 1. Suppose you are the chief f

> When is an adjusted trial balance prepared, and what is its purpose?

> When are adjusting entries completed, and what is their purpose?

> Under the revenue recognition principle, when is revenue recorded?

> What is a worksheet, and how is it used to help prepare an adjusted trial balance?

> If a payment of a deferred expense was recorded under the alternative treatment, what account would be debited in the adjusting entry?

> If a payment of a deferred expense was recorded under the alternative treatment, what account would be debited at the time of payment?

> If an accrued expense is not recorded at the end of the year, what is the impact on the financial statements?

> What are the two rules to remember about adjusting entries?

> What is an accrued revenue? Provide an example.

> Consider the following accounting terms and definitions, and match each term to the definition: 1. Accounting equation a. An economic resource that is expected to be of benefit in the future 2. Asset b. Debts that are owed to creditors 3. Balance sh

> What is an accrued expense? Provide an example.

> What is a deferred revenue? Provide an example.

> How is book value calculated, and what does it represent?

> What does accumulated depreciation represent?

> In the recording of depreciation expense, which account is credited?

> What is a contra account?

> What is the process of allocating the cost of a plant asset over its useful life called?

> What is a deferred expense? Provide an example.

> Under the matching principle, when are expenses recorded?

> What is a fiscal year? Why might companies choose to use a fiscal year that is not a calendar year?

> Consider the following accounting terms and definitions, and match each term to the definition: //

> Which accounting concept or principle requires companies to divide their activities into small time segments such as months, quarters, or years?

> Which method of accounting (cash or accrual basis) is consistent with Generally Accepted Accounting Principles?

> What is the difference between cash basis accounting and accrual basis accounting?

> Sent It Packân Mail completed the following transactions during 2018: Requirements: 1. Journalize the transactions assuming that Sent It Packân Mail debits an asset account for prepaid expenses and credits a liabilit

> Galaxy Theater Production Companyâs partially completed worksheet as of December 31, 2018, follows. Adjustment data at December 31 follow: a. As of December 31, Galaxy had performed $900 of service revenue but has not yet billed custo

> The unadjusted trial balance of Midway Inn Company at December 31, 2018, and the data needed for the adjustments follow. Adjustment data at December 31 follow: a. As of December 31, Midway Inn had $800 of Prepaid Insurance remaining. b. At the end of t

> The unadjusted trial balance of Avery Air Purification System at December 31, 2018, and the data needed for the adjustments follow. Adjustment data at December 31 follow: a. On December 15, Avery contracted to perform services for a client receiving $2

> Harrison Fishing Charters has collected the following data for the December 31 adjusting entries: a. The company received its electric bill on December 31 for $375 but will not pay it until January 5. (Use the Utilities Payable account.) b. Harrison pur

> Lopez Landscaping has the following data for the December 31 adjusting entries: a. Each Friday, Lopez pays employees for the current week’s work. The amount of the weekly payroll is $6,500 for a five-day workweek. This year, December 31 falls on a Wedne

> Rapid Way Packân Mail completed the following transactions during 2018: Requirements: 1. Journalize the transactions assuming that Rapid Way debits an asset account for prepaid expenses and credits a liability account for unearned rev

> For each of the users of accounting information, identify whether the user is anexternal decision maker (E) or an internal decision maker (I): a. customer b. company manager c. Internal Revenue Service d. lender e. investor f. controller g. cost account

> Greavy Theater Production Companyâs partially completed worksheet as of December 31, 2018, follows. Adjustment data at December 31 follow: a. As of December 31, Greavy had performed $500 of service revenue but has not yet billed custo

> The unadjusted trial balance of Guthrie Inn Company at December 31, 2018, and the data needed for the adjustments follow. Adjustment data at December 31 follow: a. As of December 31, Guthrie had $700 of Prepaid Insurance remaining. b. At the end of the

> The unadjusted trial balance of Anniston Air Purification System at December 31, 2018, and the data needed for the adjustments follow. Adjustment data at December 31 follow: a. On December 15, Anniston contracted to perform services for a client receiv

> Griffin Fishing Charters has collected the following data for the December 31 adjustingentries: a. The company received its electric bill on December 31 for $375 but will not pay it until January 5. (Use the Utilities Payable account.) b. Griffin purcha

> Laughter Landscaping has collected the following data for the December 31 adjusting entries: a. Each Friday, Laughter pays employees for the current week’s work. The amount of the weekly payroll is $8,000 for a five-day workweek. This year, December 31 f

> This problem continues the Crystal Clear Cleaning situation from Chapter 2. Start from the unadjusted trial balance that Crystal Clear Cleaning prepared at November 30, 2018: Consider the following adjustment data: a. Cleaning supplies on hand at the e

> XM, Ltd. was a small engineering firm that built high-tech robotic devices for electronics manufacturers. One very complex device was partially completed at the end of 2018. Barb McLauren, head engineer, knew the experimental technology was a failure and

> Target Corporation—like all other businesses—makes adjusting entries at yearend in order to measure assets, liabilities, revenues, and expenses properly. Examine Target Corporation’s balance sheet and income statement in its Fiscal 2015 Annual Report. V

> At the beginning of the year, Modish Advertising owed customers $2,100 for unearned revenue collected in advance. During the year, Modish received advance cash receipts of $6,100 and earned $20,000 of service revenue (exclusive of any amount earned from

> At the beginning of the year, office supplies of $1,200 were on hand. During the year, Tempo Air Conditioning Service paid $4,000 for more office supplies. At the end of the year, Tempo has $800 of office supplies on hand. Requirements: 1. Record the ad

> What are the steps used when analyzing a business transaction?

> The worksheet of Maceyâs Landscaping Services follows but is incomplete. Requirements: 1. Calculate and enter the adjusted account balances in the Adjusted Trial Balance columns. 2. Describe each adjusting entry. For example, a. Prepa

> The worksheet of Best Jobs Employment Service follows but is incomplete. The following data at April 30, 2018, are given for Best Jobs Employment Service: a. Service revenue accrued, $700. b. Office supplies used, $300. c. Depreciation on equipment, $1

> The following data at July 31, 2018, are given for RCO: a. Depreciation, $600. b. Prepaid rent expires, $200. c. Interest expense accrued, $700. d. Employee salaries owed for Monday through Thursday of a five-day workweek; weekly payroll, $8,000. e. Une

> Austin Acoustics recorded the following transactions during October: a. Received $2,500 cash from customer for three months of service beginning October 1 and ending December 31. The company recorded a $2,500 debit to Cash and a $2,500 credit to Unearne

> The unadjusted trial balance for All Mopped Up Company, a cleaning service, is as follows: During the 12 months ended December 31, 2018, All Mopped Up: a. used office supplies of $1,700. b. used prepaid insurance of $580. c. depreciated equipment, $500.

> The unadjusted trial balance for All Mopped Up Company, a cleaning service, is as follows: During the 12 months ended December 31, 2018, All Mopped Up: a. used office supplies of $1,700. b. used prepaid insurance of $580. c. depreciated equipment, $500

> The accounting records of Mackay Architects include the following selected, unadjusted balances at March 31: Accounts Receivable, $1,500; Office Supplies, $700; Prepaid Rent, $2,240; Equipment, $8,000; Accumulated Depreciation—Equipment, $0; Salaries Pay

> Consider the following situations for Betterton Welding Services: a. Depreciation for the current year includes equipment, $2,100. b. Each Monday, Betterton pays employees for the previous week’s work. The amount of weekly payroll is $1,400 for a seven-

> Consider the following independent situations at December 31: a. On October 1, a business collected $3,000 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year’s rent in advance. On December 31, the business must

Question: What are the two basic categories of