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Homework 1.1 1.2 2.1 2.2 3.1 3.2 4.1 4.2 5.1 5.2 6.1 6.2 7.1 7.2 8.1 8.2 9.1 9.2 10.1 10.2 11.1 11.2 12.1 12.2 13.1 13.2
Learnsmart 1.1 2.1 3.1 4.1 5.1 6.1 7.1 8.1 9.1 10.1 11.1 12.1 13.1 13.2 | Exam 1 2 3 4 5 6 7 8 9 10 11 12 13 | Final Exam 1 2
Principals Of Financial Accounting Homework 3 Part 1 Exercise 3-10 Computing and interpreting profit margin LO
A1
Use the following information to compute profit margin
for each separate company a through e.
(Round your answers to 1
decimal place.)
  2. Exercise 3-14B Completing a work sheet LO P7
1. & 2. The following data are taken from the
unadjusted trial balance of the Westcott Company at December 31, 2017.
Complete the work sheet following adjustment.
(Enter their balances in the
correct Debit or Credit column.)
Use the following adjustment information to complete the work sheet. Depreciation on equipment, $7
Accrued salaries, $11
The $12 of unearned revenue has been earned
Supplies available at December 31, 2017, $24
Expired insurance, $13
 Following are Nintendo’s revenue and expense accounts for
a recent March 31 fiscal year-end (yen in millions)
(Enter answers in millions)
 Arnez Company’s annual accounting period ends on December
31, 2019.
The following information concerns the adjusting entries
to be recorded as of that date.
a. The Office Supplies account started the year with a
$4,000 balance.
During 2019, the company purchased supplies for $13,400,
which was added to the Office Supplies account.
The inventory of supplies available at December 31, 2019,
totaled $2,554.
b. An analysis of the company’s insurance policies
provided the following facts.
The total premium for each policy was paid in full (for
all months) at the purchase date, and the Prepaid Insurance account
was debited for the full cost. (Year-end adjusting
entries for Prepaid Insurance were properly recorded in all prior years.)
c. The company has 15 employees, who earn a total of
$1,960 in salaries each working day.
They are paid each Monday for their work in the five-day
workweek ending on the previous Friday.
Assume that December 31, 2019, is a Tuesday, and all 15
employees worked the first two days of that week.
Because New Year’s Day is a paid holiday, they will be
paid salaries for five full days on Monday, January 6, 2020.
d. The company purchased a building on January 1, 2019.
It cost $960,000 and is expected to have a $45,000 salvage
value at the end of its predicted 30-year life. Annual
depreciation is $30,500.
e. Since the company is not large enough to occupy the
entire building it owns, it rented space to a tenant at $3,000 per month,
starting on November 1, 2019. The rent was paid on time
on November 1, and the amount received was credited to the Rent Earned account.
However, the tenant has not paid the December rent. The
company has worked out an agreement with the tenant, who has promised to pay
both December and January rent in full on January 15. The
tenant has agreed not to fall behind again.
f. On November 1, the company rented space to another
tenant for $2,800 per month. The tenant paid five months’ rent in advance on
that date.
The payment was recorded with a credit to the Unearned
Rent account. Assume no other adjusting entries are made during the year.
Required:
Use the information to prepare adjusting entries as of
December 31, 2019.
 Prepare journal entries to record the first subsequent
cash transaction in 2020 for parts c and e.
 Wells Technical Institute (WTI), a school owned by
Tristana Wells, provides training to individuals who pay tuition directly to
the school.
WTI also offers training to groups in off-site locations.
WTI initially records prepaid expenses and unearned revenues in balance sheet
accounts.
Its unadjusted trial balance as of December 31 follows
along with descriptions of items a through h that require
adjusting entries on December 31.
Additional Information Items
An analysis of WTI’s insurance policies shows that $2,400
of coverage has expired.
An inventory count shows that teaching supplies costing
$2,800 are available at year-end.
Annual depreciation on the equipment is $13,200.
Annual depreciation on the professional library is
$7,200.
On September 1, WTI agreed to do five courses for a
client for $2,500 each. Two courses will start immediately and finish before
the end of the year.
three courses will not begin until next year. The client
paid $12,500 cash in advance for all five courses on September 1, and WTI
credited Unearned Training Fees.
On October 15, WTI agreed to teach a four-month class
(beginning immediately) for an executive with payment due at the end of the
class.
At December 31, $7,500 of the tuition has been earned by
WTI.
WTI’s two employees are paid weekly. As of the end of the
year, two days’ salaries have accrued at the rate of $100 per day for each
employee.
The balance in the Prepaid Rent account represents rent
for December.
Prepare the necessary adjusting journal entries for items
a through h. Assume that adjusting entries are made only at
year-end.
 Post the balance from the unadjusted trial balance and
the adjusting entries in to the T-accounts.
 Prepare an adjusted trial balance.
 Prepare Wells Technical Institute’s income statement for
the year.
 Prepare Wells Technical Institute’s statement of
retained earnings for the year.
The Retained Earnings account balance was $80,000 on
December 31 of the prior
year.
 Prepare Wells Technical Institute’s balance sheet as
of December 31.
 On April 1, Jiro Nozomi created a new travel agency,
Adventure Travel. The following transactions occurred during the company’s
first month.
The company’s chart of accounts follows.
Use the following information:
Prepaid insurance of $133 has expired this month.
At the end of the month, $600 of office supplies are
still available.
This month’s depreciation on the computer equipment is
$500.
Employees earned $420 of unpaid and unrecorded salaries
as of month-end.
The company earned $1,750 of commissions that are not yet
billed at month-end.
Required:
1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance
sheet accounts.
 3. Using account balances from Requirement 6b, prepare an
unadjusted trial balance as of April 30.
4. Journalize the adjusting entries for the month and prepare the adjusted trial balance.  5a. Prepare the income statement for the month of
April 30.
 5b. Prepare the statement of retained earnings for the
month of April 30.
5c. Prepare the balance sheet at April 30.
6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance. Place the steps in the three-step adjusting process in
the correct order:
 On January 1, the company purchased equipment that cost
$10,000.
The equipment is expected to be worth about (or has a
salvage value of) $1,000 at the end of its useful life in five years.
The company uses straight-line depreciation. It has not
recorded any adjustments relating to this equipment during the current year.
Complete the necessary December 31 journal entry by
selecting the account names from the pull-down menus,
and entering dollar amounts in the debit and credit
columns.
 On November 1, the company rented space to another
tenant. A check in the amount of $9,000,
representing three months’ rent in advance, was received
from the tenant on that date.
The payment was recorded with a credit to the Unearned
Rent Revenue account.
Complete the necessary December 31 adjusting journal
entry by selecting the account names from the pull-down
menus and entering dollar amounts in the debit and credit
columns.
 The company employs a single employee who works all five
weekdays and is paid on the following Monday.
The employee works the entire week ending on Friday,
December 30. The employee earns $800 per day.
Complete the necessary December 31 journal entry by
selecting the account names from the pull-down menus and
entering dollar amounts in the debit and credit columns.
 On Saturday, December 31, the company’s owner provided
ten hours of service to a customer.
The company bills $100 per hour for services provided on
weekends. Payment has not yet been received.
The owner did not stop in the office on Saturday; as
such, on December 31, the services were unbilled and unrecorded.
Complete the necessary December 31 journal entry by
selecting the account names from the pull-down menus and
entering dollar amounts in the debit and credit columns.
 Before the adjusting entry for a deferral of an expense,
the expenses will be _____ and the assets will be _____.
Understated; overstated.
Overstated; understated.
Understated; understated.
Overstated; overstated.
Assume that the Accumulated Depreciation account has an
unadjusted normal balance of $120,000.
The company’s list of adjusting entries includes one that
debits Depreciation Expense and credits the Accumulated Depreciation account
for $20,000.
The adjusted balance in the Accumulated Depreciation
account is a:
credit balance of $140,000
debit balance of $120,000
credit balance of $120,000
debit balance of $140,000
Homework 1.1 1.2 2.1 2.2 3.1 3.2 4.1 4.2 5.1 5.2 6.1 6.2 7.1 7.2 8.1 8.2 9.1 9.2 10.1 10.2 11.1 11.2 12.1 12.2 13.1 13.2
Learnsmart 1.1 2.1 3.1 4.1 5.1 6.1 7.1 8.1 9.1 10.1 11.1 12.1 13.1 13.2 | Exam 1 2 3 4 5 6 7 8 9 10 11 12 13 | Final Exam 1 2
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