ACCT 211 Homework 3 Adjusting Accounts Exercises Assignment solutions complete answers

ACCT 211 Homework 3 Adjusting Accounts Exercises Assignment solutions complete answers 

Just put your values given and automatically provide answers for you!

a.   Wages of $10,000 are earned by workers but not paid as of December 31.

b.   Depreciation on the company’s equipment for the year is $10,120.

c.   The Supplies account had a $480 debit balance at the beginning of the year. During the year, $5,006 of supplies are purchased. A physical count of supplies at December 31 shows $551 of supplies available.

d.   The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $2,800 of unexpired insurance benefits remain at December 31.

e.   The company has earned (but not recorded) $700 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.

f.     The company has a bank loan and has incurred (but not recorded) interest expense of $5,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.

 

For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended December 31.

 

Following are two income statements for Alexis Company for the year ended December 31. The left number column is prepared before adjusting entries are recorded, and the right column is prepared after adjusting entries. The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts.
 

Income Statements
For Year Ended December 31
 
Unadjusted
Adjustments
Adjusted
Revenues
 
 
 
Services revenue
$ 24,000
a.
$ 29,400
Commissions revenue
42,500
 
42,500
Total revenues
$ 66,500
 
71,900
Expenses
 
 
 
Depreciation expense—Computers
0
b.
1,350
Depreciation expense—Office furniture
0
c.
1,575
Salaries expense
12,500
d.
14,705
Insurance expense
0
e.
1,170
Rent expense
4,500
 
4,500
Office supplies expense
0
f.
432
Advertising expense
3,000
 
3,000
Utilities expense
1,250
g.
1,313
Total expenses
21,250
 
28,045
Net income
$ 45,250
 
$ 43,855
 
Analyze the statements and prepare the seven adjusting entries a. through g. that likely were recorded. Hint: The entry for a. refers to revenue that has been earned but not yet billed. No adjusting entry involves cash.

 

Stark company has the following adjusted accounts with normal balances at its December 31 year-end.
   

Notes payable
$ 17,000
Accumulated depreciation—Buildings
$ 21,000
Prepaid insurance
3,100
Accounts receivable
5,200
Interest expense
620
Utilities expense
1,900
Accounts payable
4,500
Interest payable
340
Wages payable
1,000
Unearned revenue
1,100
Cash
22,000
Supplies expense
320
Wages expense
8,100
Buildings
100,000
Insurance expense
2,400
Dividends
6,000
Common stock
16,000
Depreciation expense—Buildings
5,000
Services revenue
50,000
Supplies
1,100
 
 
Retained earnings
44,800
Use the adjusted accounts for Stark Company to prepare the (1) income statement and (2) statement of retained earnings for the year ended December 31 and (3) balance sheet at December 31. The Retained Earnings account balance was $44,800 on December 31 of the prior year.

 

The following adjusted trial balance at December 31 of Wilson Trucking Company.
 

Account Title
Debit
Credit
Cash
$ 8,100
 
Accounts receivable
17,600
 
Office supplies
3,100
 
Trucks
173,000
 
Accumulated depreciation—Trucks
 
$ 36,100
Land
86,000
 
Accounts payable
 
12,300
Interest payable
 
4,100
Long-term notes payable
 
58,500
Common stock
 
30,500
Retained earnings
 
140,500
Dividends
20,100
 
Trucking revenue
 
131,000
Depreciation expense—Trucks
23,600
 
Salaries expense
61,300
 
Office supplies expense
8,100
 
Interest expense
12,100
 
Totals
$ 413,000
$ 413,000
Prepare Wilson Trucking Company’s classified balance sheet as of December 31. The Retained Earnings account balance was $140,500 at December 31 of the prior year.

 

Use the following information to compute profit margin for each separate company a through e. (Round your answers to 1 decimal place.)

 

Which of the five companies is the most profitable according to the profit margin ratio?

 

(a) Calculate the current ratio for each of the following competing companies. (Round your answers to 2 decimal places.)

 

(b) Which competitor is in the best position to pay its short-term obligations?