Adjusting Entries - Accruals Practice Assignment 1 R. Parce Floor Covering Incorporated

Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 4

ADJUSTING ENTRIES - ACCRUALS

Practice Assignment 1

R. Parce Floor Covering Incorporated

The transactions for R. Parce Floor Covering Inc. for the year 2019 have been recorded in the accounting system. This
assignment requires you to record the adjusting entries for December 2019.

Dec. 31 - Performed services for a client for 850. The customer will be billed in January.

Dec. 31 - 15,000 was borrowed by signing a 10%, 2 year note on September 1, 2019. Record the interest on the note.

Dec. 31 - Employee wages of 950 for December will be paid in January.

Dec. 31 - Advertising costs of 95 for December will be paid in January.

DATE ACCOUNT DEBIT CREDIT


2019
Dec. 31 Accrued Service Revenue 850 850
Service Revenue
Dec. 31 Interest Expense 250 250
Accrued Interest Expense
Dec. 31 wages expense 950 950
Accrued Wages Expense
Dec. 31 Advertising expense 95 95
Accrued Advertising
Expense

Practice Assignment 2
Kaela Mae Gym on Wheels

Kaela Mae Gym on Wheels provides gymnastics lessons at various daycare centers. The transactions for the year 2019
have been recorded in the accounting system. This assignment requires you to prepare adjusting entries for December
2019.

Dec. 31 The note payable of 8,000 has been outstanding since July 1, 2019. Under the terms of the note, the note
plus interest (12%) is to be paid on July 1, 2019. No interest has been recorded on the note.

Dec. 31 Instructors’ salaries of 2,000 for December will be paid in January.

Dec. 31 December fees of 160 will be collected in January.

Dec. 31 85 will be paid in January for advertising in December.

DATE ACCOUNT DEBIT CREDIT


2019
Dec. 31 Interest Expense 960
Accrued Interest Expense 960
Dec. 31 Wages Payable 2000 2000
Cash
Dec. 31 Accrued Service Revenue 160
Service Revenue 160
Dec. 31 Advertising expense 85
Accrued Advertising 85
Expense

ADJUSTING ENTRIES – DEFERRALS

Practice Assignment 3
R. Parce Floor Covering Incorporated

The transactions for R. Parce Floor Covering Inc. for the year 2018 have been recorded in the accounting system. This
assignment requires you to prepare adjusting entries for December 2019.

Dec. 31 Services were provided to a customer for 550. The cash was collected in advance on December 10, 2019.

Dec. 31 On September 1, 2019, R. Parce Floor Covering Inc. had paid 5,400 as rent for a six-month period. This
had been recorded as prepaid rent.

Dec. 31 The amount of supplies available at the end of December was 400. The amount of supplies at the
beginning of the period was 260. 350 of supplies were purchased during the year.

Dec. 31 A computer was purchased on January 1, 2017, for 2,400. The useful life of the computer is 4 years.

DATE ACCOUNT DEBIT CREDIT


2019
Dec. 31 Unearned service revenue 550
Cash 550
Dec. 31 Rent expense 5400
Accrued rent expense 5400
Dec. 31 Supplies Expense 210
Supplies 210
Dec. 31 Depreciation Expense 600
Accumulated depreciation 600
Practice Assignment 4
Kaela Mae Gym on Wheels

Kaela Mae on Wheels provides gymnastics lessons at various daycare centers. The transactions for the year 2019 have
been recorded in the accounting system. This assignment requires you to prepare adjusting entries for December 2019.

Dec. 31 A number of children registered on December 1 and paid the month's fees in advance. These fees totaled
500 and unearned revenue was credited when the fees were paid.

Dec. 31 The amount of supplies available at the end of December was 500. The amount of supplies at the
beginning of the period was 1,500.

Dec. 31 On January 1, 2017, Kaela Mae Gym on Wheels had purchased a computer for 2,000. The estimated
useful life of the computer is 4 years. Record the depreciation for 2019.

Dec. 31 On December 1, 2019, Kaela Mae Gym on Wheels had paid 2,400 as rent for a three-month period. This
had been recorded as prepaid rent.

DATE ACCOUNT DEBIT CREDIT


2019
Dec. 31 Unearned Service Revenue 500
Cash 500
Dec. 31 Supplies Expense 500 500
Supplies
Dec. 31 Depreciation Expense 500
Accumulated depreciation 500
Dec. 31 Rent expense 800
Accrued Rent expense 800
CLOSING ENTRIES

Practice Assignment 5
Clean-Rite Service

The transactions for Clean-Rite Service for March 2000 have been recorded in the accounting system. Clean-Rite Service
is organized as a sole-proprietorship. This problem illustrates the preparation of closing entries for March 2000. The trial
balance for March 31, 2000, is given below:

Clean-Rite Service
Trial Balance
March 31, 2000

Account name Debit Credit


Cash ₱1,085
Supplies 35
Equipment 400
Truck 1,000
Notes Payable ₱1,750
M. Astronomo, Capital 500
Astronomo, Drawings 100
Service Revenue 450
Supplies Expense 80
₱2,700 ₱2,700

Mar. 31 Close the revenue accounts.


Mar. 31 Close the expense accounts.
Mar. 31 Close the Income Summary account.
Mar. 31 Close the Drawings account.

DATE ACCOUNT DEBIT CREDIT


Mar. 31

Mar. 31

Mar. 31

Mar. 31

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy