Financial Accounting 12th. Edition by Carl S. Warren, James M. Reeve, Jonathan Duchac | 9780538478519 | 0538478519

Accounting for Business

Financial Accounting

3 SOLVED PROBLEMS

144 SOLVED PROBLEMS

Question: 3.7

Adjustment for Depreciation The estimated amount of depreciation on equipment for the current year is $4,250. Journalize the adjusting entry to record the depreciation. ...

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Depreciation Expense . . . . . . . . . . . . . . ....

Question: 3.4

Adjustment for Accrued Expense Sanregret Realty Co. pays weekly salaries of $12,500 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Thursday. ...

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Salaries Expense . . . . . . . . . . . . . . . . ....

Question: 3.3

Adjustment for Accrued Revenues At the end of the current year, $13,680 of fees have been earned but have not been billed to clients. Journalize the adjusting entry to record the accrued fees. ...

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Accounts Receivable . . . . . . . . . . . . . . . ...

Question: 9.IP

Ditzler Company, a construction supply company, uses the allowance method of accounting for uncollectible accounts receivable. Selected transactions completed by Ditzler Company are as follows: Feb. 1. Sold merchandise on account to Ames Co., $8,000. The cost of the merchandise sold was $4,500. Mar ...

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Question: 2.IP

J. F. Outz, M.D., has been practicing as a cardiologist for three years. During April 2011, Outz completed the following transactions in her practice of cardiology: Apr. 1. Paid office rent for April, $800. 3. Purchased equipment on account, $2,100. 5. Received cash on account from patients, $3,150 ...

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1., 2., and 3.

Question: 6.IP

The following transactions were completed by Montrose Company during May of the current year. Montrose Company uses a perpetual inventory system. May 3. Purchased merchandise on account from Floyd Co., $4,000, terms FOB shipping point, 2/10, n/30, with prepaid freight of $120 added to the invoice. ...

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1. May 3 Merchandise Inventory ...

Question: 16.IP

The comparative balance sheet of Dowling Company for December 31, 2012 and 2011, is as follows: ...

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1. Dowling Company Statement of Cash Flows—Indirec...

Question: 1.IP

Cecil Jameson, Attorney-at-Law, is a proprietorship owned and operated by Cecil Jameson. On July 1, 2011, Cecil Jameson, Attorney-at-Law, has the following assets and liabilities: cash, $1,000; accounts receivable, $3,200; supplies, $850; land, $10,000; accounts payable, $1,530. Office space and ...

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1. Assets − Liabilities = Owner’s Equity (Cecil Ja...

Question: 3.IP

Three years ago, T. Roderick organized Harbor Realty. At July 31, 2012, the end of the current year, the unadjusted trial balance of Harbor Realty appears as shown below. ...

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Question: 4.IP

Three years ago, T. Roderick organized Harbor Realty. At July 31, 2012, the end of the current fiscal year, the following end-of-period spreadsheet was prepared: ...

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Question: 5.IP

Selected transactions of O’Malley Co. for the month of May are as follows: a. May 1. Issued Check No. 1001 in payment of rent for May, $1,200. b. 2. Purchased office supplies on account from McMillan Co., $3,600. c. 4. Issued Check No. 1003 in payment of freight charges on the supplies purchased on ...

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Question: 8.IP

The bank statement for Urethane Company for June 30, 2011, indicates a balance of $9,143.11. All cash receipts are deposited each evening in a night depository, after banking hours. The accounting records indicate the following summary data for cash receipts and payments for June: Cash balance as ...

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Question: 10.6

Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $91,000. The equipment was depreciated using the straight-line method based on an estimated useful life of nine years and an estimated residual value of $10,000. a. What was the depreciation for the first year? b ...

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a. $9,000 [($91,000 − $10,000)/9] b. $5,...