Nama : Anisetha Aprito Br Silalahi NIM : 17221017
BRIEF EXERCISES
Latihan Pekan 10
BE3-3 Ritter Advertising Company’s trial balance at December 31 shows Supplies
$6,700 and Supplies Expense $0. On December 31, there are $2,500 of supplies on hand. Prepare the adjusting entry on December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account.
Answer:
Journal Entry Dec.
31 Supplies expense $4200
Supplies $4200
Posting
Supplies Expense
Dec. 31 Adj. 4200
Dec 31 Bal. 4200
BE3-4 At the end of its first year, the trial balance of Nygaard Company shows Equipment
$30,000 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $4,000. Prepare the annual adjusting entry for depreciation at December 31, post the adjustments to T-accounts, and indicate the balance sheet presentation of the equipment at December 31.
Answer:
Journal Entry Dec.
31 Depreciation expense $4000
Accumulated depreciation -
equipment $4000
Supplies
Dec. 1 $6.700 Dec 31 Adj.4200
Dec 31 Bal. $2.500
Posting
Equipment
Dec.01 $30,000
Dec 31 Bal. $30,000
Accumulated Depreciation - Equipment
Dec. 31 Adj.4000
Dec 31 Bal. 4000
Depreciation Expense
Dec. 31 Adj. 4000
Dec 31 Bal. 4000
Balance Sheet
BE3-5 On July 1, 2019, Dobbs Co. pays $14,400 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Dobbs Co., journalize and post the entry on July 1 and the annual adjusting entry on December 31.
Answer :
Jurnal Pada Tanggal 1 Juli 2019:
Tanggal Akun Ref Debit Kredit
1 Juli Prepaid Insurance $14,400
2019 Cash $14,400 Entri Penyesuaian pada 31 Desember 2019
Durasi kontrak asuransi adalah 3 tahun atau 36 bulan. Jadi, biaya asuransi per bulan adalah $14,400 dibagi 36 = $400 per bulan. Karena asuransi ini dibayar mulai dari Juli hingga Desember (6 bulan), maka total penyesuaian untuk tahun 2019 adalah 6 bulan x
$400 = $2,400 Tangg
al
Akun Ref Debit Kredit
31 Des 2019
Insurance Expense $2,400
Prepaid Insurance $2,400
T-Account
Prepaid Insurance
12/31 2400
Insurance Expense
12/31 2400
Cash
12/31 14400
Setelah entri penyesuaian, saldo akun Prepaid Insurance menjadi $14,400 - $2,400 =
$12,000.
BE3-6 Using the data in BE3-5, journalize and post the entry on July 1 and the adjusting entry on December 31 for Kalter Insurance Co. Kalter uses the accounts Unearned Service Revenue and Service Revenue.
Answer :
Jurnal Pada Tanggal 1 Juli 2019
Tangg al Akun Ref Debit Kredit
1 Juli 2019
Cash $14,400
Unearned Service Revenue $14,400
Entri Penyesuaian pada 31 Desember 2019:
Menggunakan data sebelumnya, durasi kontrak asuransi adalah 3 tahun atau 36 bulan. Jadi, pendapatan asuransi per bulan adalah $14,400 dibagi 36 = $400 per bulan.
Karena asuransi ini diterima mulai dari Juli hingga Desember (6 bulan), maka total pendapatan yang diakui untuk tahun 2019 adalah 6 bulan x $400 = $2,400.
Tangg al Akun Ref Debit Kredit
31 Des 2019
Unearned Service Revenue $2,400
Service Revenue $2,400
T-Account
Cash 2400
Unearned Service Revenue
14400 2400
12000
Service Revenue
2400
BE3-7 The bookkeeper for Bradbury Company asks you to prepare the following accrued adjusting entries at December 31.
1. Interest on notes payable of $400 is accrued.
2. Services performed but not recorded total $1,900.
3. Salaries earned by employees of $900 have not been recorded.
Use the following account titles: Service Revenue, Accounts Receivable, Interest Expense, Interest Payable, Salaries and Wages Expense, and Salaries and Wages Payable.
Answer :
Tanggal Akun dan Keterangan Ref Debit Kredit
31 Des 2019
Interest Expense $400
Interest Payable $400
Entri untuk Bunga yang Terakumulasi
Accounts Receivable $1,900
Service Revenue $1,900
Entri untuk Layanan yang Telah Dilakukan Tetapi Belum Dicatat
Salaries and Wages Expense $900
Salaries and Wages Payable $900
DO IT! Exercises
Do IT! 3-2 The ledger of Herrera, Inc. on March 31, 2019, includes the following selected accounts before adjusting entries.
Debit Credit Prepaid Insurance $ 2,400
Supplies 2,500
Equipment 30,000
Unearned Service Revenue $9,000
An analysis of the accounts shows the following.
1. Insurance expires at the rate of $300 per month.
2. Supplies on hand total $1,100.
3. The equipment depreciates $500 per month.
4. During March, services were performed for two-fifths of the unearned service revenue.
Prepare the adjusting entries for the month of March.
Answer :
DO IT! 3-3 Javier Computer Services began operations in July 2019. At the end of the month, the company prepares monthly financial statements. It has the following information for the month.
1. At July 31, the company owed employees $1,300 in salaries that the company will pay in August.
2. On July 1, the company borrowed $20,000 from a local bank on a 10-year note. The annual interest rate is 12%.
3. Service revenue unrecorded in July totaled $2,400.
Prepare the adjusting entries needed at July 31, 2019.
Answer :
EXERCISES
E3-4 Hart Corporation encounters the following situations:
1. Hart collects $1,300 from a customer in 2019 for services to be performed in 2020.
2. Hart incurs utility expense which is not yet paid in cash or recorded.
3. Hart’s employees worked 3 days in 2019 but will not be paid until 2020.
4. Hart performs services for customers but has not yet received cash or recorded the transaction.
5. Hart paid $2,400 rent on December 1 for the 4 months starting December 1.
6. Hart received cash for future services and recorded a liability until the service was performed.
7. Hart performed consulting services for a client in December 2019. On December 31, it had not billed the client for services performed of $1,200.
8. Hart paid cash for an expense and recorded an asset until the item was used up.
9. Hart purchased $900 of supplies in 2019; at year-end, $400 of supplies remain unused.
10.Hart purchased equipment on January 1, 2019; the equipment will be used for 5 years.
11.Hart borrowed $10,000 on October 1, 2019, signing an 8% one-year note payable.
Instructions
Identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, or accrued revenue) is needed in each situation at December 31, 2019.
Answer :
1. Unearned revenue 2. Accrued expense 3. Accrued expense 4. Accrued revenue 5. Prepaid expense 6. Unearned revenue
7. Accrued revenue
8. Tidak termasuk dalam ayat jurnal penyesuaian 9. Prepaid expense
10.Prepaid expense 11.Prepaid expense
E3-5 Verne Cova Company has the following balances in selected accounts on December 31, 2019.
Accounts Receivable
Accumulated Depreciation—Equipment $ –0–
Equipment 7,000 –0–
Interest Payable –0–
Notes Payable 10,000
Prepaid Insurance 2,100
Salaries and Wages Payable –0–
Supplies 2,450
Unearned Service Revenue 30,000
All the accounts have normal balances. The information below has been gathered at December 31, 2019.
1. Verne Cova Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2019.
2. A count of supplies on December 31, 2019, indicates that supplies of $900 are on hand.
3. Depreciation on the equipment for 2019 is $1,000.
4. Verne Cova Company paid $2,100 for 12 months of insurance coverage on June 1, 2019.
5. On December 1, 2019, Verne Cova collected $30,000 for consulting services to be performed from December 1, 2019, through March 31, 2020.
6. Verne Cova performed consulting services for a client in December 2019. The client will be billed $4,200.
7. Verne Cova Company pays its employees total salaries of $9,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2019.
Instructions
Prepare adjusting entries for the seven items described above.
Tanggal Akun Ref Debit Kredit 31 Des
2019
Interest Expense $400
Interest Payable $400
Supplies Expense $1,550
Supplies $1,550
Depreciation Expense $1,000
Accumulated Depreciation—
Equipment $1,000
Insurance Expense $1,225
Prepaid Insurance $1,225
Unearned Service Revenue $7,500
Service Revenue $7,500
Accounts Receivable $4,200
Service Revenue $4,200
Salary Expense $5,400
Salaries and Wages Payable $5,400
E3-6 Lei Company accumulates the following adjustment data at December 31.
1. Services performed but unbilled total $1,000.
2. Supplies of $300 have been used.
3. Utility expenses of $225 are unpaid.
4. Services performed of $260 collected in advance.
5. Salaries of $800 are unpaid.
6. Prepaid insurance totaling $350 has expired.
Instructions
For each of the above items indicate the following.
(a) The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense).
(b)The status of accounts before adjustment (overstatement or understatement).
Jawaban:
1. (a) Accrued Revenue (b) Terlalu rendah 2. (a) Prepaid Expense
(b) Terlalu tinggi 3. (a) Accrued Expense
(b) Terlalu rendah 4. (a) Unearned Revenue
(b) Terlalu tinggi 5. (a) Accrued Expense
(b) Terlalu rendah 6. (a) Prepaid Expense
(b) Terlalu tinggi
E3-7 The ledger of Perez Rental Agency on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been
prepared.
Debit Credit Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated
Depreciation—Equipment $ 8,400
Notes Payable 20,000
Unearned Rent Revenue 10,200
Rent Revenue 60,000
Interest Expense –0–
Salaries and Wages Expense 14,000 An analysis of the accounts shows the following.
1. The equipment depreciates $400 per month.
2. One-third of the unearned rent revenue was earned during the quarter.
3. Interest totaling $500 is accrued on the notes payable for the quarter.
4. Supplies on hand total $900.
5. Insurance expires at the rate of $200 per month.
Instructions
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense.
Answer :
E3-8 Robin Shalit, D.D.S., opened a dental practice on January 1, 2019. During the first month of operations, the following transactions occurred.
1. Performed services for patients who had dental plan insurance. At January 31,
$875 of such services were performed but not yet recorded.
2. Utility expenses incurred but not paid prior to January 31 totaled $650.
3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates
$400 per month. Interest is $500 per month.
4. Purchased a one-year malpractice insurance policy on January 1 for $24,000.
5. Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on hand.
Instructions:
Prepare the adjusting entries on January 31. Account titles are Accumulated Depreciation-Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Utilities Payable.
Answer :
E3-9 The trial balance for Pioneer Advertising Inc. is shown in Illustration 3-3 (page 101).
Instead of the adjusting entries shown in the text at October 31, assume the following adjustment data.
1. Supplies on hand at October 31 total $500.
2. Expired insurance for the month is $100.
3. Depreciation for the month is $50.
4. Services related to unearned service revenue in October worth $600 were performed.
5. Services performed but not recorded at October 31 are $300.
6. Interest accrued at October 31 is $95.
7. Accrued salaries at October 31 are $1,625.
Instructions
Prepare the adjusting entries for the items above.
Answer :
E3-12 Selected accounts of Koffman Company are as follows.
Supplies Expense Salaries and Wages Payable
7/31 800 7/31 1200
Supplies Unearned Service Revenue
7/1 Bal. 1100 7/31 800 7/31 1150 7/1 Bal. 1500
7/10 650 7/20 1000
Accounts Receivable Service Revenue
7/31 500 7/14 2000
7/31 1150
Salaries and Wages Expense 7/31 500
7/15 1200
7/31 1200
Instructions
After analyzing the accounts, journalize (a) the July transactions and (b) the adjusting entries that were made on July 31. (Hint: July transactions were for cash.)
Answer : a)
b)
E3-13 The ledger of Armour Lake Lumber Supply on July 31, 2019, includes the selected accounts below before adjusting entries have been prepared.
Debit Credit
Notes Payable $20,000
Supplies $ 24,000
Prepaid Rent 3,600
Buildings 250,000
Accumulated Depreciation—Buildings 140,000
Unearned Service Revenue 11,500
An analysis of the company’s accounts shows the following.
1. The notes payable pays interest at a rate of 6% per year.
2. Supplies on hand at the end of the month totaled $18,600.
3. The balance in Prepaid Rent represents 4 months of rent costs.
4. Employees were owed $3,100 related to unpaid salaries and wages.
5. Depreciation on buildings is $6,000 per year.
6. During the month, the company satisfied obligations worth $4,700 related to the Unearned Services Revenue.
7. Unpaid maintenance and repairs costs were $2,300.
Instructions
Prepare the adjusting entries at July 31 assuming that adjusting entries are made monthly. Use additional accounts as needed.
Answer :
E3-14 On December 31, 2019, Waters Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $150,000, total liabilities $70,000, and stockholders’
equity
$80,000. The incorrect income statement showed net income of $70,000. The data for the three adjusting entries were:
1. Salaries and wages amounting to $10,000 for the last 2 days in December were not paid and not recorded. The next payroll will be in January.
2. Rent payments of $8,000 was received for two months in advance on December 1. The entire amount was credited to Unearned Rent Revenue when paid.
3. Depreciation expense for 2019 is $9,000.
Instructions
Complete the following table to correct the financial statement amounts shown (indicate deductions with parentheses).
Item Net
Income
Total Assets
Total Liabilities
Stockholders' Equity Incorrect balances
Effects of:
Salaries and Wages
Rent Revenue
Depreciation Correct balance Answer :
E3-15 Action Ǫuest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2019.
1. Purchased a 1-year insurance policy on June 1 for $1,800 cash.
2. Paid $6,500 on August 31 for 5 months’ rent in advance.
3. On September 4, received $3,600 cash in advance from a corporation to sponsor a game each month for a total of 9 months for the most improved students at a local school.
4. Signed a contract for cleaning services starting December 1 for $1,000 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.)
5. On December 5, received $1,500 in advance from a gaming club.
Determined that on December 31, $475 of these games had not yet been played.
Instructions
● For each of the above transactions, prepare the journal entry to record the initial transaction.
● For each of the above transactions, prepare the adjusting journal entry that is required on December 31. (Hint: Use the account Service Revenue for item 3 and Repairs and Maintenance Expense for item 4.)
● Post the journal entries in parts (a) and (b) to T-accounts and determine the final balance in each account balance. (Note: Posting to the Cash account is not required.)
Answer :
a) Journal entries
b) Adjusting entries
c) T-Account
E3-16 Greenock Limited has the following information available for accruals for the year ended December 31, 2019. The company adjusts its accounts annually.
1. The December utility bill for $425 was unrecorded on December 31. Greenock paid the bill on January 11.
2. Greenock is open 7 days a week and employees are paid a total of $3,500 every Monday for a 7-day (Monday–Sunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28–Thursday, December 31) that they have not been paid for by year-end. Employees will be paid next on January 4.
3. Greenock signed a $48,000, 5% bank loan on November 1, 2018, due in 2 years. Interest is payable on the first day of each following month.
4. Greenock receives a fee from Pizza Shop next door for all pizzas sold to customers using Greenock’s facility. The amount owed for December is $300, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.) 5. Greenock rented some of its unused warehouse space to a client for $6,000 a month, payable the first day of the following month. It received the rent for the month of December on January 2.
Instructions
● For each situation, prepare the adjusting entry required at December 31. (Round all calculations to the nearest dollar.)
● For each situation, prepare the journal entry to record the subsequent cash transaction in 2020.
Answer :
a) Journal entry
b) Adjusting entries
E3-19 The following data are taken from the comparative balance sheets of Cascade Billiards Club, which prepares its financial statements using the accrual basis of accounting.
December 31 2019 2018
Accounts receivable from members $14,000 $ 9,000
Unearned service revenue 17,000 25,000
Members are billed based upon their use of the club’s facilities. Unearned service revenues arise from the sale of gift certificates, which members can apply to their future use of club facilities. The 2019 income statement for the club showed that service revenue of $161,000 was recorded during the year.
Instructions
(Hint: You will probably f nd it helpful to use T-accounts to analyze these data.)
(a)Prepare journal entries for each of the following events that took place during 2019.
1. Accounts receivable from 2018 were all collected.
2. Gift certificates outstanding at the end of 2018 were all redeemed.
3. An additional $38,000 worth of gift certificates were sold during 2019. A portion of these was used by the recipients during the year; the remainder was still outstanding at the end of 2019.
4. Services performed for members for 2019 were billed to members.
5. Accounts receivable for 2019 (i.e., those billed in item [4] above) were partially collected.
(b)Determine the amount of cash received by the club, with respect to member services, during 2019.
Answer :
a) journal entries
b) the amount of cash received by the club during 2019
