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    (Adjusting Entries) The Ledger of Chopin Rental Agency On March 31 of The Current Year

    Uploaded by

    Florencia Irena
    This document provides instructions and trial balance information for several companies to prepare adjusting journal entries and financial statements. It includes adjusting entries for Chopin Rental Agency, Stephen King DDS, and questions analyzing Safin plc's adjusted trial balance. It also includes instructions to prepare financial statements for Cavamanlis Co. using their adjusted trial balance information.

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    (Adjusting Entries) The Ledger of Chopin Rental Agency On March 31 of The Current Year

    Uploaded by

    Florencia Irena
    235 views3 pages
    This document provides instructions and trial balance information for several companies to prepare adjusting journal entries and financial statements. It includes adjusting entries for Chopin Rental Agency, Stephen King DDS, and questions analyzing Safin plc's adjusted trial balance. It also includes instructions to prepare financial statements for Cavamanlis Co. using their adjusted trial balance information.

    Original Title

    E3

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    This document provides instructions and trial balance information for several companies to prepare adjusting journal entries and financial statements. It includes adjusting entries for Chopin Rental Agency, Stephen King DDS, and questions analyzing Safin plc's adjusted trial balance. It also includes instructions to prepare financial statements for Cavamanlis Co. using their adjusted trial balance information.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    235 views3 pages

    (Adjusting Entries) The Ledger of Chopin Rental Agency On March 31 of The Current Year

    Uploaded by

    Florencia Irena
    This document provides instructions and trial balance information for several companies to prepare adjusting journal entries and financial statements. It includes adjusting entries for Chopin Rental Agency, Stephen King DDS, and questions analyzing Safin plc's adjusted trial balance. It also includes instructions to prepare financial statements for Cavamanlis Co. using their adjusted trial balance information.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    E3.

    5 (LO 3) (Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the current year
    includes the following selected accounts before adjusting entries have been prepared.

    An analysis of the accounts shows the following.

    1. The equipment depreciates €250 per month.


    2. One-third of the unearned rent was earned during the quarter.
    3. Interest of €500 is accrued on the notes payable.
    4. Supplies on hand total €650.
    5. Insurance expires at the rate of €300 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. (Omit explanations.)

    E3.6 (LO 3) (Adjusting Entries) Stephen King, D.D.S., opened a dental practice on January 1, 2022.
    During the first month of operations, the following transactions occurred.

    1. Performed services for patients who had dental plan insurance. At January 31, $750 of such
    services were performed but not yet billed to the insurance companies.
    2. Utility expenses incurred but not paid prior to January 31 totaled $520.
    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 1-year malpractice insurance policy on January 1 for $15,000.
    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. (Omit explanations.) 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 Accounts Payable.
    E3.7 (LO 3) (Analyze Adjusted Data) A partial adjusted trial balance of Safin plc at January 31, 2022,
    shows the following.
    Safin plc
    Adjusted Trial Balance
    January 31, 2022
    Debit Credit
    Supplies £900
    Prepaid Insurance 2,40
    0
    Salaries and Wages Payable £800
    Unearned Service Revenue 750
    Supplies Expense 950
    Insurance Expense 400
    Salaries and Wages Expense 1,80
    0
    Service Revenue 2,000
    Instructions
    Answer the following questions, assuming the year begins January 1.
    a. If the amount in Supplies Expense is the January 31 adjusting entry and £850 of supplies
    were purchased in January, what was the balance in Supplies on January 1?
    b. If the amount in Insurance Expense is the January 31 adjusting entry and the original
    insurance premium was for 1 year, what was the total premium and when was the policy
    purchased?
    c. If £2,700 of salaries and wages were paid in January, what was the balance in Salaries and
    Wages Payable at December 31, 2021?
    d. If £1,600 was received in January for services performed in January, what was the balance in
    Unearned Service Revenue at December 31, 2021?

    E3.11 (LO 4) (Prepare Financial Statements) The adjusted trial balance of Cavamanlis Co. as of


    December 31, 2022, contains the following.
    Cavamanlis Co.
    Adjusted Trial Balance
    December 31, 2022
    Dr. Cr.
    Cash $18,972
    Accounts Receivable 6,920
    Prepaid Rent 2,280
    Equipment 18,050
    Accumulated Depreciation—Equipment $4,895
    Notes Payable 5,700
    Accounts Payable 4,472
    Share Capital—Ordinary 20,000
    Retained Earnings 11,310
    Dividends 3,000
    Service Revenue 12,590
    Salaries and Wages Expense 6,840
    Rent Expense 2,760
    Depreciation Expense 145
    Interest Expense 83
    Interest Payable 83
    $59,050 $59,050
    Instructions
    1. Prepare an income statement.
    2. Prepare a retained earnings statement.
    3. Prepare a classified statement of financial position.

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