Professional Documents
Culture Documents
S3-10 Journalizing and posting an adjusting entry for accrued salaries expense
Learning Objective 3
Maple Park Senior Center has a weekly payroll of $15,000. December 31 falls on Wednesday,
and Maple Park Senior Center will pay its employees the following Monday (January 5) for the
previous full week. Assume Maple Park Senior Center has a five-day workweek and has an
unadjusted balance in Salaries Expense of $600,000.
Requirements
1. Record the adjusting entry for accrued salaries on December 31.
2. Post the adjusting entry to the accounts involved and show the balances after adjustments.
3. Record the journal entry for payment of salaries made on January 5.
S3-11 Journalizing and posting an adjusting entry for accrued interest expense
Learning Objective 3
Fly Away Travel borrowed $26,000 on August 1, 2016, by signing a one-year note payable to
Region One Bank. Fly Away’s interest expense on the note payable for the remainder of the
fiscal year (August through October) is $494.
Requirements
1. Record the adjusting entry to accrue interest expense at October 31, 2016.
2. Post the adjusting entry to the T-accounts of the two accounts affected by the adjustment.
Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label
the journal entries.
The accounting records of Galvin Architects include the following selected, unadjusted balances
at March 31: Accounts Receivable, $1,100; Office Supplies, $1,000; Prepaid Rent, $1,000;
Equipment, $9,000; Accumulated Depreciation—Equipment, $0; Salaries Payable, $0; Unearned
Revenue, $700; Service Revenue, $4,100; Salaries Expense, $1,400; Supplies Expense, $0; Rent
Expense, $0; Depreciation Expense— Equipment, $0. The data developed for the March 31
adjusting entries are as follows:
a. Service revenue accrued, $600.
b. Unearned revenue that has been earned, $100.
c. Office Supplies on hand, $500.
d. Salaries owed to employees, $300.
e. One month of prepaid rent has expired, $500.
f. Depreciation on equipment, $135.
Requirements
1. Open a T-account for each account using the unadjusted balances given.
2. Journalize the adjusting entries using the letter and March 31 date in the date column.
3. Post the adjustments to the T-accounts, entering each adjustment by letter. Show each
account’s adjusted balance.
E3-25 Journalizing adjusting entries and posting to T-accounts
Learning Objective 3
3. Office Supplies bal. $1,100 DR
The unadjusted trial balance for First Class Maids Company, a cleaning service, is as follows:
During the 12 months ended December 31, 2016, First Class Maids:
a. used office supplies of $1,900.
b. used prepaid insurance of $560.
c. depreciated equipment, $510.
d. accrued salaries expense of $250 that hasn’t been paid yet.
e. earned $420 of unearned revenue.
Requirements
1. Open a T-account for each account using the unadjusted balances.
2. Journalize the adjusting entries using the letter and December 31 date in the date column.
3. Post the adjustments to the T-accounts, entering each adjustment by letter. Show each
account’s adjusted balance.
P3-34A Journalizing adjusting entries and identifying the impact on financial statements
Learning Objectives 3, 5
1. d. DR Depreciation Expense $8,000
Wright Fishing Charters has collected the following data for the December 31 adjusting entries:
a. The company received its electric bill on December 20 for $225 but will not pay it until
January 5. (Use the Utilities Payable account.)
b. Wright purchased a nine-month boat insurance policy on November 1 for $9,000. Wright
recorded a debit to Prepaid Insurance.
c. As of December 31, Wright had earned $2,000 of charter revenue that has not been recorded
or received.
d. Wright’s fishing boat was purchased on January 1 at a cost of $44,500. Wright expects to use
the boat for five years and that it will have a residual value of $4,500. Determine annual
depreciation assuming the straight-line depreciation method is used.
e. On October 1, Wright received $8,000 prepayment for a deep-sea fishing charter to take
place in December. As of December 31, Wright has completed the charter.
Requirements
1. Journalize the adjusting entries needed on December 31 for Wright Fishing Charters. Assume
Wright records adjusting entries only at the end of the year.
P3-35A Journalizing and posting adjustments to the T-accounts and preparing an adjusted
trial balance
Learning Objectives 3, 4
3. Adjusted trial balance $69,750 total
The unadjusted trial balance of Aurora Air Purification System at December 31, 2016, and the
data needed for the adjustments follow.
P3-36A Journalizing and posting adjustments to the four-column accounts and preparing
an adjusted trial balance
Learning Objectives 3, 4
3. Adjusted trial balance $555,220 total
The unadjusted trial balance of Newport Inn Company at December 31, 2016, and the data
needed for the adjustments follow.