HOMEWORK

Session 4: Adjusting Entries

E3-4 (p.109):
1. Unearned Revenue
2. Accrued Expense
3. Accrued Expense
4. Accrued Revenue
5. Prepaid Expense
6. Unearned Revenue
7. Accrued Revenue
8. Prepaid Expense
9. Prepaid Expense
10. Prepaid Expense
11. Accrued Expense
E3-5 (p.110):
1. Interest Expense …………………………………… 800
Interest Payable ………………………………. 800
8
($10,000 . 12% . 12 = $800)

2. Supplies Expense …………………………………... 1,550

Supplies……………………………………….. 1,550
($2,450 – $900 = $1,550)

3. Depreciation Expense ……………………………… 1,000

Accumulated Depreciation …………………… 1,000

4. Insurance Expense …………………………………. 875

Prepaid Insurance ……………………………... 875
5
($2,100 . 12 = $875)
5. Unearned Revenue…………………………………… 7,500
Service Revenue ………………………………... 7,500
1
($30,000 . 4 = $7,500)
6. Accounts Receivable …………………………………. 4,200
Service Revenue ………………………………… 4,200

7. Salaries Expense ……………………………………… 5,400

Salaries Payable …………………………………. 5,400
3
($9,000 . 5 = $5,400)

E3-6:
a.
1. Accrued Revenue
2. Prepaid Expense
3. Accrued Expense
4. Unearned Revenue
5. Accrued Expense
6. Prepaid Expense

b.
1. Assets understated (Cash)
Revenues understated (Service Revenue)
2. Assets overstated (Supplies)
Expenses understated (Supplies Expense)
3. Expenses understated (Utilities Expense)
Liabilities understated (Utilities Payable)
4. Revenues understated (Service Revenue)
Liabilities overstated (Unearned Revenue)
5. Expenses understated (Salaries Expense)
Liabilities understated (Salaries Payable)
6. Assets overstated (Prepaid Insurance)
Expenses understated (Insurance Expense)