CHAPTER 3 The Adjusting Process

PROBLEMS
Prob. 3–1A Page 138
1. a. Supplies Expense 4,680
Supplies 4,680
Supplies used ($6,880 – $2,200).

b. Unearned Rent 2,300

Rent Revenue 2,300
Rent earned ($9,200 ÷ 4 months).

c. Wages Expense 1,850

Wages Payable 1,850
Accrued wages.

d. Accounts Receivable 11,700

Fees Earned 11,700
Accrued fees earned.

e. Depreciation Expense 3,500

Accumulated Depreciation—Office Equipment 3,500
Depreciation expense.
 CHAPTER 3 The Adjusting Process

Prob. 3–2A
1. a. Accounts Receivable 9,150
Fees Earned 9,150
Accrued fees earned.

b. Supplies Expense 2,325

Supplies 2,325
Supplies used ($3,000 – $675).

c. Rent Expense 5,000

Prepaid Rent 5,000
Prepaid rent expired.

d. Depreciation Expense 3,300

Accumulated Depreciation—Equipment 3,300
Equipment depreciation.

e. Unearned Fees 7,500

Fees Earned 7,500
Fees earned ($10,500 – $3,000).

f. Wages Expense 3,100

Wages Payable 3,100
Accrued wages.
Prob. 3–3A
1. a. Accounts Receivable 12,700
Fees Earned 12,700
Accrued fees earned.

b. Supplies Expense 17,425

Supplies 17,425
Supplies used ($21,600 – $4,175).

c. Depreciation Expense 7,400

Accumulated Depreciation—Equipment 7,400
Equipment depreciation.

d. Unearned Fees 14,200

Fees Earned 14,200
Fees earned.

e. Wages Expense 1,100

Wages Payable 1,100
Accrued wages.
 CHAPTER 3 The Adjusting Process

Prob. 3–5A
1. a. Insurance Expense 1,800
Prepaid Insurance 1,800
Insurance expired ($7,200 – $5,400).

b. Supplies Expense 1,605

Supplies 1,605
Supplies used ($1,980 – $375).

c. Depreciation Expense—Building 6,000

Accumulated Depreciation—Building 6,000
Building depreciation.

d. Depreciation Expense—Equipment 3,000

Accumulated Depreciation—Equipment 3,000
Equipment depreciation.

e. Unearned Rent 5,400

Rent Revenue 5,400
Rent revenue earned ($6,750 – $1,350).

f. Salaries and Wages Expense 2,900

Salaries and Wages Payable 2,900
Accrued salaries and wages.

g. Accounts Receivable 18,600

Fees Earned 18,600
Accrued fees earned.
 CHAPTER 3 The Adjusting Process

Prob. 3–1B Page 142

Accounts Receivable 19,750
Fees Earned 19,750
Accrued fees earned.

Supplies Expense 8,150

Supplies 8,150
Supplies used ($12,300 – $4,150).

Wages Expense 2,700

Wages Payable 2,700
Accrued wages.

Unearned Rent 3,000

Rent Revenue 3,000
Rent earned ($9,000 ÷ 3 months).

Depreciation Expense 3,200

Accumulated Depreciation—Equipment 3,200
Depreciation expense.
Prob. 3–2B
1. a. Supplies Expense 2,620
Supplies 2,620
Supplies used ($3,170 – $550).

b. Depreciation Expense 1,675

Accumulated Depreciation—Equipment 1,675
Depreciation for year.

c. Rent Expense 8,500

Prepaid Rent 8,500
Rent expired.

d. Wages Expense 2,000

Wages Payable 2,000
Accrued wages.

e. Unearned Fees 6,000

Fees Earned 6,000
Fees earned ($10,000 – $4,000).

f. Accounts Receivable 5,380

Fees Earned 5,380
Accrued fees.