©2010-2026 宁波自信网络信息技术有限公司 版权所有
客服电话：0574-28810668 投诉电话：18658249818
浙ICP备2021020529号-1 | 浙B2-20240490
关注我们 ：
1、 CHAPTER 3 Adjusting the Accounts ASSIGNMENT CLASSIFICATION TABLE Brief A B Study Objectives Questions Exercises Exercises Problems Problems *1. Explain the time period assumption. 1, 2 *2. Explain the accrual basis 3, 4, 5
2、 1, 6 of accounting. *3. Explain why adjusting 1, 6, 7 1 entries are needed. *4. Identify the major types 8, 9, 10, 18 2, 8 2, 7 of adjusting entries. *5. Prepare adjusting entries for prepayments. 8, 9, 10, 11, 12, 13, 3, 4, 5, 6
3、 2, 3, 4, 5, 6, 7, 8, 9, 1A, 2A, 3A, 1B, 2B, 3B, 18, 19, 20 11 4A, 5A, 6A 4B, 5B *6. Prepare adjusting entries for accruals. 8, 14, 15, 16, 17, 18, 7 2, 3, 4, 5, 6, 7, 8, 9, 1A, 2A, 3A, 1B, 2B, 3B, 19, 20 11 4A, 5A, 6A 4B, 5B *7.
4、 Describe the nature and 21 9, 10 3, 4, 5, 6, 1A, 2A, 1B, 2B, purpose of an adjusted trial balance. 7, 8, 9, 10 3A, 5A, 6A 3B, 5B *8. Prepare adjusting entries 22 11 12 6A for the alternative treatment of prepayments. *Note: All as
5、terisked Questions, Exercises, and Problems relate to material contained in the appendix *to the chapter. 3-1 ASSIGNMENT CHARACTERISTICS TABLE Problem Difficulty Time Number 1A Description Prepare adjusting entries, post to ledger accoun
6、ts, and Level Simple Allotted (min.) 40−50 prepare an adjusted trial balance. 2A Prepare adjusting entries, post, and prepare an adjusted Simple 50−60 trial balance and financial statements. 3A 4A 5A Prepare adjusting entries and financial statements.
7、 Prepare adjusting entries. Journalize transactions and follow through accounting Moderate Moderate Moderate 40−50 30−40 60−70 cycle to preparation of financial statements. *6A* Prepare adjusting entries, an adjusted trial balance, and Moderate 40−50 f
8、inancial statements using appendix. 1B Prepare adjusting entries, post to ledger accounts, and Simple 40−50 prepare an adjusted trial balance. 2B Prepare adjusting entries, post, and prepare an adjusted Simple 50−60 trial balance and financial statements.
9、 3B 4B 5B Prepare adjusting entries and financial statements. Prepare adjusting entries. Journalize transactions and follow through accounting Moderate Moderate Moderate 40−50 30−40 60−70 cycle to preparation of financial statements.
10、 3-2 BLOOM'S TAXONOMY TABLE 3-3 Correlation Chart between Bloom’s Taxonomy, Study Objectives and End-of-Chapter Exercises and Pr
11、oblems Study Objective Q3-1 Q3-3 Q3-4 Q3-1 Q3-6 Q3-8 Q3-9 Q3-8 Q3-9 Q3-10 Q3-11 Q3-12 Q3-13 Q3-19 Q3-20 Q3-17 Q3-18 BE3-3 BE3-4 BE3-5 BE3-6 E3-2 E3-3 E3-4 E3-5 E3-6 E3-7 E3-8 E3-9 E3-11 P3-1A P3-2A P3-3A Q3-10 Q3-18 BE3-2 BE3-8 E3-7 E3-2 P3-4A E3-11 P3-5A P3
12、6A P3-1B P3-2B P3-3B P3-4B P3-5B Q3-7 BE3-1 Q3-5 E3-6 Q3-2 E3-1 Knowledge Comprehension Application Analysis Synthesis Evaluation *1. Explain the time period assumption. *2. Explain the accrual basis of accounting. *3. Explain why adjusting entries are needed. *4. Identify
13、the major types of adjusting entries. *5. Prepare adjusting entries for prepayments. *6. Q3-8 Q3-14 Q3-15 Q3-19 Q3-20 Prepare adjusting entries for accruals. Q3-21 Communication Research Case Q3-16 Q3-18 BE3-7 E3-2 E3-3 E3-4 E3-5 E3-6 BE3-9 BE3-10 E3-10 E3-3 E3-4 E3-5 E3-6
14、 E3-7 E3-8 Q3-22 Cookie Chronicle E3-7 E3-8 E3-9 E3-11 P3-1A P3-2A P3-3A P3-4A E3-9 P3-1A P3-2A P3-3A P3-5A BE3-11 P3-6A E3-12 P3-5A E3-11 P3-6A P3-1B P3-2B P3-3B P3-4B P3-5B P3-6A P3-1B P3-2B P3-3B P3-5B *7. Describe the nature and purpose of an adjusted trial bal
15、ance. *8. Prepare adjusting entries for the alternative treatment of prepayments. Broadening Your Perspective Group Decision Ethics Case Financial Reporting Interpreting Case Comparative Analysis Financial Interpreting Exploring the Web Statements Financial Global Focus Statements
16、 ANSWERS TO QUESTIONS 1. (a) Under the time period assumption, an accountant is required to determine the relevance of each business transaction to specific accounting periods. (b) An accounting time period of one year in length is referred to as a fiscal year. A fiscal
17、 year that extends from January 1 to December 31 is referred to as a calendar year. Accounting periods of less than one year are called interim periods. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. The two generally accepted account
18、ing principles that relate to adjusting the accounts are: The revenue recognition principle, which states that revenue should be recognized in the accounting period in which it is earned. The matching principle, which states that efforts (expenses) be matched with accomplishments (revenues).
19、The law firm should recognize the revenue in April. The revenue recognition principle states that revenue should be recognized in the accounting period in which it is earned. Information presented on an accrual basis is more useful than on a cash basis because it reveals relationships that are
20、likely to be important in predicting future results. To illustrate, under accrual accounting, revenues are recognized when earned so they can be related to the economic environment in which they occur. Trends in revenues are thus more meaningful. Expenses of $4,500 should be deducted from the r
21、evenues in April. Under the matching principle efforts (expenses) should be matched with accomplishments (revenues). No, adjusting entries are required by the revenue recognition and matching principles. A trial balance may not contain up-to-date information for financial statements because:
22、 (1) Some events are not journalized daily because it is inexpedient to do so. (2) The expiration of some costs occurs with the passage of time rather than as a result of recurring daily transactions. (3) Some items may be unrecorded because the transaction data are not known. The two categori
23、es of adjusting entries are prepayments and accruals. Prepayments consist of prepaid expenses and unearned revenues. Accruals consist of accrued revenues and accrued expenses. In the adjusting entry for a prepaid expense, an expense is debited and an asset is credited. No. Depreciation is th
24、e process of allocating the cost of an asset to expense over its useful life in a rational and systematic manner. Depreciation results in the presentation of the book value of the asset, not its market value. Depreciation expense is an expense account whose normal balance is a debit. This accou
25、nt shows the cost that has expired during the current accounting period. Accumulated depreciation is a contra asset account whose normal balance is a credit. The balance in this account is the depreciation that has been recognized from the date of acquisition to the balance sheet date. 12.
26、 Equipment ................................................................................................ $18,000 Less: Accumulated Depreciation .............................................................. 3-4 7,000 $11,000 Questions Chapter 3 (Continued) *13.
27、 *14. *15. *16. *17. In the adjusting entry for an unearned revenue, a liability is debited and a revenue is credited. Asset and revenue. An asset would be debited and a revenue would be credited. An expense is debited and a liability is credited. Net income was unders
28、tated $300 because prior to adjustment, revenues are understated by $900 and expenses are understated by $600. The difference in this case is $300 ($900 – $600). The entry is: Jan. 9 Salaries Payable........................................................................... Salaries Expen
29、se.......................................................................... Cash..................................................................................... 2,000 4,000 6,000 *18. *19. (a) (b) (c) (a) (b) (c) Accrued revenues. Unearned revenues. Acc
30、rued expenses. Salaries Payable. Accumulated Depreciation. Interest Expense. (d) (e) (f) (d) (e) (f) Accrued expenses or prepaid expenses. Prepaid expenses. Accrued revenues or unearned revenues. Supplies Expense. Service Revenue. Service Revenue. *20. *21.
31、 *22. Disagree. An adjusting entry affects only one balance sheet account and one income statement account. Financial statements can be prepared directly from an adjusted trial balance because the balances of all accounts have been adjusted to show the effects of all financial events tha
32、t have occurred during the accounting period. For Supplies Expense (prepaid expense): expenses are overstated and assets are understated. The adjusting entry is: Assets (Supplies) .......................................................................................... XX Expenses (Suppl
33、ies Expense)................................................................. XX For Rent Revenue (unearned revenues): revenues are overstated and liabilities are understated. The adjusting entry is: Revenues (Rent Revenue) ...................................................................
34、 XX Liabilities (Unearned Rent Revenue) ....................................................... XX 3-5 SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 3-1 (a) Prepaid Insurance—to recognize insurance expired during the period. (b) D
35、epreciation Expense—to account for the depreciation that has occurred on the asset during the period. (c) Unearned Revenue—to record revenue earned for services provided. (d) Interest Payable—to recognize interest accrued but unpaid on notes payable. BRIEF EXERCISE 3-2 (a) (b
36、) Item 1. 2. 3. 4. Type of Adjustment Prepaid Expenses Accrued Revenues Accrued Expenses Unearned Revenues Accounts before Adjustment Assets Overstated Expenses Understated Assets Understated Revenues Understated Expenses Understated
37、 Liabilities Understated Liabilities Overstated Revenues Understated BRIEF EXERCISE 3-3 Dec. 31 Advertising Supplies Expense ............................. Advertising Supplies ($6,700 – $1,700) ....... 5,000 5,000 Advertising Supplies 6,700 12/31 5,000 12
38、/31 Bal. 1,700 3-6 Advertising Supplies Expense 12/31 5,000 BRIEF EXERCISE 3-4 Dec. 31 Depreciation Expense—Equipment..................... Accumulated Depreciation— Equipment................................................... 6,000 6,000
39、 Depr. Expense—Equipment 12/31 6,000 Balance Sheet: Accum. Depreciation—Equipment 12/31 6,000 Equipment.............................................................. $30,000 Less: Accumulated Depreciation ....................... BRIEF EXERCISE 3-5 6,000
40、24,000 July 1 Dec. 31 Prepaid Insurance............................................. Cash ........................................................... Insurance Expense ($12,000 ÷ 3) X 1/2 ........... Prepaid Insurance..................................... 12,000 2,000
41、 12,000 2,000 Prepaid Insurance Insurance Expense 7/1 12,000 12/31 2,000 12/31 2,000 12/31 Bal. 10,000 BRIEF EXERCISE 3-6 July 1 Dec. 31 Cash ................................................................... Unearned Insurance R
42、evenue ................. Unearned Insurance Revenue ......................... Insurance Revenue ................................... 12,000 2,000 12,000 2,000 Unearned Insurance Revenue 12/31 2,000 7/1 12,000 12/31 Bal. 10,000 3-
43、7 Insurance Revenue 12/31 2,000 BRIEF EXERCISE 3-7 1. 2. 3. Dec. 31 31 31 Interest Expense ............................................ Interest Payable ..................................... Accounts Receivable............................
44、 Service Revenue .................................... Salaries Expense ........................................... Salaries Payable..................................... 400 1,250 900 400 1,250 900 BRIEF EXERCISE 3-8 (a) (b)
45、 Account Accounts Receivable Prepaid Insurance Accum. Depr.—Equipment Interest Payable Unearned Service Revenue Type of Adjustment Accrued Revenues Prepaid Expenses Prepaid Expenses Accrued Expenses Unearned Revenues Related Account Service Revenue Insurance Expense Depreciation Exp
46、ense Interest Expense Service Revenue BRIEF EXERCISE 3-9 LUCILLE CORPORATION Income Statement For the Year Ended December 31, 2006 Revenues Service revenue ...................................................... Expenses Salaries expense......................................
47、 Rent expense........................................................... Insurance expense ................................................. Supplies expense ................................................... Depreciation expense............................................. Tota
48、l expenses ................................................ Net income ...................................................................... 3-8 $16,000 4,000 2,000 1,500 1,100 $38,400 24,600 $13,800 BRIEF EXERCISE 3-10 LUCILLE CORPORATION
49、Retained Earnings Statement For the Year Ended December 31, 2006 Retained earnings, January 1........................................................... Add: Net income .............................................................................. Less: Dividends ..........................
50、 Retained earnings, December 31 ..................................................... *BRIEF EXERCISE 3-11 $15,600 13,800 29,400 6,000 $23,400 (a) Apr. 30 Supplies .......................................................
©2010-2026 宁波自信网络信息技术有限公司 版权所有
客服电话：0574-28810668 投诉电话：18658249818
浙ICP备2021020529号-1 | 浙B2-20240490
关注我们 ：
