Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Textbook Question
Chapter 3, Problem 51E
Exercise 3-51
Adjustment for Supplies
The downtown location of Chicago Clothiers purchases large quantities Of supplies, including plastic garment bags and paper bags and boxes. At December 31, 2019, the following information is available concerning these supplies:
Supplies inventory, 1/1/2019 $4,150
Supplies inventory, 12/31/2019 5,220
Supplies purchased for cash during 2019 12,690
All purchases of supplies during the year are debited to the supplies inventory.
Required:
- What is the expense reported on the income statement associated with the use of supplies during 2019?
- What is the
adjusting entry at December 31, 2019? - By how much would assets and income be overstated or understated if the adjusting entry were not recorded?
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Problem #17
Journalizing Merchandising Transactions
Transactions for the Mariano Lerin Bookstore for March 2020 follows:
Purchased merchandise on credit from Digao Publishers, terms 2/10.
n/30, FOB destination, P74,000.
Sold merchandise on credit to Detoya Books Shop, terms 1/10, n/30, FOR
shipping point, P10,000.
Sold merchandise for cash, P7,000.
Purchased and received merchandise on credit from Made Easy
Bookstore, terms 2/10, n/30, FOB shipping point, P42,000.
Received freight bill from Super Express from shipment received on Mar.
6, P570.
Mar. 2
7.
Sold merchandise on credit to Recoletos Books, terms 1/10, n/30, FOB
destination, P38,000.
Purchased merchandise from Digao Publishers, terms 2/10, n/30, FOB
shipping point, P26,500, including freight costs of P500.
Received freight bill from Super Express for sale on Mar. 9, P291.
Paid Digao Publishers for purchase of Mar. 2.
Received payment in full for Detoya Books Shop's purchase of Mar. 3.
Paid Made Easy Bookstore half the amount…
Problem #7
Voucher System
transactions occurred during Jan. 2019:
Issued check no. 701 in payment of voucher no. 600 to Calayag Company,
P9,310. The voucher was recorded on Dec. 31, 2019 for P9,500. A 2%
discount was taken.
Recorded voucher no. 601 payable to Cruz Realty for January rent, P9,250.
Recorded voucher no. 602 payable to Dorega Suppliers for merchandise
purchased, P8,000; terms 2/10, n/30.
Issued check no. 702 in payment of voucher no. 601.
Recorded voucher no. 603 payable to Espiritu Bookstore for P6,000 worth of
office supplies; terms 2/10, n/30.
Recorded voucher no. 604 to Giron Freight Company for freight on
merchandise purchased, P700.
Issued check no. 703 in payment of voucher no. 602 less discounts.
Issued check No. 704 in payment of voucher No. 603.
Recorded voucher no. 605 payable to Ligeralde Business Machines, for store
equipment, P15,000; terms 2/20, n/60.
Issued check no. 705 in payment of voucher no. 604.
Recorded voucher No. 606 payable to Macapagal Traders,…
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Current Attempt in Progress
Your accounts receivable clerk, Helen Adams, to whom you pay a salary of $1,540 per month, has just purchased a new Acura. You
decide to test the accuracy of the accounts receivable balance of $85,700 as shown in the ledger.
The following information is available for your first year in business.
Collections from customers
Merchandise purchased
(1)
(2)
(3)
Ending merchandise inventory
(4) Goods are marked to sell at 40% above cost
$196,400
321,300
98,550
Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent
shortages. Assume that all sales are made on account.
The ending balance of accounts receivable from customers $
Apparent shortage
Chapter 3 Solutions
Cornerstones of Financial Accounting
Ch. 3 - How does accural-basis net income differ from...Ch. 3 - Explain when revenue may be recognized and give an...Ch. 3 - What happens during the accounting cycle?Ch. 3 - Prob. 4DQCh. 3 - Why are adjusting entries needed?Ch. 3 - What accounting concepts require that adjusting...Ch. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - What is the difference between an accural and a...Ch. 3 - Prob. 10DQ
Ch. 3 - Prob. 11DQCh. 3 - Describe the effect on the financial statements...Ch. 3 - Prob. 13DQCh. 3 - Prob. 14DQCh. 3 - Prob. 15DQCh. 3 - Prob. 16DQCh. 3 - Prob. 17DQCh. 3 - Prob. 18DQCh. 3 - ( Appendix 3A) What is the relationship between...Ch. 3 - Prob. 20DQCh. 3 - Which of the following statements is true? Under...Ch. 3 - In December 2019, Swanstrom Inc. receives a cash...Ch. 3 - Which transaction would require adjustment at...Ch. 3 - Which of the following statements is false?...Ch. 3 - Dallas Company loaned to Ewing Company on December...Ch. 3 - Rons Diner received the following bills for...Ch. 3 - In September 2019, GolfWorld Magazine obtained...Ch. 3 - Hurd Inc. prepays rent every 3 months on March 1,...Ch. 3 - Which of the following statements is incorrect...Ch. 3 - Reinhardt Company reported revenues of $122,000...Ch. 3 - Prob. 11MCQCh. 3 - Cornerstone Exercise 3-12 Accrual- and Cash-Basis...Ch. 3 - Cornerstone Exercise 3-13 Accrual- and Cash-Basis...Ch. 3 - Prob. 14CECh. 3 - Prob. 15CECh. 3 - Cornerstone Exercise 3-16 Identification of...Ch. 3 - Cornerstone Exercise 3-17 Accrued Revenue...Ch. 3 - Cornerstone Exercise 3-18 Accrued Expense...Ch. 3 - Cornerstone Exercise 3-19 Deferred Revenue...Ch. 3 - Cornerstone Exercise 3-20 Deferred Expense...Ch. 3 - Cornerstone Exercise 3-21 Adjustment for Supplies...Ch. 3 - Cornerstone Exercise 3-22 Adjustment for...Ch. 3 - Prob. 23CECh. 3 - Cornerstone Exercise 3-24 Preparing an Income...Ch. 3 - Cornerstone Exercise 3-25 Preparing a Retained...Ch. 3 - Cornerstone Exercise 3-26 Preparing a Balance...Ch. 3 - Cornerstone Exercise 3-27 Preparing and Analyzing...Ch. 3 - Brief Exercise 3-28 Accrual- and Cash-Basis...Ch. 3 - Brief Exercise 3-29 Revenue and Expense...Ch. 3 - Brief Exercise 3-30 Identification of Adjusting...Ch. 3 - Brief Exercise 3-31 Adjusting Entries-Accruals...Ch. 3 - Brief Exercise 3-32 Adjusting Entries-Deferrals...Ch. 3 - Brief Exercise 3-33 Preparing an Income Statement...Ch. 3 - Brief Exercise 3-34 Preparing a Retained Earnings...Ch. 3 - Prob. 35BECh. 3 - Brief Exercise 3-36 Preparing and Analyzing...Ch. 3 - Prob. 37BECh. 3 - Exercise 3-38 Accrual- and Cash-Basis Expense...Ch. 3 - Exercise 3-39 Revenue Recognition Each of the...Ch. 3 - Exercise 3-40 Revenue and Expense Recognition...Ch. 3 - Exercise 3-41 Cash-Basis and Accrual-Basis...Ch. 3 - Exercise 3-42 Revenue and Expense Recognition...Ch. 3 - Exercise 3-43 Recognizing Expenses Treadway Dental...Ch. 3 - Exercise 3-44 Revenue Expense and Recognition...Ch. 3 - Exercise 3-45 Identification of Adjusting Entries...Ch. 3 - Exercise 3-46 Identification and Analysis of...Ch. 3 - Exercise 3-47 Revenue Adjustments Sentry Transport...Ch. 3 - Expense Adjustments Faraday Electronic Service...Ch. 3 - Prob. 49ECh. 3 - Exercise 3-50 Prepayment of Expenses JDM Inc. made...Ch. 3 - Exercise 3-51 Adjustment for Supplies The downtown...Ch. 3 - Adjusting Entries Exercise 3-52 Allentown Services...Ch. 3 - Prob. 53ECh. 3 - Exercise 3-54 Recreating Adjusting Entries...Ch. 3 - Exercise 3-55 Effect of Adjustments on the...Ch. 3 - Exercise 3-56 Preparing an Income Statement Oxmoor...Ch. 3 - Exercise 3-57 Preparing a Retained Earnings...Ch. 3 - Exercise 3-58 Preparing a Balance Sheet Refer to...Ch. 3 - Exercise 3-59 Preparation of Closing Entries Grand...Ch. 3 - Exercise 3-60 Preparation of Closing Entries James...Ch. 3 - Exercise 3-61 Preparation of a Worksheet (Appendix...Ch. 3 - Problem 3-62A Cash-Basis and Accrual-Basis Income...Ch. 3 - Problem 3-63A Revenue and Expense Recognition...Ch. 3 - Problem 3-64A Identification and Preparation of...Ch. 3 - Problem 3-65A Preparation of Adjusting Entries...Ch. 3 - Problem 3-66A Effects of Adjusting Entries on the...Ch. 3 - Problem 3-67A Adjusting Entries and Financial...Ch. 3 - Problem 3-68A Inferring Adjusting Entries from...Ch. 3 - Problem 3-69A Preparation of Closing Entries and...Ch. 3 - Problem 3-70B Comprehensive Problem: Reviewing the...Ch. 3 - Problem 3-71 A Preparing a Worksheet (Appendix 3A)...Ch. 3 - Prob. 62BPSBCh. 3 - Problem 3-63B Revenue and Expense Recognition Aunt...Ch. 3 - Problem 3-64B Identification and Preparation of...Ch. 3 - Problem 3-65B Preparation of Adjusting Entries...Ch. 3 - Problem 3-66A Effects of Adjusting Entries on the...Ch. 3 - Problem 3-67B Adjusting Entries and Financial...Ch. 3 - Problem 3-68B Inferring Adjusting Entries from...Ch. 3 - Problem 3-69B Preparation of Closing Entries and...Ch. 3 - Problem 3-70B Comprehensive Problem: Reviewing the...Ch. 3 - Problem 3-71B Preparing a Worksheet (Appendix 3A)...Ch. 3 - Case 3-72 Cash- or Accrual-Basis Accounting Karen...Ch. 3 - Case 3-73 Recognition of Service Contract Revenue...Ch. 3 - Case 3-73 Recognition of Service Contract Revenue...Ch. 3 - Case 3-73 Recognition of Service Contract Revenue...Ch. 3 - Case 3-74 Revenue Recognition Melaney Parks...Ch. 3 - Prob. 74.2CCh. 3 - Prob. 75CCh. 3 - Prob. 76CCh. 3 - Prob. 77.1CCh. 3 - Prob. 77.2CCh. 3 - Prob. 78.1CCh. 3 - Prob. 78.2CCh. 3 - Case 3-78 Interpreting Closing Entries Barnes...Ch. 3 - Case 3-79 Research and Analysis Using the Annual...Ch. 3 - Prob. 79.2CCh. 3 - Prob. 79.3CCh. 3 - Prob. 79.4CCh. 3 - Prob. 79.5CCh. 3 - Prob. 80.1CCh. 3 - Refer to the 10-K reports of Under Armour, Inc.,...Ch. 3 - Prob. 80.3CCh. 3 - Prob. 80.4CCh. 3 - Prob. 81.1CCh. 3 - Prob. 81.2CCh. 3 - Prob. 81.3CCh. 3 - Prob. 81.4CCh. 3 - Prob. 81.5CCh. 3 - Prob. 81.6CCh. 3 - Prob. 81.7C
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