Sloan Company has the following account balances at December 31, the end of its fiscal year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sloan Company has the following account balances at December 31, the end of its fiscal year (all accounts have normal balances). Prepaid advertising $1,920 Wages expense 70,080 Prepaid insurance 5,472 Unearned service fees 8,640 Service fees earned 139,200 Rental income 7,840 a. Prepare Sloan Company's accounting adjustments at December 31 using the financial statement effects template and the following additional information. 1. Prepaid advertising at December 31 is $1,280. 2. Unpaid wages earned by employees in December are $4,160. 3. Prepaid insurance at December 31 is $3,648. 4. Unearned service fees at December 31 are $4,800. 5. Rent revenue of $1,600 owed by a tenant is not recorded at December 31. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Balance Sheet Liabilities Transaction 1. 2. 3. 4 5. Transaction Cash Asset 1. 2. + Cash Asset + Noncash Assets + + + + b. Use the financial statement effects template to record the following transactions on January 4 of the following year: 1. Payment of $7,680 cash in wages. 2. Cash receipt from the tenant of the $1,600 rent revenue. Noncash Assets # + # Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Balance Sheet Liabilities Contrib. Capital + Contrib. Capital + + # + Earned Capital Earned Capital # # + Revenues Revenues + + + Income Statement - - Expenses Income Statement Expenses + + + + = Net Income = Net Income Sloan Company has the following account balances at December 31, the end of its fiscal year (all accounts have normal balances). Prepaid advertising $1,920 Wages expense 70,080 Prepaid insurance 5,472 Unearned service fees 8,640 Service fees earned 139,200 Rental income 7,840 a. Prepare Sloan Company's accounting adjustments at December 31 using the financial statement effects template and the following additional information. 1. Prepaid advertising at December 31 is $1,280. 2. Unpaid wages earned by employees in December are $4,160. 3. Prepaid insurance at December 31 is $3,648. 4. Unearned service fees at December 31 are $4,800. 5. Rent revenue of $1,600 owed by a tenant is not recorded at December 31. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Balance Sheet Liabilities Transaction 1. 2. 3. 4 5. Transaction Cash Asset 1. 2. + Cash Asset + Noncash Assets + + + + b. Use the financial statement effects template to record the following transactions on January 4 of the following year: 1. Payment of $7,680 cash in wages. 2. Cash receipt from the tenant of the $1,600 rent revenue. Noncash Assets # + # Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Balance Sheet Liabilities Contrib. Capital + Contrib. Capital + + # + Earned Capital Earned Capital # # + Revenues Revenues + + + Income Statement - - Expenses Income Statement Expenses + + + + = Net Income = Net Income
Expert Answer:
Answer rating: 100% (QA)
Lets prepare Sloan Companys accounting adjustments at December 31 using the financial statement effe... View the full answer
Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
Posted Date:
Students also viewed these accounting questions
-
Gourmet Teas & Coffee, Inc., has the following account balances at December 31, the end of the fiscal year: Prepaid insurance ...... $ 4,000 Rental income ....... 35,670 Unearned rental income ......
-
The Gladiator Sports Company has the following account balances at the end of the year before any adjustments have been made: Prepaid insurance ...... $9,000 Unearned revenue ....... 5,300 Wages...
-
11. Which one is not a source for collecting references? Ans : O Proquest Ebscohost O Scopus Safe assign
-
Use the six pattern-analysis rules described in Figure 13.22 to determine whether the process being monitored with the xÌ-chart shown below is out of statistical control. UCL LCL 10 15 20 25...
-
What are some tips for effectively using face-toface contacts? Phone calls? Instant messages? Text messaging? Social media? Letters? Memos and e-mails?
-
US Obesity Levels by State and over Time These questions refer to the graphs found at http://stateofobesity.org/adult-obesity/ which show a sequence of maps of US states, colored by the proportion of...
-
Refer to Problem 2-28A. After completing the ledger in Problem 2-28A, prepare the following financial statements for Showtime Amusements Company: Requirements 1. Income statement for the month ended...
-
PepsiCo can borrow in the debt market at 8%, and it currently has a debt to equity ratio (D/E) of 50%. If the cost of equity is 12%, what is the WACC? Assume that the corporate tax rate is 25%, and...
-
True or false......... "Price/rate" and "efficiency" (i.e. Level 3) variance analysis techniques can be used to compare year to year changes in both labour and material costs. Question 9 options:...
-
Continue the revised Smart Touch Learning illustration from Summary Problem 22-1. Recall that the fourth quarter sales are revised to 700 tablets with the expectation of increased holiday sales....
-
Federalism is defined as shared government between a central government and regional units of government. Essentially, federalism is about the balance of power between the federal government and the...
-
What is the addition to the who it is found 34 278 weer dit may be What is the standard deviation for the values of the random van? Wat the The standard deviation is (Round in three decimal places...
-
Turner Company owns 10% of the outstanding stock of ICA Company. During the current year, ICA paid a $5 million cash dividend on its common shares. Ignore income taxes. What effect did this dividend...
-
Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the...
-
Do you think the rules weve constructed in science (ex: the laws of physics) are correct? Do they perfectly predict what happens in nature, or can they be improved? How?
-
Saccharin is an artificial sweetener that is used in diet beverages. In order for it to be metabolized by the body, it must pass into cells. Below are shown the two forms of saccharin. Saccharin has...
-
Weber Company had a $21,000 net loss from operations for 2018. Depreciation expense for 2018 was $8,600 and a 2018 cash dividend of $6,000 was declared and paid. Balances of the current asset and...
-
Lundholm Company's comparative balance sheets, income statement, and statement of cash flows for July are presented below: REQUIRED: a. Set up T-accounts and enter beginning and ending balances for...
-
How does a firm go about increasing its AT ratio? What strategies are likely to be most effective?
-
When would you prefer to use busy-wait I/O over interrupt-driven I/O?
-
Draw UML diagrams for the read of one character from an 8251 UART. To read the character from the UART, the device needs to read from the data register and to set the serial port status register bit...
-
Draw a UML state diagram for software processing of a vectored interrupt. The vector handling is performed by software (a generic driver) that executes as the result of an interrupt. Assume that the...
Study smarter with the SolutionInn App