ACC 557 Week 3 Assignment - Scored 100% - 69409

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ACC 557 Week 3



 Emeril Corporation encounters the following situations:


Identify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, accrued revenue) is needed in each situation, at December 31, 2008.

1. Emeril collects $1,000 from a customer in 2008 for services to be performed in 2009.

2. Emeril incurs utility expense which is not yet paid in cash or recorded.

3. Emeril's employees worked 3 days in 2008, but will not be paid until 2009.

4. Emeril earned service revenue but has not yet received cash or recorded the transaction.

5. Emeril paid $2,000 rent on December 1 for the 4 months starting December 1.

6. Emeril received cash for future services and recorded a liability until the revenue was earned.

7. Emeril performed consulting services for a client in December 2008. On December 31, it billed the client $1,200.

8. Emeril paid cash for an expense and recorded an asset until the item was used up.

9. Emeril purchased $900 of supplies in 2008; at year-end, $400 of supplies remain unused.

10. Emeril purchased equipment on January 1, 2008; the equipment will be used for 5 years.

11. Emeril borrowed $10,000 on October 1, 2008, signing an 8% one-year note payable.


ACC 557 Week 3 E3-8

Andy Wright, D.D.S., opened a dental practice on January 1, 2008. During the first month 
of operations the following transactions occurred.
1. Performed services for patients who had dental plan insurance. At January 31, $875 of such
services was earned but not yet recorded.
2. Utility expenses incurred but not paid prior to January 31 totaled $520.
3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a
$60,000, 3-year note payable.The equipment depreciates $400 per month. Interest is $500 per
4. Purchased a one-year malpractice insurance policy on January 1 for $12,000.
5. Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on
Prepare the adjusting entries on January 31. Account titles are: Accumulated Depreciation—
Dental Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance
Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Suppl


ACC 557 Week 3 E3-10


The income statement of Benning Co. for the month of July shows net income of $1,400 based on Service Revenue $5,500, Wages Expense $2,300, Supplies Expense $1,200, and Utilities Expense $600. In reviewing the statement, you discover the following.

  1. Insurance expired during July of $400 was omitted.

  2. Supplies expense includes $200 of supplies that are still on hand at July 31.

  3. Depreciation on equipment of $150 was omitted.

  4. Accrued but unpaid wages at July 31 of $300 were not included.

  5. Services provided but unrecorded totaled $500.


Prepare a correct income statement for July 2008


ACC 557 Week 3 E3-13



The trial balances before and after adjustment for Garcia Company at the end of its fiscal year are presented below.



Prepare the adjusting entries that were made.



ACC 557 Week 3 P3-2A

Neosho River Resort, Inc. opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows.


In addition to those accounts listed on the trial balance, the chart of accounts for Neosho River Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable, No. 144 Accumulated Depreciation–Cottages, No. 150 Accumulated Depreciation–Furniture, No. 212 Salaries Payable, No. 230 Interest Payable, No. 320 Retained Earnings, No. 620 Depreciation Expense–Cottages, No. 621 Depreciation Expense–Furniture, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

  1. Insurance expires at the rate of $400 per month.

  2. A count on August 31 shows $600 of supplies on hand.

  3. Annual depreciation is $6,000 on cottages and $2,400 on furniture.

  4. Unearned rent of $4,100 was earned prior to August 31.

  5. Salaries of $400 were unpaid at August 31.

  6. Rentals of $1,000 were due from tenants at August 31. (Use Accounts Receivable.)

  7. The mortgage interest rate is 9% per year. (The mortgage was taken out on August 1.)


(a) Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31.




ACC 557 Week 3 P3-5A

On September 1, 2008, the account balances of Rand Equipment Repair, Inc. were as follows.





During September the following summary transactions were completed.

Sept.  8


Paid $1,400 for salaries due employees, of which $900 is for September.



Received $1,200 cash from customers on account.



Received $3,400 cash for services performed in September.



Purchased store equipment on account $3,000.



Purchased supplies on account $1,200.



Paid creditors $4,500 on account.



Paid September rent $500.



Paid salaries $1,250.



Performed services on account and billed customers for services provided $1,500.



Received $650 from customers for future service.

Adjustment data consist of:

  1. Supplies on hand $1,200.

  2. Accrued salaries payable $400.

  3. Depreciation is $100 per month.

  4. Unearned service revenue of $1,450 is earned.



Journalize the September transactions. (Your instructor may advise you to post to ledger accounts, that should be turned in as part of the problem.)


Prepare a trial balance at September 30.


Journalize and post adjusting entries.


Prepare an adjusted trial balance.


Prepare an income statement and a retained earnings statement for September and a balance sheet at September 30.





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