E3-11 A partial adjusted trial balance of Frangesch Company at
January 31, 2017, shows the following.
FRANGESCH COMPANY
Adjusted Trial Balance
January 31, 2017
Debit Credit
Supplies $ 850
Prepaid Insurance 2,400
Salaries and Wages Payable $ 920
Unearned Service Revenue 750
Supplies Expense 950
Insurance Expense 400
Salaries and Wages Expense 2,900
Service Revenue 2,000
Instructions
Answer the following questions, assuming the year begins
January 1.
(a) If the amount in Supplies Expense is the January 31
adjusting entry, and $1,000 of supplies was purchased in January,
what was the balance in Supplies on January 1?
(b) If the amount in Insurance Expense is the January 31
adjusting entry, and the original insurance premium was for one
year, what was the total premium and when was the policy
purchased?
(c) If $3,800 of salaries was paid in January, what was the
balance in Salaries and Wages Payable at December 31, 2016?
Journalize basic transactions and adjusting entries.
(LO 2, 3)
E3-12 Selected accounts of Holly Company are shown as
follows.
Image Missing
Instructions
After analyzing the accounts, journalize (a) the July
transactions and (b) the adjusting entries that were made on July
31. (Hint: July transactions were for cash.)
Prepare adjusting entries from analysis of trial
balances.
(LO 2, 3, 4)
E3-13 The trial balances before and after adjustment for
Turnquist Company at the end of its fiscal year are presented
below.
Image Missing
Instructions
Prepare the adjusting entries that were made.
Prepare financial statements from adjusted trial
balance.
(LO 4)
E3-14 The adjusted trial balance for Turnquist Company is
given in E3-13.
Instructions
Prepare the income and owner's equity statements for the year
and the balance sheet at August 31.
Record transactions on accrual basis; convert revenue to cash
receipts.
(LO 2, 3)
E3-15 The following data are taken from the comparative
balance sheets of Bundies Billiards Club, which prepares its
financial statements using the accrual basis of accounting.
December 31
2017
2016
Accounts receivable from members $16,000 $ 8,000
Unearned service revenue 17,000 25,000
Members are billed based upon their use of the club's
facilities. Unearned service revenues arise from the sale of gift
certificates, which members can apply to their future use of club
facilities. The 2017 income statement for the club showed that
service revenue of $161,000 was earned during the year.
Instructions
(Hint: You will probably find it helpful to use T-accounts to
analyze these data.)
(a) Prepare journal entries for each of the following events
that took place during 2017.
Accounts receivable from 2016 were all collected.
Gift certificates outstanding at the end of 2016 were all
redeemed.
An additional $38,000 worth of gift certificates were sold
during 2017. A portion of these was used by the recipients during
the year; the remainder was still outstanding at the end of
2017.
Services performed for members for 2017 were billed to
members.
Accounts receivable for 2017 (i.e., those billed in item [4]
above) were partially collected.
(b) Determine the amount of cash received by the club, with
respect to member services, during 2017.
Journalize adjusting entries.