ACT231 Chapter 4 Homework

TEXTBOOK: https://openstax.org/books/principles-financial-accounting/pages/4-exercise-set-b

For Chapter 4 assignment, please submit the responses in ONE MS Word or MS Excel document/spreadsheet for the following exercises for Chapter 4.  

Chapter 4 Homework

Voorhees College

ACT 231 VC

January 5, 2022

EB1.

LO 4.2 Identify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither.

A. provided legal services to client, who paid at the time of service

B. received cash for legal services performed last month

C. received cash from clients for future services to be provided

D. provided legal services to client, to be collected next month

EB2.

LO 4.2 Identify whether each of the following transactions, which are related to expense recognition, are accrual, deferral, or neither.

E. recorded employee salaries earned, to be paid in future month

F. paid employees for current month salaries

G. paid employee salaries for work performed in a prior month

H. gave an employee an advance on future wages

EB4.

LO 4.2 What two accounts are affected by the needed adjusting entries?

I. supplies actual counts are lower than account balance

J. employee salaries are due but not paid at year end

K. insurance premiums that were paid in advance have expired

EB5.

LO 4.3 Reviewing insurance policies revealed that a single policy was purchased on March 1, for one year's coverage, in the amount of $9,000. There was no previous balance in the Prepaid Insurance account at that time. Based on the information provided,

L. Make the December 31 adjusting journal entry to bring the balances to correct.

M. Show the impact that these transactions had.

EB8.

LO 4.3 On July 1, a client paid an advance payment (retainer) of $10,000, to cover future legal services. During the period, the company completed $6,200 of the agreed-on services for the client. There was no beginning balance in the Unearned Revenue account for the period. Based on the information provided, make the journal entries needed to bring the balances to correct for:

N. original transaction

O. December 31 adjustment

EB9.

LO 4.3 Prepare journal entries to record the business transaction and related adjusting entry for the following:

P. March 1, paid cash for one year premium on insurance contract, $18,000

Q. December 31, remaining unexpired balance of insurance, $3,000

EB10.

LO 4.3 Prepare journal entries to record the following adjustments:

R. revenue earned but not collected, nor recorded, $14,000

S. revenue earned that had originally been collected in advance, $8,500

T. taxes due but not yet paid, $ 2,750