30 Minutes, Medium
Au
g
. 31 15,200
Pre
p
aid Film Rental 15,200
31 700
Accumulated De
p
reciation: Buildin
g
s 700
(
)
(
)
(
)
PROBLEM 4.4
A
CAMPUS THEATER
Depreciation Expense: Buildin
s
To record Au
g
ust depreciation expense
(
$168,000 ÷ 240 months
)
.
2015
a.
(Adjusting Entries)
(1)
(
2
)
General Journal
(
)
Film Rental Expense
Film rental expense incurred in Au
g
ust.
(
)
(
)
b. (1)
PROBLEM 4.4A
CAMPUS THEATER (concluded)
Eight months (bills received January through August). Utilities bills are recorded as
30 Minutes, Medium
Dec. 31 1,500
Fees Earned 1,500
31 2,500
Fees Earned 2,500
Office Su
pp
lies 200
31 500
Accumulated De
p
reciation: E
q
ui
p
ment 500
(
)
31 3,000
Income Taxes Pa
y
able 3,000
To record income taxes accrued in December.
(
6
)
Income Taxes Expense
Depreciation Expense: Equipment
(
7
)
(
$60,000 ÷ 120 mo.
)
.
(
$600 – $400
)
.
To record December depreciation expense
To record offices supplies used in December
2015 Accounts Receivable
To record accrued but uncollected fees earned.
PROBLEM 4.5
A
earned revenue.
TERRIFIC TEMPS
a.
(Adjusting Entries)
General Journal
Unearned Revenue
To convert previousl
y
unearned revenue to
(
)
(1)
(
2
)
Education.
(
)
(
)
1. $ 75,000
1,500
2,500
$ 79,000
2. $ 5,000
$ 980
6. 4,800$
7. $ 5,500
500
$ 6,000
8. 320$
80
10. $ 12,000
3,000
$15,000
c.
PROBLEM 4.5
A
b. TERRIFIC TEMPS (concluded)
Fees earned
(
unad
j
usted
)
Add: Ad
j
ustin
g
entr
y
#1
Travel expense (no adjustment required)
Ad
j
ustin
g
entr
y
#2
Fees Earned in 2015
Depreciation expense: equipment (unadjusted)
Add: Adjusting entry #6
Equipment depreciation expense in 2015
Interest expense (unadjusted)
Add: Adjusting entry #7
Office supplies expense incurred in 2015
Utilities expense (no adjustment required)
The unadjusted trial balance reports no dividends payable. Thus, the entire $3,000
dividend has been paid.
Income taxes expense (unadjusted)
Add: Adjusting entry #9
Income taxes expense incurred in 2015
Education.
30 Minutes, Medium
Dec. 31 6,400
Client Revenue Earned 6,400
31 6,600
Client Revenue Earned 6,600
Pre
p
aid Advertisin
g
1,100
31 2,900
Climbin
g
Su
pp
lies 2,900
(
31 75
Interest Pa
y
able 75
31 3,100
(
)
Income Taxes Payable 1,250
To record income taxes accrued in December.
(
5
)
(
$10,000 x 9% x 1/12
)
.
(
8
)
To recorded December depreciation expense
To record interest accrued in December.
Salaries Expense
Interest Expense
To record accrued but uncollected revenue.
Climbin
g
Supplies Expense
(
)
a.
(Adjusting Entries)
General Journal
Unearned Client Revenue
To convert previousl
y
unearned revenue to
PROBLEM
4
.
6A
(
7
)
(
$57,600 ÷ 48 mo.
)
.
To record Dec. advertisin
g
expense.
ALPINE
EXPEDITIONS
2015 Accounts Receivable
earned revenue.
(1)
(
2
)
(
)
1. $ 13,900
2. 78,000
6,400
4. $ 2,200
(1,100)
1,100$
5. $ 4,900
Prepaid advertising (unadjusted)
Less: Adjusting entry #4
Cash (no adjustment required)
Add: Adjusting entry #1
Accounts receivable (unadjusted)
PROBLEM 4.6A
b.
A
LPINE EXPEDITIONS (continued)
Prepaid advertising at December 31, 2015
Climbing supplies (unadjusted)
c. Deferred expenses are assets that eventually convert into expenses. For Alpine
PROBLEM 4.6
A
ALPINE EXPEDITIONS (concluded)
60 Minutes, Strong
Dec. 31 4,400
Studio Revenue Earned 4,400
31 700
Studio Su
pp
lies 700
(
)
(
(
)
(
PROBLEM 4.7
A
(
$7,600 – $6,900
)
.
To record accrued studio revenue earned in
To record studio supplies used in December
KEN
HENSLEY
ENTERPRISES
,
INC
.
a.
(Adjusting Entries)
(1)
(
2
)
(
3
)
General Journal
2015
Accounts Receivable
Supplies Expense
December.
Education.
(
)
b.
115,000$
18,540$
1,900 2,930
18,000
Supplies Expense
Insurance Expense
Salaries Expense
PROBLEM 4.7
A
KEN HENSLEY ENTERPRISES, INC. (continued)
Ken Hensley Enterprises, Inc.
For the Year Ended December 31, 2015
Studio Revenue Earned
Depreciation Expense: Recordin
g
Equipment
Income Statement
Education.
d.
2,930$
1,250
PROBLEM 4.7
A
KEN HENSLEY ENTERPRISES, INC. (concluded)
December 31, 2015
Less: Insurance expense for August through December
Insurance expense of $250 per month in the last 5 months of the year was $10 per month
more than the average monthly cost in the first 7 months of the year ($250 – $240).
Insurance expense for 12 months ended
20 Minutes, Strong
a. NE O U NE NE NE
b. NE U O O NE O
PROBLEM 4.8
A
COYNE CORPORATION
Error Total
Revenue Total
Expenses Net
Income Total
Assets Total
Liabilities Owners’
Equity
Recorded a dividend as
an expense reported in
the income statement.
Recorded the payment
of an account payable
as a debit to accounts
payable and a credit to
Education.