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Title: Exercise 3-11A
QA_Ori:
a. Initial credit recorded in the Unearned Fees account
1-Jul Cash
6-Jan Cash 7,500
12-Jan Unearned Fees 3,000
18-Jan Cash 8,500
27-Jan Unearned Fees 7,500
31-Jan No adjusting entries required.
b. Initial credit recorded in the Fees Earned account
1-Jul Cash 3,000
6-Jan Cash 7,500
12-Ja
18-Ja
n Cash 8,500
27-Ja
31-Ja
n Fees Earned 8,500
c. Under the first method (and using entries from a)
Under the second method (and using entries from b)
[Note: Both procedures yield identical results in the financial statements.]
Title: Exercise 3-12
QA_Ori:
adidas AG
Balance Sheet
31-Dec-11
(Euros in millions)
Assets
Noncurrent assets
Intangible assets 154
Tangible and other assets 255
Total assets 6046
Equity
Title: Problem 3-1A
QA_Ori:
1 E 5 C 9 D
Title: Problem 3-2A
QA_Ori:
Part 1
Adjustment (a)
14,84
Adjustment (b)
31-Dec Insurance Expense 7,120
Policy Cost per Month
Months Active
in 2013 2013
Cost
mo.)
Instructor note: The first printing of the book had a typo in the
marginal check figure of 11,440 for Insurance Expense instead of
the correct 7,120.
Adjustment (c)
31-Dec Salaries Expense 3,920
Salaries Payable 3,920
Adjustment (d)
30,50
Part 2
Cash Payment for (c)
6-Jan Salaries Payable 3,920
Cash Payment for (e)
15-Jan Cash 6,000
Title: Problem 3-3A
QA_Ori:
Parts 1 and 2
Cash Equipment
Bal.
Bal.
Accounts Receivable
Accumulated Depreciation—
Equipment
Unadj.
0 Unadj.
15,000
Bal.
Teaching Supplies Accounts Payable
Unadj.
8,000 Bal. 26,000
Unadj.
Bal.
0
Prepaid Insurance (g) 400
Unadj.
Bal.
12,000 Adj.
Bal.
400
(a) 2,400
Adj. Bal. 9,600 Unearned Training Fees
Unadj.
Bal.
12,500
Prepaid Rent (e) 5,000
Professional Library
Bal. 35,000 T. Wells, Withdrawals
Bal. 50,000
Accumulated Depreciation—
Professional Library
Bal.
Part 2
Tuition Fees Earned Rent Expense
Unadj.
Bal.
123,90
0
Unadj.
Bal.
33,00
0
(f) 7,500 (h) 3,000
Adj. Bal. 131,40
0
Adj. Bal. 36,00
0
Training Fees Earned Teaching Supplies Expense
Bal.
Depreciation Expense—
Professional Library Advertising Expense
Unadj.
Bal.
0 Bal. 6,000
(d) 7,200
Adj. Bal. 7,200
Depreciation Expense—
Equipment Utilities Expense
Salaries Expense
Unadj.
Bal.
50,000
(g) 400
Adj. Bal. 50,400
Insurance Expense
Part 3
WELLS TECHNICAL INSTITUTE
Adjusted Trial Balance
December 31, 2013
Debit Credit
Cash........................................................................... $ 34,000
Accounts receivable................................................... 7,500
Teaching supplies ..................................................... 2,800
Prepaid insurance...................................................... 9,600
Prepaid rent............................................................... 0
Part 4
wells TECHNICAL INSTITUTE
Income Statement
For Year Ended December 31, 2013
Revenues
Tuition fees earned
$131,40
0
Training fees earned 45,000
$176,40
WELLS TECHNICAL INSTITUTE
Statement of Owner’s Equity
For Year Ended December 31, 2013
T. Wells, Capital, December 31, 2012 $90,000
WELLS TECHNICAL INSTITUTE
Balance Sheet
31-Dec-13
Assets
Cash $34,000
Accounts receivable 7,500
0
Title: Problem 3-4A
QA_Ori:
Part 1
Account
Unadjusted
Trial Balance Adjustments
Adjusted
Trial Balance
Cash.......................... $
34,000
$
34,000
Accounts receivable...... 14,000 (a
)
8,000 22,000
Office supplies.............. 16,000 (b
)
14,000 2,000
Adjustment description
(a) Earned but uncollected revenues.
(b) Cost of office supplies used.
