Study
Guide
21
Name Perfect
Score
Your
Score
Identifying Accounting Terms 7 Pts.
Analyzing Accounts Affected by Accruals and Deferrals 30 Pts.
Analyzing Accruals and Deferrals 13 Pts.
Total 50 Pts.
Part One—Identifying Accounting Terms
Directions: Select the one term in Column I that best fits each definition in
Column II. Print the letter identifying your choice in the Answers column.
Answers
1.
2.
Column I
A. accrual
B. accrued interest
expense
Column II
1. An entry recording revenue before the cash is received or
an expense before the cash is paid. (p. 648)
2. An entry recording the receipt of cash before the related
revenue is earned or payment of cash before the related
expense is incurred. (p. 648)
A
D
Part Two—Analyzing Accounts Affected by Accruals and
Deferrals
Directions: Determine in which journal each of the transactions is to be recorded.
Analyze each of the following entries into debit and credit parts. Print letters
(A through K) in the proper Answers columns identifying the accounts to be debited
and credited.
G—General Journal; CP—Cash Payments Journal; CR—Cash Receipts Journal
Answers
123
Account Titles Transactions Journal Debit Credit
A. Cash 1–2–3. Recorded an adjustment for accrued
interest income. (p. 649)
1. 2. 3.
B. Interest Expense 4–5–6. Reversed an adjusting entry for
accrued interest income. (p. 649)
4. 5. 6.
C. Interest Income 7–8–9. Received cash for the maturity
value of a 120-day, 10% note. (p. 650)
7. 8. 9.
D. Interest Payable 10–11–12. Recorded an adjustment for
accrued interest expense. (p. 652)
10. 11. 12.
G
G
CR
G
E
C
A
B
C
E
G, C
D
Name Date Class
Part Three—Analyzing Accruals and Deferrals
Directions: Place a T for True or an F for False in the Answers column to show
whether each of the following statements is true or false.
1. Revenue and expenses should be recorded when the revenue is earned and expenses
are incurred. (p. 648)
2. Accrued interest income is credited to the Interest Income account. (p. 649)
3. The reversing entry for accrued interest earned includes a credit to the Interest Income
account. (p. 649)
4. Recording an adjusting entry for an accrued expense is an application of the Realization
of Revenue concept. (p. 652)
5. At the end of a fiscal period, the Interest Expense balance after adjustments shows the
Answers
1.
2.
3.
4.
5.
T
T
F
F
T
660 • Working Papers
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Across
2. An entry recording revenue before the cash is
received, or an expense before the cash is paid.
5. An entry recording the receipt of cash before the
related revenue is earned, or payment of cash
before the related expense is incurred.
Down
1. Payments for goods or services which have not
yet been received.
3. Expenses incurred in one fiscal period, but not
paid until a later fiscal period.
1
2
3
4
TE
1
2
3
4
D
E
F
E
RCCAUAL
R
E
D
E
X
C
C
R
U
E
D
E
F
E
23148_ch21_hr_657-682.indd 660 1/18/18 1:40 AM
Name Date Class
21-1 WORK TOGETHER, p. 656
Journalizing entries for accruals
GENERAL JOURNAL PAGE
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
22
3 3
4 4
5 5
6 6
GENERAL JOURNAL PAGE
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
4 4
5 5
Kufas Corporation
Unadjusted Trial Balance
December 31, 20X1
ACCOUNT TITLE DEBIT CREDIT
Notes Receivable 10 0 0 0 00
Interest Receivable
1., 2.
3.
14
Adjusting Entries
20X1
Dec. 31 Interest Receivable 7 5 00
Interest Income 7 5 00
31 Interest Expense 6 0 00
Interest Payable 6 0 00
15
Reversing Entries
20X2
Jan. 1Interest Income 7 5 00
Interest Receivable 7 5 00
1Interest Payable 6 0 00
Interest Expense 6 0 00
662 • Working Papers
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
21-1 WORK TOGETHER (continued)
CASH PAYMENTS JOURNAL PAGE
12345
DATE ACCOUNT TITLE CK.
NO.
POST.
REF.
GENERAL ACCOUNTS
PAYABLE
DEBIT
PURCHASES
DISCOUNT
CREDIT
CASH
CREDIT
DEBIT CREDIT
1 1
2 2
3 3
4 4
5 5
6 6
4.
TE
20X2
Mar. 1Notes Payable 478 12 0 0 0 00 12 1 8 0 00
Interest Expense 1 8 0 00
25
23148_ch21_hr_657-682.indd 662 1/18/18 1:40 AM
Name Date Class
21-1 WORK TOGETHER (concluded)
1., 2., 3., 4., 5.
6. Interest Income for 20X1
Interest Income for 20X2
7. Interest Expense for 20X1
Interest Expense for 20X2
Notes Payable
Dec. 1 12,000.00
Interest Payable
Notes Receivable
Nov. 16 10,000.00
Interest Receivable
10,000.00Mar. 16 12,000.00
75.00
75.00
Dec. 31 Adj.
$75.00
$125.00
$60.00
$120.00
Dec. 31 Adj.
Jan. 1 Rev.
Jan. 1 Rev.
Mar. 1
60.00
60.00
GENERAL JOURNAL PAGE
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
GENERAL JOURNAL PAGE
Craven, Inc.
Unadjusted Trial Balance
December 31, 20X1
ACCOUNT TITLE DEBIT CREDIT
Notes Receivable 12 0 0 0 00
Interest Receivable
1., 2.
3.
21-1 ON YOUR OWN, p. 656
Journalizing entries for accruals
14
Adjusting Entries
20X1
Dec. 31 Interest Receivable 1 0 0 00
Interest Income 1 0 0 00
31 Interest Expense 2 0 8 33
Interest Payable 2 0 8 33
Closing Entries
31 Interest Income 2 4 2 1 00
Income Summary 2 4 2 1 00
31 Income Summary 1 8 2 9 33
Interest Expense 1 8 2 9 33
15
Chapter 21 Accounting for Accruals, Deferrals, and Reversing Entries • 665
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Name Date Class
21-1 ON YOUR OWN (continued)
CASH RECEIPTS JOURNAL PAGE
1234567
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF.
GENERAL ACCOUNTS
RECEIVABLE
CREDIT
SALES
CREDIT
SALES TAX
PAYABLE
CREDIT
SALES
DISCOUNT
DEBIT
CASH
DEBIT
DEBIT CREDIT
1 1
2 2
3 3
4 4
5 5
6 6
4.
20X2
Mar. 1Notes Receivable R241 12 0 0 0 00 12 3 0 0 00
Interest Income 3 0 0 00
19
23148_ch21_hr_657-682.indd 665 1/18/18 1:40 AM
1., 2., 3., 4., 5.
Notes Payable
Oct. 17 20,000.00
Interest Payable
Notes Receivable
Dec. 1 12,000.00
Interest Receivable
12,000.00Mar. 1 20,000.00
100.00
100.00
Dec. 31 Adj.
Dec. 31 Adj.
Jan. 1 Rev.
Jan. 1 Rev.
Apr. 15
208.33
208.33
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Name Date Class
21-2 WORK TOGETHER, p. 663
Journalizing entries for deferrals
CASH RECEIPTS JOURNAL PAGE
1234567
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF.
GENERAL ACCOUNTS
RECEIVABLE
CREDIT
SALES
CREDIT
SALES TAX
PAYABLE
CREDIT
SALES
DISCOUNT
DEBIT
CASH
DEBIT
DEBIT CREDIT
1 1
2 2
1.
17
20–
Sept. 1 Unearned Legal Fees R345 12 0 0 0 00 12 0 0 0 00
23148_ch21_hr_657-682.indd 667 1/18/18 1:40 AM
668 • Working Papers
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
21-2 WORK TOGETHER (concluded)
CASH PAYMENTS JOURNAL PAGE
12345
DATE ACCOUNT TITLE CK.
NO.
POST.
REF.
GENERAL ACCOUNTS
PAYABLE
DEBIT
PURCHASES
DISCOUNT
CREDIT
CASH
CREDIT
DEBIT CREDIT
1 1
2.
17
TE
20X2
Sept. 1Prepaid Legal Fees 672 12 0 0 0 00 12 0 0 0 00
23148_ch21_hr_657-682.indd 668 1/18/18 1:40 AM
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Name Date Class
21-2 ON YOUR OWN, p. 663
Journalizing entries for deferrals
CASH RECEIPTS JOURNAL PAGE
1234567
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF.
GENERAL ACCOUNTS
RECEIVABLE
CREDIT
SALES
CREDIT
SALES TAX
PAYABLE
CREDIT
SALES
DISCOUNT
DEBIT
CASH
DEBIT
DEBIT CREDIT
1 1
2 2
1.
21
20–
Nov. 1 Unearned Rent Income R487 9 0 0 0 00 9 0 0 0 00
23148_ch21_hr_657-682.indd 669 1/18/18 1:40 AM