Debits & Credits
NetSolutions paid creditors on account, $950.
(D) Accounts Payable 950 (C) Cash 950
NetSolutions signed an agreement with Danker Co. on December 15 to provide services at a rate of $20 per hour. As of December 31, NetSolutions had provided 25 hours of services. The revenue will be billed on January 15. What will be the adjusting entry as of Dec. 31?
(D) Accounts Receivable 500 (C) Service Revenue 500
The account written off above on May 10 is later collected on Nov. 21.
(D) Accounts Receivable—D.L. Ross 4,200 (C) Bad Debt Expense 4,200 (D) Cash 4,200 (C) Accounts Receivable—D.L. Ross 4,200
On January 21, Parker's account of $6,000 is written off b/c it is uncollectible.
(D) Allowance for Doubtful Accounts 6,000 (C) Accounts Receivable-John Parker 6,000
An end-of-period adjustment is needed to recognize accrued revenue.
(D) Asset Receivable (C) Revenue
On December 31, ExTone Company estimates that a total of $30,000 of the $200,000 balance of their accounts receivable will eventually be uncollectible.
(D) Bad Debt Expense 30,000 (C) Allowance for Doubtful Accounts 30,000
On May 10, a $4,200 account receivable from D.L. Ross has been determined to be uncollectible.
(D) Bad Debt Expense 4,200 (C) Accounts Receivable-D.L. Ross 4,200
Cash is received for an unearned revenue.
(D) Cash (C) Unearned Revenue
Stockholders invest $100,000 cash in an advertising venture to be known as Pioneer Advertising Inc.
(D) Cash 100,000 (C) C/S 100,000
Pioneer receives a $12,000 cash advance from R. Knox, a client, for advertising services that are expected to be completed by December 31.
(D) Cash 12,000 (C) Unearned Service Revenue 12,000
Included in Gonzalez Company's Dec. 31 trial balance is a note receivable of $12,000. The note is a 4-month, 10% note dated Oct 1. Show the Feb. 1 JE to record receipt of $12,400 from the borrower (and don't forget to account for the Dec 31 Adj. Entry recording $300 of accrued interest).
(D) Cash 12,400 (C) Notes Receivable 12,000 (C) Interest Receivable 300 (C) Interest Revenue 100
Stockholders invested $15,000 cash in the corporation in exchange for shares of stock.
(D) Cash 15,000 (C) C/S 15,000
On Dec. 31, NetSolutions received $2,870 from fees earned for the second half of December.
(D) Cash 2,870 (C) Service Revenue 2,870
Pioneer receives $28,000 in cash and bills Copa Company $72,000 for advertising services of $100,000 performed in October.
(D) Cash 28,000 (D) Accounts Receivable 72,000 (C) Service Revenue 100,000
The credit balance of $360 in NetSolutions' Unearned Rent account represents the receipt of three months' rent on December 1 for December, January, and February. At the end of December, one month's rent has been earned. What was the original JE?
(D) Cash 360 (C) Unearned Revenue 360
Receive $4,000 cash for services performed.
(D) Cash 4,000 (C) Service Revenue 4,000
On 3/1/13, $4,120 is received for note ($4,000) & interest ($120 - remember: $40 of this amount has already been earned at the previous month end but is still receivable in cash).
(D) Cash 4,120 (C) Notes Receivable 4,000 (C) Interest Receivable 40 (C) Interest Revenue 80
Owners invest $40,000 in exchange for common stock.
(D) Cash 40,000 (C) Common Stock 40,000
Journalize a $400 cash sale of merchandise. The cost of inventory sold was $300.
(D) Cash 400 (C) Sales Revenue 400 (D) Cost of Goods Sold 300 (C) Inventory
On Dec. 21, when the note matures, the firm receives $6,060 from W.A. Bunn Co. ($6,000 face amount plus $60 interest).
(D) Cash 6,060 (C) Notes Receivable-W.A. Bunn Co. 6,000 (C) Interest Revenue 60
On November 18, 2013, NetSolutions received cash of $7,500 for providing services to customers.
(D) Cash 7,500 (C) Service Revenue 7,500
NetSolutions estimates the depreciation on its office equipment to be $50 for the month of December.
(D) Depreciation Expense 50 (C) A/D-Office Equipment 50
To declare a dividend:
(D) Dividends (C) Dividends Payable
Pioneer's board of directors declares and pays a $5,000 cash dividend to stockholders.
(D) Dividends 5,000 (C) Cash 5,000
Declare a cash dividend of $5,000.
(D) Dividends 5,000 (C) Dividends Payable 5,000
To pay a dividend:
(D) Dividends Payable (C) Cash
Pay $5,000 in dividends to stockholders.
(D) Dividends Payable 5,000 (C) Cash 5,000
Pay cash of $16,000 for a delivery van.
(D) Equipment 16,000 (C) Cash 16,000
Purchase office equipment priced at $5,200, giving a 10 percent promissory note in exchange.
(D) Equipment 5,200 (C) Notes Payable 5,200
Pioneer purchases office equipment costing $50,000 by signing a 3-month, 12%, $50,000 note payable.
(D) Equipment 50,000 (C) Notes Payable 50,000
Purchased computer equipment for $7,000 cash.
(D) Equipment 7,000 (C) Cash 7,000
An end-of-period adjustment is needed to recognize the accrued expense.
(D) Expense (C) Liability Payable
An end-of-period adjustment is needed to update the prepaid expense account.
(D) Expense (C) Prepaid Expense
What is the closing entry associated with expenses?
(D) Income Summary (C) Expenses
The debit balance of $2,400 in NetSolutions' Prepaid Insurance account represents the December 1 prepayment of insurance for 12 months. What will be the adjusting entry as of Dec. 31?
(D) Insurance Expense 200 (C) Prepaid Insurance 200
Included in Gonzalez Company's Dec. 31 trial balance is a note receivable of $12,000. The note is a 4-month, 10% note dated Oct 1. Prepare Gonzalez's Dec. 31 adjusting entry to record $300 of accrued interest.
(D) Interest Receivable 300 (C) Interest Revenue 300
Assuming 12/31 year end, an adjusting entry is required to record the accrued interest of $40 ($4,000 * .12 * 30/360).
(D) Interest Receivable 40 (C) Interest Revenue 40
Convert a long-term liability of $80,000 into common stock.
(D) Long-Term Liability 80,000 (C) Common Stock 80,000
What is the closing entry to close out Net Income to Retained Earnings?
(D) Net Income (C) Retained Earnings
A 90-day, 12% note dated Dec. 1, 2012, is received from Crawford Co. to settle its account, which has a balance of $4,000.
(D) Notes Receivable—Crawford Co. 4,000 (C) Accounts Receivable—Crawford Co. 4,000
Received a $6,000, 12%,30-day note dated Nov. 21, 2012, in settlement of the account of W.A. Bunn Company.
(D) Notes Receivable—W.A. Bunn Co. 6,000 (C) Accounts Receivable—W.A. Bunn Co. 6,000
Cash is paid in advance for an expense.
(D) Prepaid Expense (C) Cash
The debit balance of $2,400 in NetSolutions' Prepaid Insurance account represents the December 1 prepayment of insurance for 12 months. What was the original JE?
(D) Prepaid Insurance 2,400 (C) Cash 2,400
Pioneer pays $6,000 for a one-year insurance policy that will expire next year on September 30.
(D) Prepaid Insurance 6,000 (C) Cash 6,000
Pioneer pays $9,000 office rent, in cash, for October.
(D) Rent Expense 9,000 (C) Cash 9,000
What is the closing entry associated with dividends?
(D) Retained Earnings (C) Dividends
What is the closing entry to close out Net Loss to Retained Earnings?
(D) Retained Earnings (C) Net Loss
What is the closing entry associated with revenues?
(D) Revenues (C) Income Summary
Pioneer pays employee salaries and wages in cash. Employees are paid every four weeks. The total payroll is $10,000 per week, or $2,000 per day. In October, the pay period began on Monday, October 1. As a result, the pay period ended on Friday, October 26, with salaries and wages of $40,000 being paid.
(D) Salaries & Wages Expense 40,000 (C) Cash 40,000
Disburse $600 cash for administrative wages.
(D) Salaries & Wages Expense 600 (C) Cash 600
NetSolutions paid wages of $1,275 on January 10. This payment includes the $250 of accrued wages recorded on December 31.
(D) Salaries and Wages Expense 1,025 (D) Salaries and Wages Payable 250 (C) Cash 1,275
NetSolutions pays its employees biweekly. During December, NetSolutions paid wages of $950 on December 13 and $1,200 on Dec. 27. As of Dec. 31, NetSolutions owes $250 of wages to employees for Monday and Tuesday, Dec. 30 and 31. What will be the adjusting entry as of Dec. 31?
(D) Salaries and Wages Expense 250 (C) Salaries and Wages Payable 250
Pay off a short-term liability of $7,000.
(D) Short-Term Liability 7,000 (C) Cash 7,000
NetSolutions' Supplies account has a balance of $2,000 on the Unadjusted Trial Balance. Some of these supplies have been used. On December 31, a count reveals that the amount of supplies on hand is $760. What was the original JE?
(D) Supplies 2,000 (C) Cash 2,000
Pioneer purchases, for $25,000 on account, an estimated 3-month supply of advertising materials from Aero Supply.
(D) Supplies 25,000 (C) Accounts Payable 25,000
NetSolutions' Supplies account has a balance of $2,000 on the Unadjusted Trial Balance. Some of these supplies have been used. On December 31, a count reveals that the amount of supplies on hand is $760. What will be the adjusting entry as of Dec. 31?
(D) Supplies Expense 1,240 (C) Supplies 1,240
The credit balance of $360 in NetSolutions' Unearned Rent account represents the receipt of three months' rent on December 1 for December, January, and February. At the end of December, one month's rent has been earned. What will be the adjusting entry as of Dec. 31?
(D) Unearned Rent 120 (C) Rent Revenue 120
An end-of-period adjustment is needed to update the unearned revenue account.
(D) Unearned Revenue (C) Revenue
On Dec. 31, fees earned on account totaled $1,120 for the second half of Dec.
(D)Accounts Receivable 1,120 (C) Service Revenue 1,120
Is there an original JE for accrued revenue?
No
Is there an original JE for an accrued expense?
No
Pioneer signs a contract with a local newspaper for online ads starting the last Sunday in November. Pioneer will start work on the content of the ads in November. Payment of $7,000 is due following the posting of the ads.
No JE is necessary here.
NetSolutions signed an agreement with Danker Co. on December 15 to provide services at a rate of $20 per hour. As of December 31, NetSolutions had provided 25 hours of services. The revenue will be billed on January 15. What was the original JE?
No entry was recorded (accrued revenue)
