ACCT 211 Connect Homework Chapter 3 Problems Liberty University Solution

Question 1

Arnez Company’s annual accounting period ends on December 31, 2017. The following information concerns the adjusting entries to be recorded as of that date.

The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.)

1. Use the information to prepare adjusting entries as of December 31, 2017.

2. Prepare journal entries to record the first subsequent cash transaction in 2018 for parts c and e.

Question 2

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow.

1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.

Question 3

2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.

Question 5

A six-column table for JKL Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31, 2017. The last two columns contain the adjusted trial balance as of the same date.

1. Analyze the differences between the unadjusted and adjusted trial balances to determine the adjustments that likely were made. Show the results of your analysis by entering these adjustment amounts in the cells provided.

Question 6

2(a-1) Prepare JKL Company's income statement for the year ended July 31, 2017.

2(a-2) Prepare JKL Company's statement of retained earnings for the year ended July 31, 2017. Note: Retained earnings at July 31, 2016, was $18,400, and the current-year dividends were $6,000.

2(b) Prepare JKL Company's the balance sheet as of July 31, 2017.

Question 7

The adjusted trial balance for Chiara Company as of December 31, 2017, follows.

1(a) Prepare the income statement for the year ended December 31, 2017.

1(b) Prepare the statement of retained earnings for the year ended December 31, 2017.

1(c) Prepare Chiara Company's balance sheet as of December 31, 2017.

Question 8

2. Calculate the profit margin for year 2017.

Question 9

1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts.

3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30.

4. Journalize and post the adjusting entries for the month and prepare the adjusted trial balance.

5a. Prepare the income statement for the month of April 30, 2017.

5b. Prepare the statement of retained earnings for the month of April 30, 2017.

5c. Prepare the balance sheet at April 30, 2017.

6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b.

6b. Post the journal entries to the ledger.

7. Prepare a post-closing trial balance.