AC/113 AC113 AC 113 UNIT 3 ASSIGNMENT

AC 113 UNIT 3 ASSIGNMENT

Unit 3 Assignment:

This week's Assignment will introduce you to accruals and deferral along with how to make adjustments for accrued expenses, adjustments for depreciation, and how to prepare a classified balance sheet.

Your Assignment consists of the following:

Exercises 3-6, 3-13, 3-23 and 3-26

Templates are required to use for the Assignments. Download the template from the spreadsheet icon below. To assist you in making sure that you are on the right track with your Assignment, view the solutions to self-check your work. If you have questions, please contact your instructor.

Upload your Excel file to the Assignment Dropbox by the end of the unit.

Note: In order to ensure full functionality for these homework templates, it is recommended that you download/save each Excel template to your computer in the .xlsx format.

Exercises 3-6Classify accruals and deferrals

Obj|3

Classify the following items as (a) deferred expense (prepaid expense), (b) deferred revenue (unearned revenue), (c) accrued expense (accrued liability), or (d) accrued revenue (accrued asset).

• Subscriptions received in advance by a magazine publisher.
• A three-year premium paid on a fire insurance policy.
• Fees received but not yet earned.
• Fees earned but not yet received.
• Utilities owed but not yet paid.
• Supplies on hand.
• Salary owed but not yet paid.
• Taxes owed but payable in the following period

E3-13Adjustment for accrued salaries

Obj|3

North Slope Realty Co. pays weekly salaries of $7,900 on Friday for a five-day week ending on that day. What is the adjustment at the end of the accounting period, assuming that the period ends (a) on Wednesday, (b) on Thursday? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease.

E3-23

 Adjustment for depreciation Obj|3 The estimated amount of depreciation on equipment for the current year is $41,700. a.How is the adjustment recorded? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. b.If the adjustment in (a) was omitted, which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as of December 31?

E3-26

Classify assets

Obj|4

Identify each of the following as (a) a current asset or (b) property, plant, and equipment:

• Accounts Receivable
• Building
• Cash
• Office Equipment
• Prepaid Insurance
• Supplies