AC/113 AC113 AC 113 UNIT 4 ASSIGNMENT

AC 113 UNIT 4 ASSIGNMENT

Unit 4 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 3-7, 3-8, and 3-20

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 3-7, 3-8, and 3-20

E3-7 Classify adjustments

Classify adjustments Obj|3 The following accounts were taken from the unadjusted trial balance of Inter Circle Co., a congressional lobbying firm. Indicate whether or not each account would normally require an adjusting entry. If the account normally requires an adjusting entry, use the following notations to indicate the type of adjustment: AE—Accrued Expense AR—Accrued Revenue DR—Deferred Revenue DE—Deferred Expense To illustrate, the answer for the first account is as follows. Account Answer Accounts Receivable Normally requires adjustment (AR). Accumulated Depreciation Capital Stock Dividends Interest Payable Interest Receivable Land Office Equipment Prepaid Rent Supplies Unearned Fees Wages Expense

E3-8 Adjustment for supplies Obj|3 ✓ a. $2,250 Answer each of the following independent questions concerning supplies and the adjustment for supplies. a.The balance in the supplies account, before adjustment at the end of the year, is $4,000. What is the amount of the adjustment if the amount of supplies on hand at the end of the year is $1,750? b.The supplies account has a balance of $1,100, and the supplies expense account has a balance of $3,100 at December 31, 2013. If 2013 was the first year of operations, what was the amount of supplies purchased during the year?

E3-20 Adjustment for accrued fees Obj|3 At the end of the current year, $19,900 of fees have been earned but not billed to clients. a.What is the adjustment to record the accrued fees? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. b.If the cash basis rather than the accrual basis had been used, would an adjustment have been necessary? Explain.