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    Financial Accounting-Mgt-322: Adeel Sohail, E-Mail: Adeel@Biit - Edu.Pk (Whatsapp No) 0331-5002033 Assignment 03

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    Ïñtïsãm Ähmãd
    The document provides instructions for Assignment 03 in the Financial Accounting course. Students are asked to submit handwritten responses to the assignment questions by November 22nd. The assignment includes questions that require explaining accounting terms and preparing adjusting journal entries. Specifically, students must explain terms like accrued expenses, adjusting entries, prepaid expenses, depreciation, and the realization principle. They must also prepare adjusting entries for scenarios involving office supplies, equipment depreciation, accrued interest, prepaid rent, and more.

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    Financial Accounting-Mgt-322: Adeel Sohail, E-Mail: Adeel@Biit - Edu.Pk (Whatsapp No) 0331-5002033 Assignment 03

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    Ïñtïsãm Ähmãd
    224 views10 pages
    The document provides instructions for Assignment 03 in the Financial Accounting course. Students are asked to submit handwritten responses to the assignment questions by November 22nd. The assignment includes questions that require explaining accounting terms and preparing adjusting journal entries. Specifically, students must explain terms like accrued expenses, adjusting entries, prepaid expenses, depreciation, and the realization principle. They must also prepare adjusting entries for scenarios involving office supplies, equipment depreciation, accrued interest, prepaid rent, and more.

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    ASG02-FA-BCS5A-18-Arid-2627

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    The document provides instructions for Assignment 03 in the Financial Accounting course. Students are asked to submit handwritten responses to the assignment questions by November 22nd. The assignment includes questions that require explaining accounting terms and preparing adjusting journal entries. Specifically, students must explain terms like accrued expenses, adjusting entries, prepaid expenses, depreciation, and the realization principle. They must also prepare adjusting entries for scenarios involving office supplies, equipment depreciation, accrued interest, prepaid rent, and more.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    224 views10 pages

    Financial Accounting-Mgt-322: Adeel Sohail, E-Mail: Adeel@Biit - Edu.Pk (Whatsapp No) 0331-5002033 Assignment 03

    Uploaded by

    Ïñtïsãm Ähmãd
    The document provides instructions for Assignment 03 in the Financial Accounting course. Students are asked to submit handwritten responses to the assignment questions by November 22nd. The assignment includes questions that require explaining accounting terms and preparing adjusting journal entries. Specifically, students must explain terms like accrued expenses, adjusting entries, prepaid expenses, depreciation, and the realization principle. They must also prepare adjusting entries for scenarios involving office supplies, equipment depreciation, accrued interest, prepaid rent, and more.

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    Financial Accounting-MGT-322

    Adeel Sohail, E-mail: [email protected] (WhatsApp No) 0331-5002033

    Assignment 03:

    Dear students read the given lectures carefully as per the course objectives mentioned on the top and
    carryout the assignment as per following instructions.
    1. Submission Date: Sunday -22 NOV 2020 at 11:59 PM.
    2. You must prepare handwritten Assignment attached it in Campus LMS.
    3. Make sure file Format should be as
    ASG03-FA-Class Name-Arid No
    For Example: ASG03-FA-BCS3A-17-Arid-1223
    Assignment Problem:
    3.1 Explain these terms:
    Accrue, Adjusting entries, Prepaid Expense, Depreciation, and Realization Principle.

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    Financial Accounting-MGT-322
    Adeel Sohail, E-mail: [email protected] (WhatsApp No) 0331-5002033

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    Financial Accounting-MGT-322
    Adeel Sohail, E-mail: [email protected] (WhatsApp No) 0331-5002033

    3.2 On March 1, Dillmore Corporation had office supplies on hand of $900. During the month,
    Dillmore purchased additional supplies costing $600. Approximately $400 of unused office supplies
    remain on hand at the end of the month. Prepare the necessary adjusting entry on March 31 to
    account for office supplies.

    3.3 On January 2, 2006, Hagen Corporation purchased equipment costing $72,000. Hagen
    performs adjusting entries monthly.
    a. Record this equipment’s depreciation expense on December 31, 2011, assuming its estimated life
    was eight years on January 2, 2006.
    b. Determine the amount of the equipment’s accumulated depreciation reported in the balance sheet
    dated December 31, 2011.

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    Financial Accounting-MGT-322
    Adeel Sohail, E-mail: [email protected] (WhatsApp No) 0331-5002033

    3.4 Problem
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    Financial Accounting-MGT-322
    Adeel Sohail, E-mail: [email protected] (WhatsApp No) 0331-5002033

    Enchanted Forest, a large campground in South Carolina, adjusts its accounts monthly. Most guests
    of the campground pay at the time they check out, and the amounts collected are credited to Camper
    Revenue. The following information is available as a source for preparing the adjusting entries at
    December 31:
    1. Enchanted Forest invests some of its excess cash in certificates of deposit (CDs) with its local
    bank. Accrued interest revenue on its CDs at December 31 is $400. None of the interest has yet been
    received.
    2. A six-month bank loan in the amount of $12,000 had been obtained on September 1. Interest is to
    be computed at an annual rate of 8.5 percent and is payable when the loan becomes due.
    3. Depreciation on buildings owned by the campground is based on a 25-year life. The original cost
    of the buildings was $600,000. The Accumulated Depreciation: Buildings account has a credit
    balance of $310,000 at December 31, prior to the adjusting entry process. The straight-line method
    of depreciation is used.
    4. Management signed an agreement to let Boy Scout Troop 538 of Lewisburg, Pennsylvania, use
    the campground in June of next year. The agreement specifies that the Boy Scouts will pay a daily
    rate of $15 per campsite, with a clause providing a minimum total charge of $1,475.
    5. Salaries earned by campground employees that have not yet been paid amount to $1,250.
    6. As of December 31, Enchanted Forest has earned $2,400 of revenue from current campers who
    will not be billed until they check out.
    7. Several lakefront campsites are currently being leased on a long-term basis by a group of senior
    citizens. Six months’ rent of $5,400 was collected in advance and credited to Unearned Camper
    Revenue on October 1 of the current year.
    8. A bus to carry campers to and from town and the airport had been rented the first week of
    December at a daily rate of $40. At December 31, no rental payment has been made, although the
    campground has had use of the bus for 25 days.
    9. Unrecorded Income Taxes Expense accrued in December amounts to $8,400. This amount will
    not be paid until January 15.
    Instructions
    a. For each of the above numbered paragraphs, prepare the necessary adjusting entry (including an
    explanation). If no adjusting entry is required, explain why.

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    Financial Accounting-MGT-322
    Adeel Sohail, E-mail: [email protected] (WhatsApp No) 0331-5002033

    b. Four types of adjusting entries are described at the beginning of the chapter. Using these
    descriptions, identify the type of each adjusting entry prepared in part a above.

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    Financial Accounting-MGT-322
    Adeel Sohail, E-mail: [email protected] (WhatsApp No) 0331-5002033

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    Financial Accounting-MGT-322
    Adeel Sohail, E-mail: [email protected] (WhatsApp No) 0331-5002033

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    Financial Accounting-MGT-322
    Adeel Sohail, E-mail: [email protected] (WhatsApp No) 0331-5002033

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    Financial Accounting-MGT-322
    Adeel Sohail, E-mail: [email protected] (WhatsApp No) 0331-5002033

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