Peht Assets Current Liabilities Case l Case 2 Case 3 . Case 4 Case 5 $ 79,040 10

Question

Peht Assets Current Liabilities Case l Case 2 Case 3 . Case 4 Case 5 $ 79,040 104,880 45,080 85,680 61,000 $32,000 76,000 49,000 81,600 00,000 Ricardo Construc pany decided to debit expense accounts when it p customers pay for services in advance. Prepare journal entries for items a through d and the adjusting tion began operations on December 1. In setting up its accounting procedures, the com- repays its expenses and to credit revenue accounts when entries as of its December 31 period-end for items e through g. a. Supplies are purchased on December 1 for $2,000 cash. b. The company prepaid its insurance premiums for $1,540 cash on December 2. c. On December 15, the company receives an advance payment of $13,000 cash from a customer for remodeling work. On December 28, the company receives $3,700 cash from another customer for remodeling work to be performed in January. A physical count on December 31 indicates that the Company has $1,840 of supplies available. An analysis of the insurance policies in effect on December 31 shows that $340 of insurance coverage had expired. As of December 31, only one remodeling project has been worked on and completed. The $5,570 fee for this project had been received in advance and recorded as remodeling fees earned. d. e. f. g. Costanza Company experienced the following events and transactions during July. July 1 Received $3,000 cash in advance of performing work for Vivian Solana. d $7 500 ash in advance of performing work for Iris Haru.

Explanation / Answer

Adjusting entry :

No Account and explanation debit credit a Supplies expense 2000 Cash 2000 (To record supplies purchased) b Insurance expense 1540 Cash 1540 (To record insurance expense) c Cash 13000   Remodeling fees earned 13000 (To record revenue) d Cash 3700   Remodeling fees earned 3700 (To record revenue) e Supplies 1840 Supplies expense 1840 (To record supplies adjusted) f Prepaid insurance (1540-340) 1200 Insurance expense 1200 (To record insurance expense) g Remodeling fees earned 5570 Unearned revenue 5570 (To record revenue adjusted)

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