1. for each of the following accounts, indicate the effect of a

1.  For each of the following accounts, indicate the effect of a debit or a credit on the account and the normal balance.

                                                Debit                     Credit            Normal                                                                                                        Effect                   Effect            Balance


(a)  Accounts Payable. 

(b)  Advertising Expense. 

(c)  Service Revenue. 

(d)  Accounts Receivable.

(e)  Retained Earnings.

(f)   Dividends.



2.  Proctor Company accumulates the following adjustment data at December 31.


(a)  Service Revenue earned but unbilled totals $600.

(b)  Store supplies of $300 are on hand. Supplies account shows $1,900 balance.

(c)  Utility expenses of $275 are unpaid.

(d)  Service revenue of $490 collected in advance has been earned.

(e)  Salaries of $800 are unpaid.

(f)  Prepaid insurance totaling $400 has expired


For each item indicate (1) the type of adjustment (Prepaid Expense, Unearned Revenue, Accrued Revenue, or Accrued Expense) and (2) the status of the accounts before adjustment (overstated or understated). 



3.  Below are some accounting reporting situations.




For each situation, list the assumption, principle, or constraint that has been violated, if any.  List only one answer for each situation.


1.   Economic entity assumption.         6.   Materiality constraint.

2.   Expense recognition principle.       7.    Full disclosure principle.

3.   Monetary unit assumption.            8.  Going concern assumption.

4.   Periodicity assumption.                9.  Revenue recognition principle.

5.   Cost principle.                           10.  Cost constraint.

                         11. No violation.


(a)  Dorfner Company recognizes revenue at the end of the production cycle but before sale. The price of the

product, as well as the amount that can be sold, is not certain.  

(b)  Rayms Company is in its fifth year of operation and has yet to issue financial statements.

(c)  Tariq, Inc. is carrying inventory at its original cost of $100,000. Inventory has a fair value of $110,000. 

(d)  Leer Hospital Supply Corporation reports only current assets and current liabilities on its balance sheet.

Property, plant, and equipment and bonds payable are reported as current assets and current liabilities,

respectively. Liquidation of the company is unlikely.  

(e)  Kim Company has inventory on hand that cost $400,000. Kim reports inventory on its balance sheet at its

current fair value of $425,000.  

(f )  Kris Piwek, president of Classic Music Company, bought a computer for her personal use. She paid

for the computer by using company funds and debited the “Computers” account.



4.  The ledger of Thurston Rental Agency on March 31 of the current year includes these selected accounts before adjusting entries have been prepared.


                              Debits             Credits

Prepaid Insurance   $3,600

Supplies                 3,000

Equipment              25,000

Accumulated Depreciation-Equipment    $8,400

Notes Payable                                  20,000

Unearned Rent Revenue                     10,200

Rent Revenue                                  60,000

Interest Expense     0

Wage Expense        14,000


An analysis of the accounts shows the following.


1. The equipment depreciates $280 per month.

2. Half of the unearned rent revenue was earned during the quarter.

3. Interest of $440 is accrued on the notes payable.

4. Supplies on hand total $850.

5. Insurance expires at the rate of $400 per month.


Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. 







Spoton Papers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.