UT Knoxville ACCT 200 - Homework, Adjustment
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ACCT 200 Lecture 8Outline of Last Lecture I. AdjustmentsII. DepreciationIII. ClassificationIV. Current RatioV. Quick RatioOutline of Current Lecture I. Quick NotesII. Problem 3-5III. Problem 3-6IV. Problem 3-8V. Problem 3-9VI. Problem 3-10VII. Problem 3-12Current LectureI. Quick Notesa. Adjustment processthis is stuff that is recorded at the end of the monthb. On homework 3-2 from last week, the only thing that gets depreciated is the building These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.c. On homework 3-3, “the note payable is due in 2017”this is important because it indicates a long term liabilityII. Problem 3-5a. Explain each transactioni. Issued stock for $45000 cashii. $1500 supplies on accountiii. paid $1000 cash to creditors for amounts owediv. earned $22000 in feesv. paid $14000 cash for expensesvi. used up $1100 worth of suppliesvii. earned $9000 fees for services on account (accrued revenue)viii. paid $6000 in dividends (notice this did not go under expenses)b. $15,900III. Problem 3-6a. Deferred revenueb. Deferred expensec. Deferred revenued. Accrued revenuee. Accrued expensef. Deferred expenseg. Accrued expenseh. Accrued expenseIV. Problem 3-8a. Supplies used= $2250b. Beginning supplies + supply purchases – supplies used up = ending supply0 + X – 3100 = 1100$4200 worth of supplies purchasedV. Problem 3-9a. Insurance expense ($18300)b. Prepaid insurance ($18300)VI. Problem 3-1048000-X=15600fees earned revenue= $32400unearned fees=($32400)VII. Problem 3-12—this problem goes over what happens when an entry is omitteda. Income statement revenue and net income are understatedb. Retained earnings and stockholder’s equity are understated by $29500, liability isoverstated by $29500c. Example shown:As is Should beRevenue 100000 129500Expense (50000) (50000)Net Income 50000 79500**The as is column is the statement with the number omitted. The should be column contains the correct

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