E3-7 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
(Warren 117)
Warren, Carl S. Survey of Accounting, 6e, 6th Edition. Cengage Learning, 02/2012. VitalBook
file.
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?
I need to show my work***
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.
(Warren 120)
Warren, Carl S. Survey of Accounting, 6e, 6th Edition. Cengage Learning, 02/2012. VitalBook
file.
