Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 19

Transaction analysis-various accounts Enter the following column headings across the top of a sheet of paper:

Enter the transaction/adjustment letter in the first column and show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the income statement by entering the amount and indicating whether it is an addition (+) or a subtraction (?). You may also write the journal entries to record each transaction/adjustment.
a. Wages of $465 for the last three days of the fiscal period have not been accrued.
b. Interest of $340 on a bank loan has not been accrued.
c. Interest on bonds payable has not been accrued for the current month. The company has outstanding $480,000 of 6.5% bonds.
d. The discount related to the bonds in part c has not been amortized for the current month. The current month amortization is $150.
e. Product warranties were honored during the month; parts inventory items valued at $1,660 were sent to customers making claims, and cash refunds of $820 were also made.
f. During the fiscal period, advance payments from customers totaling $3,000 were received and recorded as sales revenues. The items will not be delivered to the customers until the next fiscal period. Record the appropriate adjustment.