- Cain Company paid $8,400 rent in advance on June 1, 2019 for a seven-month period. It also bought $10,250 of supplies. - Desoto Company must make three adjusting entries on December 31, 2019 for supplies used, expired insurance, and depreciation expense. - The adjusted trial balance for University Book Store shows account balances and that adjustments have been made for supplies used, expired rent, and depreciation expense.

1. UOP ACC 290 Week 4 Practice Connect
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attempt 1
1 On June 1, 2019, Cain Company, a new firm,
paid $8,400 rent in advance for a seven-month
period.

2. The $8,400 was debited to thePrepaid Rent On
June 1, 2019, the firm bought supplies for $10,250.
The $10,250 was debited to the Supplies An
inventory of supplies at the end of June showed
that items costing $5,960 were on hand.
On June 1, 2019, the firm bought equipment
costing $72,900. The equipment has an expected
useful life of 9 years and no salvage value. The firm
will use the straight-line method of depreciation.
2
The completed worksheet for Cantu Corporation
as of December 31, 2019, after the company had
completed the first month of operation, appears
below.
CANTU CORPORATION Worksheet
Month Ended December 31, 2019
Trial Balance Adjustments Adjusted Trial Balance
Income Statement Balance Sheet Account Name
Debit Credit Debit Credit Debit Credit Debit Credit
Debit Credit Cash 39,100 39,100 39,100 Accounts
Receivable 6,500 6,500 6,500 Supplies 6,050 3,500
6,050 2,550

3. Prepaid Advertising 10,200 1,700 10,200 8,500
Equipment 42,500 42,500 42,500 Accumulated
Depreciation—Equipment 850 850
850
Accounts Payable 6,500 6,500 6,500 Selena Cantu,
Capital 54,500 54,500 54,500 Selena Cantu,
Drawing 4,100 4,100 4,100 Fees Income 57,750
57,750 57,750 Supplies Expense 3,500 3,500 3,500
Advertising Expense 1,700 1,700 1,700
Depreciation Expense-Equipment 850 850 850
Salaries Expense 8,900 8,900 8,900 Utilities
Expense 1,400 1,400 1,400 Totals 118,750
118,750 6,050 6,050 119,600 119,600 16,350
57,750 103,250 61,850 Net Income 41,400 41,400
57,750 57,750 103,250 103,250 Required:
Prepare an income statement.
Prepare a statement of owner's equity. The owner
made no additional investments during the
month.
Prepare a balance sheet.
Analyze:
If the adjustment to Prepaid Advertising had been
$3,400 instead of $1,700, what net income would

4. have resulted?
3
Assume that a firm
reports net income of
$45,000 prior to making
adjusting entries for the
following items: expired
rent, $3,500;
depreciation expense,
$4,100; and supplies
used, $1,800.
Assume that the required
adjusting entries have
not been made. What
effect do these errors
have on the reported net
income?
4
Desoto Company must
make three adjusting
entries on December 31,
2019.
Supplies used, $5,500
(supplies totaling $9,000
were purchased on
December 1, 2019, and
debited
to the Suppliesaccount).
Expired insurance,
$4,100; on December 1,

5. Depreciation expense for equipment, $2,900.
Required:
Prepare the journal entries for these
adjustments and post the entries to the general
ledger accounts
5
The adjusted trial
balance of University
Book Store as of
November 30, 2019, after
the firm's first month of
operations, appears
below.
Appropriate adjustments
have been made for the
following items:
Supplies used during the
month, $2,900. Expired
rent for the month,
$3,500. Depreciation
expense for the month,
$950. UNIVERSITY BOOK
STORE Adjusted Trial
Balance
November 30, 2019

6. Supplies 4,600 Prepaid Rent 21,000 Equipment
27,500
Accumulated Depreciation-Equipment $ 950
Accounts Payable 9,000 Ruby Darbandi, Capital
41,837 Ruby Darbandi, Drawing 4,000 Fees
Income 48,550 Depreciation Expense-Equipment
950 Rent Expense 3,500 Salaries Expense 8,500
Supplies Expense 2,900 Utilities Expense 500
Totals $ 100,337 $ 100,337 Required:
Record the adjusting entries in the Adjustments
columns.
Complete the Trial Balance columns of the
worksheet prior to making the adjusting entries.
Analyze:
What was the balance of Prepaid Rent prior to the
adjusting entry for expired rent?

7. 6
On January 31, 2019, the general ledger of Palmer
Company showed the following account balances.
ACCOUNTS Cash 31,500
Accounts Receivable 11,250 Supplies 4,500
Prepaid Insurance 4,100 Equipment 45,750
Accum. Depr.—Equip. 0 Accounts Payable 8,350
Sadie Palmer, Capital 40,975 Fees Income
58,500 Depreciation Exp.—Equip. 0 Insurance
Expense 0 Rent Expense 5,300 Salaries Expense
5,425 Supplies Expense 0 Additional
information:
Supplies used during January totaled $2,850.
Expired insurance totaled $1,025. Depreciation
expense for the month was $925. Complete the
worksheet through the Adjusted Trial Balance
section. Assume that every account has the
normal debit or credit balance. The

8. worksheet covers the month of January.
attempt 2 1
On January 31, 2019, the general ledger of Palmer
Company showed the following account balances.
ACCOUNTS Cash 31,500
Accounts Receivable 11,250 Supplies 4,500
Prepaid Insurance 4,100 Equipment 45,750
Accum. Depr.—Equip. 0 Accounts Payable 8,350
Sadie Palmer, Capital 40,975 Fees Income 58,500
Depreciation Exp.—Equip. 0 Insurance Expense 0
Rent Expense 5,300 Salaries Expense 5,425
Supplies Expense 0 Additional information:
Supplies used during January totaled $2,850.

9. Expired insurance totaled $1,025. Depreciation
expense for the month was $925. Complete the
worksheet through the Adjusted Trial Balance
section. Assume that every account has the normal
debit or credit balance. The worksheet covers the
month of January.
2
Desoto Company must make three adjusting
entries on December 31, 2019.
Supplies used, $5,500 (supplies totaling $9,000
were purchased on December 1, 2019, and debited
to the Suppliesaccount).
Expired insurance, $4,100; on December 1, 2019,
the firm paid $24,600 for six months' insurance
coverage in advance and
debitedPrepaidInsurancefor this amount.
Depreciation expense for equipment, $2,900.
Required:
Prepare the journal entries for these adjustments
and post the entries to the general ledger accounts

10. 3
Assume that a firm
reports net income of
$45,000 prior to making
adjusting entries for the
following items: expired
rent, $3,500;
depreciation expense,
$4,100; and supplies
used, $1,800.
Assume that the required
adjusting entries have
not been made. What
effect do these errors
have on the reported net
income?
4
On June 1, 2019, Cain
Company, a new firm,
paid $8,400 rent in
advance for a seven-
month period. The $8,400
was debited to
thePrepaid Rent On June
1, 2019, the firm bought
supplies for $10,250. The
$10,250 was debited to
the Supplies An inventory
5

11. The completed worksheet for Cantu Corporation
as of December 31, 2019, after the company had
completed the first month of operation, appears
below.
CANTU CORPORATION Worksheet
Month Ended December 31, 2019
Trial Balance Adjustments Adjusted Trial Balance
Income Statement Balance Sheet Account Name
Debit Credit Debit Credit Debit Credit Debit
Credit Debit Credit Cash 39,100 39,100 39,100
Accounts Receivable 6,500 6,500 6,500 Supplies
6,050 3,500 6,050 2,550 Prepaid Advertising
10,200 1,700 10,200 8,500 Equipment 42,500
42,500 42,500 Accumulated Depreciation—
Equipment 850 850
850
Accounts Payable 6,500 6,500 6,500 Selena
Cantu, Capital 54,500 54,500 54,500 Selena
Cantu, Drawing 4,100 4,100 4,100 Fees Income
57,750 57,750 57,750 Supplies Expense 3,500
3,500 3,500 Advertising Expense 1,700 1,700
1,700

12. Depreciation Expense-Equipment 850 850 850
Salaries Expense 8,900 8,900 8,900 Utilities
Expense 1,400 1,400 1,400 Totals 118,750
118,750 6,050 6,050 119,600 119,600 16,350
57,750 103,250 61,850 Net Income 41,400 41,400
57,750 57,750 103,250 103,250 Required:
Prepare an income statement.
Prepare a statement of owner's equity. The owner
made no additional investments during the
month.
Prepare a balance sheet.
Analyze:
If the adjustment to Prepaid Advertising had been
$3,400 instead of $1,700, what net income would
have resulted?
6
The adjusted trial balance of University Book Store
as of November 30, 2019, after the firm's first
month of operations, appears below.
Appropriate adjustments have been made for the

13. following items:
Supplies used during the month, $2,900.
Expired rent for the month, $3,500.
Depreciation expense for the month, $950.
UNIVERSITY BOOK STORE Adjusted Trial
Balance
November 30, 2019
Account Name Debit Credit Cash $ 23,075
Accounts Receivable 3,812 Supplies 4,600
Prepaid Rent 21,000 Equipment 27,500
Accumulated Depreciation-Equipment $ 950
Accounts Payable 9,000 Ruby Darbandi,
Capital 41,837 Ruby Darbandi, Drawing
4,000 Fees Income 48,550 Depreciation
Expense-Equipment 950 Rent Expense
3,500 Salaries Expense 8,500 Supplies
Expense 2,900 Utilities Expense 500 Totals $
100,337 $ 100,337

14. Required:
Record the adjusting entries in the Adjustments
columns.
Complete the Trial Balance columns of the
worksheet prior to making the adjusting entries.
Analyze:
What was the balance of Prepaid Rent prior to
the adjusting entry for expired rent?
D
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