Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 3

Alpine Expeditions operates a mountain climbing school in Colorado.ome clients pay in advance for services; others are billed after services have been performed.dvance payments are credited to an account entitled Unearned Client Revenue.djusting entries are performed on a monthly basis.n unadjusted trial balance dated December 31, 2015, follows.Bear in mind that adjusting entries have already been made for the first 11 months of 2015, but not for December.)

Other Data
1.ccrued but unrecorded fees earned as of December 31 amount to $6,400.
2.ecords show that $6,600 of cash receipts originally recorded as unearned client revenue had been earned as of December 31.
3.he company purchased a 12-month insurance policy on June 1, 2015, for $36,000.
4.n December 1, 2015, the company paid $2,200 for numerous advertisements in several climbing magazines.alf of these advertisements have appeared in print as of December 31.
5.limbing supplies on hand at December 31 amount to $2,000.
6.ll climbing equipment was purchased when the business first formed.he estimated life of the equipment at that time was four years (or 48 months).
7.n October 1, 2015, the company borrowed $10,000 by signing an eight-month, 9 percent note payable.he entire note, plus eight months' accrued interest, is due on June 1, 2016.
8.ccrued but unrecorded salaries at December 31 amount to $3,100.
9.stimated income taxes expense for the entire year totals $14,000.axes are due in the first quarter of 2016.
Instructions
a.or each of the numbered paragraphs, prepare the necessary adjusting entry (including an explanation).
b.etermine that amount at which each of the following accounts will be reported in the company's balance sheet dated December 31, 2015:
1.ash
2.ccounts Receivable
3.nexpired Insurance
4.repaid Advertising
5.limbing Supplies
6.limbing Equipment
7.ccumulated Depreciation: Climbing Equipment
8.alaries Payable
9.otes Payable
10.nterest Payable
11.ncome Taxes Payable
12.nearned Client Revenue
c.hich of the accounts listed in part b represent deferred expenses Explain.