WEEK 2

I. Matching Definitions with Terms

Match each definition with its related term by entering the appropriate letter in the space provided.

Definition Term

__D_1. A revenue not yet earned; collected in advance. A. Accrued expense

__C_2. Rent not yet collected; already earned. B. Deferred expense

__A_3. Property taxes incurred; not yet paid. C. Accrued revenue

_D__4. Rent revenue collected; not yet earned. D. Deferred revenue

__A_5. An expense incurred; not yet paid or recorded.

__B_6. Office supplies on hand to be used next accounting period.

_B__7. An expense not yet incurred; paid in advance.

__C_8. A revenue earned; not yet collected.

Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31, 2014. To simplify the case, the amounts given are in thousands of dollars.

| UnadjustedTrial Balance | Adjustments | AdjustedTrial Balance | | | | | Account Titles | Debit | Credit | Debit | Credit | Debit | Credit | Cash | 25 | | | | | | Accounts Receivable | 22 | | | | | | Prepaid Insurance | 17 | | | 13 | | | Machinery | 84 | | | | | | Accumulated Depreciation | | | | 18 | | | Accounts Payable | | 18 | | | | | Wages Payable | | | | 16 | | | Income Taxes Payable | | | | 10 | | | Common Stock (3,000 shares) | | 3 | | | | | Additional Paid-in Capital | | 64 | | | | | Retained Earnings | 16 | | | | | | Revenues | | 111 | | | | | Expenses | 32 | | | | | | Totals | 196 | 196 | | | | |

Other data not yet recorded at December 31, 2014, include:

a. Insurance expired during 2014, $13.
b. Wages payable, $16.
c. Depreciation expense for 2014, $18.
d. Income tax expense, $10.

Required:

1. Prepare the adjusting entries for 2014. 2. Complete the