*NEW* ACC 225: Week Three Solution

ACC 225

Axia College of University of Phoenix (UoP)

Financial Accounting

Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)

ACC 225 Week 3 Solution

2. CheckPoint: Adjustments and Accrual and Cash Basis Accounting (Post in the Individual Forum – Due Day 5)
• Resource: Fundamental Accounting Principles, pp. 116–118 & 120
• Complete Quick Study questions 3-1 & 3-9 on pp. 116 & 117 and Exercises 3-1 & 3-7 on pp. 118 & 120.

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DQ2 – Due Day 4 (Post in the Main forum in the thread I have created for DQ2)
Post must be 150-300 words.
• The Ritz Manor is a popular seaside resort. A double room costs $250 for one night. To reserve a room, guests must pay one night’s stay in advance. On each floor of the hotel, Vendalite Company operates vending machines with energy bars, juices, and other snacks for guests. Vendalite stocks the machines and collects revenue every week. Total average weekly revenue from these machines is $750. The Ritz Manor is entitled to 30% of the revenue from the machines. Vendalite sends a check to the Ritz Manor once at the end of each quarter for the resort’s share of the revenue.
o Based on this information, what are the adjusting entries Ritz Manor will need to record?
o Include in your response the amounts of the adjustments, which accounts are affected and why, and explain in detail how you determined the amounts.

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