Acc290 Week 3 Be4-1 P4-2a P4-3a

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BE4-1 Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example.

(a) Purchased $100 of supplies for cash. Cash -100/ Net Income 0

(b) Recorded an adjusting entry to record use of $20 of the above supplies. Cash 0/ Net Income -20

(c) Made sales of $1,300, all on account. Cash 0/ Net Income 1300

(d) Received $800 from customers in payment of their accounts. Cash 800/ Net Income 800

(e) Purchased equipment for cash, $2,500. Cash -2500/ Net Income 0

(f) Recorded depreciation of building for period used, $600. Cash 0/ Net Income -600 P4-2A
A.
 |  | GENERAL JOURNAL| PAGE|  |
 | |  | GENERAL|  |
2012| ACCOUNT TITLE| DEBIT| CREDIT|
Jun| 30| Supplies Expense| 1280|  |
 |  | Supplies |  | 1280|
 |  | (to record supplies used)|  |  |
Jun| 30| Utility Expense| 180|  |
 |  | Utilities Payable|  | 180|
 |  | (to record unpaid utility)|  |  |
Jun| 30| Insurance Expense| 240|  |
 |  | Prepaid Insurance|  | 240|
 |  | (to record insurance expired)|  |  |
Jun| 30| Unearned Service Revenue| 4100|  |
 |  | Service Revenue|  | 4100|
 |  | (to record revenue earned)|  |  |
Jun| 30| Salaries Expense| 1250|  |
 |  | Salaries Payable|  | 1250|
 |  | (to record accrued salaries)|  |  |
Jun| 30| Depreciation Expense| 250|  |
 |  | Depreciation Equipment|  | 250|
 |  | (to record monthly depreciation)|  |  |
Jun| 30| Accounts Payable| 3900|  |
 |  | Service Revenue|  | 3900|
 |  | (to record service revenue earned but not paid)|  |  |

B.
CashAccounts Receivable
Bal. Jun 16850Bal. Jun 17000
Bal. Jun 306850Jun 30Dr 3900
Bal. Jun 3010900

Prepaid InsuranceSupplies
Bal. Jun 12880Bal. Jun 12000
Jun 30Cr 240Jun 30Cr 1280
Bal. Jun 302640Bal. Jun 30720

EquipmentAccounts Payable
Bal. Jun 115000Bal. Jun 14230
Bal. Jun 3015000Bal. Jun 304230

Unearned Service RevenueCommon Stock
Bal. Jun 15200Bal. Jun 122000
Jun 30Dr 4100Bal. Jun 3022000
Bal. Jun 301100

Service RevenueSalaries and Wage Expense
Bal. Jun 18300Bal. Jun 14000
Jun 30Cr 4100Jun 30Cr 1250
Jun 30Cr 3900Bal. Jun 305250
Bal. Jun 3016300

Rent ExpenseAccumulated Depreciation
Bal. Jun 12000Bal. Jun 1250
Bal. Jun 302000Bal. Jun 30250

Utilities PayableSalaries and Wage Payable
Bal. Jun 1180Bal. Jun 11250
Bal. Jun 30180Bal. Jun 301250

C.

AccountDebitCredit
Cash6850
Accounts Receivable10900
Prepaid Insurance2640
Supplies720
Equipment15000
Service Revenue16300
Accounts Payable4230
Common Stock22000
Unearned Service Revenue1100
Salaries and Wage Expense5250
Rent Expense2000
Accumulated Depreciation Equipment250
Utilities Payable180
Salaries and Wage Payable1250
Depreciation Expense250
Insurance Expense240
Utilities Expense180
Supplies Expense1280

4531045310

P4-3A

A.

 |  | GENERAL JOURNAL| PAGE|  |
 | |  | GENERAL|  |
2012| ACCOUNT TITLE| DEBIT| CREDIT|
May| 31| Insurance Expense| 450|  |
 |  | Prepaid Insurance|  | 450|
 |  | (to record insurance expired)|  |  |
May| 31| Supplies Expense| 1550|  |
 |  | Supplies |  | 1550|
 |  | (to record supplies used)|  |  |
May| 31| Depreciation Expense Accumulated| 550|  |
 |  | Depreciation Equipment|  | 550|
 |  | (to record insurance expired)|  |  |
May| 31| Interest Expense| 180|  |
 |  | Interest Payable|  | 180|
 |  | (to record 6% interest rate)|  |  |
May| 31| Unearned Rent Revenue| 2500|  |
 |  | Rent...
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