Acc101
Chapter 3
Brief Exercise 3.2, page 120. Brief Exercise 3.7, page 121.
a. Do not represent a revenue because
b. It not represents revenue to the firm during the month of May, because the receivable was originated in August.
c.
d.
e. Yes, represent revenue in May, because the services were rendered in May.
Brief Exercise 3.8, page 121.
a. The purchase of the copying machine is an Expense, because is going to be used uo in the process of earning revenue.
b. It is an expense, because the delivery would help to do the job and have revenue.
c. It is an expense too, because the employees help to earn revenue.
d. This expense do not represent expenses in March because is a service rendered in January, so it is a January expense.
e. Dividends are not an expense because do not generate revenue.
Chapter 4
Exercise 4.3, page 170
1. Rent Expense $240.000
Prepaid Rent $240.000
($1.200.000/5 months=$240.000 Per Months)
2. Unearned Ticket Revenue $148.800
Ticket Revenue $148.800
Exercise 4.5, page 170
a. 1. Interest Expense $375
Interest Payable $375 2. Account Receivable $10000
Consulting Services Revenue $10000
(10 days * 1000 (per day)
b. The portion of the total interest expense associated with this note will be reported in the firms’s 2010 income statement is $2.250
$50.000 * 9% * 6/12=$2.250
c. The amount that constitutes revenue earned in January is $15.000
$25.000-$10.000(earned in December 2002)
Exercise 4.7, page 171
a.
b. The Sweeney & Associates’s net income increase by $62, 650 as a result of the adjusting entries performed in part a.
Problem 4.3A, pages 175
A. 1. The age of the airplane in months is 36 months
$36000/$1000=36 months
Accumulated depreciation / Monthly depreciation
240 months of useful life = 20 years
2. The monthly airport rent expense is $1.800
At June 30, May and June have been paid. There are 4 months of rent remaining
Brief Exercise 3.2, page 120. Brief Exercise 3.7, page 121.
a. Do not represent a revenue because
b. It not represents revenue to the firm during the month of May, because the receivable was originated in August.
c.
d.
e. Yes, represent revenue in May, because the services were rendered in May.
Brief Exercise 3.8, page 121.
a. The purchase of the copying machine is an Expense, because is going to be used uo in the process of earning revenue.
b. It is an expense, because the delivery would help to do the job and have revenue.
c. It is an expense too, because the employees help to earn revenue.
d. This expense do not represent expenses in March because is a service rendered in January, so it is a January expense.
e. Dividends are not an expense because do not generate revenue.
Chapter 4
Exercise 4.3, page 170
1. Rent Expense $240.000
Prepaid Rent $240.000
($1.200.000/5 months=$240.000 Per Months)
2. Unearned Ticket Revenue $148.800
Ticket Revenue $148.800
Exercise 4.5, page 170
a. 1. Interest Expense $375
Interest Payable $375 2. Account Receivable $10000
Consulting Services Revenue $10000
(10 days * 1000 (per day)
b. The portion of the total interest expense associated with this note will be reported in the firms’s 2010 income statement is $2.250
$50.000 * 9% * 6/12=$2.250
c. The amount that constitutes revenue earned in January is $15.000
$25.000-$10.000(earned in December 2002)
Exercise 4.7, page 171
a.
b. The Sweeney & Associates’s net income increase by $62, 650 as a result of the adjusting entries performed in part a.
Problem 4.3A, pages 175
A. 1. The age of the airplane in months is 36 months
$36000/$1000=36 months
Accumulated depreciation / Monthly depreciation
240 months of useful life = 20 years
2. The monthly airport rent expense is $1.800
At June 30, May and June have been paid. There are 4 months of rent remaining