Available Courses

ACC 290 Week 3 Individual WileyPLUS Assignment Exercise BE4-1, Problem P4-2A and P4-3A

ACC 290 Week 3 Individual WileyPLUS Assignment Exercise BE4-1, Problem P4-2A and P4-3A

This Tutorial was Purchased 0 Times and Rated No rating by Students like U.

  |  Write a review  |   View Reviews   |  
Price: $4.00
 

ACC 290 Week 3 Individual WileyPLUS Assignment Exercise BE4-1, Problem P4-2A and P4-3A

Exercise 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.

(b)

Recorded an adjusting entry to record use of $40 of the above supplies.

(c)

Made sales of $1,300, all on account.

(d)

Received $800 from customers in payment of their accounts.

(e)

Purchased equipment for cash, $2,500.

(f)

Recorded depreciation of building for period used, $600.

 

 

Problem P4-2A

 
 

Nick Waege started his own consulting firm, Waegelein Consulting, on June 1, 2010. The trial balance at June 30 is as follows.

 

WAEGELEIN CONSULTING

Trial Balance

June 30, 2010

 

Debit

Credit

Cash

$6,850

 

Accounts Receivable

7,000

 

Prepaid Insurance

2,640

 

Supplies

2,000

 

Office Equipment

15,000

 

Accounts Payable

 

$4,540

Unearned Service Revenue

 

5,200

Common Stock

 

21,750

Service Revenue

 

8,000

Salaries Expense

4,000

 

Rent Expense

2,000

 

 

$39,490

$39,490

Other data:

1

Supplies on hand at June 30 total $980.

2.

A utility bill for $180 has not been recorded and will not be paid until next month.

3.

The insurance policy is for a year.

4.

$3,900 of unearned service revenue has been earned at the end of the month.

5.

Salaries of $1,250 are accrued at June 30.

6.

The office equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months.

7.

Invoices representing $3,500 of services performed during the month have not been recorded as of June 30.

 

 

Problem P4-3A

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif

The Olathe Hotel opened for business on May 1, 2010. Here is its trial balance before adjustment on May 31.

 

OLATHE HOTEL

Trial Balance

May 31, 2010

 

Debit

Credit

Cash

$2,500

 

Prepaid Insurance

1,800

 

Supplies

2,600

 

Land

15,000

 

Lodge

70,000

 

Furniture

16,800

 

Accounts Payable

 

$4,700

Unearned Rent Revenue

 

3,300

Mortgage Payable

 

36,000

Common Stock

 

60,000

Rent Revenue

 

9,000

Salaries Expense

3,000

 

Utilities Expense

800

 

Advertising Expense

500

 

 

$113,000

$113,000

Other data:

1.

Insurance expires at the rate of $300 per month.

2.

A count of supplies shows $1,050 of unused supplies on May 31.

3.

Annual depreciation is $3,600 on the lodge and $3,000 on furniture.

4.

The mortgage interest rate is 7%. (The mortgage was taken out on May 1.)

5.

Unearned rent of $2,500 has been earned.

6.

Salaries of $750 are accrued and unpaid at May 31.

Write a review

Order Id

Order Id will be kept Confidential
Your Name:


Your Review:
Rating:   A   B   C   D   F  

Enter the code in the box below: