ACCT MAST CH1 ANS

ACCT MAST CH1 ANS - Income statement Assets: Salary revenue...

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Practice Problem. College student first starting out. YOU GOT 100 % CORRECT Transactions: a. $10,000 gift from parents b. Pay $5,000 down for a $80,000 townhouse, finance remainder with mortgage c. Make a $400 security deposit and rent a $12,000 car. d. Pay $1,500 for furniture. e. Earn $3,000 monthly salary. 1/3 is withheld for taxes. g. Pay the auto rent. Monthly auto rental payments are $200. Cash Furniture House = a. 10,000 10,000 b. -5,000 80,000 75,000 c. -400 400 d. -1,500 1,500 e. 2,000 3,000Salary revenue -1,000Taxes expense f. -600 -50 -550Interest expense g. -200 -200Rent expense 4,300 1,500 400 80,000 = 74,950 10,000 1,250 Balance sheet
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Unformatted text preview: Income statement Assets: Salary revenue 3,000 Cash 4,300 Rent expense-200 Furniture 1,500 Interest expense-550 Security deposit 400 Taxes expense-1,000 House 80,000 Net income 1,250 Total 86,200 Liabilities: Mortgage payable 74,950 Equity: "Common stock" 10,000 Retained earnings 1,250 Total 86,200 f. Pay the mortgage. Mortgage payments are $600 a month, consisting of $50 principle and $550 interest. Security deposit Mortgage payable "Common stock" Retained earnings Income statement accounts ATTENTION: Please do not cut/pas at all or copy/paste fro outside the workshee...
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This note was uploaded on 04/07/2008 for the course ACCT 205 taught by Professor Johnson during the Spring '08 term at St. Thomas.

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