Intermediate Acc I(HW ch 3) - ANSWERSTOQUESTIONS 1 Examplesare(a (b Collectionofan

Intermediate Acc I(HW ch 3) - ANSWERSTOQUESTIONS 1...

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Kiara Elliott Intermediate Acc I Assignment Ch 3 The Accounting Information System (BE 1 through 11 and exercises 1- 5) BE 3-1 Prepare journal entire for each of this transactions May 1 B.D. Mehta invests $4000 cash in exchange for common stock in a small welding corporation. 3 Buys equipment on account for $1100 13 Pays $ 400 to landlord for May rent. 21 Bills Noble Corp. $500 for welding work done May 1 Cash .............................................................................. 4000 Common stock .................................................. 4000 3 Equipment ..................................................................... 1000 Accounts Payable .............................................. 1000 13 Rent expenses ............................................................... 400 Cash ................................................................... 400 21 Accounts Receivable ..................................................... 500 Service Revenue ................................................ 500 BE 3-2 Journalize the transaction Aug. 2 Invested $12,000 cash and $2500 of equipment in the business. 7 Purchased supplies on account for $500 (debit asset account) 12 Performed services for clients, for which $1300 was collected in cash and $670 was bill to the clients. 15 Paid August rent $600 19 Counted supplies and determined that only $270 of the supplies purchased on August 7 are still on hand. Aug. 2 Cash .............................................................................. 12000 Equipment .................................................................... 2500 Owners Capital ................................................ 14500 7 Supplies .......................................................................... 500 Accounts Payable .............................................. 500 12 Cash ............................................................................... 1300 Accounts receivables ..................................................... 670 Service Revenue ................................................ 1970 15 Rent Expenses ................................................................ 600 Cash ................................................................... 600 19 Supply expenses ............................................................ 230 Supplies (500-270) ............................................ 230 BE 3-3 On July 1, 2014, Crowe Co. pays $15000 to Zubin Insurance Co. for a 3-year insurance policy. Both companies have fiscal year ending December 31. For Crowe Co., journalize the entry on July 1 and the adjusting entry on December 31. Jul. 1 Prepaid Insurance ........................................................... 15000
BE 3-4 Using the data on BE 3-3, journalize the entry on July 1 and the adjusting entry onDecember 31 for Zubin Insurance Co. Zubin use the accounts Unearned Service and Service Revenue. BE 3-5 Assume that on February 1, Procter & Gamble (P&G) paid $720000 in advance for 2 years insurance coverage. Prepare P&G's February 1 journal entry and the annual adjusting entry on June 30. BE 3-6 LaBouche Corporation owns a warehouse. On November 1, it rented storage space to a lessee (tenant) for 3 months for a total cash payment of $2400 received in advance. Prepare LaBouche's November 1 journal entry and the December 31 annual adjusting entry.

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