4-27 - + Equity cash acct rec = acct pay + c. stock ret...

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A) assets = Liabilities + O.E. cash = acct payable + retained earnings 18300 = 7500 + 19400 = notes payable + 76500 Equipment = 10000 + 2800 30000 = Salaries payabe + 53200 = 11800 + 5000 acct recievable = + rev Common Stock 28000 = + 76500 20000 = + 75600 interest receive = + Dep exp interest rev 400 = + 8400 2800 = + 8400 2800 Prepaid Rent = + ad exp 3200 = + 2500 = + 2500 supplies = + rent exp 400 = + 7800 = + 7800 C.D = + salaries exp 22000 = + 32000 accumulated depreciatio = + 32000 12500 = + dividends = + 5000 = + 5000 = + suplies exp = + 2500 = + 2500 4-15a b) a) bb retained earnings 19400 Debit Credit net income 26100 acct reciev 65000 dividends 5000 retained earnings 65000 Retained earnings 40500 acct payable 3100 operating e 3100 collected acct recieva 56000 cash 56000 salary expe 36000 cash 36000 acct payab 15000 cash 15000 dividend 8000 cash 8000 Total 183100 183100
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Assets = liabil + O.E. Cash acct payable retained earnings salar Debit Credit Debit Credit Debit Credit 36000 30000 12400 12600 56000 = 3100 + 65000 operat 8000 = 15000 + 36000 3100 15000 = + 3100 36000 = + 8000 commo acct recievable = + 19000 = + divid 65000 = + 8000 56000 = + = + c. assets = Liabil
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Unformatted text preview: + Equity cash acct rec = acct pay + c. stock ret earn rev.- exp = net inc 30000 19000 = 12400 + 24000 12600-= 65000 = + 65000-= = 3100 +-3100-= 56000-56000 = + 56000 -= 56000-36000 = +-36000-36000 =-36000-15000 =-15000 +-15000 =-15000-8000 = +-8000-= total 55000 = 55000 56000 51000 5000 D. net inc. for the year is 5000 E. the change in retained earnings is 17900 the change in net inc is different than th retained earnings because of the matching principle. The net income doesn’t rec point of transaction and waits until cash is received whereas retained earnings m in ry exp 36000 ting exp 3100 on stock 24000 idends 800 Cash Flow 56000 oa-36000 oa-15000 oa-8000 fa e change of cognize income at the atches it as it comes...
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This homework help was uploaded on 04/16/2008 for the course ACCT 221 taught by Professor Catherinewest during the Fall '06 term at UMass (Amherst).

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4-27 - + Equity cash acct rec = acct pay + c. stock ret...

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