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Session%2005 - Solutions For Session 05 Assignments...

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Solutions For Session 05 Assignments: Multiple Choice (Page 128): 1 . a 2. c 3. b 4. b 5. d 6. a 7. b 8. b 9. c 10. b SE3-1 For each of the following accounts, indicate whether it has a normal debit to a normal credit balance and indicate what type of account it is. Account title Asset Liability Revenue Expense a. Sales Revenue Credit b. Service Revenue Credit c. Accounts Receivable Debit d. Utilities Expense Debit e. Salaries Expense Debit f. Accounts Payable Credit g. Interest Expense Debit E3-2A For each transaction for Ricco Company during April 2006, prepare the journal entry. Ref. Date Transaction Debit Credit
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J-1 April-06 Computers 35,000 Accounts payable 35,000 J-2 April-06 Rent expense 2,000 Cash 2,000 J-3 April-06 Cash 22,500 Accounts receivable 22,500 J-4 April-06 Cash 10,000 Service revenue 10,000 J-5 April-06 Supplies expense 3,000 Cash 3,000 J-6 April-06 Cash 30,000 Common stock 30,000 J-7 April-06 Accounts payable 35,000 Cash 35,000 J-8 April-06 Advertising expense 1,200 Accounts payable 1,200 E3-12A Analyze the following journal entries for Seashore Yacht Club and give the general explanation that would be required for each entry. a. Issued stock to new owners for $10,000 in cash. b. Purchased land for $7,000 cash. c. Purchased building for $55,000 cash. d. Borrowed $10,000 from bank. e. Purchased supplies (for use in the future) for $400 cash.
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f. Purchased insurance for the future for $1,650 cash. g. Provided services to customers for $25,000 cash. h. Paid rent expense with cash in the amount of $9,240 P3-6A a. Prepare journal entries for the transactions. Debit Credit 1 Cash 50,000 Common Stock 50,000 2 Office Equipment 9,000 Cash 9,000 3 Land 35,000 Long-term Notes Payable 35,000 4 Cash 36,000 Accounts Receivable 16,000 Service Revenue 52,000 5 Parts & Supplies Inventory 1,550 Other Payables 1,550 6 Operating Expenses 6,000 Cash 6,000 7 Long-term Notes Payable 3,000 Interest Expense 350 Cash 3,350 8 Cash 10,000 Accounts Receivable 10,000
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9 Other Payables 1,000 Cash 1,000 b. Set up T-accounts and post the journal entries. 1 50,000 9,000 2 4 36,000 6,000 6 8 10,000 3,350 7 9 1,000 1,550 5 1,000 9 76,650 550 4 16,000 10,000 8 52,000 4 6,000 52,000 2 9,000 7 3,000 35,000 3 9,000 32,000 3 35,000 50,000 1 $35,000 50,000 5 1,550 6 6,000 1,550 6,000 7 350 350 Interest expense Cash Office Equipment Common Stock Land Long-term Notes Payable Other Payables Accounts Receivable Service Revenue Parts & Supplies Inventory Operating Expenses
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P3-6A (continued) c. Prepare a trial balance at December 31, 2007. Chancellor Repair Industries, Inc.
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