hmwk_ch1

# hmwk_ch1 - PE 11B \$100,000. Under the cost concept, the...

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PE 1–1B \$100,000. Under the cost concept, the land should be recorded at the cost to Duck Repair Service. PE 1–2A a. A = L + OE b. A = L + OE \$617,000 = \$382,000 + OE +\$114,000 = –\$29,000 + OE OE= \$235,000 OE = +\$143,000 OE on December 31, 2008 = \$378,000 = \$235,000 + \$143,000 PE 1–2B a. A = L + OE b. A = L + OE \$336,000 = \$172,500 + OE +\$75,000 = \$15,000 + OE OE= \$163,500 OE = +\$60,000 OE on December 31, 2008 = \$223,500 = \$163,500 + \$60,000 PE 1–3A (2) Asset (Cash) decreases by \$815; Liability (Accounts Payable) decreases by \$815. (3) Asset (Accounts Receivable) increases by \$3,250; Revenue (Delivery Service Fees) increases by \$3,250. (4) Asset (Cash) increases by \$1,150; Asset (Accounts Receivable) decreases by \$1,150. (5) Asset (Cash) decreases by \$500; Dividends increases by \$500. PE 1–3B (2) Expense (Advertising Expense) increases by \$674; Asset (Cash) decreases by \$674. (3) Asset (Supplies) increases by \$280; Liability (Accounts Payable) increases by \$280. (4) Asset (Accounts Receivable) increases by \$4,800; Revenue (Delivery Service Fees) increases by \$4,800. (5) Asset (Cash) increases by \$1,150; Asset (Accounts Receivable) decreases by \$1,150. PE 1–4A HERAT TRAVEL SERVICE Income Statement For the Year Ended June 30, 2008 Fees earned \$ 378,200 Expenses: Wages expense \$ 181,500 Office expense 91,350

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Miscellaneous expense 3,150 Total expenses 276,000 Net income \$ 102,200 PE 1–4B LEOTARD TRAVEL SERVICE Income Statement For the Year Ended February 28, 2008 Fees earned \$ 377,000 Expenses: Wages expense \$ 225,000 Office expense 156,650 Miscellaneous expense 6,350 Total expenses 388,000 Net loss \$ 11,000
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## This note was uploaded on 04/27/2008 for the course ACG 2021 taught by Professor Cobb during the Spring '08 term at Saint Petersburg.

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hmwk_ch1 - PE 11B \$100,000. Under the cost concept, the...

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