# S1 - Homework S1 1 4/1 1 Prepaid Insurance Cash 12/31 1...

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Homework S1 Debit Credit 1.) 4/1/+1 Prepaid Insurance 360 Cash 360 12/31/+1 Insurance Expense 90 Prepaid Insurance 90 2.) 9/1/+1 Cash 2,400 Unearned Rental Revenue 2,400 12/31/+1 Unearned Rental Revenue 800 Rental Revenue 800 3.) 5/1/+1 Advertising Expense 7,200 Cash 7,200 12/31/+1 Prepaid Advertising 2,400 Advertising Expense 2,400 4.) 11/15/+1 Rent Expense 1,200 Cash 1,200 Prepaid Rent 1,100 Rent Expense 1,100 Homework S1A A. 1.) 4/1/+1 Insurance Expense 360 Cash 360 12/31/+1 Prepaid Insurance 270 Insurance Expense 270 2.) 9/1/+1 Cash 2,400 Rental Revenue 2,400 12/31/+1 Rental Revenue 1,600 Unearned Rental Revenue 1,600 3.) 5/1/+1 Prepaid Advertising 7,200 Cash 7,200 12/31/+1 Advertising Expense 4,800 Prepaid Advertising 4,800 4.) 11/15/+1 Prepaid Rent 1,200 Cash 1,200 Rent Expense 100 Prepaid Rent 100

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B. S1 S1A 1.) Prepaid Insurance 270 270 Insurance Expense 90 90 2.) Unearned Rental Revenue 1,600 1,600 Rental Revenue 800 800 3.) Advertising Expense 4,800 4,800 Prepaid advertising 2,400 2,400 4.) Rent Expense 100 100 Prepaid Rent 1,100 1,100 C. It doesn't matter, because after the proper adjusting entry, the ending balance for both method will be equal Homework S2 a. Present value of savings: 500000 * 4.355 = 2177500 2177500 is the present value of savings, it is greater than what it need to buy the equipment. Should buy. b. Project 1: 9000000 * 5.759 = 51831000 Project 2: 90000000 * .424 = 38160000 First project is well off c. Bonus: 1000000 * 7.606 = 7606000 Pension plan: present value at retirement = 3200000 * 6.814 = 21804800 Present value of 21804800: 21804800 * .239 = 5211347.2
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S1 - Homework S1 1 4/1 1 Prepaid Insurance Cash 12/31 1...

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