Chapter 04 Homework 1

Chapter 04 Homework 1 - With interest E13 1 Jun 1 Notes...

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Professor Gordon ACCT151 16 September 2008 Chapter 4 Homework 1 E3,E10,E11,E13,E15,P5 E3) 1. AL 2. DR 3. AA 4. DE 5. DE 6. DR 7. AL 8. AA E10) 1. 50workers*$10/hour*7hours/day*5days/week = $17,500/week 2. Oct 27 Wages Expenses 17,500 Cash 17,500 To pay the weekly payroll 3. Oct 31 Wages Expenses 7,000 Wages Payable 7,000 To record the wages for the last four days of October 4. Nov 3 Wages Payable 7,000 Wages Expenses 10,500 Cash 17,500 To pay the weekly payroll 5. It will be overstated because the expenses for October will be lower. E11) 1. Mar 1 Cash 100,000 Notes Payable 100,000 To record issuance of 12%, 90 day, $100,000 note 2. Mar 31 Interest Expense 1,000 Interest Payable 1,000 To record interest for one month on a 12%, 90 day, $100,000 note Apr 30Interest Expense 1,000 Interest Payable 1,000 To record interest for one month on a 12%, 90 day, $100,000 note 3. May 30 Interest Payable 2,000 Interest Expense 1,000 Notes Payable 100,000 Cash 103,000
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To record payment of a 12%, 90 day, $100,000 note
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Unformatted text preview: With interest E13) 1. Jun 1 Notes Receivable 60,000 Cash 60,000 To record issuance of 10%, 60 day, $60,000 loan 2. June 30 Interest Receivable 500 Interest Revenue 500 To record interest for one month on a 10%, 60 day, $60,000 loan 3. Jul 31 Cash 61,000 Interest Receivable 500 Interest Revenue 500 Notes Receivable 60,000 To record payment of a 10%, 60 day, $60,000 loan E15) 1. O 2. U 3. O 4. O 5. O 6. U P5) 1. Dec 31Insurance Expense 800 Prepaid Insurance 800 To record expiration of insurance benefits xx Rent Revenue 3000 Rent Collected in Advance 3000 To recognize rent revenue earned for the year xx Interest Receivable 1500 Interest Revenue 1500 To record interest earned but not yet received 2. The balance would be $6,600 because $200 would be credited to the account each month....
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This note was uploaded on 02/22/2009 for the course ACCT 151 taught by Professor Largay during the Spring '07 term at Lehigh University .

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Chapter 04 Homework 1 - With interest E13 1 Jun 1 Notes...

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