HW 3 - ACCT251 Financial Accounting Chapter 3 Exercises 1,...

ACCT251 Financial Accounting
Chapter 3
Exercises 1, 4, 7, 8 and Problem 4A
Exercise 3-1
a) Debit Salary Expense $1,250
Credit Salaries Payable $1,250
b) Debit Salary Expense $3,750
Debit Salaries Payable $1,250
Credit Cash $5000
Exercise 3-4
Transaction General Journal Debit Credit
a. Unearned fee revenue 5,000
Fee revenue 5,000
b. Wages expense 8,000
Wages payable 8,000
c. Depreciation expense-
Equipment
18,000
Accumulated
depreciation-
Equipment
18,000
d. Office supplies
expense
5,200
Office supplies 5,200
e. Insurance expense 2,800
Prepaid insurance 2,800
f. Interest receivable 1,050
Interest revenue 1,050
g. Interest expense 2,500
Interest payable 2,500
Exercise 3-7
Income Statement
Trucking fees earned ................................................................. $130,000
Expenses
Depreciation expense—Trucks .............................................. $23,500
Salaries expense ..................................................................... 61,000
Office supplies expense ......................................................... 8,000
Repairs expense—Trucks ...................................................... 12,000

Total expenses ........................................................................ 104,500
Net income ................................................................................ $ 25,500
Statement of retained earnings
Retained earnings, December 31, 2014 .................................... $ 155,000
Plus: Net income ....................................................................... 25,500
180,500
Less: Dividends ......................................................................... (20,000)
Retained earnings, December 31, 2008 .................................... $160,500
Exercise 3-8
1. Close out revenue accounts to the Income Summary account.