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

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ACCT251 Financial AccountingChapter 3Exercises 1, 4, 7, 8 and Problem 4AExercise 3-1a)Debit Salary Expense $1,250Credit Salaries Payable $1,250b)Debit Salary Expense $3,750Debit Salaries Payable $1,250Credit Cash $5000Exercise 3-4TransactionGeneral JournalDebitCredita.Unearned fee revenue5,000Fee revenue5,000b.Wages expense8,000Wages payable8,000c.Depreciation expense-Equipment18,000Accumulateddepreciation-Equipment18,000d.Office suppliesexpense5,200Office supplies5,200e.Insurance expense2,800Prepaid insurance2,800f.Interest receivable1,050Interest revenue1,050g.Interest expense2,500Interest payable2,500Exercise 3-7Income StatementTrucking fees earned.................................................................$130,000ExpensesDepreciation expense—Trucks..............................................$23,500Salaries expense.....................................................................61,000Office supplies expense.........................................................8,000Repairs expense—Trucks......................................................12,000
Total expenses........................................................................104,500Net income................................................................................$ 25,500Statement of retained earningsRetained earnings, December 31, 2014....................................$ 155,000Plus: Net income.......................................................................25,500180,500Less: Dividends.........................................................................(20,000)Retained earnings, December 31, 2008....................................$160,500Exercise 3-81. Close out revenue accounts to the Income Summary account.
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Accounting, Financial Accounting, Balance Sheet, Income Statement, Revenue, Generally Accepted Accounting Principles, Double entry bookkeeping system

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