Lecture_XI_HW_Solutions

Lecture_XI_HW_Solutions - 600 4-38 (15-20 min.) Answers are...

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Lecture XI-HW Solutions 4-35 (15-20 min.) Recall that increases in expense accounts decrease stockholders' equity. (a) Supplies used, $2,000 – $900 = $1,100. A = L + SE Office Office Supplies Supplies Inventory Expense Supplies used –1,100 = –1,100 Journal entry: Office supplies expense 1,100 Office supplies inventory 1,100 (b) Four months of services rendered, 4 x $3,000 = $12,000. A = L + SE Unearned Fee Fee Revenue Revenue Fees earned = –12,000 +12,000
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Journal entry: Unearned fee revenue 12,000 Fee revenue 12,000 4-35 (continued) (c) Interest earned, $8,000 x .12 x 3/12 = $240. A = L + SE Accrued Interest Interest Receivable Revenue Interest earned +240 = +240 Journal entry: Accrued interest receivable 240 Interest revenue 240 (d) A = L + SE Accrued Wages Wages Payable Expense
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Wages earned but unpaid = +600 –600 Journal entry Wages expense 600 Accrued wages payable
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Unformatted text preview: 600 4-38 (15-20 min.) Answers are in millions of dollars. 1. A = L + SE Prepaid Rent Expenses Expense a. Rent expired 5 = 5 Journal entry: Rent expense 5 Prepaid expenses 5 Unearned Sales Revenue Revenue b. Delivery of tires paid for in advance = 7 +7 Journal entry: Unearned revenue 7 Sales revenue 7 Accrued Interest Interest Receivable Revenue c. Interest earned but not received +6 = +6 Journal entry: Accrued interest receivable 6 Interest revenue 6 4-38 (continued) A = L + SE U.S. & Foreign Income Taxes Tax (Payable) Expense d. Income taxes to be paid = +68 68 Journal entry: Income tax expense 68 U.S. & foreign taxes payable 68 2. Prepaid expenses (448.1 - 5) $443.1 U.S. and foreign taxes (473.2 + 68) $541.2...
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This note was uploaded on 05/24/2008 for the course ACC 203 taught by Professor Choi during the Spring '08 term at NYU.

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Lecture_XI_HW_Solutions - 600 4-38 (15-20 min.) Answers are...

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