Quiz _4_Chapter 4_Sol

Quiz _4_Chapter 4_Sol - Interest will be paid annually at...

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Rec Sec: ______________________ MGA 201: Fall 2008 QUIZ #4 (Chapter 4) 1 On December 1 the company paid $3,000, representing three months of office rent. 2 3 4 Debit Credit 1 Rent Expense 1,000 Prepaid Rent 1,000 Calculation: $3,000 x 1/3 2 Interest Expense 9,167 Interest Payable 9,167 Calculation: $100,000 x .11 x 10/12 3 Accounts Receivable 5,000 Sales Revenue 5,000 No calculation required 4 Unearned Revenue 80,000 Revenue 80,000 Calculation: $120,000 x 2/3 Name: _______ SOLUTION ______________________________ Fun, Fun, Fun, Inc. is a local travel agency. A review of the company's files at the end of the operating year (December 31, 2008), results in the following information: The company borrowed $100,000 from the bank on March 1, 2008.
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Unformatted text preview: Interest will be paid annually at 11%, beginning in 2009. (Round your amount to nearest dollar.) The company delivered cruise ship tickets to a customer on December 31, 2008. The $5,000 bill for the tickets was sent out to the customer on January 5, 2009. The company offers monthly travel packages to customers. Customers pay for these packages in advance. As of December 31, 2008, two-thirds of the $120,000 collected from customers for these monthly packages has been earned. REQUIRED: Prepare the required adjusting entries, showing all calculations (if necessary). You may omit the journal entry explanations. Assume that any originating entries were properly made....
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This note was uploaded on 04/18/2009 for the course MGA 201 taught by Professor Anderson during the Fall '08 term at SUNY Buffalo.

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