ACCT 2010 May 13

ACCT 2010 May 13 - 5/13/08 CHAPTER II - Exercise Questions:...

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5/13/08 CHAPTER II - Exercise Questions: Costs of goods sold – Expense – Income Statement Subscription fees earned – Revenue – Income Statement Accounts Payable – Current Liability – Balance Sheet Accounts Receivable – Current Asset – Balance Sheet Prepaid Insurance – Current Asset – Balance Sheet Building – Long-term Asset – Balance Sheet Bonds payable, due in 350 days – Current Liability – Balance Sheet Treasury Stock – Owners' Equity – Balance Sheet Cash – Current Asset – Balance Sheet Interest Expense – Expense – Income Statement A = L + OE A = L + RE E + CS RE E = RE B + NI – DIV CHAPTER III 1. Issue capital stock cash in the amount of $100,000 A (increase) = L + OE (increase) 2. Purchase of property in exchange for Notes Payable in the amount of $200,000 A (increase: land, building) = L (increase: liabilities-notes payable) + OE 3. Purchase of equipment on Account in the amount of $20,000 A (increase – equipment) = L (increase – on account) + OE 4. Sell memberships on Account A (increase-revenue) = L + OE (increase) 5. Sell Court Time A (increase) = L + OE (increase – revenue) 6. Payment of Wages and Salaries A (decrease) = L + OE (decrease – expense is deducted from revenue) 1
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5/13/08 Good Form Journal Entry Dr. Debit Account Name $xx Cr. Account Name $xx (Add transaction description) Exercise 3.9 Ex1: Dr. Cash $19,500 Cr. Capital Stock $19,500 (to record cash received from owners) Ex2: Purchased office supplies for cash of $130 a) Formula A( increase assets – office supplies) (decrease cash) = L + OE b) T Chart Cash Office Supplies + - + - c) Good Form Dr. Cash $130 Cr. Office Supplies $130 purchased office supplies for cash Ex3: Purchased a van $15,000 open account. Due in 25 days. a) Formula A( increase assets – van) = L (increase – open account) + OE 2 Liability
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5/13/08 b) T Chart Van Current Liabilities + - - + c) Good Form Dr. Van $15,000 Cr. Current Liabilities $15,000 purchased office supplies for cash
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This note was uploaded on 06/05/2008 for the course ACCT ACCT 2010 taught by Professor Olvera during the Spring '08 term at North Texas.

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ACCT 2010 May 13 - 5/13/08 CHAPTER II - Exercise Questions:...

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