ACC 311 Exam1 Key-problems

ACC 311 Exam1 Key-problems - PROBLEM 1 (15 points) Please...

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PROBLEM 1 (15 points) Please prepare the following journal entries for the company specified. Listed below, in alphabetical order, are the account names to use for this problem. Note – it is possible that an account will be used more than once or an account is not used at all. Accounts Payable Income Tax Expense Accounts Receivable Income Tax Payable Book Expense Inventory Notes Payable Advertising Expense Sales Revenue Notes Receivable Equipment Prepaid Rent Cash Rent Expense Advertising Revenue Rent Revenue Cost of Good Sold (COGS) Unearned Revenue a. On November 1, Bevo Inc. (a bookstore) sold 10 books to Aggie Inc (a football team) for $10 each. Aggie Inc promised to pay on November 15. The books cost Bevo Inc. $5 each. Company Account Title Debit Credit Bevo Accounts Receivable 100 Sales Revenue 100 COGS 50 Inventory 50 Company Account Title Debit Credit Aggie Book Expense 100 Accounts Payable 100 b. On November 1, Bevo Inc. paid Red Raider, Inc (their landlord) $6,000 for November through April rent. Bevo ends its fiscal year on December 31. Company Account Title Debit Credit Bevo Prepaid Rent 6000 Cash 6000 OR Rent expense 2000 Prepaid Rent 4000 Cash 6000 Company Account Title Debit Credit Red Raider Cash 6000 Unearned Revenue 6000 1
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c. On November 15, Aggie Inc paid Bevo Inc. for the books purchased in a above.
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This note was uploaded on 07/17/2008 for the course ACC 311 taught by Professor Charrier during the Spring '08 term at University of Texas at Austin.

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ACC 311 Exam1 Key-problems - PROBLEM 1 (15 points) Please...

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