Ch03HWSol(6th) - Chapter 3 HW Assignment: E3-6, 8, 9, 16;...

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Chapter 3 HW Assignment: E3-6, 8, 9, 16; P3-3, 6, 7, 8, 10, 13, 17, 22 Solutions E3-6 ASSETS = LIABILITIES + OWNERS’ EQUITY Date Accounts Cash Other Assets Contribute d Capital Retained Earnings Oct. 1 Merchandise 3,600 Accounts Payable 3,600 Oct. 3 Cash 900 Sales Revenue 900 Cost of Goods Sold –270 Merchandise –270 Oct. 6 Accounts Receivable 1,800 Sales Revenue 1,800 Cost of Goods Sold –590 Merchandise –590 Oct. 7 Ordering merchandise does not result in a transaction that should be recorded. Oct. 9 Spoilage Expense –400 Merchandise –400 Oct. 10 Accounts Payable –1,800 Cash –1,800 Oct. 16 Cash 1,200 Accounts Receivable –1,200 Chapter 3 HW Solutions Page 1
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E3-8 a. ASSETS = LIABILITIES + OWNERS’ EQUITY Date Accounts Cash Other Assets Contribute d Capital Retained Earnings 1 Wages Expense –7,600 Wages Payable 7,600 2 Office Supplies Inventory 500 Office Supplies Expense 500 3 Rent Receivable 2,500 Rent Revenue 2,500 4 Depreciation Expense –11,000 Accumulated Depreciation –11,000* 5 Interest Expense –5,700 Interest Payable 5,700 *Accumulated Depreciation is a contra account. It is increased each period when depreciation expense is recognized. It is shown here as a deduction, because its overall effect on the accounting system is to decrease total assets. b. Net income = $72,400 − $7,600 + $500 + $2,500 − $11,000 − $5,700 = $51,100 E3-9 a. Past September Future Total Revenues Expenses $1,500 $2,500 $1,000 $5,000 Cash received Cash paid $5,000 $5,000 b. Past September Future Total Revenues $15,000 $15,000 Expenses Cash received $9,000 $6,000 $15,000 Cash paid c. Past September Future Total Revenues Expenses $7,500 $7,500 Cash received Cash paid $5,000 $2,500 $7,500 Chapter 3 HW Solutions Page 2
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d. Past September Future Total Revenues Expenses Cash received $50,000 $50,000 Cash paid $2,500 $47,500 $50,000 e. Past September Future Total Revenues Expenses $500 $24,500 $25,000 Cash received Cash paid $25,000 $25,000 E3-10 Cash Flow for June Cash Flow in July Wages Expense for June Cash paid for prior wages $5,800 Cash paid for June wages $44,200 $4,200 $48,400 Total cash paid in June for wages $50,000 E3-16 Assets Liabilities Equity Net Income Year-end amounts before correction $7,625 $2,820 $4,805 $1,200 Adjusting entry (a): Decrease Prepaid Insurance (400) Increase Insurance Expense
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Ch03HWSol(6th) - Chapter 3 HW Assignment: E3-6, 8, 9, 16;...

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