914ANS - September 14 Exercise 4-2B Both students were...

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September 14 Exercise 4-2B Both students were correct.  Trisha was correct if her  entry was recorded for the party receiving the land.  Tony’s entry was correct if his entry was recorded for  the party giving up the land.
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September 14 Exercise 4-4B Cash Accounts Payable Common Stock Debit Credit Debit Credit Debit Credit Increase Decrease Decrease Increase Decrease Increase Accounts Receivable Notes Payable Dividends Debit Credit Debit Credit Debit Credit Increase Decrease Decrease Increase Increase Decrease Accumulated Depr. Service Revenue Debit Credit Debit Credit Decrease Increase Decrease Increase Other Operating Exp. Debit Credit Increase Decrease
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September 14 Exercise 4-5B Event Account Debited Account Credited a. Provided services  on account. Accounts  Receivable Service Revenue b. Paid cash for  operating expense. Operating  Expense Cash c. Acquired cash from  the issue of  common stock. Cash Common Stock d. Purchased supplies  on account. Supplies Accounts Payable e. Purchased  equipment for cash. Equipment Cash f. Paid a cash  dividend to the  stockholders. Dividends Cash g. Provided services  for cash. Cash Service Revenue h. Recognized accrued  salaries at the end  of the period. Salaries Expense Salaries Payable
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September 14 Exercise 4-10B General Journal Date Account Titles Debit Credit Date Account Titles Debit Credit a. Accounts Receivable 19,000 g. Cash 13,400 Service Revenue 19,000 Land 10,000 Gain on Sale of Land 3,400 b. Equipment 24,000 h. Prepaid Insurance 2,300 Cash 4,000 Cash 2,300 Notes Payable 20,000 c. Supplies 530 i. Accounts Payable 1,200 Cash 530 Cash 1,200 d. Cash 3,000 j. Insurance Expense 800 Unearned Revenue 3,000 Prepaid Insurance 800 e. Cash 8,400 k. Depreciation Expense 6,200 Accounts Receivable 8,400 Accumulated Depreciation 6,200 f. Repairs Expense 1,700 l. Interest Expense 800 Accounts Payable 1,700 Interest Payable 800
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September 14 ATC 11-5 Computation of Price Earnings Ratio: 1. Compute Earnings per Share: Net Income  ÷  Number of Common Shares Outstanding 2. Compute Price Earnings Ratio: Selling Price per Share  ÷  Earnings per Share a. Musicland Corporation: Earnings per Share (EPS): Net Income ÷ Common Shs. Outst. = EPS $62,000 ÷ 10,000 = $6.20 Price/Earnings Ratio: Selling Price/Share ÷ Earnings per Share = P/E Ratio $80.00 ÷ $6.20 = 12.9 Jazztown Corporation: Earnings Per Share (EPS):
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This note was uploaded on 03/18/2008 for the course ACIS 2116 taught by Professor Cmeasterwood during the Fall '08 term at Virginia Tech.

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914ANS - September 14 Exercise 4-2B Both students were...

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