Solutions to Exam 1 - PROBLEM 1 (22 points) A. Prepare the...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
PROBLEM 1 (22 points) A. Prepare the journal entries that would be required on the date of each of the activities listed below. If a journal entry is not required, please state the reason. Use good form. B. Prepare any necessary adjusting journal entries that may be required on November 30, 2008 for the activities listed below. If an adjusting journal entry is not required, please state the reason. Use good form. Note : The company prepares financial statements at the end of each month . 1. Revenue earned for services rendered to customers, but not yet billed, totaled $5,000 on November 30. 1 point each - 2 points total Journal entry on November 30, 2008 Dr. A/R 5,000 Cr. Revenue 5,000 2. On September 1, 2008, the company loaned $24,000 to an employee for one year at an interest rate of 12%. Both principal and interest are due on August 31, 2009. 1 st nd j/e = 3 points for total of 4 points Journal entry on September 1, 2008 Dr. Note Receivable 24,000 Cr. Cash 24,000 Journal entry on November 30, 2008 Dr. Interest Receivable 240 Cr. Interest Revenue 240 24,000 X 12% X 1/12 = 240 3. The company purchased equipment on January 1, 2008, for $48,000 cash. It uses the straight-line
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/19/2008 for the course ACC 311 taught by Professor Charrier during the Spring '08 term at University of Texas at Austin.

Page1 / 4

Solutions to Exam 1 - PROBLEM 1 (22 points) A. Prepare the...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online