Accounting Review.docx - Accounting Review Problem#1 Insurance Expense Pre-Paid Insurance 7,500 7,500 Over X Assets Liabilities Net Income Under No

Accounting Review.docx - Accounting Review Problem#1...

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Accounting Review Problem #1: Over Under No Effect Assets X Liabilities X Net Income X Pre-Paid Insurance 60,000 7,500 $ 52,500 Math: $60,000/24= $2,500/mo. * 3 = $7,500 Problem #3: upon review of the accounting records, it was discovered that $4,000 of the Pre-Paid Rent balance actually pertained to the December 2017 rent, was incorrectly debited on November 12,2017 to Pre-Paid Rent. Record the December 1, 2017 adjusting entry to correct the recording. Pre-Paid Rent Rent Expense 6,000 68,000 4,000 4,000 $2,000 $72,000 Rent Expense 4,000 Pre-Paid Rent 4,000 Over Under No Effect Asset X Liabilities X Net Income X Insurance Expense 7,500 Pre-Paid Insurance 7,500
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Examples: 1. The office Equipment was purchased in 2016 and is being depreciated using the straight- line method over an eight-year useful life with no salvage value. $75,000 = $9,375 8 Depreciation Expense 9,375 Accumulated Depreciation 9,375 2. Accrued salaries and wages at year-end should be $4,000 Salaries and Wages Payable 3,000 1,500 4,500 Salaries and Wages Expense 1,500 Salaries and Wages Payable 1,500 Over Under No Effect Assets X Liabilities X Net Income X 3. The company borrowed 30,000 on September 1, 2018. The principle is due to be repaid in 10
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  • Fall '14
  • sherin
  • Depreciation, Expense, Generally Accepted Accounting Principles, Accounting Review

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