CHAPTER%2003%20SOLUTIONS%202008

CHAPTER%2003%20SOLUTIONS%202008 - 3-22 a)Inventory...

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Unformatted text preview: 3-22 a)Inventory (A)3,100Accounts Payable (L)3,100b)Accounts receivable (A)2,700Sales (SE)2,700Cost of goods sold (SE)1,800Inventory (A)1,800c)Cash (A) 2,000Accounts receivable (A)2,000d)Cash (A)12,000Bank loan (L)12,000e)Cash (A) 20,000Common shares (SE)20,000f)Equipment (A)7,500Cash (A)7,500g)Wages expense (SE)6,300Cash (A)6,300h)Accounts Payable (L)3,000Cash (A)3,000i)Interest expense (SE)150Bank loan (L)1,850Cash (A)2,000j)Land (A)23,000Cash (A)3,000Mortgage payable (L)20,000k)Rent expense (SE)2,500Cash (A)2,500l)Office supplies (A)1,400Accounts payable (L)1,400m)Office Supplies Expense (SE)500Office Supplies (A)5003-26a) The Riders Shop: Journal EntriesMarch1Cash (A)140,000Common shares (SE)140,0002Rent expense (SE)2,000Cash (A)2,0005Parts inventory (A)24,000Accounts payable (L)24,0007Shop supplies on hand (A)11,500Cash (A)11,5009Accounts receivable (A)550Sale of parts (SE)300Service revenue (SE)250Cost of parts sold (SE)150Parts inventory (A)15011Parts inventory (A)750Cash (A)75012Accounts payable (L)24,000Cash (A)24,00015Cash(A)520Sale of parts (SE)190Service revenue (SE)330Cost of parts sold (SE)95Parts inventory (A)9516Cash (A)850Advances from customers (L)850Advances from customers (L)425Service revenue (SE)42520Prepaid insurance (A)540Cash (A)54022Cash (A)5,440Sale of parts (SE)2,040Service revenue (SE)3,400Cost of parts sold (SE)1,020Parts inventory (A)1,02025Accounts receivable (A)730Sale of parts (SE)730Cost of parts sold (SE)365Parts inventory (A)36528Cash (A)550Accounts receivable (A)55031Wages expense (SE)3,925Cash (A3,925b)The Riders Shop: T-AccountsCash (A) Accounts receivable (A) Bal.Bal.(1) 140,0002,000(2)(9)550550(28)(15)52011,500(7)(25)730(16)850 750(11)(22)5,44024,000(12)Bal.730(28) 550540(20)3,925(31)Bal.104,645Parts Inventory (A)Shop supplies on hand (A)Bal.Bal.(5)24,000150(9)(7)11,500(11)75095(15)1,020(22)Bal.11,500365(25)Bal.23,120Prepaid insurance (A)Bal.(20)540Bal. 540 Accounts payable (L)0 Bal.(12) 24,00024,000(5)0 Bal.Advances from customers (L)Common shares (SE)Bal.Bal.(16)425850(16)140,000(1)425Bal.140,000Bal.Retained earnings(SE)Sale of parts (SE)Bal.Bal. 300(9)Bal.190(15)2,040(22)730(25)3,260Bal.Service revenue (SE) Cost of parts sold (SE)Bal. Bal.250(9)(9)150330(15)(15)95425(16)(22)1,0203,400(22)(25)3654,405Bal.Bal.1,630Wages expense (SE)Rent expense (SE)Bal.Bal. (31)3,925(2)2,000cBal.3,925Bal.2,000c)The Riders Shop Ltd.Trial BalanceMarch 31, 2008DebitCreditCash$ 104,645Accounts receivable730Parts inventory23,120Shop supplies on hand11,500Prepaid insurance540Advances from customers$ 425Common shares140,000Retained earnings-0-Sales of parts3,260Service revenue4,405Cost of parts sold1,630Wages expense3,925Rent expense2,000$148,090$148,090d)The Riders Shop Ltd....
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CHAPTER%2003%20SOLUTIONS%202008 - 3-22 a)Inventory...

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