solutions%20ch03 - AIM 3331-0U1 Solutions to suggested...

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AIM 3331-0U1 Solutions to suggested assignments Chapter 3 BRIEF EXERCISE 3-1 May 1 Cash 3,000 Common Stock 3,000 3 Equipment 1,100 Accounts Payable 1,100 13 Rent Expense 400 Cash 400 21 Accounts Receivable 500 Service Revenue 500 BRIEF EXERCISE 3-2 Aug. 2 Cash 12,000 Equipment 2,500 Brett Favre, Capital 14,500 7 Supplies 400 Accounts Payable 400 12 Cash 1,300 Accounts Receivable 670 Service Revenue 1,970 15 Rent Expense 600 Cash 600 19 Supplies Expense 130 Supplies ($400 – $270) 130 BRIEF EXERCISE 3-12 Sales ……………………………………………. ..... 828,900 Interest Revenue 13,500 Income Summary 842,400 Income Summary 780,300 Cost of Goods Sold 556,200 Operating Expenses 189,000 Income Tax Expense 35,100 Income Summary 62,100 Retained Earnings 62,100 Retained Earnings 18,900 Dividends 18,900 1
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AIM 3331-0U1 EXERCISE 3-6 (10–15 minutes) 1. Accounts Receivable 750 Service Revenue 750 2. Utilities Expense 520 Utilities Payable 520 3. Depreciation Expense 400 Accumulated Depreciation – Dental Equipment 400 Interest Expense 500 Interest Payable 500 4. Insurance Expense ($12,000 X 1/12) 1,000 Prepaid Insurance 1,000 5. Supplies Expense ($1,600 – $500) 1,100 Supplies 1,100 EXERCISE 3-7 (15–20 minutes) (a) Ending balance of supplies $700 Add: Adjusting entry 950 Deduct: Purchases 850 Beginning balance of supplies 800 (b) Total prepaid insurance $4,800 ($400 X 12) Amount used (6 X $400) 2,400 Present balance 2,400 The policy was purchased six months ago (August 1, 2006)
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This note was uploaded on 08/06/2009 for the course BUSINESS 4444 taught by Professor Dr.dale during the Spring '09 term at University of Texas at Dallas, Richardson.

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solutions%20ch03 - AIM 3331-0U1 Solutions to suggested...

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