Ch3 Solutions

Ch3 Solutions - SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE...

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Unformatted text preview: SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 3-1 May 1 Cash................................................................... 4,000 Common Stock.......................................... 4,000 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 Agazzi, Capital............................................ 14,500 7 Supplies.............................................................. 500 Accounts Payable...................................... 500 12 Cash.................................................................... 1,300 Accounts Receivable......................................... 670 Service Revenue......................................... 1,970 BRIEF EXERCISE 3-2 (Continued) 15 Rent Expense..................................................... 600 Cash............................................................. 600 19 Supplies Expense.............................................. 230 Supplies ($500 – $270)............................... 230 BRIEF EXERCISE 3-3 July 1 Prepaid Insurance.............................................. 15,000 Cash............................................................. 15,000 Dec. 31 Insurance Expense............................................ 2,500 Prepaid Insurance ($15,000 X 1/2 X 1/3)............................... 2,500 BRIEF EXERCISE 3-4 July 1 Cash.................................................................... 15,000 Unearned Insurance Revenue................... 15,000 Dec. 31 Unearned Insurance Revenue.................3,000 2,500 Insurance Revenue ($15,000 X 1/2 X 1/3)............................... 2,500 BRIEF EXERCISE 3-5 Feb. 1 Prepaid Insurance.............................................. 720,000 Cash............................................................. 720,000 June 30 Insurance Expense............................................ 150,000 Prepaid Insurance ($720,000 X 5/24).................................... 150,000 BRIEF EXERCISE 3-6 Nov. 1 Cash.................................................................... 2,400 Unearned Rent Revenue............................ 2,400 Dec. 31 Unearned Rent Revenue................................... 1,600 Rent Revenue ($2,400 X 2/3)........................................... 1,600 BRIEF EXERCISE 3-7 Dec. 31 Salaries Expense............................................... 4,800 Salaries Payable ($8,000 X 3/5)........................................... 4,800 Jan. 2 Salaries Payable................................................Salaries Payable....
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This note was uploaded on 08/31/2009 for the course DRXL 100 taught by Professor All during the Spring '09 term at Drexel.

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Ch3 Solutions - SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE...

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