Pearson Company soln - Pearson Company Financial Reporting...

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Pearson Company Financial Reporting Case 2 Solution Intermediate Accounting Fall 2009 Lippitt
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Pearson Company - Solution Journal Entry # Account Debit Credit 1 Cash 35,000 Common Stock 6,000 Additional Paid in Capital 29,000 2 Building 40,000 Cash 15,000 Notes Payable 25,000 3 Office Equipment 1,800 Cash 1,800 4 Office supplies 600 Accounts Payable 600 Cash 20,000 5 Accounts Receivable 15,000 Service Revenue 35,000 6 Salary Expense 14,000 Cash 12,500 Salaries Payable 1,500 7 Supplies Expense 400 Office Supplies 400 8 Allowance for Bad Debts 500 Accounts Receivable 500 9 Bad Debts Expense 1,950 Allowance for Bad Debts 1,950 10 Dividends 6,000 Dividends Payable 6,000 Depreciation Expense 4,320 Accumulated Depreciation 4,320 Interest Expense 2,500 Interest Payable 2,500
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Closing Entries Service Revenue 35,0000 Salary Expense 14,000 Supplies Expense 400 Depreciation Expense 4,320 Interest Expense 2,500 Bad Debts Expense 1,950 Retained Earnings 11,830 Retained Earnings 6,000 Dividends 6,000
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Pearson Company - Solution Ledger Cash Accts Receivable Office Supplies 35,000 15,000 15,000 500 600 400 20,000 1,800 14,500 200 12,500 25,700 Office Equip Buildings Accounts Payable 1,800 40,0000 600 Notes Payable Allowance for Bad Debts Service Revenue 25,000 500 1,950 35,000 1,450 Salary Expense Supplies Expense Depreciation Expense 14,000 400 4,320 Interest Expense Interest Payable Accumulated Depreciation 2,500 2,500 4,320 Bad Debts Expense Dividends Payable Salaries Payable 1,950 6,000 1,500
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Dividends Common Stock Additional Paid in Capital 6,000 6,000 29,000 Retained Earnings
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Pearson Company soln - Pearson Company Financial Reporting...

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