Chapter 3 Questions (13 Intermediate Acct 3300) SV

Chapter 3 Questions (13 Intermediate Acct 3300) SV -...

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Chapter 3 Questions Question # 1 These items are taken from the financial statements of Stasik, Inc. Account Title Amount Prepaid insurance Equipment Salaries expense Utilities expense Accumulated depreciation Accounts payable Cash Accounts receivable Salaries payable Common stock Depreciation expense Retained earning (beginning) Dividends Service revenue Repair expense Insurance expense 1800 34000 36000 2100 8600 10200 5300 7500 2000 5900 4300 14000 3600 58000 2900 1200 Instructions Prepare an income statement, a retained earning statement, and classified balance sheet as of December 31, 2007.
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Question # 2 Fantasy Miniature Golf and Driving Range Inc. Was opened on March 1, by Michelle and Dolores. These selected events and transactions occurred during March:- Mar, 1 Stockholders invested $60,000 cash in the business in exchange for common stock of the corporation. 3 Purchased Lee's Golf Land for $38,000 cash. The price consists of land $23,000, building $9,000, and equipment $6,000. (Record this in a single entry.) 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,600 cash. 6 Paid cash $1,480 for a 1-year insurance policy. 10 Purchased golf clubs and other equipment for $1,600 from Tiger company, payable in 30 days. 18 Received golf fees of $800 in cash for golf fees earned 19 Sold 100 coupon books for $15.00 each in cash. Each book Contains ten coupons that enable the holder to play one round of Miniature golf or to hit one bucket of golf balls. [Hint: The Revenue is not earned until the customers use the coupons.] 25 Declared and paid a $500 cash dividend. 30 Paid salaries of $600. 30 Paid Tiger Company in full. 31 Received $800 of fees in cash. The company uses these accounts:- Cash, Account payable,Prepaid Insurance, Unearned revenue, Land , Common stock ,Buildings , Retain Earning, Equipment, Dividends Golf revenue, advertising Expens , and Salaries Expense. Instructions 1- Journalize the March transactions 2- Post the transaction use a T account . 3- Prepare the trial balance
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Questions 3 The trial balance of Artistic Dry Cleaners on June 30 is given below. ARTISTIC DRY CLEANERS Trial Balance June 30, 2007 Activities Debit Credit Cash Accounts Receivable Supplies Equipment Accounts Payable Unearned Revenue Common Stock $12,532 10,536 3,512 25,950 ------ ------ ------- $52,530 ===== ---- ---- ---- ---- $15,800 1,730 35,000 $52,530 ====== The July transactions were as follows: July 08 Received $ 5,189 in Cash on June 30 account receivable. 09 Paid employees salaries $ 2,100. 11 Received $ 5,100 in cash for services provided. 14 Paid creditors $ 10,750 of accounts payable. 17 Purchased supplies on account $ 520. 22 Billed customers for service provided $ 4,700 30 Paid employees Salaries $ 3,114, Utilities $ 1,467, and repairs $ 492. 31 Paid $ 400 cash dividend. Instructions; (a) Prepare a general ledger using T accounts. Enter the opening balances in the ledger account as of July 1. Provision should be made for following additional accounts: Dividends, Dry Cleaning Revenue, Repair Expense, Salaries Expense and Utilities Expense.
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