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Chapter 4 HW - utility expense shows seven months of...

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Student Name: Class: Problem 04-04 CAMPUS THEATER General Journal Account Titles Debit Credit (1) Aug. 31 Film Rental Expense 15,200 Prepaid Film Rental 15,200 «- Correct! (2) 31 Depreciation Expense: Buildings 700 Accumulated Depreciation: Buildings 700 «- Correct! (3) 31 Depreciation Expense: Fixtures and Equipment 600 Accumulated Depreciation: Fixtures and Equipment 600 «- Correct! (4) 31 Interest Expense 1,500 Interest Payable 1,500 «- Correct! (5) 31 Unearned Admissions Revenue (YMCA) 500 Admissions Revenue 500 «- Correct! (6) 31 Concessions Revenue Receivable 2,250 Concessions Revenue 2,250 «- Correct! (7) 31 Salaries Expense 1,700 Salaries Payable 1,700 «- Correct! (8) 31 Income Taxes Expense 4,200 Income Taxes Payable 4,200 «- Correct! (9) 31 No adjusting entry required - No adjusting entry required - «- Correct! b. Review the unadjusted trial balance at August 31. How many months of expense are included in (1) Utilities Expense, (2) Depreciation expense, (3) Accumulated Depreciation: Building?
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Unformatted text preview: utility expense shows seven months of expense prior to adjustments both the depreciation expense include seven months of expense prior to adjustments the accumulated dpereciation: building included twenty months of expense (total accum depr / mtly depr = # of mths *14,000/700 = 20*) c. Assume the theater has been operating profitably all year. Although the August 31 trial balance shows substantial income taxes expense, income taxes payable is a much smaller amount. This relationship is quite normal throughout much of the year. Explain. As a corporation you are required to pay estimated taxes on April 15, June 15, September 15 and December 15. The Income Tax Payable amount is much smaller as the first two installments have been paid. The balance in the account is only for the month of July. That is the reason why the amount in the Income Tax Payable account is small....
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