Mgmt_200_Spring_2008_solutions_1-25-08(1,25)

Mgmt_200_Spring_2008_solutions_1-25-08(1,25) - f. Cost of...

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Management 200 – Introductory Financial Accounting– Spring 2008 Krannert School of Management - Purdue University Solutions to class assignment for January 25, 2008 E3–4. Activity Expense Account Affected Amount of Expense Incurred in January a. Salary expense $45,000 incurred in January. The remaining half was incurred in December. b. Insurance expense $1,500 incurred in January. The remainder is not incurred until February and March. c. Utilities expense $6,000 d. Cost of goods sold $4,500 (= 500 shirts x $9 per shirt) e. None Expense will be recorded in the future when the related revenue has been earned.
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Unformatted text preview: f. Cost of goods sold $45,000 (= 450 books x $100 per book) g. None December expense paid in January. h. Commission expense $14,200 i. None Expense will be recorded as depreciation over the equipments useful life. j. None Expense will be recorded when the related revenue has been earned. k. Supplies expense $4,800 (= $4,000 + $2,600 - $1,800) l. Wages expense $120 (= 8 hours x $15 per hour) m. Insurance expense $300 (= $3,600 12 months) n. Repairs expense $280 o. Utilities Expense $230 p. Consulting Expense $11,500 q. None December expense paid in January....
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