Ch3_Tut_Solutions

Ch3_Tut_Solutions - 1101AFE Accounting Principles -...

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1101AFE Accounting Principles - Tutorial Exercises Chapter 3 (10 min.) S 3-5 Req. 1 Journal DATE ACCOUNTS AND EXPLANATIONS POST . REF. DEBIT CREDIT April 30 Rent Expense ($3,000 × 1/6) 500 Prepaid Rent 500 To record rent expense. Prepaid Rent Rent Expense Apr. 1 3,000 Apr. 30 500 Apr. 30 500 Bal. 2,500 Bal. 500 Req. 2 Journal DATE ACCOUNTS AND EXPLANATIONS POS T. REF. DEBIT CREDIT April 30 Supplies Expense ($700 – $500) 200 Supplies 200 To record supplies expense. Supplies Supplies Expense Apr. 2 700 Apr. 30 200 Apr. 30 200 Bal. 500 Bal. 200 1
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1101AFE Accounting Principles - Tutorial Exercises Chapter 3 (5-10 min.) E 3-5 Journal DATE DESCRIPTION POST. REF. DEBIT CREDIT a. Salary Expense ($10,000 × 4/5) 8,000 Salary Payable 8,000 b. Unearned Service Revenue 500 Service Revenue 500 c. Depreciation Expense 3,000 Accumulated Depreciation 3,000 d. Rent Expense 300 Prepaid Rent 300 e. Interest Receivable 3,800 Interest Revenue 3,800 (10 min.) E 3-6 Net profit: Overstated by omission of: Salary expense $8,000 Depreciation expense 3,000 Rent expense 300 Total overstatement $11,300 Understated by omission of: Service revenue $ 500 Interest revenue 3,800 Total understatement 4,300 Overall effect—net profit overstated by $ 7,000 (150 min.) E 3-15 Reqs. 1, 3, and 6 Cash at Bank Accounts Receivable Dec. 2 14,000 Dec. 2 500 Dec. 9 1,700 Dec. 28 600 18 800 3 2,000 Bal. 1,100 21 900 12 200 Adj. 400 28 600 26 300 Bal. 1,500 30 1,600 2
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1101AFE Accounting Principles - Tutorial Exercises Chapter 3 Bal. 11,700 Supplies Equipment Dec. 5 300 Adj. 200 Dec. 3 2,000 Bal. 100 Accumulated Depreciation - Equipment Furniture Adj. 50 Dec. 4 3,600 Accumulated Depreciation - Furniture Accounts Payable Adj. 60 Dec. 26 300 Dec. 4 3,600 5 300 Bal. 3,600 3
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1101AFE Accounting Principles - Tutorial Exercises Chapter 3 (continued) E 3-15 Reqs. 1, 3, and 6 (continued) Salary Payable Unearned Service Revenue Adj. 500 Adj. 300 Dec. 21
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Ch3_Tut_Solutions - 1101AFE Accounting Principles -...

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