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pg_0050 - 3 | 9 Dividends 33 Required 1 Use the balance...

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Unformatted text preview: 3 | 9 Dividends .' 33 Required 1. Use the balance column format to set up a ledger account for each account listed in its chart of accounts. Prepare journal entries to record the April transactions and post them to the ledger accounts. The company records prepaid and unearned items in balance sheet accounts. 5" l" Prepare an unadjusted trial balance as oprril 30. 4. Use the following information to journalize and post adjusting entries for the month. a. Two—thirds of one month's insurance coverage has expired. b. At the end of the month, $700 of oflice supplies are still available. (2. This month's depreciation on the computer equipment is $500. d. Employees earned $720 of unpaid and unrecorded salaries as of month—end. e. The company earned $33,050 of commimions that are not yet billed at month—end. 5. Prepare the income statement and the statement of retained earnings for the month of April and the balance sheet as of April 30, 21339. 6. Prepare journal entries to close the temporary accounts and post these entries to the ledger. 7. Prepare a post—closing trial balance. Check (3) Unadj. trial balance totals, 574,000 (4:2) Dr. Insurance Expense, 5139 (5) Net income, 58,491; Retained Earnings (ending), 57,291; Total assets, 566,011 ('7) P—C trial balance totals, 566,511 Problem 3-5A Determining balance sheet classifications C4 1n the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank. A. Current assets D. Intangible assets F. Long—term liabilities B. Long-term investments E. Current liabilities G. Equity C. Plant assets I. Prepaid rent _ I I. Buildings 2. Accounts payable _ I2. Depreciation expense—Building 3. Repairs expense _ I3. Notes payable (due in 20 years) 4. Long—term investment in stock _ I4. Uneamed services revenue 5. Taxes payable _ I5. Cash 6. Office equipment _ I6. Prepaid insurance 1. Automobiles _ I1. Interest receivable 8. Accumulated depreciation—Trucks _ I8. Office supplies 9. Current portion of long—term _ I9. Land (used in operations) note payable _ 20. Store supplies IO. Common stock Problem 3-6AA Recording prepaid expenses and unearned revenues 1’1 1’6 Riso Co. had the following transactions in the last two months of its year ended December 31. Nov. 1 Paid $2,000 cash for future newspaper advertising. 1 Paid $2,466 cash for 12 months of insurance through October 31 of the next year. 30 Received $4,200 cash for future services to be provided to a customer. :36 ...
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