Wk 3 Checkpoint-Adjustments and Accrual

Wk 3 Checkpoint-Adjustments and Accrual - C 3. Insurance...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Wk 3 Checkpoint: Adjustments and Accrual and Cash Basis Accounting QS 3-1 a. To record revenue earned that was previously received as cash in advance. - UR b. To record annual depreciation expense. - AE c. To record wages expense incurred but not yet paid (nor recorded). - AE d. To record revenue earned but not yet billed (nor recorded). - AR e. To record expiration of prepaid insurance. - PE QS 3-9 Net income under cash basis Cash received from customers 33000 Less: Expenses paid in cash (22500-2250+3750) 24000 Net Income 9000 Net income under cash basis Revenue earned 39000 Less: Expenses accrued (22500-2250) 20250 Net Income 18750 Exercise 3-1 B 1. Salaries Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,280 Salaries Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,280 E 2. Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,208
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Interest Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,208
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: C 3. Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,180 Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,180 F 4. Unearned Professional Fees . . . . . . . . . . . . . . . . . . . . . 19,250 Professional Fees Earned . . . . . . . . . . . . . . . . . . . . . . 19,250 D 5. Interest Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,300 Interest Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,300 A 6. Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . 38,217 Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . 38,217 Exercise 3-7 Balance Sheet Insurance Asset Using Insurance Expense Using Accrual Basis Cash Basis Accrual Basis Cash Basis Dec. 31, 2003 $12150 $ 0 2003 $4050 $16200 Dec. 31, 2004 $6750 $ 0 2004 $5400 $ 0 Dec. 31, 2005 $1350 $ 0 2005 $5400 $ 0 Dec. 31, 2006 $ 0 $ 0 2006 $1350 $ 0 Total $16200 $16200...
View Full Document

This note was uploaded on 05/07/2010 for the course ACCOUNTING ACC225 taught by Professor Professor during the Spring '10 term at University of Phoenix.

Page1 / 2

Wk 3 Checkpoint-Adjustments and Accrual - C 3. Insurance...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online