ACCHAPTER 45 - 4-44(continued)(c)Interest owed butnot paid,...

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Unformatted text preview: 4-44(continued)(c)Interest owed butnot paid, ($8,000 x .12 x 3/12 = $240)A= L+ SEAccruedInterestInterestPayableExpenseInterest expense=+240240Journal entry:Interest expense240Accrued interest payable240(d)Wages earned butnot receivedA= L+ SEAccruedWagesWagesReceivableRevenueWages earned+600=+600Journal entry:Accrued wages receivable600Wages revenue6004-45(15 min.)Answers are in millions of dollars.A= L+ SEUnearnedRentRent1.LandlordsRevenueRevenueAdjustment for rent earned=5+5Journal entry:Unearned rent revenue5Rent revenue52.TirePrepaidU-HaulInventoryExpensesReceipt of tires, carried as assets because none usedyet (even partially) +77=Journal entry:Tire inventory7Prepaid expenses7AccruedInterestInterest3.Retail DealersPayableExpenseInterest owed but unpaid=+66Journal entry:Interest expense6Accrued interest payable64.IncomeIncomeU. S. & Foreign TaxesTaxGovernmentsReceivableRevenueIncome taxes earned butnot received+68=+68Journal entry:Income taxes receivable68Income tax revenue684-46(15 min.) Answers are in thousands of dollarsA=L+ SEUnearnedRenta.LandlordCashRevenueRent collected in advance+6=+6Journal entry:Cash6Unearned rent revenue6UnearnedRentRentb.LandlordRevenueRevenueJuly to December revenue=3+3Journal entry:Unearned rent revenue3Rent revenue3Prepaidc.Apple ComputerCashExpensesAdvance paymentsfor flights2+2=Journal entry:Prepaid expenses2Cash24-46(continued)A=L+ SEPrepaidMarketingd.Apple ComputerExpensesExpensesTravel expenses1=1Journal entry:Travel expenses...
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This note was uploaded on 06/20/2010 for the course FINA 6266 taught by Professor Burt during the Spring '10 term at University of Arkansas for Medical Sciences.

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ACCHAPTER 45 - 4-44(continued)(c)Interest owed butnot paid,...

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