chap3soln[1] - B RIEF EXERCISE 3-1 May 1 Cash Common Stock...

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BRIEF EXERCISE 3-1 May 1 Cash 3,000 Common Stock .................................................................... 3,000 3 Equipment ...................................................................................... 1,100 Accounts Payable ............................................................... 1,100 13 Rent Expense ................................................................................. 400 Cash ....................................................................................... 400 21 Accounts Receivable .................................................................... 500 Service Revenue ................................................................. 500 BRIEF EXERCISE 3-2 Aug. 2 Cash 12,000 Equipment ....................................................................................... 2,500 Brett Favre, Capital ............................................................ 14,500 7 Supplies ............................................................................................ 400 Accounts Payable ................................................................ 400 12 Cash 1,300 Accounts Receivable ..................................................................... 670 Service Revenue .................................................................. 1,970 15 Rent Expense .................................................................................. 600 Cash ........................................................................................ 600 19 Supplies Expense ........................................................................... 130 Supplies ($400 – $270) ......................................................... 130
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BRIEF EXERCISE 3-3 July 1 Prepaid Insurance ......................................................................... 18,000 Cash ........................................................................................ 18,000 Dec. 31 Insurance Expense ........................................................................ 3,000 Prepaid Insurance .............................................................. 3,000 BRIEF EXERCISE 3-4 July 1 Cash 18,000 Unearned Insurance Revenue ......................................... 18,000 Dec. 31 Unearned Insurance Revenue .......................................... 3,000 3,000 Insurance Revenue ............................................................. 3,000 ($18,000 X 1/2 X 1/3) BRIEF EXERCISE 3-5 Feb. 1 Prepaid Insurance ......................................................................... 840,000 Cash ........................................................................................ 840,000 June 30 Insurance Expense ........................................................................ 175,000 Prepaid Insurance .............................................................. 175,000 ($840,000 X 5/24) BRIEF EXERCISE 3-6 Nov. 1 Cash 2,700 Unearned Rent Revenue ................................................... 2,700 Dec. 31 Unearned Rent Revenue .............................................................. 1,800 Rent Revenue ....................................................................... 1,800 ($2,700 X 2/3)
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BRIEF EXERCISE 3-7 Dec. 31 Salaries Expense ............................................................................ 3,600 Salaries Payable .................................................................. 3,600 ($6,000 X 3/5) Jan. 2 Salaries Payable ............................................................................. 3,600 Salaries Expense ............................................................................ 2,400 Cash ........................................................................................ 6,000 BRIEF EXERCISE 3-8 Dec. 31 Interest Receivable ....................................................................... 300 Interest Revenue ................................................................. 300 Feb. 1 Cash 10,400 Notes Receivable ................................................................. 10,000 Interest Receivable ............................................................. 300 Interest Revenue ................................................................. 100 BRIEF EXERCISE 3-9 Dec. 31 Interest Expense ............................................................................ 400 Interest Payable .................................................................. 400 31 Accounts Receivable ..................................................................... 1,400 Service Revenue .................................................................. 1,400 31 Salaries Expense ............................................................................ 700 Salaries Payable .................................................................. 700 31 Bad Debt Expense .......................................................................... 900 Allowance for Doubtful Accounts ................................... 900
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BRIEF EXERCISE 3-10 Depreciation Expense ............................................................................................ 3,000 Accumulated Depreciation—Equipment ................................................ 3,000 Equipment ................................................................................................................ $30,000 Less: Accumulated depreciation—equipment ................................................. 3,000 $27,000 BRIEF EXERCISE 3-11 Beginning inventory $ 81,000 Purchases $540,000 Less: Purchase returns $5,800 Purchase discounts 5,000 10,800 Net purchases 529,200 Add: Freight-in 16,200 Cost of goods purchased 545,400 Cost of goods available for sale 626,400 Ending inventory 70,200 Cost of goods sold $556,200 BRIEF EXERCISE 3-12 Sales 828,900 Interest Revenue ......................................................................................... 13,500 Income Summary .............................................................................. 842,400 Income Summary ......................................................................................... 780,300 Cost of Goods Sold ............................................................................ 556,200 Operating Expenses ......................................................................... 189,000 Income Tax Expense ........................................................................ 35,100 Income Summary ......................................................................................... 62,100 Retained Earnings ............................................................................ 62,100 Retained Earnings ...................................................................................... 18,900 Dividends ............................................................................................ 18,900 *BRIEF EXERCISE 3-13 (a) Cash receipts ............................................................................................ $152,000 + Increase in accounts receivable ....................................................... 5,600 ($18,600 – $13,000)
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Service revenue ....................................................................................... $157,600 (b) Payments for operating expenses ....................................................... $ 97, 000 – Increase in prepaid expenses ............................................................ (5,700) ($23,200 – $17,500) ________ Operating expenses ................................................................................ $ 91,300 *BRIEF EXERCISE 3-14 (a) Salaries Payable ...................................................................................... 3,600 Salaries Expense ........................................................................... 3,600 (b) Salaries Expense ..................................................................................... 6,000 Cash .................................................................................................. 6,000 (c) Salaries Payable ...................................................................................... 3,600 Salaries Expense ..................................................................................... 2,400 Cash .................................................................................................. 6,000 EXERCISE 3-1 (15–20 minutes) Apr. 2 Cash 32,000 Equipment ....................................................................................... 14,000 Beverly Crusher, Capital ................................................... 46,000 2 No entry—not a transaction.
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