Chapter_3_HW_Solution_final - AEM 221 Financial Accounting...

Info icon This preview shows pages 1–3. Sign up to view the full content.

AEM 221 Financial Accounting Spring 2007 Chapter 3 Homework Solution P3-1 Recording Non-quantitative Journal Entries The following list includes a series of accounts for Choudhury Corporation that has been operating for three years. These accounts are listed and numbered for identification. Following the accounts is a series of transactions. For each transaction, indicate the account(s) that should be debited and credited by entering the appropriate account number(s) to the right of each transaction. If no journal entry is needed, use number 16. If there is more than one account, separate your answer with a comma. The first transaction is used as an example. Account No. Account Title Account No. Account Title 1 Cash 9 Wages payable 2 Accounts receivable 10 Income taxes payable 3 Supplies on hand 11 Contributed capital 4 Prepaid expense 12 Retained earnings 5 Equipment 13 Service revenue 6 Patents 14 Operating expenses (wages, supplies, interest) 7 Accounts payable 15 Income tax expense 8 Note payable 16 None of these Required: Transactions Debit Credit a. Purchased equipment for use in the business; paid one-third cash and signed a note payable for the balance. 5 1, 8 b. Issued stock to new investors. 1 11 c. Paid cash for salaries and wages. 14 1 d. Collected cash for services performed this period. 1 13 e. Collected cash on accounts receivable for services performed last period. 1 2 f. Performed services this period on credit. 2 13 g. Paid operating expenses incurred this period. 14 1 h. Paid cash on accounts payable for expenses incurred last period. 7 1 i. Incurred operating expenses this period to be paid next period. 14 7 j. Purchased supplies to be used later; paid cash. 3 1 k. Used some of the supplies inventory for operations. 14 3 l. Purchased a patent (an intangible asset); paid cash. 6 1 m. Made a payment on the equipment note in (a); the payment was part principal and part interest expense. 8, 14 1 1
Image of page 1

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

n. Paid three-fourths of the income tax expense for the year; the balance will be paid next year.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '07
  • Revenue, Recording Journal

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern