HHO2e Cases - Chp 02

HHO2e Cases - Chp 02 - Decision Cases (40-50 min.) Decision...

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Decision Cases (40-50 min.) Decision Case 1 Reqs. 1 and 2 Cash Accounts Receivable (a) 10,000 (b) 300 (e) 8,800 (f) 1,200 (f) 1,200 (d) 2,500 Bal. 7,600 Bal. 8,400 Supplies (b) 300 Bal. 300 Accounts Payable Common Stock (c) 700 (a) 10,000 Service Revenue Salary Expense (e) 8,800 (d) 1,400 Rent Expense Advertising Expense (d) 1,100 (c) 700
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(continued) Decision Case 1 Req. 3 A-Plus Travel Planners, Inc. Trial Balance June 30, 2009 ACCOUNT DEBIT CREDIT Cash $ 8,400 Accounts receivable 7,600 Supplies 300 Accounts payable $ 700 Common stock 10,000 Service revenue 8,800 Salary expense 1,400 Rent expense 1,100 Advertising expense 700 Total $19,500 $19,500
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(continued) Decision Case 1 Req. 4 A-Plus Travel Planners Revenues: Service revenue $8,800 Expenses: Salary expense $1,400 Rent expense 1,100 Advertising expense 700 Total expenses 3,200 Net income for month $5,600 Recommendation: Discontinue the business, because net income falls below the target amount.
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(15-20 min.) Decision Case 2 1. Double-entry bookkeeping has the advantage that it records
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This note was uploaded on 10/27/2010 for the course ACCT 252 taught by Professor Mills during the Spring '08 term at NMSU.

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HHO2e Cases - Chp 02 - Decision Cases (40-50 min.) Decision...

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