week 2 self check

# week 2 self check -...

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AC 201 Week Two Solutions Problem 3-2A Part 1 Adjustment (a) Dec. 31 Office Supplies Expense. ............................... 12,325 Office Supplies. ........................................ 12,325 To record cost of supplies used (\$2,900 + \$11,977 - \$2,552). Adjustment (b) 31 Insurance Expense. ......................................... 12,280 Prepaid Insurance. ................................... 12,280 To record annual insurance coverage cost. Policy Cost per Month Months Active in 2009 2009 Cost A \$485 (\$11,640/24 mo.) 12 \$ 5,820 B 290 (\$10,440/36 mo.) 9 2,610 C 770 (\$ 9,240 /12 mo.) 5 3,850 Total \$12,280 Adjustment (c) 31 Salaries Expense. ............................................ 3,660 Salaries Payable. ..................................... 3,660 To record accrued but unpaid wages (2 days x \$1,830).

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Problem 3-2A − concluded Adjustment (d) Dec. 31 Depreciation Expense—Building. .................. 18,875 Accumulated Depreciation—Building. .. 18,875 To record annual depreciation expense [(\$800,000 -\$45,000) / 40 years = \$18,875] Adjustment (e) 31 Rent Receivable.
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Unformatted text preview: ........................................... 3,000 Rent Earned. .......................................... 3,000 To record earned but unpaid Dec. rent. Adjustment (f) 31 Unearned Rent. ............................................. 5,436 Rent Earned. .......................................... 5,436 To record the amount of rent earned for November and December (2 x \$2,718). Part 2 Cash Payment for (c) Jan. 6 Salaries Payable. .......................................... 3,660 Salaries Expense*. ........................................ 5,490 Cash. ....................................................... 9,150 To record payment of accrued and current salaries. *(3 days x \$1,830) Cash Payment for (e) 15 Cash. .............................................................. 6,000 Rent Receivable. .................................... 3,000 ................................................................. Rent Earned 3,000 To record past due rent for two months....
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## This note was uploaded on 11/16/2010 for the course AC 201 taught by Professor Leland during the Fall '10 term at Park.

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week 2 self check -...

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