PROBLEM 4_36A solution

# PROBLEM 4_36A solution - LarryHarris&SamuelAmadi Auditing...

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Larry Harris & Samuel Amadi Auditing Professor Osaghae PROBLEM 4-36A a. Turner Rentals Shop General Journal, April 2007 Date Account Titles Debit Credit Apr. 1 Cash \$40,000 Common Stock \$20,000 Notes Payable \$20,000 Apr. 1 Prepaid Rent \$3,600 Cash \$3,600 Apr. 1 Rental Tools \$30,000 Cash \$30,000 Apr. 6 Supplies \$220 Cash \$220 Apr. 9 Cash \$500 Unearned Revenue \$500 Apr. 10 Cash \$850 Accounts Receivable \$1,200 Rental Revenue \$2,050 Apr. 15 Salaries Expense \$960 Cash \$960 Apr. 16 Cash \$450 Accounts Receivable \$450 Apr. 23 Utilities Expense \$233 Accounts Payable \$233

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Apr. 25 Advertising Expense \$240 Cash \$240 Apr. 30 Cash \$1,150 Accounts Receivable \$1,600 Rental Revenue \$2,750 Apr. 30 Salaries Expense \$960 Cash \$960
PROBLEM 4-36A (cont.) b. and d. Turner Rentals Shop T-Accounts, April 2007 Cash Accounts Payable Common Stock 4/1 \$40,000  4/1 \$3,600  4/23 \$233 4/1 \$20,000 4/9 \$500  4/1 \$30,000  Bal. \$233  Bal. \$20,000 4/10 \$850  4/6 \$220 4/16 \$450  4/15 \$960 Unearned Revenue Retained Earnings 4/30 \$1,150  4/25 \$240  4/9 \$500  Bal. -0-  4/30 \$960  Bal. \$500 Bal. \$6970 Rental Revenue Interest Payable  4/10 \$2,050 Accounts Receivable  4/30 \$150  4/30 \$2,750 4/10 \$1,200 4/16 \$450  Bal. \$150  Bal. \$4,800 4/30 \$1,600 Bal. \$2,350 Notes Payable Salaries Expense 4/1 \$20,000 4/15 \$960 Supplies  Bal. \$20,000 4/30 \$960 4/6 \$220 Bal. \$1,920 Bal. \$220  4/30 \$140 Utilities Expense Bal. \$80 4/23 \$233 Bal. \$233 Prepaid Rent 4/1 \$3,600 Advertising Expense Bal. \$3,600 4/25 \$240  4/30 \$300 Bal. \$240 Bal. \$3,300 Depreciation Expense Rental Tools 4/30 \$450 4/1 \$30,000 Bal. \$450 Bal. \$30,000 Rent Expense Accumulated Depr. 4/30 \$300  4/30 \$450 Bal. \$300

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Bal. \$450 Supplies Expense 4/30 \$140 Bal. \$140
PROBLEM 4-36A b. and d. (cont.)   T-Accounts, April 2007 (cont) Assets =

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