solutions-ch03

solutions-ch03 - EXERCISE 3-13 (a) Ending balance of...

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EXERCISE 3-13 (a) Ending balance of supplies $600 Add: Adjusting entry 950 Deduct: Purchases 650 Beginning balance of supplies 900 (b) Total annual insurance $28,800 ($2,400 X 12) Present balance 2,400 The policy was purchased eleven months ago (March 1, 2010) (c) The entry in January to record salary expense was: Salaries Expense 1,800 Salaries Payable 700 Cash 2,500 The “T” account for salaries payable is Salaries Payable Paid 700 Beg. Bal. ? January End Bal. 800 The beginning balance is therefore: Ending balance of salaries payable $ 800 Plus: Reduction of salaries payable 700 Beginning balance of salaries payable $1,500 (d) Service revenue $3,000 Cash received 1,600 Unearned revenue reduced $1,400 Ending unearned revenue January 31, 2011 $1,000 Plus: Unearned revenue reduced 1,400 Beg. unearned revenue December 31, 2010 $2,400 Page 1 of 9
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EXERCISE 3-21 (a) Sales $98,000 *Sales returns (24,000 ) Net sales $74,000 (b) Beginning inventory $21,000 Purchases 63,000 Purchase returns (6,000 ) Goods available for sale 78,000 *Ending inventory (14,000 ) Cost of goods sold $64,000 (c) *Sales $106,000 Sales returns (5,000 ) Net sales $101,000 (d) *Beginning inventory $ 25,000 Purchases 105,000 Purchase returns (10,000 ) Goods available for sale 120,000 Ending inventory (48,000 ) Cost of goods sold $ 72,000 (e) Beginning inventory $ 44,000 *Purchases 108,000 Purchase returns (8,000
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This note was uploaded on 12/10/2010 for the course AFM 291 taught by Professor Clark during the Spring '10 term at Waterloo.

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solutions-ch03 - EXERCISE 3-13 (a) Ending balance of...

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