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Chapter 03 - Homework Solutions

Chapter 03 - Homework Solutions - CHAPTER 3 The Accounting...

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CHAPTER 3 The Accounting Information System SOLUTIONS TO EXERCISES EXERCISE 3-1 (15–20 minutes) Apr. 2 Cash ..................................................................... 32,000 Equipment ........................................................... 14,000 Beverly Crusher, Capital ............................. 46,000 2 No entry—not a transaction. 3 Supplies ............................................................... 700 Accounts Payable ....................................... 700 7 Rent Expense ...................................................... 600 Cash .............................................................. 600 11 Accounts Receivable .......................................... 1,100 Service Revenue .......................................... 1,100 12 Cash ..................................................................... 3,200 Unearned Service Revenue ........................ 3,200 17 Cash ..................................................................... 2,300 Service Revenue .......................................... 2,300 21 Insurance Expense ............................................. 110 Cash .............................................................. 110 30 Salaries Expense ................................................ 1,160
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Cash .............................................................. 1,160 30 Supplies Expense ............................................... 120 Supplies ....................................................... 120 30 Equipment ........................................................... 6,100 Beverly Crusher, Capital ............................. 6,100 EXERCISE 3-4 (15–20 minutes) Watteau Co. Trial Balance June 30, 2007 Debit Credit Cash ($2,870 + $180 – $65 – $65) .......................................... $ 2,920 Accounts Receivable ($3,231 – $180) ................................... 3,051 Supplies ($800 – $500) ........................................................... 300 Equipment ($3,800 + $500) ..................................................... 4,300 Accounts Payable ($2,666 – $206 – $260) ............................ $ 2,200 Unearned Service Revenue ($1,200 – $325) ......................... 875 Common Stock ....................................................................... 6,000 Dividends ................................................................................ 575 Retained Earnings .................................................................. 3,000 Service Revenue ($2,380 + $801 + $325) .............................. 3,506 Wages Expense ($3,400 + $670 – $575) ................................ 3,495 Office Expense ........................................................................ 940 $15,581 $15,581
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EXERCISE 3-6 (10–15 minutes) 1. Accounts Receivable ..................................................... 750 Service Revenue ..................................................... 750 2. Utilities Expense ............................................................. 520 Utilities Payable ....................................................... 520 3. Depreciation Expense .................................................... 400 Accumulated Depreciation – Dental Equipment .. 400 Interest Expense ............................................................. 500 Interest Payable ....................................................... 500 4. Insurance Expense ($12,000 X 1/12) ............................. 1,000 Prepaid Insurance ................................................... 1,000 5. Supplies Expense ($1,600 – $500) ................................ 1,100 Supplies ................................................................... 1,100 EXERCISE 3-8 (10–15 minutes) 1. Wages Expense .............................................................. 1,900 Wages Payable ........................................................ 1,900 2. Utilities Expense ............................................................. 600 Accounts Payable ................................................... 600 3. Interest Expense ($30,000 X 8% X 1/12) ....................... 200 Interest Payable ....................................................... 200 4. Telephone Expense ........................................................ 117 Accounts Payable ................................................... 117
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