ACTG 500 Practice Problems 3 Reporting and Analyzing Operating Income

ACTG 500 Practice Problems 3 Reporting and Analyzing Operating Income

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 University of Illinois at Chicago College of Business Administration ACTG 500: I NTRODUCTION TO F INANCIAL A CCOUNTING Fall 2009 Practice Problems 3: Reporting and Analyzing Operating Income E3-26 Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets = Liabil- ities + Contrib. Capital + Earned Capital Rev- enues Expen- ses = Net Income DE 610 AD 610 610 610 DE AD a. Adjusting entry for depreciation of equipment -610 Accum. Deprecia- tion = -610 Retained Earnings +610 Deprecia- tion Expense = -610 SUPE 1,890 SUP 1,890 1,890 1,890 SUPE SUP b. Adjusting entry for supplies expense -1,890 Supplies = -1,890 Retained Earnings +1,890 Supplies Expense = -1,890 UE 390 AP 390 390 390 UE AP c. Adjusting entry for utilities expense = +390 Accounts Payable -390 Retained Earnings +390 Utilities Expense = -390 RNTE 700 PPRNT 700 700 700 RNTE PPRNT d. Adjusting entry for rent expense -700 Prepaid Rent = -700 Retained Earnings +700 Rent Expense = -700 UR 468 Rev 468 468 468 UR Rev e. Adjusting entry for premium revenues = -468 Unearned Premium Revenue +468 Retained Earnings +468 Premium Revenue = +468 WE 965 WP 965 965 965 WE WP f. Adjusting entry for wages expense = +965 Wages Payable -965 Retained Earnings +965 Wages Expense = -965
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets = Liabil- ities + Contrib. Capital + Earned Capital Rev- enues Expen- ses = Net Income AR 300 OI 300 300 300 AR OI g. Adjusting entry for interest earned +300 Interest Receivable = +300 Retained Earnings +300 Interest (Other) Income = +300 E3-30 a. Balance, January 1 = $960 + $800 $620 = $1,140. b. Amount of premium = $82 × 12 = $984. Therefore, five months' premium ($984 $574 = $410) has expired by January 31. The policy term began on September 1 of the previous year. c. Wages paid in January = $3,200 $500 = $2,700. d. Monthly depreciation expense = $8,700 / 60 months = $145. Bloomfield has owned the truck for 18 months ($2,610 / $145 = 18). E3-31 Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets = Liabil- ities + Contrib. Capital + Earned Capital Rev- enues Expen-ses = Net Income RNTE 475 PPRNT 475 475 475 RNTE PPRNT a. 7/31 Adjusting entry for rent expense - 475 Prepaid Rent = -475 Retained Earnings +475 Rent Expense = -475 AE 210 PPDA 210 210 210 AE PPDA b. 7/31 Adjusting entry for advertising expense - 210 Prepaid Advertising = -210 Retained Earnings +210 Advertising Expense = -210 SUPE 1,900 SUP 1,900 1,900 1,900 SUPE SUP c. 7/31 Adjusting entry for supplies expense -1,900 Supplies = -1,900 Retained Earnings +1,900 Supplies Expense = -1,900
Background image of page 2
3 AR 800 Rev 800 800 800 AR Rev d. 7/31 Adjusting entry for fees revenue +800 Fees (Accounts) Receivable = +800 Retained Earnings +800 Refinish. Fees
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/06/2011 for the course ECON 435 taught by Professor Galven during the Spring '11 term at Ill. Chicago.

Page1 / 14

ACTG 500 Practice Problems 3 Reporting and Analyzing Operating Income

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online