ACC 210P Chapter 3

ACC 210P Chapter 3 - Revenue earned but not yet billed is...

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ACC 210P Chapter 3 1. Identify the effect, if any, that each of the following transactions would have upon cash and retained earnings. Show the dollar amount and the effect (+, –, N). Retained _ Cash __ Earnings 1. Purchases capital asset for $3,000 _______ _______ 2. Purchased $200 of supplies for cash _______ _______ 3. Recorded an adjusting entry to record use of $110 of the above supplies. _______ _______ 4. Received $600 from customers in payment of their accounts _______ _______ 5. Recorded depreciation of equipment for period used, $900. _______ _______ 2. Before month-end adjustments are made, the September 30 trial balance of Lector's Enterprise contains revenue of $9,200 and expenses of $5,300. Adjustments are necessary for the following items: Depreciation for September is $300.
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Unformatted text preview: Revenue earned but not yet billed is $2,100. Accrued interest expense is $600. Revenue collected in advance that is now earned is $3,400. Portion of prepaid insurance expired during September is $300. Instructions Calculate the correct net income for Lector’s enterprise for September. 3. The balance sheets of Pale Company include the following: 12/31/07 12/31/06 Interest Receivable $5,300 $ -0- Supplies 5,000 3,400 Wages Payable 3,700 3,800 Unearned Service Revenue -0- 4,000 The income statement for 2007 shows the following: Interest Revenue $15,500 Service Revenue 75,700 Supplies Expense 10,700 Wages Expense 39,000 Instructions Calculate the following for 2007: 1. Cash received for interest. 2. Cash paid for supplies. 3. Cash paid for wages. 4. Cash received for service revenue....
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ACC 210P Chapter 3 - Revenue earned but not yet billed is...

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