Ch 4 HW - Net Income 24120 c. More 21000 = rent for Jan 1...

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Matthew Wong MGMT 161 Section 1 Ch 4 Hw Professor Mastrolia Problem 4.7A a. 1. AP 4400 Studio revenue 4400 To record studio revenue 2. CGS 700 Studio supplies 700 To adjust for supplies on hand 3. Insurance expense 250 Unexpired insurance 250 To record insurance expense 4. Rent expense 2000 Prepaid studio rent 2000 To record rent expense 5. Depreciation expense 1500 Accumulated deprecation 1500 To record depreciation 6. Interest expense 120 Interest payable 120 To record interest expense 7. Unearned studio revenue 3600 Studio revenue 3600 To record revenue earned 8. Salary expense 540 Salary payable 540 To record salaries earned 9. Income tax expense 1700 Income tax payable 1700 To record income tax expense b. Revenue 107000 4400 Total revenue 111400 Salaries expense 18000 540 supplies expense 1200 CGS 700 Insurance expense 2680 250 Depreciation expense 16500 1500 Studio rent expense 21000 2000 Interest expense 840 120 Utilities expense 2350 Income tax expense 17900 1700 Total expenses 87280
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Unformatted text preview: Net Income 24120 c. More 21000 = rent for Jan 1 st Dec 1 st (11 months) Nov = 2,000 19000 = rent for Jan 1 st Nov 1 st (10 months) 19000 / 10 = 1900 = rent per month before Nov 2000 = rent per month after Nov d. More Insurance per month after August = 250 per month Insurance expense = 2680 (not including Dec) 4 (250) = 1000 2680 1000 = 1680 = insurance expense before August 1680 / 7 = 240 = insurance expense per month before August e. Depreciation per month = 1500 Accumulated depreciation = 54000 54000 / 1500 = 36 months = 3 years f. Adjust Rev Exp NI Assets Liab OE 1 I NE I I NE I 2 NE I D D NE D 3 NE I D D NE D 4 NE I D D NE D 5 NE I D D NE D 6 NE I D NE I D 7 I NE I NE D I 8 NE I D NE I D 9 NE I D NE I D Internet Case 4.5 Prepaid expenses Accrued liabilities Accrued income tax Deferred income taxes...
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This note was uploaded on 03/27/2011 for the course MGMT 161 taught by Professor Coyne during the Spring '08 term at Bucknell.

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Ch 4 HW - Net Income 24120 c. More 21000 = rent for Jan 1...

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