Chapter 3 Solutions(1)

Chapter 3 Solutions(1) - PRACTICE EXERCISES PE 31B a. Yes...

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

View Full Document Right Arrow Icon
PRACTICE EXERCISES PE 3–1B a. Yes c. No e. Yes b. No d. Yes f. Yes PE 3–3A Insurance Expense. ......................................................... 9,000 Prepaid Insurance. ..................................................... 9,000 Insurance expired ($6,000 + $7,200 – $4,200). PE 3–3B Supplies Expense. ........................................................... 3,930 Supplies. ..................................................................... 3,930 Supplies used ($1,815 + $3,790 – $1,675). PE 3–4A Unearned Rent. ................................................................ 3,825 Rent Revenue. ............................................................ 3,825 Rent earned [($15,300/12) × 3 months]. PE 3–4B Unearned Fees. ................................................................ 25,655 Fees Earned. ............................................................... 25,655 Fees earned ($31,850 – $6,195). PE 3–5A Accounts Receivable. ..................................................... 12,400 Fees Earned. ............................................................... 12,400 Accrued fees. 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
PE 3–6A Salaries Expense. ............................................................ 19,400 Salaries Payable. ........................................................ 19,400 Accrued salaries [($29,100/6 days) × 4 days]. PE 3–6B Salaries Expense. ............................................................ 7,750 Salaries Payable. ........................................................ 7,750 Accrued salaries [($19,375/5 days) × 2 days]. PE 3–7A Depreciation Expense. .................................................... 5,500 Accumulated Depreciation—Equipment. ................ 5,500 Depreciation on equipment. PE 3–7B Depreciation Expense. .................................................... 3,200 Accumulated Depreciation—Equipment. ................ 3,200 Depreciation on equipment. PE 3–8A a. Revenues were understated by $11,150. b. Expenses were understated by $7,430 ($1,430 + $6,000). c. Net income was understated by $3,720 ($11,150 – $7,430). PE 3–8B a. Revenues were understated by $15,300. b. Expenses were understated by $7,850 ($4,100 + $3,750). c. Net income was understated by $7,450 ($15,300 – $7,850).
Background image of page 2
PE 3–9A a. The totals are equal even though the credit should have been to Wages Payable instead of Accounts Payable. b. The totals are unequal. The credit total is higher by $630 ($1,920 – $1,290).
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 05/17/2011 for the course ACCT 2301 taught by Professor White during the Spring '08 term at Central Texas College.

Page1 / 8

Chapter 3 Solutions(1) - PRACTICE EXERCISES PE 31B a. Yes...

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