Chapter 2 Intermediate Accounting

Chapter 2 Intermediate Accounting - TaraAnderson...

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Tara Anderson Exercise 2-20 a Insurance Expense - credit  $1,200  Prepaid Insurance  $1,200  b Rent Revenue  $1,150  Unearned Rent Revenue  $1,150  c Advertising Material   $475  Advertising Expense  $475  d Prepaid Rent  $1,800  Rent Expense  $1,800  e Office Supplies  $250  Miscellaneous Office Expense  $250  f Interest Expense  $428  Interest Payable  $428 
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Exercise 2-23 Tara  Adjusting Entries Prepaid Operating Expense  $4,000  General Operating Expense  $4,000  Sales Commissions   $5,900  Sales Commissions Payable  $5,900  Investment Revenue Receivable  $1,000  Investment Revenue   $1,000  Depreciation Expense - Building  $4,500  Accumulated Depreciation - Building  $4,500  Depreciation Expense -Machinery  $5,000  Accumulated Depreciation - Machinery  $5,000  Federal and Sate Income Tax Expense  $18,100  Federal and Sate Income Tax Payable  $18,100  Closing Entries Dec. 31 Sales  $590,000  Investment revenue  $6,000  Retained earnings  $596,000  to close revenue accounts to retained earnings Retained earnings  $560,500  Cost of goods sold  $230,000  Sales commissions  $205,900  General operating expenses  $97,000  Depreciation expense  $9,500  Income tax expense  $18,100  Pioneer Heating Corporation Post-Closing Trial Balance December 31, 2008 Debit
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Cash  $39,000  Inventory  $50,000  Investment  $50,000  Land  $70,000  Buildings  $180,000  Machinery  $100,000  Accounts Payable Common Stock Additional Paid-In Capital Investment Revenue  $1,000  Prepaid Operating Expense  $4,000  Sales Commissions Payable Accumulated Depreciation - Building Accumulated Depreciation - Machinery Federal and Sate Income Tax Payable Retained Earnings Total  $494,000 
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 Anderson Credit
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 $65,000   $320,000   $40,000   $5,900   $4,500   $5,000   $18,100   $35,500   $494,000 
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2-27 Enter the appropriate numbers for supporting calculations in the shaded cells in columns E, H and J. To enter the journal entries, enter the appropriate account titles in the shaded cells in columns C and D, and the appropriate amounts in the shaded cells in columns L and N. (a) Supporting calculations Policy Policy Cost x Months / A Err:509  $3,600  x Err:509  21  / B Err:509  $1,800  x Err:509  2  / C Err:509  $12,000  x Err:509  27  / Prepaid amount Account balance Adjustment Journal entry Err:509 Insurance Expense Err:509 Prepaid Insurance (b) Supporting calculations
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Chapter 2 Intermediate Accounting - TaraAnderson...

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