LN10-ch10and11-LectureProblems-AFM101s10

LN10-ch10and11-LectureProblems-AFM101s10 - Chapter 10...

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Chapter 10 – Exercise 2 At the end of December 20A, there were two days’ wages unpaid and unrecorded because the weekly payroll will not be paid until January 3, 20B. Wages for the last two days of December amounted to $2,000. In addition, at December 31, 20A, vacation time not yet taken or recorded amounted to $12,000. Prepare the adjusting entries that are required at December 31, 20A. (Ignore any accrued payroll tax liabilities at this time.) Transaction Account debit credit 12/31/20A Wages expense 2000 wages payable 12/31/20A Wages expense 12000 accrued vocation expense
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Chapter 10 – Exercise 3 On December 15, 20A, Newco Inc paid $6,000 rent to Property Managers Inc for the two month period which began on that date. Property Managers Inc credited the rent in full to Rent Revenue. Prepare the adjusting entry that is required at December 31, 20A for Property Managers Inc. Transaction Account debit credit 12/31/20A Rent revenue 4500 deferred revenue (or unearned revenue) 4500 6000*1.5/2=4500 solution:
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(A) On December 31, 20A, Newco borrowed $100,000 from First National Bank, and signed a 12% note payable due in two years. Interest on the note is due at maturity. Transaction Account debit credit 12/31/20A Cash 100k note payable 100k (don’t include interest here; because: only record those transactions that have happened, and record PV instead of future value) Part A : Prepare the journal entry to record the borrowing transaction. solution:
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This note was uploaded on 06/17/2011 for the course AFM 101 taught by Professor Kennedy during the Spring '08 term at Waterloo.

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LN10-ch10and11-LectureProblems-AFM101s10 - Chapter 10...

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