SCh04

Fundamentals of Financial Accounting with Annual Report

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Student Name: Instructor Class: McGraw-Hill/Irwin Demonstration Case 4 Requirements 1 and 2: (a) dr Unearned Revenue 400 Stockholders' cr Mowing Revenue 400 Assets = Liabilities + Equity Unearned Revenue - 400 Mowing Revenue + 400 (b) dr Insurance Expense 50 Stockholders' cr Prepaid Insurance 50 Assets = Liabilities + Equity Prepaid Insurance - 50 Insurance Expense - 50 (c) dr Depreciation Exp. 25 Stockholders' cr Accum. Depreciation 25 Assets = Liabilities + Equity Accum. Depreciation - 25 Depreciation Exp. - 25 (d) dr Wages Expense 400 Stockholders' cr Wages Payable 400 Assets = Liabilities + Equity Wages Payable + 400 Wages Expense - 400 (e) dr Interest Expense 45 Stockholders' cr Interest Payable 45 Assets = Liabilities + Equity Interest Payable + 45 Interest Expense - 45 (f) dr Interest Receivable 10 Stockholders' cr Interest Revenue 10 Assets = Liabilities + Equity Interest Receivable + 10 Interest Revenue + 10 (g) dr Income Tax Expense 273 Stockholders' cr Income Tax Payable 273 Assets = Liabilities + Equity Income Tax Payable + 273 Income Tax Expense - 273
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Student Name: Instructor Class: McGraw-Hill/Irwin Demonstration Case 4 Requirement 3: Interest Receivable (A) Interest Payable (L) Insurance Expense (E) + - - + + - 10 Beg. bal. Beg. bal. 0 0 Beg. bal. 45 e) b) 50 10 45 50 Correct! Correct! Correct! Prepaid Insurance (A) Income Tax Payable (L) Depreciation Exp. (E) - + - + + - 300 Beg. bal. Beg. bal. 0 0 Beg. bal. 50 b) 273 f) c) 25 250 273 25 Correct! Correct! Correct! Accum. Depreciation (xA) Mowing Revenue (R) Interest Expense (E) - + - + + - Beg. bal. 0 Beg. bal. 5,200 0 Beg. bal. 25 c) 400 a) (e 45 25 5,600 45 Correct! Correct! Correct! Unearned Revenue (L) Interest Revenue (R, SE) Income Tax Expense (E) - + - + + - Beg. bal. 1,600 Beg. bal. 0 0 Beg. bal. a) 400 10 f) (g 273 1,200 10 273 Correct! Correct! Correct! Wages Payable (L) Wages Expense (E) - + + - Beg. bal. 0 3,900 Beg. bal. 400 (d d) 400 400 4,300 Correct! Correct!
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GOODBYE GRASS CORPORATION Unadjusted Trial Balance As of April 30, 2010 Account Name Debits Credits Cash $4,510 Accounts Receivable 1,700 Note Receivable 1,250 Interest Receivable 10 Prepaid Insurance 250 Equipment 4,600 Accumulated Depreciation $25 Land 3,750 Accounts Payable 620 Unearned Revenues 1,200 Wages Payable 400 Interest Payable 45 Income Tax Payable 273 Note Payable 4,000 Contributed Capital 9,000 Retained Earnings - Mowing Revenue 5,600 Interest Revenue 10 Wages Expense 4,300 Fuel Expense 410 Insurance Expense 50 Depreciation Expense 25 Interest Expense 45 Income Tax Expense 273 TOTALS $21,173 $21,173 Correct! Correct! Requirement 5: GOODBYE GRASS CORPORATION Income Statement For the Month Ended April 30, 2010 Revenues: Mowing Revenue $5,600 Interest Revenue 10 5,610 Expenses: Wages Expense 4,300 Fuel Expense 410 Insurance Expense 50 Depreciation Expense 25 Interest Expense 45 Income Tax Expense 273 Total Expenses 5,103 Net Income $507 Correct! GOODBYE GRASS CORPORATION
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SCh04 - Student Name Instructor Class McGraw-Hill/Irwin...

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