Chapter+4+Problems

Chapter+4+Problems - ClassProblems...

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Click to edit Master subtitle style 8/1/11 Class Problems  Chapter 4: E4-7; P4-9
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8/1/11 E4-7: Recording Seven Typical Adjusting Entries Johnson’s Boat Yard, Inc., is completing the accounting process for the year just ended, November 30, 2010. The transactions during 2010 have been journalized and posted. The following data with respect to adjusting entries are available: …… Required: 1) Identify each of these transactions as an unearned revenue, prepaid expense, accrued revenue, or accrued
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8/1/11 Transaction a. Johnson’s winterized (cleaned and covered) three boats for customers at the end of November, but did not record the service for $2,100. Description Debit Credit
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8/1/11 Transaction b. The Carter family paid Johnson’s $3,000 on November 1, 2010, to store their sailboat for the winter until May 1, 2011. Johnson’s credited the full amount to Unearned Storage Revenue on November 1. Description Debit Credit
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8/1/11 Transaction c. Wages earned by employees during November 2010, unpaid and unrecorded at November 30, 2010, amounted to $2,800. The next payroll date will be December 5, 2010. Description Debit Credit
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8/1/11 Transaction d. On October 1, 2010, Johnson’s paid $1,200 to the local newspaper for an advertisement to run every Thursday for 12 weeks. All ads have been run except for three Thursday in December to complete the 12- week contract. Type of adjustment: Journal Entries: Description Debit Credit
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8/1/11 Transaction e. Johnson’s used boat-lifting equipment that cost $200,000; $20,000 was the estimated depreciation for 2010. Description Debit Credit
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8/1/11 Transaction f. Boat repair supplies on hand at December 1, 2009, totaled $15,500. Repair suppliers purchased and debited to Supplies during the year amounted to $46,000. The year-end count showed $12,400 of the supplies on hand.
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Chapter+4+Problems - ClassProblems...

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