(4) - 12, 17, 26

(4) - 12, 17, 26 - Robert MacRae (260357622) Chapter 4...

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Robert MacRae (260357622) Chapter 4 Accounting Pre-Class Problems: 4-12) 1) D: Inventory - Computers (A) 4200 C: Cash(A) 4200 -To record the purchase of 2 new computers D: Amortization Expense (SE) 1233.33 C: Accumulated Amortization (XA) 1233.33 -To record the depreciation of both computers after one year 2) D: Cash (A) 59500 C: Revenue (SE) 59500 -To record the cash received for website development D: Cash (A) 3000 C: Unearned Revenue (L) 3000 -To record payment for services that have not been given 3) D: Operating Expenses (SE) 18250 C: Cash (A) 18250 -To record purchase of supplies in the year 4) D: Utilities Expense (SE) 8300 C: Cash (A) 8300 -To record purchase of utilities in the year SIMPSON AND WOO WEB DEVELOPMENT Income Statement For the month ending December 31, 2008 Revenues: 42800 $ 59,500.00 Expenses Amortization Expense $ 1,233.33 Operating Expenses 18,250.00 Utilities Expense 8,300.00 Total Expenses 27,783.33 Net Income 41566.67 $ 31,716.67
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Robert MacRae (260357622) Revenue recognition criteria states that in order for revenue to be recognized, the performance to earn the revenue has to have been achieved and there has to be reasonable assurance that you will be able to collect the money earned. I chose to use the revenue recognition at the time of sale method, because it is the most common point at which revenues are recognized. Recognizing the revenue at the time of sale gives the company more timely information, but it makes their estimates of the effects of future events
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This note was uploaded on 09/12/2011 for the course MGCR 211 taught by Professor La rocca during the Fall '08 term at McGill.

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(4) - 12, 17, 26 - Robert MacRae (260357622) Chapter 4...

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