{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 3 Solutions

# Chapter 3 Solutions - 3-23 1 Prepaid Insurance(A Cash(A...

This preview shows pages 1–5. Sign up to view the full content.

3-23 1) Prepaid Insurance (A) 1,500 Cash (A) 1,500 2) Equipment (A) 130,000 Cash (A) 50,000 Notes Payable (L) 80,000 3) Inventory (A) 140,000 Accounts Payable (L) 140,000 4) Cash (A) 30,000 Accounts Receivable (A) 170,000 Sales (SE) 200,000 5) Accounts Payable (L) 120,000 Cash (A) 120,000 6) Cash (A) 150,000 Accounts Receivable (A) 150,000 7) Cash (A) 20,000 Unearned Revenue (L) 20,000 8) Salaries Expense (SE) 44,000 Cash (A) 44,000 9) Dividend Declared (SE) 12,000 Dividend Payable (L) 12,000 10) Insurance Expense (SE) 1,250 Prepaid Insurance (A) 1,250 11) Amortization Expense: Equip. (SE) 4,000 Accumulated Amort: Equip (XA) 4,000 ((130,000 – 10,000)/10) x 4/12 = 4,000 12) Interest Expense (SE) 2,667 Interest Payable (L) 2,667 ((80,000 x 10% x 4/12 = 2,667

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
13) Cost of Goods Sold 125,000 Inventory (A) 125,000 14) Unearned Revenue (L) 15,000 Revenue (SE) 15,000 15) Salaries Expense (SE) 4,000 Salaries Payable (L) 4,000
3-24 a) 1. Cash (A) 200,000 Common shares (SE) 200,000 2. Inventory (A) 480,000 Accounts payable (L) 480,000 3. Accounts receivable (A) 650,000 Sales (SE) 650,000 Cost of goods sold (SE) 390,000 Inventory (A) 390,000 4. Cash (A) 580,000 Accounts receivable (A) 580,000 5. Accounts payable (L) 440,000 Cash (A) 440,000 6. Vehicle (A) 37,000 Cash (A) 37,000 7. Amortization Expense (SE) 2,000 Accumulated Amort (XA) 2,000 8. Rent expense (SE) 24,600 Cash (A) 24,600 9. Other expenses (SE) 20,000 Cash (A) 20,000 10. Dividend declared (SE) 6,000 Cash (A) 6,000

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
b) Sweet Dreams Chocolatiers: T-Accounts Cash (A) Accounts receivable (A) Bal. 0 Bal. 0 (1) 200,000 440,000 (5) (3) 650,000 580,000 (4) (4) 580,000 24,600 (8) 20,000 (9) Bal. 70,000 37,000 (6) 6,000 (10) Bal. 252,400 Inventory (A) Vehicle (A) Bal. 0 Bal. 0 (2) 480,000 390,000 (3) (6) 37,000 Bal. 90,000 Bal. 37,000 Accounts payable (L) Common shares (SE) 0 Bal. 0 Bal. (5) 440,000 480,000 (2) 200,000 (1) 40,000 Bal. 200,000 Bal. Retained earnings (SE) Dividends declared (SE) 0 Bal. Bal. 0
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 16

Chapter 3 Solutions - 3-23 1 Prepaid Insurance(A Cash(A...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online