Chapter 3 Solutions

Chapter 3 Solutions - 3-23 1)Prepaid Insurance (A)1,500Cash

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Unformatted text preview: 3-23 1)Prepaid Insurance (A)1,500Cash (A)1,5002)Equipment (A)130,000Cash (A)50,000Notes Payable (L)80,0003)Inventory (A)140,000Accounts Payable (L)140,0004)Cash (A)30,000Accounts Receivable (A)170,000Sales (SE)200,0005)Accounts Payable (L)120,000Cash (A)120,0006)Cash (A)150,000Accounts Receivable (A)150,0007) Cash (A)20,000Unearned Revenue (L)20,0008)Salaries Expense (SE)44,000Cash (A)44,0009)Dividend Declared (SE)12,000Dividend Payable (L)12,00010)Insurance Expense (SE)1,250Prepaid Insurance (A)1,25011)Amortization Expense: Equip. (SE) 4,000Accumulated Amort: Equip (XA)4,000((130,000 10,000)/10) x 4/12 = 4,00012) Interest Expense (SE)2,667Interest Payable (L)2,667((80,000 x 10% x 4/12 = 2,66713)Cost of Goods Sold125,000Inventory (A)125,00014)Unearned Revenue (L)15,000Revenue (SE)15,00015)Salaries Expense (SE)4,000Salaries Payable (L)4,0003-24 a)1. Cash (A)200,000Common shares (SE)200,0002. Inventory (A)480,000Accounts payable (L)480,0003. Accounts receivable (A)650,000Sales (SE)650,000Cost of goods sold (SE)390,000Inventory (A)390,0004. Cash (A)580,000Accounts receivable (A)580,0005. Accounts payable (L)440,000Cash (A)440,0006. Vehicle (A)37,000Cash (A)37,0007. Amortization Expense (SE)2,000Accumulated Amort (XA)2,0008. Rent expense (SE)24,600Cash (A)24,6009. Other expenses (SE)20,000Cash (A)20,00010. Dividend declared (SE)6,000Cash (A)6,000b) Sweet Dreams Chocolatiers: T-AccountsCash (A) Accounts receivable (A) Bal.0 Bal.(1) 200,000440,000(5)(3) 650,000 580,000(4)(4)580,00024,600(8)20,000(9)Bal. 70,00037,000(6)6,000(10)Bal. 252,400Inventory (A)Vehicle (A)Bal.Bal.(2)480,000390,000(3)(6)37,000Bal.90,000Bal. 37,000Accounts payable (L)Common shares (SE)Bal.Bal.(5)440,000480,000(2)200,000(1)40,000Bal.200,000Bal....
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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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Chapter 3 Solutions - 3-23 1)Prepaid Insurance (A)1,500Cash

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