ORIE 3150 ICE September 13 2011

ORIE 3150 ICE September 13 2011 - 112,400 dr Cash Sept 30...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ORIE 3150 ICE September 13, 2011 1. The Pamster Corporation had the following ending balances (at the close of the business day) in specific accounts at the dates shown. Wages Payable $4,600 cr July 31, 2010 Wages Payable $6,250 cr August 31, 2010 Utilities Payable $2,900 cr July 31, 2010 Utilities Payable $1,150 cr August 31, 2010 Wages and utilities are paid once a month at month end. Pamster paid $45,700 for wages and $18,200 for utilities on August 31, 2010. a. Show the journal entry to record the payment of wages on August 31, 2010. b. Show the journal entry to record the payment of utilities on August 31, 2010. 2. Gerdes Psychological Services Inc. has the following accounts at fiscal year end, Sept. 30, 2005. Provide the necessary closing entries and find the ending balance in Retained Earnings. Building (net of depreciation) $104,500 dr Accounts Receivable 84,326 dr Service Revenue 225,483 cr Advertising Expense 3,860 dr Salaries Expense 140,435 dr Rent Expense 36,000 dr Depreciation Expense 12,600 dr Retained Earnings, Sept. 30, 2004
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 112,400 dr Cash, Sept. 30, 2004 34,560 dr Cash, Sept. 30, 2005 12,090 dr 3. Sonora Capital Inc. is preparing year-end adjusting journal entries. On November 1, 2006, Sonora paid for a 6-month insurance policy in effect from November 1, 2006 until April 31, 2007 with a check for $1,200. The company found itself with more office space than it needed, so it rented out a portion of its office building to a start up company, iPops. Due to the risky nature of this business, iPops was required to pay the entire year’s rent in advance. iPops paid for 12 months of rent on December 1, 2006 for the period December 1, 2006 to November 30, 2007 with a check for $18,000. a. Provide the adjusting journal entry that Sonora Capital must make for the insurance policy at their fiscal year end, December 31, 2006. b. Provide the adjusting journal entry that Sonora Capital must make for the office space rental at their fiscal year end, December 31, 2006....
View Full Document

This note was uploaded on 09/30/2011 for the course ORIE 3150 at Cornell.

Ask a homework question - tutors are online