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F2011_Assign3 - expenses 6 3,600 salaries payable(3,600...

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ACTG 1P11 ASSIGNMENT #3: FA CHAPTER 3 P3-1B Ortega Company: Transactions and financial statement balances Part A. Assets = Liabilities + Owners’ Equity a. (70,000) accumulated amortization— equipment (70,000)   amortization  expense b. +40,000 interest payable (40,000) interest expense c. (100,000) prepaid insurance (100,000) insurance expense d. (70,000) prepaid rent (70,000) rent expense e. +58,000 salaries payable (58,000) salary expense Part B. a. Income statement—$100,000 b. Balance sheet—$770,000 c. Income statement—$386,000 d. Income statement—$70,000 e. Balance sheet—$40,000
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P3-8B Quackers Company: Transactions and financial statements The transactions are given first. The financial statements follow. Assets = Liabilities + Share Capital + Retained Earnings 1. +50,000 cash +50,000 share capital 2. +5,000 office equipment +15,000 land (20,000) cash 3. +20,000 cash +12,000 accounts  receivable +32,000 revenue 4. +550 supplies (550) cash 5. (6,000) cash (6,000) operating
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Unformatted text preview: expenses 6. +3,600 salaries payable (3,600) salary expense 7. (430) supplies (430) supplies expense (1,000) accumulated amortization —office equipment (1,000) amortization expense Totals: $74,570 = $3,600 + $50,000 + $20,970 Quackers Company Income Statement For the Year Ended December 31, 2010 Revenue $32,000 Expenses Amortization expense $1,000 Supplies expense 430 Salaries expense 3,600 Other expense 6,000 11,030 Net income $20,970 Quackers Company Balance Sheet At December 31, 2010 Assets Cash $43,450 Accounts receivable 12,000 Supplies 120 Land 15,000 Equipment 5,000 Accumulated amortization (1,000) Total assets $74,570 Liabilities Salaries payable $3,600 Shareholders’ equity Share capital 50,000 Retained earnings 20,970 Total liabilities and shareholders’ equity $74,570...
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