FACH4 Homework - FACH4 Homework 5. Accounts receivable...

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FACH4 Homework 5. Accounts receivable DR Accounts payable CR Common shares CR Retained earnings CR Sales revenue CR Salary expense DR Cash DR Supplies expense DR Distributions (Dividends) DR Inventory DR Bonds payable CR Cost of goods sold DR 10. ERP stands for enterprise resource planning system. It is an information system for a company that captures all relevant information in a single database. 13. The REA model shows the underlying theoretical concepts that are implemented by an ERP. 17. The financial statements are the same, no matter what type of system is used to collect and store the data. SE4-1 Normal balance in selected accounts: DR = debit; CR = credit 1. DR 2. CR 3. CR 4. CR 5. DR 6. DR 7. DR
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8. CR 9. CR
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SE4-2 Revenue recognition a. Recognize revenue from car sales for $12,000. Notes receivable $12,000 Sales revenue $12,000 b. Do not recognize revenue until steel is shipped. c. Do not recognize revenue until next year after the games are  played. Cash $50,000 Unearned revenue $50,000 d. Do not recognize revenue in current year. Revenue should have  been recognized in previous year as accounts receivable. e. Do   not   recognize   revenue   until   services   are   rendered   in   the  following year. Cash $5,000 Unearned revenue $5,000 E4-4 Clevenger’s Computer Centre, Inc.: T-accounts, trial balance, and financial statements Cash Accounts receivable Accounts payable $16,000 $10,000 (b) $4,700 $2,200 $ 5,000 (a) $1,600 (e) $ 175 (d) $ 2,500 (c) $6,300 $2,375 $13,500 Common shares Retained earnings Notes payable $10,000 $8,500 $5,000 (a) $10,000 $8,500 $5,000
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Land Service revenue Supplies $10,000 (b) $2,500 (c) $175 (d) $1,600 (e) $10,000 $4,100 $175 Clevenger’s Computer Center, Inc. Unadjusted Trial Balance April 30, 2011 Debit Credit Cash $13,500 Accounts receivable 6,300 Land 10,000 Supplies 175 Accounts payable $ 2,375 Notes payable 5,000 Common shares 10,000 Retained earnings 8,500 Service revenue 4,100 Total $29,975 $29,975
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E4-5 Adjustments and closing entries for E4–4 above: An adjustment would most likely be made to Supplies to account for supplies used during April. You would need to know how much of the supplies were used. An adjustment would most likely be made to Notes Payable to account for interest expense. You would need to know the terms of the note to be able to calculate interest. There are no expenses listed; they may have to be accrued. Closing:
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FACH4 Homework - FACH4 Homework 5. Accounts receivable...

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