Chapter3

Chapter3 - BUSI1002 Introduction to accounting tutorial...

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Unformatted text preview: BUSI1002 Introduction to accounting tutorial assignment solution AS1 Chapter 3 Quick Study 3-10 (15 minutes) The answer is 2. Explanation Insurance premium error Understates expenses (and overstates assets) by.................................................. $1,600 Accrued salaries error Understates expenses (and understates liabilities) by........................................... 1,000 The collective effects from this companys errors follow: Understates expenses by...................................................................................... $2,600 Overstates assets by $1,600 Understates liabilities by..................................................................................... $1,000 Exercise 3-8 (25 minutes) Dec. 31 Accounts Receivable........................................................................... 1,980 Fees Earned............................................................................... 1,980 To record earned but unbilled fees (30% x $6,600). 31 Unearned Fees....................................................................................... 4,620 Fees Earned............................................................................... 4,620 To record earned fees collected in advance (70% x $6,600). 31 Depreciation ExpenseComputers...................................................... 1,650 Accumulated Depreciation-Computers.................................... 1,650 To record depreciation on computers. 31 Depreciation ExpenseOffice Furniture.............................................. 1,925 Accumulated DepreciationOffice Furniture......................... 1,925 To record depreciation on office furniture. 31 Salaries Expense.................................................................................. 2,695 Salaries Payable......................................................................... 2,695 To record accrued salaries. 31 Insurance Expense..................................................................................... 1,430 Prepaid Insurance...................................................................... 1,430 To record expired prepaid insurance. 31 Rent Expense.............................................................................................. 700 Rent Payable................................................................................ 700 To record accrued rent expense. BUSI1002 Introduction to accounting tutorial assignment solution AS2 31 Office Supplies Expense........................................................................... 528 Office Supplies.......................................................................... 528 To record use of office supplies....
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Chapter3 - BUSI1002 Introduction to accounting tutorial...

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