HW_04_Solutions

HW_04_Solutions - Solutions to Homework 4 Raffaele B. Mari,...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Due October 14, 2010 Raffaele B. Mari, CPA Econ 25 – Econ of Acctg. EXERCISE 4-2 (a) 8. Going concern assumption (b) 1. Economic entity assumption (c) 7. Full disclosure principle (d) 3. Monetary unit assumption (e) 6. Materiality (f) 4. Time period assumption (g) 2. Matching principle (h) 5. Cost principle EXERCISE 4-13 Answer Computation (a) Supplies balance = $1,000 Supplies expense $ 950 ) Add: Supplies (1/31) 700 ) Less: Supplies purchased (650) Supplies (1/1) $1,000 ) (b) Total premium = $6,240 Total premium = Monthly premium X 12; $520 X 12 = $6,240 Purchase date = May 1, 2009 Purchase date: On Jan. 31, there are 3 months coverage remaining ($520 X 3). Thus, the purchase date was 9 months earlier on May 1, 2009. (c) Salaries payable = $1,900 Cash paid $2,500 Salaries payable (1/31/10) 1,200 3,700 Less: Salaries expense 1,800 Salaries payable (12/31/09) $1,900 (d) Service revenue = $950 Service revenue $2,000 Unearned revenue (1/31/10) 750 2,750 Cash received in Jan. 1,800 Unearned revenue (12/31/09) $ 950
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/13/2011 for the course ECON 15A taught by Professor Shirey during the Fall '08 term at UC Irvine.

Page1 / 2

HW_04_Solutions - Solutions to Homework 4 Raffaele B. Mari,...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online