accounting chapter 3 notes

# accounting chapter 3 notes - Calculate the first year’s...

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PRIOR YEAR END + PURCHASED – AVAILABLE = EXPENSE FOR CURRENT YEAR

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a. Eager Co. receives \$20,000 cash in advance for 4 months of legal services on October 1, 2011, and records it by debiting Cash and crediting Unearned Revenue both for \$20,000. It is now December 31, 2011, and Eager has provided legal services as planned. What adjusting entry should Eager make to account for the work performed from October 1 through December 31, 2011? Unearned rev 15,000 Legal Revenue 15,000

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In its first year of operations, Harden Co. earned \$39,000 in revenues and received \$33,000 cash from these customers. The company incurred expenses of \$22,500 but had not paid \$2,250 of them at year- end. The company also prepaid \$3,750 cash for expenses that would be incurred the next year.

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Unformatted text preview: Calculate the first year’s net income under both the cash basis and the accrual basis of accounting. Cash accounting Accrual accounting Net income\$ \$ Yang Company reported net income of \$37,925 and net sales of \$390,000 for the current year. Calculate the company’s profit margin. 9.72% a- analyzing transactions and events b- jourtnalizing transactiosn and events c-Posting the journal entries d- Preparing the unadjusted trial balance e- journalizing and posting adjusting entries f- prepared the adjusting trial balance g- preparing financial statement h- journalizing and posting closing entries I-Preparing the post-closing trial balance...
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## This note was uploaded on 12/21/2011 for the course ECON 101 taught by Professor Higgins during the Spring '11 term at University of Nevada, Las Vegas.

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accounting chapter 3 notes - Calculate the first year’s...

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