HW2_Solution - Homework #2 Solution 4-38 (15-20 min.)...

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138 Homework #2 Solution 4-38 (15-20 min.) Answers are in millions of dollars. 1. A = L + SE Prepaid Rent Expenses Expense a. Rent expired –5 = –5 Journal entry: Rent expense 5 Prepaid expenses 5 Unearned Sales Revenue Revenue b. Delivery of tires paid for in advance = –7 +7 Journal entry: Unearned revenue 7 Sales revenue 7 Accrued Interest Interest Receivable Revenue c. Interest earned but not received +6 = +6 Journal entry: Accrued interest receivable 6 Interest revenue 6
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Chapter 4 Accrual Accounting and Financial Statements 139 4-38 (continued) A = L + SE U.S. & Foreign Income Taxes Tax (Payable) Expense d. Income taxes to be paid = +68 –68 Journal entry: Income tax expense 68 U.S. & foreign taxes payable 68 2. Prepaid expenses (448.1 - 5) $443.1 U.S. and foreign taxes (473.2 + 68) $541.2
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140 4-45 (15 min.) Answers are in millions of dollars. A = L + SE Unearned Rent Rent 1. Landlords Revenue Revenue Adjustment for rent earned = –5 +5 Journal entry: Unearned rent revenue 5
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HW2_Solution - Homework #2 Solution 4-38 (15-20 min.)...

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