Mgmt 200 Assignment Soln 1-28-11

Mgmt 200 Assignment Soln 1-28-11 - 4,000 Total expenses...

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Management 200 – Introductory Financial Accounting– Spring 2011 Krannert School of Management - Purdue University Solutions to class assignment for January 28, 2011 Problem 3-3A Requirement 1: (a) Debit Credit Unearned Revenue 3,000 Advertising Revenue 3,000 ( Adjust unearned revenue ) (b) Debit Credit Depreciation Expense 6,000 Accumulated Depreciation 6,000 ( Adjust accumulated depreciation ) (c) Debit Credit Insurance Expense 1,200 Prepaid Insurance 1,200 ( Adjust prepaid insurance ) (e) Debit Credit Interest Expense 400 Interest Payable 400 ( Adjust interest payable ) (f) Debit Credit Supplies Expense 1,300 Supplies 1,300 ( Adjust supplies )
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Exercise 3-16 Requirement 1: Blue Hens Corporation Income Statement For the year ended December 31, 2012 Service revenue $400,000 Expenses: Salaries $300,000 Rent 15,000 Depreciation 30,000 Interest
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Unformatted text preview: 4,000 Total expenses 349,000 Net income $ 51,000 Requirement 2: Blue Hens Corporation Balance Sheet December 31, 2012 Assets Liabilities Cash $ 11,000 Accounts payable $ 11,000 Accts. receivable 140,000 Salaries payable 10,000 Prepaid rent 5,000 Interest payable 4,000 Office supplies 25,000 Total current liabilities 25,000 Total current assets 181,000 Notes payable 30,000 Stockholders Equity Equipment 300,000 Common stock 200,000 Accum. depr. (125,000) Retained earnings 101,000 * Total stockholders equity 301,000 Total liabilities and stockholders equity $356,000 Total assets $356,000 * Retained earnings = beginning retained earnings + net income dividends = $50,000 + $51,000 $0 = $101,000...
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This note was uploaded on 02/27/2012 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue University-West Lafayette.

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Mgmt 200 Assignment Soln 1-28-11 - 4,000 Total expenses...

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