Chapter+3-1

Chapter+3-1 - M32. Cash Basis Income Statement Revenues:...

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M3–2. Cash Basis Income Statement Accrual Basis Income Statement Revenues: Cash sales Customer deposits $10,000 3,000 Revenues: Sales to customers $15,000 Expenses: Inventory purchases Wages paid 1,000 750 Expenses: Cost of sales Wages expense Utilities expense 9,000 750 200 Net Income $11,250 Net Income $5,050 M3–5. a. Cash (+A). ............................................................................. 13,000 Games Revenue (+R, +SE). ........................................... 13,000 b. Cash (+A). ............................................................................. 3,000 Accounts Receivable (+A). ................................................... 4,000 Sales Revenue (+R, +SE). .............................................. 7,000 c. Cash (+A). ............................................................................. 2,500 Accounts Receivable ( - A). .............................................. 2,500 d. Cash (+A). ............................................................................. 2,600 Unearned Revenue (+L). ................................................ 2,600
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M3–6. e. Cost of Goods Sold (+E, - SE). ............................................. 3,890 Inventory ( - A). ................................................................. 3,890 f. Accounts Payable (–L). ........................................................ 1,900 Cash ( - A). ........................................................................ 1,900 g. Wages Expense (+E, - SE). .................................................. 4,700 Cash ( - A). ........................................................................ 4,700 h. Insurance Expense (+E, - SE). .............................................. 600
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This note was uploaded on 02/29/2012 for the course AC 221 taught by Professor Albuquerque during the Fall '08 term at BU.

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Chapter+3-1 - M32. Cash Basis Income Statement Revenues:...

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