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Unformatted text preview: Homework Quiz —17 Spring 2011 Section 3 Name Section Required : You have been assigned to examine and adjust the accounts of ABC Company as of December 31, 2010. Assume that the accounting records for 2010 have not been closed. Prepare correcting journal entries for the situations identified below. Ignore income taxes. 1. During 2010, ABC sold a depreciable machine for $6,520. The machine cost $35,000 when new and had $31,000 accumulated depreciation when sold. At the time the machine was sold, ABC debited Cash and credited Machine $6,520. Debit Credit Accumulated Depreciation 31,000 Machine 28,480 Gain on Sale Machine 2,520 2. In late December 2010 ABC Company provided services to and billed the customer $9,140. At the time the customer was billed, ABC debited Cash and Credited Accounts Receivable. The customer paid the $9,140 bill in January 2011. Debit Credit Accounts Receivable 18,280 Cash 9,140 Service Revenue 9,140 3. On June 1, 2010, ABC rented a building on a two-year operating lease paying the lessor $141,600...
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- Spring '08
- Depreciation, Generally Accepted Accounting Principles, $5,900, $9,140