ch 3 solutions

ch 3 solutions - EXERCISE 3-1 (1520 minutes) Apr. 2 Cash....

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EXERCISE 3-1 (15–20 minutes) Apr. 2 Cash. ............................................................. 30,000 Equipment. ................................................... 14,000 Owner’s Capital. ................................... 44,000 2 No entry—not a transaction. 3 Supplies. ....................................................... 700 Accounts Payable. ............................... 700 7 Rent Expense. .............................................. 600 Cash. ...................................................... 600 11 Accounts Receivable. .................................. 1,100 Service Revenue. .................................. 1,100 12 Cash. ............................................................. 3,200 Unearned Service Revenue. ................ 3,200 17 Cash. ............................................................. 2,300 Service Revenue. .................................. 2,300 21 Insurance Expense. ..................................... 110 Cash. ...................................................... 110 30 Salaries and Wages Expense. .................... 1,160 Cash. ...................................................... 1,160 30 Supplies Expense. ....................................... 120 Supplies. ................................................ 120 30 Equipment. ................................................... 5,100 Owner’s Capital. ................................... 5,100
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EXERCISE 3-8 (10–15 minutes) (a) Salaries and Wages Expense. ............................................ 2,900 Salaries and Wages Payable. ...................................... 2,900 (b) Utilities Expenses. ............................................................... 600 Accounts Payable. ....................................................... 600 (c) Interest Expense ($60,000 X 8% X 1/12). ........................... 400 Interest Payable. ........................................................... 400 (d) Utilities Expenses. ............................................................... 117 Accounts Payable. ....................................................... 117
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EXERCISE 3-11 (20–25 Minutes) (a) CAVAMANLIS CO. Income Statement For the Year Ended December 31, 2012 Revenues Service revenue. ....................................... $12,590 Expenses Salaries and wages expense. .................. $6,840 Rent expense. ........................................... 2,760 Depreciation expense. .............................. 145 Interest expense. ...................................... 83 9,828 Net Income. .......................................................... $ 2,762 (b) CAVAMANLIS CO. Statement of Retained Earnings For the Year Ended December 31, 2012 Retained earnings, January 1. ........................... $11,310 Add: Net income. .............................................. 2,762 Less: Dividends. ................................................. 3,000 Retained earnings, December 31. ..................... $11,072 (c) CAVAMANLIS CO. Balance Sheet
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This note was uploaded on 03/20/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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ch 3 solutions - EXERCISE 3-1 (1520 minutes) Apr. 2 Cash....

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