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SCh04 - Student Name Instructor Class McGraw-Hill/Irwin...

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Student Name: Instructor Class: McGraw-Hill/Irwin Demonstration Case 4 Requirements 1 and 2: (a) dr Unearned Revenue 400 Stockholders' cr Mowing Revenue 400 Assets = Liabilities + Equity Unearned Revenue - 400 Mowing Revenue + 400 (b) dr Insurance Expense 50 Stockholders' cr Prepaid Insurance 50 Assets = Liabilities + Equity Prepaid Insurance - 50 Insurance Expense - 50 (c) dr Depreciation Exp. 25 Stockholders' cr Accum. Depreciation 25 Assets = Liabilities + Equity Accum. Depreciation - 25 Depreciation Exp. - 25 (d) dr Wages Expense 400 Stockholders' cr Wages Payable 400 Assets = Liabilities + Equity Wages Payable + 400 Wages Expense - 400 (e) dr Interest Expense 45 Stockholders' cr Interest Payable 45 Assets = Liabilities + Equity Interest Payable + 45 Interest Expense - 45 (f) dr Interest Receivable 10 Stockholders' cr Interest Revenue 10 Assets = Liabilities + Equity Interest Receivable + 10 Interest Revenue + 10 (g) dr Income Tax Expense 273 Stockholders' cr Income Tax Payable 273 Assets = Liabilities + Equity Income Tax Payable + 273 Income Tax Expense - 273
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Student Name: Instructor Class: McGraw-Hill/Irwin Demonstration Case 4 Requirement 3: Interest Receivable (A) Interest Payable (L) Insurance Expense (E) + - - + + - 10 Beg. bal. Beg. bal. 0 0 Beg. bal. 45 e) b) 50 10 45 50 Correct! Correct! Correct! Prepaid Insurance (A) Income Tax Payable (L) Depreciation Exp. (E) - + - + + - 300 Beg. bal. Beg. bal. 0 0 Beg. bal. 50 b) 273 f) c) 25 250 273 25 Correct! Correct! Correct! Accum. Depreciation (xA) Mowing Revenue (R) Interest Expense (E) - + - + + - Beg. bal. 0 Beg. bal. 5,200 0 Beg. bal. 25 c) 400 a) (e 45 25 5,600 45 Correct! Correct! Correct! Unearned Revenue (L) Interest Revenue (R, SE) Income Tax Expense (E) - + - + + - Beg. bal. 1,600 Beg. bal. 0 0 Beg. bal. a) 400 10 f) (g 273 1,200 10 273 Correct! Correct! Correct! Wages Payable (L) Wages Expense (E) - + + - Beg. bal. 0 3,900 Beg. bal. 400 (d d) 400 400 4,300 Correct! Correct! Requirement 4: GOODBYE GRASS CORPORATION Unadjusted Trial Balance As of April 30, 2010 Account Name Debits Credits Cash $4,510 Accounts Receivable 1,700 Note Receivable 1,250 Interest Receivable 10 Prepaid Insurance 250 Equipment 4,600 Accumulated Depreciation $25 Land 3,750 Accounts Payable 620 Unearned Revenues 1,200 Wages Payable 400 Interest Payable 45 Income Tax Payable 273 Note Payable 4,000 Contributed Capital 9,000 Retained Earnings - Mowing Revenue 5,600 Interest Revenue 10 Wages Expense 4,300 Fuel Expense 410 Insurance Expense 50 Depreciation Expense 25 Interest Expense 45 Income Tax Expense 273 TOTALS $21,173 $21,173 Correct! Correct! Requirement 5: GOODBYE GRASS CORPORATION Income Statement For the Month Ended April 30, 2010 Revenues: Mowing Revenue $5,600 Interest Revenue 10 5,610 Expenses: Wages Expense 4,300 Fuel Expense 410 Insurance Expense 50 Depreciation Expense 25 Interest Expense 45 Income Tax Expense 273 Total Expenses 5,103 Net Income $507 Correct! GOODBYE GRASS CORPORATION Statement of Retained Earnings For the Month Ended April 30, 2010 Balance, April 1, 2010 $- Net Income 507 Dividends Declared - Balance, April 30, 2010 $507 Correct! GOODBYE GRASS CORPORATION Balance Sheet April 30, 2010 ASSETS LIABILITIES Current Assets: Current Liabilities: Cash $4,510 Accounts Payable $620 Accounts Receivable 1,700 Unearned Revenues 1,200 Note Receivable 1,250 Wages Payable 400 Interest Receivable 10 Interest Payable 45 Prepaid Insurance 250 Income Tax Payable 273 Total Current Assets 7,720 Note Payable
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