HW_3 Answers - (15-20 min.) E 3-21 Req. 1 Adjusting Entries...

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(15-20 min.) E 3-21 Req. 1 Adjusting Entries DATE ACCOUNT TITLES DEBIT CREDIT a. Insurance Expense ($700 + $2,100 $800). 2,000 Prepaid Insurance…………………………. 2,000 b. Interest Receivable…………………………… 900 Interest Revenue…………………………. .. 900 c. Unearned Service Revenue ($800 $300). . 500 Service Revenue…………………………… 500 d. Depreciation Expense………………………. . 6,200 Accumulated Depreciation………………. 6,200 e. Salary Expense ($9,000 × 3/5)……………… 5,400 Salary Payable………………………. ……. . 5,400 f. Income Tax Expense ($20,000 × .40)……… 8,000 Income Tax Payable………………………. 8,000
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(continued) E 3-21 Req. 2 Net income understated by omission of: Interest revenue……………………………. . $ 900 Service revenue……………………………. .. 500 Total understatement………………………. $ 1,400 Net income overstated by omission of: Insurance expense…………………………. $2,000
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This note was uploaded on 04/03/2012 for the course ACCT 23020 taught by Professor Dorff,p during the Spring '08 term at Kent State.

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HW_3 Answers - (15-20 min.) E 3-21 Req. 1 Adjusting Entries...

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