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Unformatted text preview: r g Lean-ling Emertise —£Irinqovv51nbeme;£xplorer~ . u k * ._- .— . Walk me through a similar problem Debit Credit X No, sorry. Salaries Expense is an expense account. Expenses decrease owners' equity, andwe decrease owners' equity accounts with a debit. Therefore, Salaries Expense has a normal debit balance. Now that you have classified each account's normal account balance, the next stepwould be to add up all the debits and add up all the credits. Both totals should match. This is the purpose ofthe adjustedtrial balance. The adjusted trial balance simply checks whether or notthe total debits equal the total credits afier adjustingjournal entries have been entered. That is the end of this walk-through. BCIose h AccountName ficcounts Payable Supplies Expense Cash Service Revenue ficcumulated Depreciation Unearned Revenue Depreciation Expense Equipment Inventory Prepaid Rent ‘ Salaries Expense Account Type Credit Debit Debit Credit Credit Credit Debit Debit Debit Debit Debit l-c-T'JI Done 0 Intelnei| Protected Made: 0n :3 - 6110095 v r (g Learning Exercise — Madam-s Internet Emlomrufiml El https:.-".-"dms.devry.ed ufdm sr"."."ebPa geEr’flaEhr'content-"studentflearni n gExercise.aspx?cour5eID :5068004fitu5 erID:6159499l3a1d5 SID : l4151ro|etypez STU D St: ou a a I Walk me through a similar problem ° Debit Account Name Account Type I Accounts Payable Credit Cred” Supplies Expense Debit Cash Debit _ _ Service Revenue Credit \/ Great! Salaries Expense is an expense account. Expenses A I t at] . t. . decrease owners' equity, andwe decrease owners' equity mum” a e eprec'a '0" Dream accounts with a debit. Therefore, Salaries Expense has a Uneamed Revenue Credit normal debit balance. Depreciation Expense Debit Equipment Debit Inventory Debit Now that you have classified each account's normal account _ _ balance, the next step would be to add up all the debits and add Prepa'd Rem Dem # Salaries Expense Debit up all the credits. Eloth totals should match. This is the purpose ofthe adjustedtrial balance. The adjusted trial balance simply checks whether or not the total debits equal the total credits afier adjustingjournal entries have been entered. Continue .- t I'C-T"; | .1 Done 6 Internetl Protected Mode: On {a V 6110095 ' _.; .._.. .._.. ,. ._ -— _.._ . — =. - . _ ___ __. oddsuser'lo:5159499adssio=léusuoietype=sruoscou a a . a hflpsfl'd msdeuryxdufdmswiebpagaffiasthonten- std denfllearning Exercise.aspx?courseb ‘7 Adjusted Trial Balance Wmmdmfi SunMay 152flT1 Exercise1 entries have been recorded. and the CFO has asked you to prepare the |—| adjustedtrial balance. Please provide the totals forthe debit column and the credit column in the boxes at right. I Accounts Payable $ 1,0E Supplies Expense 5E: _ Accounts Receivable 25E: Dem : $ Cash 5,5EI Depreciation Expense 3E: Credit = $ 20800 Equipment 3,0EI Inventory 2,0EI Prepaid Rent 1.0[2 Unearnecl Revenue FE: Service Revenue 10,0EI Salaries Expense 1m: Perfect! You've proven with the adjustedtrial balance thatthe ' Accummated Depreciation _ Equipment at: accounts still balance afier adjustingjournal entries have been I Supplies 1,0[2 recorded. Rent Expense 5E: Salaries Payame 1: You have completed all ofthe Learning Exercises in this set. Common Stock SUEZ Retained Earnings 2.1: Please close this window and proceedto the next part ofthe Cost of Goods Solcl ELSE: “Imme- ficlosu i I Walk mt.- through asiiuilai problem Chuck Ar'n'flur I Done 0 lnternethrotededModeOn {i v aloe-9c. v El httpsfldmsdewytdufdmflebl’agfifflashfcontenfistudentr‘learningExercise.aspx?courseID:50680046tuser1D261594995td5510:141BiroletypezSTUDticcou a a l w l. -. . :.. - magma:me 3mm 15 21:11 I Exercise 2 | ' |:i From the following list of accounts. selectthose forwhich the normal unearned Revenue balance would be a credit. E4! Salaries Payable Common Stock D Salaries Expense | ' :1 Perfect. You seemto have a good grasp ofhowto class”? the Supplies Expense ditTe rent accounts. Pre aid Rent You have completed all ofthe Learning Exercises in this set. D 0 Please close this window and proceedto the next part ofthe Eqmpment Module. D Inventory D Cash I E ' E4! Accumulated Depreciation E! Sewice Revenue E! Accounts Payable v' a Clean: I I Walk mt.- through a similar problem Check Artfiweir ' Done . lntelnetIProtededMnchn {i v 3.100% v - Walk me through a similar problem Rent Expense ' 4-000 Pro-Paid Rent - 4000 \/ 1.llufell done! Because Mathers used up one month ofthe prepaid rent, we recognize Rent Expense of $4,000 ($23,000 i7] and credit Prepaid Rent. Assets = Liabilities +0wners' Equity, and Debits =Credits. A quick review: On January ‘1, Mathers paid $28,000 for? months ofrent. On January31,Mathers has to recognize the cost ofusing the building forthe month, sothey record Rent Expense of$4,000. Because they paid cash in advance, no cash leaves the company on January 31. Instead, the company reduces Pre—Faid Rentto recognize thatthere are only 6 months, or $24,000, remaining. Continue Rent Expense Pre—Paid Rent Debit $4,000 Credit $4,000 l-c-lers !' o lntemet| Protected Mode: On 43 - 60.10090 v Wm. Denick Jones 3111M 152flT1 Exercise 1 Elirch Company started business on January ‘1, 20XX. Atthe start ofFebruary, Elirch had Salaries Payable outstanding of$1?.000. Salaries Payable On February 4. Elirch sent out paychecks to its employees valued at $24.000. Prepare the journal .‘ ISfiIfiries Expense entry forthistransaction. I iCash ' V I is Journal Entry. the number ofdebits and credits is not pre-set. You must mine the correct number ofdebits and the correct number ofcredits. Rows be added as needed by clicking the Add buttons. No blank rows are allowed - final answer. Greatl Birch's employees earned $17,000 in January, so that was expensed then. Birch is actuallywriting a checkfor$24,000 now though, so we credit cash for $24,000. Then, $17,000 goes towards paying ofithe Salaries Payable, so we debit Salaries Payable. The remaining $7,000 was Salaries Expense recognized in February, so we debit Salaries Expense. El 3 @ Clo-5:: I I Walk mrr t'hmugh a similar problem Check Answer Done '0 lnternethrotededMndfiOn {i v aloe-9c. v ...
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This note was uploaded on 04/07/2012 for the course ACC 515 taught by Professor Willaims during the Spring '12 term at Keller Graduate School of Management.

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