Iv dec 31 retained earnings 45000 dividends 45000 to

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Unformatted text preview: osing 196,425 0 closing 0 RETAINED EARNINGS closing 45,000 157,500 45,000 353,925 196,425 closing 308,925 Download free eBooks at bookboon.com 21 Problem 3: Solution Accounting Cycle Exercises IV Solution 3 (c) BEAVER LODGE Post-Closing Trial Balance As of December 31, 20X7 Debits Credits Cash $ 80,100 Accounts receivable $ 53,325 - Supplies $ 16,875 - Equipment $ 732,825 - Accumulated depreciation - 90,000 Accounts payable - 78,300 Loan payable - 225,000 Capital stock - 180,000 Retained earnings - 308,925 Please click the advert 883,125 $ - 883,125 You’re full of energy and ideas. And that’s just what we are looking for. © UBS 2010. All rights reserved. $ $ Looking for a career where your ideas could really make a difference? UBS’s Graduate Programme and internships are a chance for you to experience for yourself what it’s like to be part of a global team that rewards your input and believes in succeeding together. Wherever you are in your academic career, make your future a part of ours by visiting www.ubs.com/graduates. www.ubs.com/graduates Download free eBooks at bookboon.com 22 Problem 4: Worksheet Accounting Cycle Exercises IV Problem 4 Elements is an upscale university housing complex providing all the amenities of private townhouse living, and a full service 24-hour cafeteria for busy students. Prior to recording any adjusting entries for 20X8, Elements has incurred and recorded total salary expense of $2,625,000 and total rental revenue of $14,400,000. As of December 31, 20X8, the company owes $45,000 of additional salaries to employees, and accrued rent due from residents amounts to $300,000. On January 10, 20X9, Traditions paid salaries of $120,000 covering the amount due as of December 31, as well as additional amounts relating to 20X9. On January 15, 20X9, Traditions received rental payments for $750,0000 covering the rents due as due of December 31, 20X8, and additional amounts relating to the first half of January, 20X9. a) b) c) d) e) f) Prepare the necessary year-end adjusting entries for salaries and rent. Determine the total salaries expense and total rent revenue for 20X4. Assuming the company uses reversing entries, prepare necessary reversals for early 20X5. Assuming the company used reversing entries, prepare entries for January 10 and 15, 20X5. Assuming the company does not use reversing entries, prepare entries for January 10 and 15, 20X5. Show how 20X5 salaries expense and rent revenue will be the same, whether reversing entries are used or not. Worksheet 4 GENERAL JOURNAL Date a) Accounts Debit Credit Dec. 31 Dec. 31 Download free eBooks at bookboon.com 23 Problem 4: Worksheet Accounting Cycle Exercises IV b) c) Jan. 1 Jan. 1 d) Jan. 10 Jan. 15 e) Jan. 10 Jan. 15 f) Download free eBooks at bookboon.com 24 Problem 4: Solution Accounting Cycle Exercises IV Solution 4 GENERAL JOURNAL Date a) Dec. 31 Accounts Salaries Expense Debit Credit 45,000 Salaries Payable 45,000 To record accrued salaries Dec. 31 Rent Receiv...
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This document was uploaded on 09/24/2013.

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