Accounting-cycle-exercises-iv

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Unformatted text preview: preciation Dec. 31 Accounts Receivable 62,650 Revenues 62,650 To record earned revenues Dec. 31 Supplies Expense 11,865 Supplies 11,865 To record supplies used Dec. 31 Rent Expense 3,500 Rent Payable 3,500 To record rent due and payable Download free eBooks at bookboon.com 9 Problem 1: Solution Accounting Cycle Exercises IV Solution 1 (b) CASH REVENUES 64,400 170,065 62,650 aje #2 232,715 ACCOUNTS RECEIVABLE aje #2 RENT EXPENSE 62,650 38,500 aje #4 3,500 42,000 SUPPLIES 23,765 11,865 SALARIES EXPENSE 84,000 aje #3 11,900 DISPLAY EQUIPMENT INTEREST EXPENSE 52,500 1,750 ACCUMULATED DEPRECIATION 10,500 UTILITIES EXPENSE aje #1 18,900 LOAN PAYABLE DEPRECIATION EXPENSE 26,250 aje #1 RENT PAYABLE 3,500 10,500 SUPPLIES EXPENSE aje #4 aje #3 11,865 CAPITAL STOCK 87,500 Download free eBooks at bookboon.com 10 Problem 1: Solution Accounting Cycle Exercises IV Solution 1 (c) ALBERT CONDOR ART GALLERY Adjusted Trial Balance As of December 31, 20X8 Debits Cash $ Credits 64,400 $ - Accounts Receivable 62,650 - Supplies 11,900 - Display equipment 52,500 - Accumulated deprec. - 10,500 Rent Payable - 3,500 Loan Payable - 26,250 Capital Stock - 87,500 Revenues - 232,715 Rent Expense 42,000 - Salaries Expense 84,000 - Interest Expense 1,750 - Utilities Expense 18,900 - Depreciation Expense 10,500 - Supplies Expense 11,865 - $ 360,465 $ 360,465 Excellent Economics and Business programmes at: Please click the advert “The perfect start of a successful, international career.” CLICK HERE to discover why both socially and academically the University of Groningen is one of the best places for a student to be www.rug.nl/feb/education Download free eBooks at bookboon.com 11 Problem 2 Accounting Cycle Exercises IV Problem 2 Wolfgang Schnitzer is in charge of financial management for Over-Head-Eye Corp. Over-Head-Eye utilizes satellite technology and sophisticated mapping software to alert its customers to trespassing, illegal dumping, and other encroachments on property these customers own around the globe. Customers typically purchase one-year contracts for this service, and the pricing depends on the number and size of sites monitored. Mr. Schnitzer desires to review financial reports -- an income statement, statement of retained earnings, and balance sheet. Prepare these reports from the following adjusted trial balance. Mr. Schnitzer needs this information for internal review purposes, and does not require a classified balance sheet. The operating data relate to the full year, and the blank worksheet already includes partial data. OVER-HEAD-EYE CORPORATION Adjusted Trial Balance As of December 31, 20X0 Debits Cash $ Accounts Receivable Credits 2,502,663 $ - 1,037,727 137,361 Prepaid Expenses Supplies - 199,995 - 9,027,000 - Accumulated deprec. - 3,666,597 Accounts Payable - 1,632,570 Unearned Revenues - 1,365,000 Loan Payable - 3,000,000 Capital Stock - 1,680,000 Satellite equipment Retained earnings, Jan. 1 - 686,676 Dividends 150,000 - Revenues - 7,120,206 1,429,335 - Selling Expenses Interest Expense 240,000 Deprecia...
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This document was uploaded on 09/24/2013.

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