In france germany spain and the uk an eads internship

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Unformatted text preview: d the UK. An EADS internship offers the chance to use your theoretical knowledge and apply it first-hand to real situations and assignments during your studies. Given a high level of responsibility, plenty of To find out more and apply, visit www.jobs.eads.com. You can also find out more on our EADS Careers Facebook page. Download free eBooks at bookboon.com 5 Problem 1 Accounting Cycle Exercises IV Problem 1 Alberto Condor has an eye for quality. He recently formed an art gallery where he allows artists to display their artwork for sale. Customers buy the artwork through the gallery, but payments are actually made payable directly to the originating artist. Artists, in turn, pay Albert a 20% commission that is appropriately reflected as revenue of the gallery. Following is Albert’s trial balance after the first year of operation. This trial balance does not reflect the adjustments that are necessary, as described by the additional infomation. ALBERT CONDOR ART GALLERY Trial Balance As of December 31, 20X8 Debits Cash $ Credits 64,400 $ - Supplies 23,765 - Display equipment 52,500 - Loan Payable - 26,250 Capital Stock - 87,500 Revenues - 170,065 Rent Expense 38,500 - Salaries Expense 84,000 - Interest Expense 1,750 - Utilities Expense 18,900 - $ 283,815 $ 283,815 The Display equipment was purchased near the beginning of the year. It has a 5-year life and no salvage value. Its cost should be depreciated equally over its life. Albert is entitled to receive $62,650 of commissions for art sold. This revenue has not yet been recorded, but it is fully expected that the artists will soon be making payment. Supplies on hand at year end were counted, and amount to $11,900. December’s rent of $3,500 has not yet been paid. a) Prepare the necessary adjusting enties as of December 31, 20X8. b) Use T-accounts to determine the adjusted balances of the accounts. c) Prepare the adjusted trial balance for Amber Nestor. Download free eBooks at bookboon.com 6 Problem 1: Worksheet Accounting Cycle Exercises IV Worksheet 1 (a) GENERAL JOURNAL Date Accounts Debit Credit Dec. 31 Dec. 31 Dec. 31 Dec. 31 Worksheet 1 (b) CASH REVENUES ACCOUNTS RECEIVABLE RENT EXPENSE SUPPLIES SALARIES EXPENSE DISPLAY EQUIPMENT INTEREST EXPENSE Download free eBooks at bookboon.com 7 Problem 1: Worksheet Accounting Cycle Exercises IV ACCUMULATED DEPRECIATION UTILITIES EXPENSE LOAN PAYABLE RENT PAYABLE CAPITAL STOCK Worksheet 1 (c) ALBERT CONDOR ART GALLERY Adjusted Trial Balance As of December 31, 20X8 Debits Cash $ Credits - $ - Accounts Receivable - - Supplies - - Display equipment - - Accumulated deprec. - - Rent Payable - - Loan Payable - - Capital Stock - - Revenues - - Rent Expense - - Salaries Expense - - Interest Expense - - Utilities Expense $ - $ - Download free eBooks at bookboon.com 8 Problem 1: Solution Accounting Cycle Exercises IV Solution 1 (a) GENERAL JOURNAL Date Dec. 31 Accounts Debit Depreciation Expense Credit 10,500 Accumulated Depreciation 10,500 To record annual de...
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This document was uploaded on 09/24/2013.

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