ch3 - BRIEF EXERCISE 3-1 May 1 Cash 4,000 Common Stock...

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BRIEF EXERCISE 3-1 May 1 Cash . ............................................................. 4,000 Common Stock . .................................... 4,000 3 Equipment . ................................................... 1,100 Accounts Payable . ................................ 1,100 13 Rent Expense . .............................................. 400 Cash . ...................................................... 400 21 Accounts Receivable . .................................. 500 Service Revenue . .................................. 500 BRIEF EXERCISE 3-2 Aug. 2 Cash . .............................................................. 12,000 Equipment . ..................................................... 2,500 Owner’s Capital . ..................................... 14,500 7 Supplies . ........................................................ 500 Accounts Payable . ................................. 500 12 Cash . .............................................................. 1,300 Accounts Receivable . ................................... 670 Service Revenue . ................................... 1,970 15 Rent Expense . ................................................ 600 Cash . ........................................................ 600 19 Supplies Expense . ......................................... 230 Supplies ($500 – $270). ........................... 230 EXERCISE 3-6 1. Accounts Receivable . ..................................................... 750 Service Revenue . ..................................................... 750
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2. Utilities Expenses . .......................................................... 520 Accounts Payable . ................................................... 520 3. Depreciation Expense . ................................................... 400 Accumulated Depreciation – Equipment . .............. 400 Interest Expense . ............................................................ 500 Interest Payable . ...................................................... 500 4. Insurance Expense ($12,000 X 1/12). ............................. 1,000 Prepaid Insurance . .................................................. 1,000 5. Supplies Expense ($1,600 – $500) . ................................ 1,100 Supplies . ................................................................... 1,100 EXERCISE 3-7 ( (a) Ending balance of supplies $700 Add: Adjusting entry 950 Deduct: Purchases 850 Beginning balance of supplies $800 (b) Total prepaid insurance $4,800 ($400 X 12) Amount used (6 X $400) 2,400 Present balance $2,400 The policy was purchased six months ago (August 1, 2013) (c) The entry in January to record salary and wages expense was Salaries and Wages Expense . .............................. 1,800 Salaries and Wages Payable . ............................... 700 Cash . ................................................................. 2,500
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The “T” account for salaries payable is Salaries and Wages Payable Paid 700 Beg. Bal. ? January End Bal. 800 The beginning balance is therefore Ending balance of salaries and wages payable $ 800 Plus: Reduction of salaries and wages payable 700
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ch3 - BRIEF EXERCISE 3-1 May 1 Cash 4,000 Common Stock...

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