Cash accounts payable service revenue bal 73100 3080

This preview shows page 106 - 111 out of 116 pages.

Cash Accounts Payable Service Revenue Bal. 73,100 3,080 Dec. 9 Dec. 7 600 945 Bal. 0 Bal. Dec. 21 4,256 2,910 Dec. 12 Dec. 9 3,200 3,600 Dec. 2 Dec. 28 3,000 350 Dec. 29 Dec. 12 3,000 3,200 Dec. 5 225 Dec. 30 945 Bal. Bal. 73,791 Accounts Receivable Interest Payable Sales Revenue Bal. 2,000 420 Dec. 15 100 Bal. 4,900 Dec. 11 Dec. 11 4,900 4,480 Dec. 21 100 Bal. 3,000 Dec. 28 Bal. 2,000 7,900 Bal. Merchandise Inventory Salaries Payable Sales Returns and Allowances Dec. 2 3,600 600 Dec. 7 0 Bal. Dec. 15 420 Dec. 5 3,200 120 Dec. 9 . Bal. 420 Dec. 15 180 2,100 Dec. 11 90 Dec. 12 1,144 Dec. 28 Bal. 2,926 Cleaning Supplies Unearned Revenue Sales Discounts Bal. 50 3,450 Bal. Dec. 21 224 Bal. 50 3,450 Bal. Bal. 224 Prepaid Rent Notes Payable Cost of Goods Sold Bal. 1,500 40,000 Bal. Dec. 11 2,100 180 Dec. 15 Bal. 1,500 40,000 Bal. Dec. 28 1,144 Bal. 3,064 Horngren’s Accounting   10/e    Solutions Manual 6-106
P6-47, cont. Prepaid Insurance Hudson, Capital Utilities Expense Bal. 2,200 . 44,385 Bal. Dec. 29 350 Bal. 2,200 44,385 Bal. Bal. 350 Equipment Hudson, Withdrawals Sales Commission Expense Bal. 2,200 Bal. 0 Dec. 30 225 Bal. 2,200 Bal. 225 Truck Income Summary Rent Expense Bal. 8,000 Bal. 8,000 Accumulated Depreciation Insurance Expense 170 Bal. 170 Bal. Depreciation Expense Interest Expense Salaries Expense Horngren’s Accounting   10/e    Solutions Manual 6-107
P6-47, cont. Requirement 4 Date Accounts and Explanation Debit Credit Dec. 31 Cost of Goods Sold 385 (q) Merchandise Inventory 385 (q) Adjustment for inventory shrinkage. Dec. 31 Depreciation Expense 170 Accumulated Depreciation 170 To record depreciation on depreciable assets. Dec. 31 Salaries Expense 700 Salaries Payable 700 To accrue salaries expense. Dec. 31 Rent Expense 500 (r) Prepaid Rent 500 (r) To record rent expense. Dec. 31 Insurance Expense 200 (s) Prepaid Insurance 200 (s) To record insurance expense. Dec. 31 Unearned Revenue 300 (t) Service Revenue 300 (t) To record service revenue that was collected in advance. Dec. 31 Interest Expense 300 (u) Interest Payable 300 (u) To accrue interest expense. Horngren’s Accounting   10/e    Solutions Manual 6-108
P6-47, cont. Calculations: (q) Calculated in Requirement 1 (r) Rent expense incurred in Dec. = $2,000 rent prepaid on Nov. 2 for 4 months / 4 months = $500 (s) Insurance expense incurred in Dec. = $2,400 insurance prepaid on Nov. 3 for 12 months / 12 months = $200 (t) Service revenue earned in Dec. = $3,600 collected in advance on Nov. 16 for one year / 12 months = $300 (u) Interest expense incurred in Dec. = $40,000 borrowed on Nov. 20 x 9% interest per year x 1/12 = $300 Horngren’s Accounting   10/e    Solutions Manual 6-109
P6-47, cont. Cash Accounts Payable Service Revenue Bal. 73,100 3,080 Dec. 9 Dec. 7 600 945 Bal. 300 Adj Dec. 21 4,256 2,910 Dec. 12 Dec. 9 3,200 3,600 Dec. 2 300 Bal. Dec. 28 3,000 350 Dec. 29 Dec. 12 3,000 3,200 Dec. 5 225 Dec. 30 945 Bal. Bal. 73,791 Accounts Receivable Interest Payable Sales Revenue Bal. 2,000 420 Dec. 15 100 Bal. 4,900 Dec. 11 Dec. 11 4,900 4,480 Dec. 21 300 Adj. 3,000 Dec. 28 Bal. 2,000 400 Bal. 7,900 Bal. Merchandise Inventory Salaries Payable Sales Returns and Allowances Dec. 2 3,600 600 Dec. 7 700 Adj. Dec. 15 420 Dec. 5 3,200 120 Dec. 9 700 Bal. Bal. 420 Dec. 15 180 2,100 Dec. 11 90 Dec. 12 1,144 Dec. 28 385 Adj.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture