Bus 1 Hw 3 - This document goes over Q9 and Q10 from chapter 1 and Q 1, Q 2, Q3, and Q5 from PDF

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This document goes over Q9 and Q10 from chapter 1 and Q 1, Q 2, Q3, and Q5 from chapter 2...

Description

Q9 7/1 dr.

Cash

39,000

cr.

Common Stock

39,000

dr.

Supplies

200

dr.

Equipment

3,100

cr.

Account payable

3,300

dr.

Cash

1,600

cr.

Service Revenue

1,600

dr.

Land

27,000

cr.

Cash

27,000

dr.

Account receivable

900

cr.

Service revenue

900

dr.

Account payable

3,100

cr.

Cash

3,100

dr.

Phone expense

170

cr.

Cash

170

dr.

Cash

450

cr.

Account receivable

450

7/3

7/5

7/7

7/11

7/16

7/17

7/18

7/22 dr.

Water expense

190

cr.

Cash

190

dr.

Cash

1,400

cr.

Service revenue

1,400

dr.

Salary expense

2,400

cr.

Cash

2,400

dr.

Dividends

6,500

cr.

Cash

6,500

7/29

7/30

7/31

Cash 7-1 7-5

7-18

7-29

39,000 1,600 7-7

27,000

7-16

3,100

7-17

170

7-22

190

7-30

2,400

450

1,400

7-31 $3,090

6,500

Account 7-11

Recivable

900 7-18

450

450

Supplies 7-3

200

200

Land 7-7

27,000

27,000

Accounts

Payable 7-3

7-16

3,300

3,100 200

Equipment 7-3

3,100

3,100

Common

Stock 7-1

39,000

39,000

Dividends 7-31

6,500

6,500

Salary Expense 7-30

2,400

2,400

water 7-22

expense

190

190

phone 7-17

expense

170

170

Service

Revenue 7-5 7-11 7-29 3,900

1,600 900 1,400

Student Painter Inc. Trail Balance July 31st Debit Cash

3,090

Account recivable

450

Supplies

200

Land

27,000

Accounts payable Equipment

Credit

200 3,100

Common stock

39,000

Dividends

6,500

Salary expense

2,400

Service Revenue

3,900

Water expense

190

Phone Expense

170 43,100

43,100

Q10)

March 1 dr.

Cash

cr.

Common stock

28,000 28,000

March 5 dr.

Advertising expense

cr.

cash

1,000 1,000

March 9 dr.

land

44,500

cr.

cash

11,500

cr.

Loan payable

33,000

March 10 dr.

Supplies

cr.

Account payable

1,700 1,700

March 19 dr.

Account receivable

cr.

Account payable

800 800

March 22 dr.

Cash

cr.

Loan payable

18,500 18,500

March 29 dr.

Cash

14,500

dr.

Account receivable

4,500

cr.

Service revenue

18,500

March 30 dr.

Rent expense

2,000

dr.

Salaries

2,100

dr.

Utility expense

1,100

cr.

cash

5,200

March 31 dr.

Dividends

cr.

Cash

2,000 2,000

a. Show Repair’s T-accounts for cash, accounts payable, and loans payable.

Cash 3-1

28,000

3-5

1,000 3-9

3-22

18,500

3-29

14,500

11,500

3-30

5,200

3-31

2,000

43,300

account

payable 3-10

1,700

3-19

800

2,500

loan

payable 3-9

33,000

3-22

18,500

51,500

Q5) Supplies Expense = Beginning Supplies + Supplies Purchases – Ending Supplies (supplies used)

Given the following situations, calculate the missing information relating to supplies: a. Beginning supplies were $200, ending supplies were $800, and supplies expense for the year was $2,000. What were supplies purchases during the year? 2,000 = 200 + 1,000 + 800

Supplies purchases during the year were 1,000

a. Beginning supplies were $800, ending supplies were $1,000, and supplies purchases were $1,800. What was supplies expense for the year? 1,600 = 800 + 1,800 - 1000

supplies expense for the year was 1,600

a. Beginning supplies were $2,200, supplies purchases were $1,400, and supplies expense for the year was $2,000. What were ending supplies? 2,000 = 2,200 + 1,400 - 1,600

ending supplies were 1,600

a. Ending supplies were $800, supplies purchases were $1,600, and supplies expense for the year was $2,200. What were beginning supplies? 2,200 = 1,400 + 1,600 - 800

beginning supplies were 1,400

Q1)

Hobbs Inc. prepaid 8 months of rent, a total of $5,600, on November 1. Hobbs did not make any adjustments to the prepaid rent expense account until December 31, its year-end.

a. Give Hobbs’s journal entry on November 1 to record the prepayment of rent.

dr.

Prepaid rent

cr.

cash

5,600 5,600

a. Give Hobbs’s required adjusting journal entry on December 31.

dr.

rent expense

cr.

Prepaid rent

1,400 1,400

a. What amount will appear for rent expense on Hobbs' Income Statement for the year? $1,400 of rent will appear for rent expenses on Hobbs’ Income statement for the year. a. What amount will appear for prepaid rent expense on Hobbs' December 31 Balance Sheet?

$4,600 will appear in the balance sheet.

Q2)

Workout Company runs a chain of health clubs. Most customers pay $60 in advance for a year-long membership, but customers can also “pay as they go,” by paying $5 per workout every time they visit one of the clubs. Give Workout’s journal entries for the following situations.

a. Six customers visit health clubs under the “pay as you go” program.

dr.

cash

cr.

Service revenue

30 30

a. Two customers pay in advance for year-long memberships.

dr.

cash

cr.

Unearned revenue

120 120

a. Four customers each use up 7 months of their year-long memberships (make adjusting entry).

dr.

Unearned revenue

cr.

Service revenue

140 140

Q3)

Johnny Corp. earned $200,000 of revenue this year. Of this amount, 80% has been collected in cash, and the remaining 20% is still accounts receivable. Johnny also had $140,000 of expenses. Of this amount, 90% has been paid in cash, and the remaining 10% is still accounts payable.

a. Under accrual accounting, what amount of revenue should Johnny record for the year? The amount that Johnny Corp has collected, $160,000.

a. Under accrual accounting, what amount of expenses should Johnny record for the year? The amount that hasn’t been paid off $14,000.

a. Under accrual accounting, what amount of profit would Johnny have for the year? Which financial statement shows revenues, expenses, and profits?

$146,000 will be shown in profit. The Income statement shows the revenues, expenses and profits....