Week Three Problems and Exercises
ACC/290
University of Phoenix
BE4-1
|
|
|
cash |
|
net income |
|
A. B. C. D. E. F. |
|
-100 0 0 +800 -2,500 0 |
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0 -20 +1,300 0 0 -600 |
P4-2A
|
|
Date |
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Accounts |
|
Debit |
|
Credit |
|
1. |
June 30 |
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Accounts Rec.
|
|
3,900 |
|
3,900 |
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|
|
|
|
|
|
|
|
|
2. |
30 |
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Unearned Service Rev.
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4,100 |
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4,100 |
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|
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|
|
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3. |
30 |
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Insur. Exp.
|
|
240 |
|
240 |
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|
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|
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|
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4. |
30 |
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Utility Exp. |
|
180 |
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|
|
|
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180 |
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5. |
30 |
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Salary Exp.
|
|
1,250 |
|
1,250 |
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|
|
|
|
|
|
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|
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6. |
30 |
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Depreciation Exp.
|
|
250 |
|
250 |
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|
|
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7. |
30 |
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Supply Exp. |
|
1,280 |
|
1,280 |
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Cash |
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|
6/30 … 6,850 |
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Accounts Receivable |
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|
6/30 … 7,000 6/30 3,900 |
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6/30 … 10,900 |
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N/A |
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Supplies |
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6/30 … 2,000 |
6/30 1,280 |
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6/30 … 720 |
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Prepaid Insurance |
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6/30 … 2,880 |
6/30 240 |
|
6/30 … 2,640 |
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|
Equipment |
|
|
6/30 … 15,000 |
|
|
Accounts Pay. |
|
|
|
6/30 … 4,230 |
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|
6/30 180 |
|
|
6/30 4,410 |
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Salary Pay. |
|
|
|
6/30 1,250 |
|
|
6/30 … 1,250 |
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Unearned Service Rev. |
|
|
6/30 4,100 |
6/30 … 5,200 |
|
|
6/30 … 1,100 |
|
Common Stock |
|
|
|
6/30 … 22,000 |
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Salary Exp. |
|
|
6/30 … 4,000 6/30 1,250 |
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|
6/30 … 5,250 |
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Rent Exp. |
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6/30 … 2,000 |
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Insur. Exp. |
|
|
6/30 240 |
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|
6/30 Bal. 240 |
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Utilities Exp. |
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|
6/30 180 |
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|
6/30 … 180 |
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Supply Exp. |
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|
6/30 1,280 |
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|
6/30 … 1,280 |
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Accumulated Depreciation
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|
|
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6/30 250 |
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6/30 … 250 |
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Depreciation Exp. |
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|
6/30 250 |
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|
6/30 … 250 |
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|
Service Rev. |
|
|
|
6/30 … 8,300 6/30 4,100 6/30 3,900 |
|
|
6/30 … 16,300 |
Vogel Consult.
Adjusted Trial Balance
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|
|
Debit |
|
Credit |
|
Accounts Rec. Cash Prepaid Insur. Supplies Equipment Accumulated Depreciation Accounts Pay. Salary Pay. Unearned Serv. Rev. Common Stock Service Rev. Salary Exp. Rent Exp. Depreciation Exp. Insur. Exp. Utilities Exp. Supply Exp. |
|
10,900 6,850 2,640 720 15,000 5,250 2,000 250 240 180 1,280 $45,310 |
|
250 4,410 1,250 1,100 22,000 16,300
$45,310 |
P4-3A
|
Cash |
|
|
5/31 … 2,500 |
|
|
Prepaid Insur. |
|
|
5/31 … 1,800 |
5/31 450 |
|
5/31 … 1,350 |
|
|
Supplies |
|
|
5/31 … 2,600 |
5/31 1,550 |
|
5/31 … 1,050 |
|
|
Land |
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|
5/31 … 15,000 |
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Mortgage Pay.
|
Building |
|
|
5/31 … 70,000 |
|
|
Accumulated Depreciation |
|
|
|
5/31 300 |
|
|
5/31 … 300 |
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Equipment |
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|
5/31 … 16,800 |
|
|
Accumulated Depreciation |
|
|
|
5/31 250 |
|
|
5/31 … 250 |
|
Accounts Pay. |
|
|
|
5/31 … 4,700 |
|
Unearned Rent Rev. |
|
|
5/31 2,500 |
5/31 … 3,300 |
|
|
5/31 … 800 |
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Salary Pay. |
|
|
|
5/31 900 |
|
|
5/31 … 900 |
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Interest Pay. |
|
|
|
5/31 180 |
|
|
5/31 … 180 |
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|
|
|
|
5/31 … 36,000 |
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Common Stock |
|
|
|
5/31 … 60,000 |
|
Rent Revenue |
|
|
|
5/31 … 9,000 5/31 2,500 |
|
|
5/31 … 11,500 |
|
Salary Exp. |
|
|
5/31 … 3,000 5/31 900 |
|
|
5/31 … 3,900 |
|
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Utilities Exp. |
|
|
5/31 … 800 |
|
|
Advertising Exp. |
|
|
5/31 … 500 |
|
|
Interest Exp. |
|
|
5/31 180 |
|
|
5/31 … 180 |
|
|
Insurance Exp. |
|
|
5/31 450 |
|
|
5/31 … 450 |
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Supplies Exp. |
|
|
5/31 1,550 |
|
|
5/31 … 1,550 |
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Depreciation Exp. |
|
|
5/31 300 |
|
|
5/31 250 |
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|
5/31 … 550 |
|
Vang Hotel
Adjusted Trial Balance
|
|
|
Debit |
|
Credit |
|
Cash Prepaid Insurance Supplies Land Building Accumulated Depreciation Equipment Accumulated Depreciation Accounts Payable Unearned Rent Revenue Salary Payable Interest Payable Mortgage Payable Common Stock Rent Revenue Salary Expense Utilities Expense Advertising Expense Interest Expense Insurance Expense Supplies Expense Depreciation Expense
|
|
2,500 1,350 1,050 15,000 70,000 16,800 3,900 800 500 180 450 1,550 550 $114,630 |
|
300 250 4,700 800 900 180 36,000 60,000 11,500
$114,630 |
Vang Hotel
Income Statement
Rent revenue 11,500
Salary expense 3,900
Supply expense 1,550
Utilities expense 800
Depreciation expense 550
Advertising expense 500
Insurance expense 450
Interest expense 180
Total expenses 7,930
Net income 3,570
Vang Hotel
Retained Earnings Statement
Retained earnings, May 1 0
Net income 3,570
Retained earnings, May 31 $3,570
Vang Hotel
Balance Sheet
Cash 2,500
Supplies 1,050
Prepaid insurance 1,350
Current assets 4,900
Land 15,000
Building 70,000
300 69,700
Equipment 16,800
250 16,550 101,250
Total assets 106,150
Accounts payable 4,700
Salaries and wages payable 900
Unearned rent revenue 800
Interest payable 180
Total current liabilities 6,580
Mortgage payable 36,000
Total liabilities 42,580
Common stock 60,000
Retained earnings 3,570
Total equity shareholders’ 63,570
Total liabilities and equity shareholders’
106,150
Accounts closed:
Rent revenue, salary expense, utilities expense, advertising expense, interest expense, insurance expense, supply expense, and depreciation expense.
Answer the following summary question: Commercial accounting and generally accepted accounting principles, generally prescribe the accrual basis of accounting over the cash basis. Describe both bases of accounting and explain the differences.
Accrual accounting is where revenues are recognized when they are earned, not when they are received. In accrual accounting, cash does not need to change hands before the revenue is recognized. Under the cash basis method of accounting, income is not counted until cash is actually received, and expenses are not counted until they are actually paid.
1. May 31 Insur. Exp. 450
450
2. 31 Supplies Exp. 1,550
1,550
3. 31 Depreciation Exp. 300
300
31 Depreciation Exp. 250
250
4. 31 Interest Exp. 180
180
5. 31 Unearned Rent Rev. 2,500
2,500
6. 31 Salary Exp. 900
900
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