Scribd
Upload
9 views

Extra Applications - Lecture Week 6 - Part 2

Uploaded by

gamopim849
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
9 views

Extra Applications - Lecture Week 6 - Part 2

Uploaded by

gamopim849
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Extra Applications_Lecture Week 6_Part 2

1
Answers

EXERCISES (1), (2) & (3) ARE TO BE SOLVED BY JOINTLY BY THE INSTRUCTOR AND THE STUDENTS

Exercise 3-1 (10 minutes)

1. B 4. F

2. E 5. D

3. C 6. A

Exercise 3-2 (30 minutes)

a. Unearned Fee Revenue................................................................... 10,000


Fee Revenue............................................................................... 10,000
To record earned portion of fee received in advance.

b. Wages Expense............................................................................... 9,000


Wages Payable............................................................................ 9,000
To record wages accrued but not yet paid.

c. Depreciation Expense—Equipment.................................................. 19,127


Accumulated Depreciation—Equipment...................................... 19,127
To record depreciation expense for the year.

d. Office Supplies Expense.................................................................. 5,242


Office Supplies*............................................................................ 5,242
To record office supplies used ($480 + $5,349 - $587).

e. Insurance Expense........................................................................... 2,800


Prepaid Insurance**...................................................................... 2,800
To record insurance coverage expired ($5,000 - $2,200).

f. Interest Receivable........................................................................... 750


Interest Revenue......................................................................... 750
To record interest earned but not yet received.

g. Interest Expense............................................................................... 3,500


Interest Payable............................................................................ 3,500
To record interest incurred but not yet paid.
Notes:
Office Supplies* Prepaid Insurance**
Beg. Bal. 480 Beg. Bal. 5,000
Purch. 5,349
? Used ? Used
End. Bal. 587 End. Bal. 2,200

2
Exercise 3-3 (25 minutes)

a. Depreciation Expense—Equipment.................................................. 16,000


Accumulated Depreciation—Equipment...................................... 16,000
To record depreciation expense for the year.

b. Insurance Expense........................................................................... 5,960


Prepaid Insurance*....................................................................... 5,960
To record insurance coverage that expired
($7,000 - $1,040).

c. Office Supplies Expense.................................................................. 2,626


Office Supplies**........................................................................... 2,626
To record office supplies used ($300 + $2,680 - $354).

d. Unearned Fee Revenue................................................................... 5,000


Fee Revenue............................................................................... 5,000
To record earned portion of fee received in advance

($10,000 x 1/2).

e. Insurance Expense........................................................................... 4,600


Prepaid Insurance........................................................................ 4,600
To record insurance coverage that expired.

f. Wages Expense............................................................................... 4,000


Wages Payable............................................................................ 4,000
To record wages accrued but not yet paid.

Notes:

Prepaid Insurance* Office Supplies**


Bal. Bal. 7,000 Beg. Bal. 300
Purch. 2,680
? Used ? Used
End. Bal. 1,040 End. Bal. 354

You might also like