Week Three Problems and ExercisesACC290University of Phoeni.docx
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 0 -20 +1,300 0 0 -600 P4-2A Date Accounts Debit Credit 1. June 30 Accounts Rec. 3,900 3,900 2. 30 Unearned Service Rev. 4,100 4,100 3. 30 Insur. Exp. 240 240 4. 30 Utility Exp. 180 180 5. 30 Salary Exp. 1,250 1,250 6. 30 Depreciation Exp. 250 250 7. 30 Supply Exp. 1,280 1,280 Cash 6/30 … 6,850 Accounts Receivable 6/30 … 7,000 6/30 3,900 6/30 … 10,900 N/A Supplies 6/30 … 2,000 6/30 1,280 6/30 … 720 Prepaid Insurance 6/30 … 2,880 6/30 240 6/30 … 2,640 Equipment 6/30 … 15,000 Accounts Pay. 6/30 … 4,230 6/30 180 6/30 4,410 Salary Pay. 6/30 1,250 6/30 … 1,250 Unearned Service Rev. 6/30 4,100 6/30 … 5,200 6/30 … 1,100 Common Stock 6/30 … 22,000 Salary Exp. 6/30 … 4,000 6/30 1,250 6/30 … 5,250 Rent Exp. 6/30 … 2,000 Insur. Exp. 6/30 240 6/30 Bal. 240 Utilities Exp. 6/30 180 6/30 … 180 Supply Exp. 6/30 1,280 6/30 … 1,280 Accumulated Depreciation 6/30 250 6/30 … 250 Depreciation Exp. 6/30 250 6/30 … 250 Service Rev. 6/30 … 8,300 6/30 4,100 6/30 3,900 6/30 … 16,300 Vogel Consult. Adjusted Trial Balance 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 5/31 … 15,000 Mortgage Pay. Building 5/31 … 70,000 Accumulated Depreciation 5/31 300 5/31 … 300 Equipment 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 Salary Pay. 5/31 900 5/31 … 900 Interest Pay. 5/31 180 5/31 … 180 5/31 … 36,000 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 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 Supplies Exp. 5/31 1,550 5/31 … 1,550 Depreciation Exp. 5/31 300 5/31 250 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 Pay.
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Week Three Problems and ExercisesACC290University of Phoeni.docx
- 1. 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
- 6. 30 Supply Exp. 1,280 1,280 Cash 6/30 … 6,850 Accounts Receivable 6/30 … 7,000 6/30 3,900 6/30 … 10,900 N/A Supplies 6/30 … 2,000 6/30 1,280 6/30 … 720
- 7. Prepaid Insurance 6/30 … 2,880 6/30 240 6/30 … 2,640 Equipment 6/30 … 15,000 Accounts Pay. 6/30 … 4,230 6/30 180 6/30 4,410 Salary Pay. 6/30 1,250 6/30 … 1,250 Unearned Service Rev. 6/30 4,100 6/30 … 5,200
- 8. 6/30 … 1,100 Common Stock 6/30 … 22,000 Salary Exp. 6/30 … 4,000 6/30 1,250 6/30 … 5,250 Rent Exp. 6/30 … 2,000 Insur. Exp. 6/30 240 6/30 Bal. 240 Utilities Exp. 6/30 180 6/30 … 180 Supply Exp. 6/30
- 9. 1,280 6/30 … 1,280 Accumulated Depreciation 6/30 250 6/30 … 250 Depreciation Exp. 6/30 250 6/30 … 250 Service Rev. 6/30 … 8,300 6/30 4,100 6/30 3,900 6/30 … 16,300 Vogel Consult.
- 10. Adjusted Trial Balance Debit Credit Accounts Rec. Cash Prepaid Insur. Supplies Equipment Accumulated Depreciation Accounts Pay.
- 11. Salary Pay. Unearned Serv. Rev. Common Stock Service Rev. Salary Exp. Rent Exp. Depreciation Exp. Insur. Exp. Utilities Exp.
- 13. $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 5/31 … 15,000 Mortgage Pay. Building 5/31 …
- 14. 70,000 Accumulated Depreciation 5/31 300 5/31 … 300 Equipment 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 Salary Pay. 5/31 900
- 15. 5/31 … 900 Interest Pay. 5/31 180 5/31 … 180 5/31 … 36,000 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 …
- 16. 3,900 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 Supplies Exp. 5/31 1,550 5/31 … 1,550 Depreciation Exp. 5/31 300 5/31
- 17. 250 5/31 … 550 Vang Hotel Adjusted Trial Balance Debit Credit Cash Prepaid Insurance Supplies Land Building
- 18. Accumulated Depreciation Equipment Accumulated Depreciation Accounts Payable Unearned Rent Revenue Salary Payable Interest Payable Mortgage Payable Common Stock
- 19. Rent Revenue Salary Expense Utilities Expense Advertising Expense Interest Expense Insurance Expense Supplies Expense Depreciation Expense 2,500
- 21. 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
- 22. Utilities expense 800 Depreciation expense 550 Advertising expense 500 Insurance expense 450 Interest expense 180 Total expenses 7,930
- 23. 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
- 24. 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
- 25. 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
- 26. 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.
- 27. 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
- 28. 250 4. 31 Interest Exp. 180 180 5. 31 Unearned Rent Rev. 2,500 2,500 6. 31 Salary Exp. 900 900