E3-1B| ( Transaction Analysis—Service Company ) Brown is a accredited CPA. During the first month of operations of her concern ( a sole proprietary ) . the undermentioned events and minutess occurred. | | |
April| | |
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| 3| Purchased supplies on history $ 1. 610. |
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| 11| Completed a revenue enhancement assignment and billed client $ 2. 530 for services rendered. | | 12| Received $ 7. 360 progress on a direction consulting battle. | | 17| Received hard currency of $ 5. 290 for services completed for Calunga Co. | | 21| Paid insurance expense $ 253. |
| 30| Owe the secretary-receptionist $ 2. 668 for the month. | | 30| A count of supplies indicated that $ 276 of supplies had been used. | | 30| Purchased a new computing machine for $ 14. 030|
( LO 4 ) |
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InstructionsJournalize the minutess in the general diary. ( Omit accounts. ) Problem # 3| |
E3-3B | ( Corrected Trial Balance ) The test balance of Cervantes Corporation. below. does non equilibrate. | | |
CERVANTES CORPORATIONTRIAL BALANCEAPRIL 30. 2010| | Debit| Credit|
Cash| $ 11. 824| |
Histories Receivable| 10. 480| |
Supplies on Hand| 5. 934| |
Furniture and Equipment| 12. 200| |
Histories Payable| | $ 14. 088|
Common Stock| | 16. 000|
Retained Earnings| | 4. 000|
Service Revenue| | 10. 400|
Office Expense| 8. 640| |
| $ 49. 078| $ 44. 488|
An scrutiny of the leger shows these mistakes. | 1. | Cash received from a client on history was recorded as $ 2. 760 alternatively of $ 3. 660. | |
2. | The purchase on history of a computing machine bing $ 6. 400 was recorded as a debit to Office Expense and a recognition to Accounts Payable. | |
3. | Services were performed on history for a client. $ 4. 500. for which Accounts Receivable was debited $ 4. 500 and Service Revenue was credited $ 450. | |
4. | A payment of $ 190 for telephone charges was entered as a debit to Office Expenses and a debit to Cash. | |
5. | The Service Revenue history was totaled at $ 10. 400 alternatively of $ 10. 560. |
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( LO 4 ) |
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InstructionsFrom this information fix a corrected test balanceProblem # 4| |
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E3-5B | ( Adjusting Entries ) The leger of Chan Rental Agency on March 31 of the current twelvemonth includes the undermentioned selected histories before seting entries have been prepared. | | |
| Debit| Credit|
Prepaid Insurance| $ 2. 700| |
Supplies| 2. 100| |
Equipment| 18. 750| |
Accumulated Depreciation—Equipment| | $ 6. 300|
Notes Payable| | 15. 000|
Unearned Rent Revenue| | 6. 975|
Rent Revenue| | 45. 000|
Interest Expense| –0– | |
Wage Expense| 10. 500| |
An analysis of the histories shows the undermentioned. | 1. | The equipment depreciates $ 188 per month. | |
2. | One-third of the unearned rent was earned during the one-fourth. | |
3. | Interest of $ 375 is accrued on the notes collectible. | |
4. | Supplies on manus entire $ 637. |
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5. | Insurance expires at the rate of $ 225 per month. |
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( LO 5 ) |
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InstructionsPrepare the adjusting entries at March 31. presuming that seting entries are made quarterly. Extra histories are: Depreciation Expense ; Insurance Expense ; Interest Payable ; and Supplies Expense. | |
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Problem # 5 | |
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E3-8B | ( Adjusting Entries ) Dement is the new proprietor of Fung Computer Services. At the terminal of August 2010. his first month of ownership. Dement is seeking to fix monthly fiscal statements. Below is some information
related to live disbursals that the concern incurred during August. | 1. | At August 31. Dement owed his employees $ 2. 280 in rewards that will be paid on September 1. | |
2. | At the terminal of the month he had non yet received the month’s public-service corporation measure. Based on past experience. he estimated the measure would be about $ 720. | |
3. | On August 1. Dement borrowed $ 36. 000 from a local bank on a 15-year mortgage. The one-year involvement rate is 6 % . | |
4. | A telephone measure in the sum of $ 140 covering August charges is unpaid at August 31. 5. During August. Dement earned $ 1000 of $ 6000 that was received from a client at the terminal of July. |
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( LO 5 ) |
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InstructionsInstructionsPrepare the seting journal entries as of August 31. 2010. suggested by the information above. | |
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