ACC 557 Week 2 Homework Problems – Strayer Click On The Link Below to Purchase A+ Graded Material Instant Download http://www.hwgala.com/ACC-557-Week-2-Homework-Problems-Strayer-NEWACC557W2HP.htm Chapter 2 Chapter 2 Exercise 2-6 Elvira Industries had the following transactions. 1 . 2 . 3 .
Borrowed $5,000 from the bank by signing a note. Paid $2,500 cash for a computer. Purchased $450 of supplies on account.
(a) Indicate what accounts are increased and decreased by each transaction. (b) Journalize each transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Exercise 2-9 Selected transactions from the journal of Roberta Mendez, investment broker, are presented below. Exercise 2-11 Presented below is the ledger for Sparks Co. Cash No. 101 10/1
5,000 10/4
400
10/10
650 10/12
1,500
10/10
3,000 10/15
280
10/20
500 10/30
300
10/25
2,000 10/31
500
Accounts Receivable
No. 112 10/6
800 10/20
10/20
940
500
Supplies No. 126 10/4
400 Equipment No. 157
10/3
2,000 Balance Notes Payable No. 200 10/10
3,000
Accounts Payable No. 201 10/12
1,500 10/3
2,000
Common Stock No. 311 10/1
5,000
10/25
2,000
Dividends No. 332 10/30
300 Service Revenue No. 400 10/6
800
10/10
650
10/20
940
Salaries and Wages Expense No. 726 10/31
500 Rent Expense No. 729
10/15
280
a) Reproduce the journal entries for the transactions that occurred on October 1, 10, and 20 and provide explanations for each. (Record entries in the order displayed in
the T-Accounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) b) Determine the October 31 balance for each of the accounts above, and prepare a trial balance at October 31, 2014. Problem 2-2A Kara Shin is a licensed CPA. During the first month of operations of her business, Kara Shin, Inc., the following events and transactions occurred. May 1 2 3 7 11 12 17 31 31
Stockholders invested $20,000 cash in exchange for common stock. Hired a secretary-receptionist at a salary of $2,000 per month. Purchased $1,500 of supplies on account from Hartig Supply Company. Paid office rent of $900 cash for the month. Completed a tax assignment and billed client $2,800 for services provided. Received $3,500 advance on a management consulting engagement. Received cash of $1,200 for services completed for Lucille Co. Paid secretary-receptionist $2,000 salary for the month. Paid 40% of balance due Hartig Supply Company.
Kara uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense. a) Journalize the transactions. (Record entries in the order displayed in the problem statement. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) b) Post to the ledger accounts. (Post the entries into ledger in the order displayed in Part 1.) c) Prepare a trial balance on May 31, 2014. Chapter 3 Chapter 3 Exercise 3-6 Your answer is correct. Orwell Company accumulates the following adjustment data at December 31. 1 . 2 . 3 . 4 .
Services provided but not recorded total $1,420. Supplies of $300 have been used. Utility expenses of $225 are unpaid. Unearned service revenue of $260 is recognized for services performed.
5 . 6 .
Salaries of $800 are unpaid. Prepaid insurance totaling $380 has expired.
For each of the above items indicate the following. (Answer for account balances before adjustment should be entered in alphabetical order.) (a)
The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense).
(b )
The status of accounts before adjustment (overstatement or understatement).
Exercise 3-7 Your answer is correct. The ledger of Villa Rental Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared.
Prepaid Insurance Supplies Equipment Accumulated Depreciation—Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense
Debit $ 3,600 2,800 25,000
$ 8,400 20,000 9,900 60,000 0 14,000
An analysis of the accounts shows the following 1 . 2 . 3 . 4 . 5 .
Credit
The equipment depreciates $300 per month. One-third of the unearned rent revenue was recognized during the quarter. Interest of $500 is accrued on the notes payable. Supplies on hand total $650. Insurance expires at the rate of $200 per month.
Prepare the adjusting entries at March 31, assuming that adjusting entries are
made quarterly. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Exercise 3-11 A partial adjusted trial balance of Ruiz Company at January 31, 2014, shows the following. Ruiz Company Adjusted Trial Balance January 31, 2014 Debit $ 850 2,400
Supplies Prepaid Insurance Salaries and Wages Payable Unearned Service Revenue Supplies Expense Insurance Expense Salaries and Wages Expense Service Revenue
Credit
$ 800 750 950 400 2,500 2,000
Answer the following questions, assuming the year begins January 1. (a) If the amount in Supplies Expense is the January 31 adjusting entry, and $670 of supplies was purchased in January, what was the balance in Supplies on January 1? The balance in Supplies on January 1
$
(b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for one year, what was the total premium and when was the policy purchased? The total premium
$
The policy purchased (c) If $3,300 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2013? The balance in Salaries and Wages Payable at December 31, 2013 $
Problem 3-2A Lazy River Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows. Lazy River Resort, Inc. Trial Balance August 31, 2014 Account Number 101 126 130 140 143 157 201 208 275 311 332 429 622 726 732
Cash Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Dividends Rent Revenue Maintenance and Repairs Expense Salaries and Wages Expense Utilities Expense
Debit $ 19,600 3,300 6,000 25,000 125,000 26,000
5,000 3,600 51,000 9,400 $273,900
In addition to those accounts listed on the trial balance, the chart of accounts for Lazy River Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable, No. 144 Accumulated Depreciation—Buildings, No. 158 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 631 Supplies Expense, No. 711 Depreciation Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data: 1 . 2 . 3 . 4
Insurance expires at the rate of $400 per month. A count on August 31 shows $900 of supplies on hand. Annual depreciation is $4,500 on buildings and $2,400 on equipment. Unearned rent revenue of $4,100 was recognized for services performed prior to
Cr
$
. 5 . 6 . 7 .
August 31. Salaries of $400 were unpaid at August 31. Rentals of $3,700 were due from tenants at August 31. (Use Accounts Receivable.) The mortgage interest rate is 9% per year. (The mortgage was taken out on August 1.)