ACC 290 Week 3 Individual WileyPLUS 

Assignment

ACC 290 Week 3 Individual WileyPLUS Assignment

Exercise BE4-1

Transactions that affect earnings do not necessarily affect cash.

Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example.

(a)	Purchased $100 of supplies for cash.
(b)	Recorded an adjusting entry to record use of $40 of the above supplies.
(c)	Made sales of $1,300, all on account.
(d)	Received $800 from customers in payment of their accounts.
(e)	Purchased equipment for cash, $2,500.
(f)	Recorded depreciation of building for period used, $600.

Problem P4-2A

Nick Waege started his own consulting firm, Waegelein Consulting, on June 1, 2010. The trial balance at June 30 is as follows.

WAEGELEIN CONSULTING
Trial Balance
June 30, 2010
	Debit	Credit
Cash	$6,850
Accounts Receivable	7,000
Prepaid Insurance	2,640
Supplies	2,000
Office Equipment	15,000
Accounts Payable		$4,540
Unearned Service Revenue		5,200
Common Stock		21,750
Service Revenue		8,000
Salaries Expense	4,000
Rent Expense	2,000
	$39,490	$39,490

Other data:

1	Supplies on hand at June 30 total $980.
2.	A utility bill for $180 has not been recorded and will not be paid until next month.
3.	The insurance policy is for a year.
4.	$3,900 of unearned service revenue has been earned at the end of the month.
5.	Salaries of $1,250 are accrued at June 30.
6.	The office equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months.
7.	Invoices representing $3,500 of services performed during the month have not been recorded as of June 30.

Problem P4-3A

The Olathe Hotel opened for business on May 1, 2010. Here is its trial balance before adjustment on May 31. OLATHE HOTEL Trial Balance May 31, 2010 Debit Credit Cash $2,500 Prepaid Insurance 1,800 Supplies 2,600 Land 15,000 Lodge 70,000 Furniture 16,800 Accounts Payable $4,700 Unearned Rent Revenue 3,300 Mortgage Payable 36,000 Common Stock 60,000 Rent Revenue 9,000 Salaries Expense 3,000 Utilities Expense 800 Advertising Expense 500 $113,000 $113,000 Other data: 1. Insurance expires at the rate of $300 per month. 2. A count of supplies shows $1,050 of unused supplies on May 31. 3. Annual depreciation is $3,600 on the lodge and $3,000 on furniture. 4. The mortgage interest rate is 7%. (The mortgage was taken out on May 1.) 5. Unearned rent of $2,500 has been earned. 6. Salaries of $750 are accrued and unpaid at May 31.  Buy this Material Click below link http://www.uopmaterials.com/ACC-290/ACC-290-Week-3/ACC-290-Week-3-Individual-WileyPLUS-Assignment For more materials visit: http://www.uopmaterials.com