hw chapter 3
cash
current asset
store supplies
current assets
common stock
equity
long term investment in stock
long term investments
notes payable (due in 3 years)
long-term liabilities
depreciation expense building
no item required
automobiles
plant assets
buildnings
plant assets
the prepaid insurance account had a 6000 debit balance at december 31 before adjusting for the costs of any expired coverage. an analysis of the company's insurance policies showed that 1100 of unexpired insurance coverage remains
insurance expense debit, 4900 prepaid insurance credit, 4900
accumulated depreciation trucks
plant assets
two thirds of the work related to 15000 of cash received in advance was performed this period
unearned revenue debit, 10000 revenue credit, 10000
wage expenses of 3200 have been incurred but are not paid as of december 31
wages expense 3200 debit wages payable 3200 credit
wage expenses of 1000 have been incurred but are not paid as of december 31st
wages expense debit 1000 wages payable credit 1000
following are nintendo's revenue and expense accounts for a recent march 31 fiscal year end (yen in millions) net sales 504,459 cost of sales 283,494 ad expense 46,636 other expense, net 157,811
1 march 31 net sales debit 504,459 income summary credit 504459 2 march 31 income summary debit 487941 cost of sales credit 283494 ad expense credit 46636 other expense, net credit 157811
m&r company provided 2000 in services to customers in december. those customers are expected to pay the company sometime in january following the company's year end
accounts receivable debit 2000 revenue credit 2000
interest receivable
current assets
office supplies
current assets
prepaid insurance (expires in five months)
current assets
prepaid rent (2 months)
current assets
current portion of long term note payable
current liabilities
taxes payable (due in five weeks)
current liabilities
unearned services revenue
current liability
accounts payable
current liabilties
depreciation on the company's equipment is computed to be 18000
depreciation expense - equipment debit, 18000 accumulated depreciation- equipment credit, 18000
m&r company has a 5000 bank loan and has incurred (but not recorded) 8% interest expense of $400 for the year ended december 31. the company will pay the $400 interest in cash on january 2 following the company's year end
interest expense debit, 400 interest payable credit, 400
m&r company has earned $200 in interest revenue from investments for the year ended december 31. the interest revenue will be received i january 15 following the company's year end.
interest receivable debit, 200 interest revenue credit, 200
m&r company hired a firm that provides lawn services during december for 500. m&r will pay for december lawn services on january 15 following the company year end
lawn services expense 500 lawn services payable 500
repairs expense
no item required
land (used in operations)
plant assets
office equipment
plant assets
the prepaid rent account had a 6800 debit balance at december 31 before adjusting for the costs of expired prepaid rent. an analysis of the rental agreement showed that 5800 of prepaid rent had expired
rent expense debit, 5800 prepaid rent credit, 5800
salary expenses of 900 have been earned by supervisors but not paid as of december 31
salary expense debit, 900 salary payable credit, 900
the office supplies account had a 700 debit balance at the beginning of the year; and 3480 of office supplies were purchased during the year. the december 31 physical count showed $300 of supplies available
supppies expense debit, 3880 supplies credit, 3880
