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Sheet1

Week Three Exercises


ACC 290

BE4-1
Cash
a. -100
b.0
c.0
d.800
e. -2500
f.0

Net Income
0
-20
1300
800
0
-600

P4-2A
A. Adjusting Entries for June
Date
Account Titles and Explanations
2012
Adjusting Entries
06/30/12 Supplies Expense
Supplies
(To record Supplies used)
30 Utilities Expense
Utilities Payable
(to record unpaid utility)
30 Insurance Expense
Prepaid Insurance
(To record insurance expired)
30 Unearned Service Revenue
Service Revenue
(To record revenue earned)
30 Salaries and Wage Expense
Salaries and Wage Payable
(To record accrued salaries)
30 Depreciation Expense
Accumulated Depreciation-Equip
(To record monthly depreciation)
30 Accounts Payable
Service Revenue
(To record service revenue earned but not paid)

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Debit
1280

180

240

4100

1250

250

3900

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B. Post Adjusting Entries-T accounts


Cash
Balance as of 06/1/2012

6850

Balance as of 06/30/2012

6850

Prepaid Insurance
Balance as of 06/1/2012
06/30/12

2880

Balance as of 06/30/2012

2640

240

Equipment
Balance as of 06/1/2012

15000

Balance as of 06/30/2012

15000
Unearned Service Revenue

Balance as of 06/1/2012
06/30/12

5200
4100

Balance as of 06/30/2012

1100
Service Revenue

Balance as of 06/1/2012
06/30/12
06/30/12

8300
4100
3900

Balance as of 06/30/2012

16300

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Rent Expense
Balance as of 06/1/2012

2000

Balance as of 06/30/2012

2000
Utilities Payable

Balance as of 06/1/2012
06/30/12

180

Balance as of 06/30/2012

180
Depreciation Expense

Balance as of 06/1/2012
06/30/12

250

Balance as of 06/30/2012

250
Utilities Expense

Balance as of 06/1/2012
06/30/12

180

Balance as of 06/30/2012

180

C. Adjusted Trial Balance


Vogul Consulting
Adjusted Trial Balance
06/30/12
Debit
Cash
Accounts Receivable
Prepaid Insurance
Supplies
Equipment

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6850
10900
2640
720
15000

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Accounts Payable
Unearned Service Revenue
Common Stock
Service Revenue
Salaries and Wages Expense
Rent Expense
Accumulated DepreciationEquipment
Utilities Payable
Salaries and Wages Payable
Depreciation Expense
Insurance Expense
Utilities Expense
Supplies Expense.

5250
2000

250
240
180
1280
45310

P4-3A
Date
Account Titles and Explanations
2012
Adjusting Entries
05/31/12 Insurance Expense
Prepaid Insurance
(To record insurance expired)
31 Supplies Expense
Supplies
(To record Supplies used)
31 Depreciation Expense
Accumulated Depreciation-Equip
(To record monthly depreciation)
31 Interest expense
Interest Payable
(To record 6% interest rate)
31 Unearned Rent Revenue
Rent Revenue
(To record unearned rent )
31 Salaries and Wages Expense
Salaries and Wage Payable
(To record accrued salaries)

Debit
450

1550

550

180

2500

900

Cash
Balance as of 05/1/2012

2500

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Balance as of 05/31/2012

2500
Supplies

Balance as of 05/1/2012
05/31/12

2600

Balance as of 05/31/2012

1050

1550

Buildings
Balance as of 05/1/2012

70000

Balance as of 05/31/2012

70000
Accounts Payable

Balance as of 05/1/2012

4700

Balance as of 05/31/2012

4700
Mortgage Payable

Balance as of 05/1/2012

36000

Balance as of 05/31/2012

36000
Rent Revenue

Balance as of 05/1/2012
05/31/12

9000
2500

Balance as of 05/31/2012

11500
Utilities Expense

Balance as of 05/1/2012

800

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Balance as of 05/31/2012

800
Insurance Expense

Balance as of 05/1/2012
05/31/12

450

Balance as of 05/31/2012

450
Depreciation Expense

Balance as of 05/1/2012
05/31/12

6600

Balance as of 05/31/2012

6600
Interest Payable

Balance as of 05/1/2012
05/31/12

180

Balance as of 05/31/2012

180

C. Adjusted Trial Balance


Vang Hotel
Adjusted Trial Balance
05/31/12
Debit
2500
1350
1050
15000
70000
16800

Cash
Prepaid Insurance
Supplies
Land
Buildings
Equipment
Accounts Payable
Unearned Rent Revenue
Mortgage Payable

Credit

4700
800
36000

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60000
11500
550

Common Stock
Rent Revenue
Accumulated Depreciation
Salaries and Wages Expense
Utilities Expense
Advertising Expense
Insurance Expense
Supplies Expense
Depreciation Expense
Interest Expense
Interest Payable
Salaries and Wages Payable

3900
800
500
450
1550
550
180

114630

180
900
114630

D. Prepare Income statement, Retained Earnings Statement, Classified Ba


Vang Hotel
Income Statement
For the Month Ended May 31, 2012
Revenues
Rent Revenue
Total Revenue

11500
11500

Expenses
3900
800
500
450
1550
550
180

Salaries and Wages Expense


Utilities Expense
Advertising Expense
Insurance Expense
Supplies Expense
Depreciation Expense
Interest Expense

Total Expenses

7930

Net Income

3570

Vang Hotel
Retained Earnings Statement
For the Month Ended May 31, 2012
Retained earnings, May 1
Add: Net Income

0
3570
3570
0
3570

Less Dividends
Retained Earnings May 31

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Vang Hotel
Balance Sheet
For the Month Ended May 31, 2012
Assets
2500
1350
1050

Cash
Prepaid Insurance
Supplies
Land
Buildings
Equipment
Less: Accumulated Depreciation

15000
70000
16800
550

Total assets

101250
106150

Liabilities and Stockholders' equity


4700
800
36000
180
900

Accounts Payable
Unearned Rent Revenue
Mortgage Payable

Interest Payable
Salaries and Wages Payable
Total Liabilities

42580

Common Stock
Retained Earnings
Total Stockholders Equity
Total Liabilities and stockholders' equity

60000
3570
63570
106150

E. Identify
The following accounts need to be Closed on May 31.

Salaries and Wages Expense


Utilities Expense
Advertising Expense
Insurance Expense
Supplies Expense
Depreciation Expense
Interest Expense
Rent Revenue

Summary Question
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Cash basis accounting is the accounting method that is only reported when a company receives or pays cash. The accrual ac
records when a events occurs regardless if cash was received or not. The difference between the different accounting method
Cash basis accounting transactions are posted when cash is received and accrual basis accounting post transactions when e

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Credit

1280

180

240

4100

1250

250

3900

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Balance as of 06/1/2012
06/30/12

Balance as of 06/30/2012

Balance as of 06/1/2012
06/30/12

Balance as of 06/30/2012

Accounts Receivable
7000
3900

10900
Supplies
2000
1280

720
Accounts Payable

Balance as of 06/1/2012

4230

Balance as of 06/30/2012

4230
Common Stock

Balance as of 06/1/2012

22000

Balance as of 06/30/2012

22000

Balance as of 06/1/2012
06/30/12

Balance as of 06/30/2012

Salaries and Wage Expense


4000
1250

5250

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Accumulated Depreciation
Balance as of 06/1/2012
06/30/12

250

Balance as of 06/30/2012

250
Salaries and Wage Payable

Balance as of 06/1/2012
06/30/12

1250

Balance as of 06/30/2012

1250
Insurance Expense

Balance as of 06/1/2012
06/30/12

240

Balance as of 06/30/2012

240
Supplies Expense

Balance as of 06/1/2012
06/30/12

1280

Balance as of 06/30/2012

1280

Credit

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Sheet1
4230
1100
22000
16300

250
180
1250

45310

Credit

450

1550

550

180

2500

900

Balance as of 05/1/2012
05/31/12

Prepaid Insurance
1800
450

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Sheet1
Balance as of 05/31/2012

1350

Balance as of 05/1/2012

Land
15000

Balance as of 05/31/2012

Balance as of 05/1/2012

15000
Equipment
16800
250

Balance as of 05/31/2012

16800

Balance as of 05/1/2012
05/31/12

Unearned Rent Revenue


3300
2500

Balance as of 05/31/2012

800
Common Stock

Balance as of 05/1/2012

60000

Balance as of 05/31/2012

60000

Balance as of 05/1/2012
05/31/12

Balance as of 05/31/2012

Balance as of 05/1/2012

Salaries and Wage Expense


3000
900

3900
Advertising Expense
500

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Balance as of 05/31/2012

500
Supplies Expense

Balance as of 05/1/2012
05/31/12

1550

Balance as of 05/31/2012

1550
Interest Expense

Balance as of 05/1/2012
05/31/12

Balance as of 05/31/2012

180

180
Salaries Payable

Balance as of 05/1/2012
05/31/12

900

Balance as of 05/31/2012

900

Balance as of 05/1/2012
05/31/12

Accumulated Depreciation
0
550

Balance as of 05/31/2012

550

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ment, Classified Balance Sheet

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es or pays cash. The accrual accounting method is when a company


the different accounting methods is when transactions are posted.
unting post transactions when event occurs.

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