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    Ch1 and 2 Tutorial Questions

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    Ch1 and 2 Tutorial Questions

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    90 views7 pages

    Ch3 Tutorial Questions

    Uploaded by

    andy15
    Ch1 and 2 Tutorial Questions

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 7
    122 Chapters The Accounting Cycle: Capturing Economic Events Prepare an afterclosing tial balance, List these steps in the sequence in which they would normally be performed. (A detailed understanding ofthese eighe steps is not required until Chapters ¢ and'3.) b. Describe ways in which the information prodaced throug the accounts yele is used by a ‘company's management and employees. Recording Traneactions ina BRIEF EXERCISE 9.2 Record the following sel -netal journal form Journal or Sun Orthopedic Clinic Limited, Include a brief explanation of the transaction as pert of 198,104, 195 journal entry 1 Oct. The clinic issued 4,000 adtional shares to Doctor Soges at $50 per share 4 Oct, The clinic purchased diagnostic equipment. The equipment cost $75,000, of which $525,000 was paid in casi a nove payable was issued for the balanc 12.0et, Issued a cheek for $9,000 in fall payment of an account payable to Zeller Laboratories, 19 Oct. Purchased surgical supplies for $2,600, Payment is nor due until 28 November 25 Oct. Collected a $24,000 account receivable from Health One Insurance Company 30 Oct. Declared und paid a $300,000 eash dividend to shareholder. Recording Transactions BRIEF EXERCISE 3.3 Brown Consulting Services organized esa corporation on 18 January 7, 108 ‘and engaged in the following transactions during is first two weeks of operation 18 Jan. Issued shares in exchange for $30,000 cash, 22 Jan. Bormwec: $20,000 from its bank by issuing a note payable. 23 Jan, Paid $100 for a ratio advertisement aired on 24 fanasry Jan, Provided $1,000 of services to clients for cash 26 Jan. Provided $2,000 of services to clients on account, 31 Jan, Collected $800 cash from clients forthe services provided on 26 January a, Record each of these transactions b. Determine the balance in the Cash account on 31 January. Be certain to state wi balance is debit or eredit, Debit and Gredit BRIEF EXERCISE 3.4 Five accomt classifications are shown as column headings inthe table 195, 198 below. For each account classification, indicate the manner in which increases and decreases are recorded (i.e, by debits or by credits Revenue Expenses Assets Liabilities Equity Increases recorded by: | Decreases recorded by: | | (Changes in Retain BRIEF EXERCISE 9.5 Jackson Corporation's Retained Earnings account balance was Eaming 875.000 on I January. During Januery, the company recorded revenue of $100,000, expenses at 103, 06 $560,000, and dividends of $5,000. The company also purchased land during the petiod for $20,000 ‘cash, Determine the company's Retained Earnings account halance on 31 lanuaes Recogrit BRIEF EXERCISE 9.6 On 26 May, Breeze Camp Ground paid KPRM Radio $500 Princip ash for ten 30-second advenisements. Two of the ads were aired in May, seven in Sane, and one 106,07 in July. Apply the recognition principle to determine how much advertising revenue KPRM Radio eamed from Breeze Catnp Ground in May, June, an July Apply the matching principle to determine how much advertising exper Ground ineurred jp May, Jun, and July SR 2 Breeze Camp chapter 3 The Accounting Cycle: Caoturng BRIEF EXERCISE 3.7 The following transactions were caried out during the month of May ty M. Palmer and Company, finn of design architects. For each of the five transactions, you ae 1 whether the transaction represented revenue to the firm during the month of May. Give reasons soar decision in each case ‘a. M. Palmer and Company received $25,000 cash b shares of share capital hh. Collected cash of $3,400 from an account receiv -civable originated in April from services rendered 10 client. ‘c. Borrowed $12,800 from Century Bunk to be repaid in three months, {._ Bamed $83 interest on @ company bank account during the month of May. No withdrawals were made from this aecount in May ‘e._ Completed plans ior guesthouse, pool, ané spa fora clint, The $5,700 fee fortis project was billed to the clienc in May, but will not be collected until 25 June BRIEF EXERCISE 3.8 During March, the activities of B following transactions and events, among others. Which of March? Explain, sen Landscaping includ tems represented exp the Purchased s copying machine for $2,750 eash, Paid $197 Durcheses for a delivery truck during Marc. Paid §2,280 salary to an employee for time worked during Merch Paid an alomney $560 for legal services rendeted in Tanuary Declared and paid as. $1,800 dividend to shareholders, eRO er BRIEF EXERCISE 2.9. Up & Away Aitlines has provided the following information regarding cash recsived for ticket sales in September and October . £ in September for October fights $500,000 Cash received in Octoher for October flights 300.000 Cash received in Ostaher for November fights 400,000 Apply the recognition principle to determ in its October income statement 1= how much revenue Up & Away Alt

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