Acc290 Week 3 Be4-1 P4-2a P4-3a Essay

1136 WordsMar 16, 20125 Pages
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. Cash -100/ Net Income 0 (b) Recorded an adjusting entry to record use of $20 of the above supplies. Cash 0/ Net Income -20 (c) Made sales of $1,300, all on account. Cash 0/ Net Income 1300 (d) Received $800 from customers in payment of their accounts. Cash 800/ Net Income 800 (e) Purchased equipment for cash, $2,500. Cash -2500/ Net Income 0 (f) Recorded depreciation of building for period used, $600. Cash 0/ Net Income -600 P4-2A A. | |…show more content…
Cash Prepaid Insurance Bal. May 1 2500 Bal. May 1 1800 Bal. May 31 2500 May 31 Cr 450 Bal. May 31 1350 Supplies Land Bal. May 1 2600 Bal. May 1 15000 May 31 Cr 1550 Bal. May 30 15000 Bal. May 30 1050 Buildings Equipment Bal. May 1 70000 Bal. May 1 16800 Bal. May 31 70000 Bal. May 31 16800 Accounts Payable Unearned Rent Revenue Bal. May 1 4700 Bal. May 1 3300 Bal. May 31 4700 May 31 Dr 2500 Bal. May 31 800 Mortgage Payable Common Stock Bal. May 1 36000 Bal. May 1 60000 Bal. May 31 36000 Bal. May 31 60000 Rent Revenue Salaries and Wage Expense Bal. May 1 9000 Bal. May 1 3000 May 31 Cr 2500 May 31 Cr 900 Bal. May 31 11500 Bal. May 31 3900 Utility Expense Advertising Expense Bal. May 1 800 Bal. May 1 500 Bal. May 31 800 Bal. May 31 500 Insurance Expense Supplies Expense Bal. May 1 450 Bal. May 1 1550 Bal. May 31 450 Bal. May 31 1550 Depreciation Expense Interest Expense Bal. May 1 0 Bal. May 1 0 May 31 Dr 6600 May 31 Dr 180 Bal. May 31 6600 Bal. May 31 180 Interest Payable Salary Payable Bal. May 1 0 Bal. May 1 0 May 31 Cr 180 May 31 Cr 900 Bal. May 31 180 Bal. May 31 900 Accumulated Depreciation Bal. May 1 0 May 31 Cr 550 Bal. May 31 550 C. Adjusted Trial Balance Vang Hotel Account Debit Credit

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