Question : 97) Identify the effects of each of the following items : 1253170

 

97) Identify the effects of each of the following items on the accounting equation. Show the correct dollar amount. Account titles are not required. The first entry has been done for you.

a.Prepaid rent used up, $400

b.Only $500 remains unearned of the $3,500 recognized as unearned revenue at the beginning of the period

c.Of the $700 in office supplies on hand at the beginning of the period, only $100 remained at the end of the period

d.Interest accrued but unpaid on a note payable amounts to $120

e.Depreciation of the long-term assets amounts to $12,000

f.Wages and salaries earned by employees but unpaid amount to $10,000

 

Item

Assets

Liabilities

Shareholders’ equity

 

 

 

Contributed

capital

Retained earnings

a.

(400)

 

 

(400)

b.

 

 

 

 

c.

 

 

 

 

d.

 

 

 

 

e.

 

 

 

 

f.

 

 

 

 

 

 

98) Identify the effects of each of the following items on the accounting equation. Show the correct dollar amount and write in the name of the account involved. The first entry has been done for you.

 

a.Supplies used up during the period, $100

b.Prepaid rent used up during the period, $320

c.Interest accrued on a note payable but unpaid, $250

d.Depreciation on long-term assets, $6,000

e.The portion of unearned revenue that has been earned, $1,400

f.A $12,000, 12-month insurance policy was purchased 3 months ago. An end of the year adjustment must be made

 

 

Assets

Liabilities

Shareholders’ equity

 

 

 

CC

Retained earnings

a.

(100) Supplies

 

 

(100) Supplies expense

b.

 

 

 

 

c.

 

 

 

 

d.

 

 

 

 

e.

 

 

 

 

f.

 

 

 

 

 

99) For each event, determine the amount of revenue to be recorded, even if $0, in May.

 

 

 

May

1.

In May, Tom contributed $8,000 in exchange for stock in Tom’s Wear, Inc.

 

2.

In April, Tom’s Wear, Inc.’s customer ordered $1,000 of t-shirts. In May, Tom’s Wear delivered the t-shirts and received the cash upon delivery.

 

3.

In April, Tom’s Wear, Inc.’s customer ordered $2,000 of t-shirts. Tom’s Wear delivered the t-shirts in May and received $2,000 in June.

 

4.

In April, Tom’s Wear received $3,000 cash in advance for t-shirts. $2,500 of the t-shirts were delivered on May 1. The remaining $500 of t-shirts were delivered on June l.

 

 

100) For each event, determine the amount of expense to be recorded, even if $0, in May.

 

 

 

May

1.

In June, Tom’s Wear, Inc. received a $400 utility bill for services provided in May. The bill was paid in June.

 

2.

In April, Tom’s Wear, Inc. paid $1,000 for an advertisement that was run in May.

 

3.

In April, Tom’s Wear, Inc. paid a $100 dividend to its owner, Tom.

 

4.

On April 1, Tom’s Wear, Inc. had no supplies. On April 30, it purchased $500 of supplies on account. In May, $100 of the supplies was used, and it paid the $500 owed for supplies. In June, the remainder of the supplies was used.

 

5.

On April 30, Tom’s Wear, Inc. hired an employee for $500 per month to begin in May. The employee is paid on June 1 for the work performed in May.

 

6.

In April, Tom’s Wear, Inc. purchased $500 of t-shirts. The t-shirts were sold in May and paid for in June.