Financial Accounting Exercises and Solutions

School: California Polytechnic State University, Pomona - Course: ACC 3110 - Subject: Accounting

Exercise 3-6 (30 minutes) a.Wages Expense.................................................................8,000 Wages Payable...........................................................8,000 Record wages accrued but not yet paid. b.Depreciation Expense—Equipment.................................18,000 Accumulated Depreciation—Equipment..................18,000 Record depreciation expense for the year. c.Supplies Expense..............................................................5,000 Supplies* .....................................................................5,000 Record supplies used ($240 + $5,200 - $440). d.Insurance Expense............................................................2,800 Prepaid Insurance†.....................................................2,800 Record insurance coverage expired ($4,000 - $1,200). e.Interest Receivable.......................................................... 1,050 Interest Revenue...................................................... 1,050 Record interest earned but not yet received. f.Interest Expense..............................................................2,500 Interest Payable........................................................2,500 Record interest incurred but not yet paid. Notes: Prepaid Insurance†Supplies * Beg. Bal.4,000Beg. Bal.240 Purch.5,200 ?Expired ?Used End. Bal.1,200End. Bal.440

Exercise 3-12 (25 minutes) a.Dec. 31Accounts Receivable.........................................7,000 Services Revenue.......................................7,000 Record earned but unbilled fees. b.Dec.31Depreciation Expense—Computers.................1,600 Accumulated Depreciation-Computers....1,600 Record depreciation on computers. c.Dec.31Depreciation Expense—Office Furniture..........1,850 Accumulated Depreciation—Office Furniture 1,850 Record depreciation on office furniture. d.Dec. 31Salaries Expense...............................................2,250 Salaries Payable.........................................2,250 Record accrued salaries. e.Dec. 31Insurance Expense............................................1,400 Prepaid Insurance......................................1,400 Record expired prepaid insurance. f.Dec. 31Office Supplies Expense...................................580 Office Supplies...........................................580 Record use of office supplies. g.Dec. 31Utilities Expense................................................90 Utilities Payable..........................................90 Record incurred and unpaid utility costs.