SOL.CHP.10-PART1

School: Dawson College - Course: ACCOUNTING 201900DW - Subject: Accounting

Quick Study 10-3 (10 minutes) 2023 Oct. 31 Cash............................................................................2,000,000 Unearned Ticket Revenue......................................2,000,000 To record sales in advance of Diana Krall concerts. Nov. 16Unearned Ticket Revenue............................................500,000 Ticket Revenue......................................................500,000 To record Diana Krall concert revenues earned. Quick Study 10-8 (10 minutes) 2023 Oct.1 Account Payable-Huang Manufacturing.....................14,800.00 Note Payable...........................................................14,800.00 To convert account payable to note payable. Nov. 15 Note Payable................................................................14,800.00 Interest Expense..........................................................145.97 Cash........................................................................14,945.97 To record payment of note and interest; $14,800 × 8% × 45/365 = $145.97. Quick Study 10-9 (5 minutes) Interest payable at December 31, 2023: Days........................................................................20 days Interest (5.5% × $42,000 × 20/365).........................$126.58 Exercise 10-3 (15 minutes) 1.a. 2023 Jan. 2 Land.................................................................................200,000 Notes Payable.............................................................200,000

2To record issuance of 6%, 3-year note. 1.b. 2023 Dec.31 Notes Payable..................................................................62,822 Interest Expense..............................................................12,000 Cash............................................................................74,822 To record annual payment on note payable. 2. Casual Elite Co. Partial Balance Sheet December 31, 2023 Liabilities: Current liabilities: Current portion of long-term note........................................................................$66,591 Non-current note payable (less current portion of $66,591)....................................70,587 Exercise 10-7 (10 minutes) 2023 a. Nov. 15Cash..................................................................................2,000 Unearned revenue-(Gift Cards Liability)........................2,000 To record purchase of 40 gift cards, $50 each. b. Dec 31Unearned revenue(Gift Cards Liability)..............................750 Sales Revenue.............................................................750 To record 15 gift cards redeemed in December; $50 × 15 = $750. The liability, unearned revenue will have a balance of $1,250 on December 31, for$50 × 25 = $1,250 Exercise 10-11 (20 minutes) a. 2023 Mar. 10Equipment.........................................................................150,000 Cash.........................................................................150,000 Purchased equipment for cash. b. 2023 Mar. 10Equipment.........................................................................150,000 Accounts Payable.....................................................150,000 Purchased equipment on credit; terms 1/30, n/60.