ACC 290 Week 3 Individual Assignment Week Three Problems and Exercises

acc_290_week_3_individual_assignment_week_three_problems_and_exercises

ACC 290 Week 3 Individual Assignment Week Three Problems and Exercises

WeekThree Problems and Exercises

ACC/29

0

University of Phoenix

BE4-1

cash	net income
A. B. C. D. E. F.	-10 0 0 0 +800 -2,500 0	0 -20 +1,300 0 0 -600

P4-2A

3,900

4,100

30

  

  240

180

30

1,250

30

  250

30

1,280

Date	Accounts			Debit			Credit
1.	June 30	Accounts Rec.		3,900
2.					30
Unearned Service Rev.
	4,100
3.
Insur. Exp.
	240
4.	30	Utility Exp.		180
5.
	Salary Exp.
	1,250
6.
	Depreciation Exp.
	250
7.	Supply Exp.		1,280

	Cash
6/30 … 6,850

Accounts Receivable

6/30 … 7,000  6/30 3,900

6/30 … 10,900

N/A

	Supplies
	6/30 … 2,000	6/30 1,280
6/30 … 720

Prepaid Insurance
6/30 … 2,880	6/30 240
6/30 … 2,640

	Equipment
6/30 … 15,000

	Accounts Pay.
6/30 …  4,230
6/30 180
6/30 4,410

	Salary Pay.
6/30  1,250
6/30 …  1,250

Unearned Service Rev.

6/30  4,100	6/30 …  5,200
6/30 …  1,100

	Common Stock
6/30 … 22,000

Salary Exp.

6/30 … 4,000  6/30 1,250

6/30 … 5,250

6/30 …
2,000 

Rent Exp.

Insur. Exp.

6/30   240

6/30 Bal.   240

	Utilities Exp.
6/30   180
6/30 …   180

Supply Exp.

6/30 1,280

6/30 … 1,280

	Accumulated Depreciation
6/30    250
6/30 …    250

Depreciation Exp.

6/30   250

6/30 …   250

Service Rev.

6/30 …  8,300  6/30  4,100  6/30  3,900

6/30 … 16,300

Vogel Consult.

Adjusted Trial Balance

Debit

Credit

Accounts Rec.

Cash

Supplies

Equipment

Accounts Pay.

Salary Pay.

Unearned Serv. Rev.

Common Stock

Service Rev.

Salary Exp.

Rent Exp.

Depreciation Exp.

Insur. Exp.

Utilities Exp.

Supply Exp.

Prepaid Insur.	Accumulated Depreciation	10,900   6,850   2,640   720  15,000   5,250   2,000     250     240     180 1,280 $45,310	250   4,410   1,250   1,100  22,000  16,300   $45,310

P4-3A

Cash

5/31 … 2,500

Prepaid Insur.

5/31 … 1,800	5/31 450
5/31 … 1,350

Supplies

5/31 …  2,600	5/31 1,550
5/31 …  1,050

Land

5/31 … 15,000

Mortgage Pay.

Building

5/31 … 70,000

Accumulated Depreciation

5/31   300

5/31 …   300

Equipment

5/31 … 16,800

Accumulated Depreciation

5/31   250

5/31 …   250

Accounts Pay.

5/31 … 4,700

Unearned Rent Rev.
5/31  2,500	5/31 … 3,300
5/31 … 800

Salary Pay.

5/31   900

5/31 …   900

Interest Pay.

5/31   180

5/31 …   180

5/31 … 36,000

Common Stock

5/31 … 60,000

Rent Revenue

5/31 …  9,000  5/31  2,500

5/31 … 11,500

Salary Exp.

5/31 … 3,000  5/31   900

5/31 … 3,900

Utilities Exp.

5/31 … 800

Advertising Exp.

5/31 …   500

Interest Exp.

5/31   180

5/31 …   180

Insurance Exp.

5/31   450

5/31 …   450

Supplies Exp.

5/31 1,550

5/31 … 1,550

Depreciation Exp.

5/31 300

5/31 250

5/31 … 550

Vang Hotel

Adjusted Trial Balance

Debit

Credit

Cash Prepaid Insurance Supplies Land Building Accumulated Depreciation Equipment Accumulated Depreciation Accounts Payable Unearned Rent Revenue Salary Payable Interest Payable Mortgage Payable Common Stock Rent Revenue Salary Expense Utilities Expense Advertising Expense Interest Expense Insurance Expense Supplies Expense Depreciation Expense	2,500    1,350    1,050   15,000   70,000   16,800    3,900     800      500      180      450    1,550      550 $114,630	300      250    4,700     800      900      180   36,000   60,000   11,500   $114,630

Vang Hotel

Income Statement

Rent revenue

11,500

Salary expense
3,900

Supply expense
 1,550

Utilities expense
 800

Depreciation expense
   550

Advertising expense
   500

Insurance expense
   450

Interest expense
180

Total expenses

7,930

Net income

3,570

Vang Hotel

Retained Earnings Statement

Retained earnings, May 1
0

Net income
3,570

Retained earnings, May 31
$3,570

Vang Hotel

Balance Sheet

Cash

2,500

Supplies

1,050

Prepaid insurance

1,350

Current assets

4,900

Land

15,000

Building
70,000

   
300
69,700

Equipment
 16,800

   
250
16,550
101,250

Total assets

106,150

Accounts payable
4,700

Salaries and wages payable
900

Unearned rent revenue
800

Interest payable
180

Total current liabilities

6,580

Mortgage payable

36,000

Total liabilities

42,580

Common stock
60,000

Retained earnings
3,570

Total equity shareholders’

63,570

Total liabilities and equity shareholders’

  
106,150

Accounts closed:

Rent revenue, salary expense, utilities expense, advertising expense, interest expense, insurance expense, supply expense, and depre​ciation expense.

Answer

the following summary question: Commercial accounting and generally accepted accounting principles, generally prescribe the accrual basis of accounting over the cash basis. Describe both bases of accounting and explain the differences.

Accrual accounting is where revenues are recognized when they are earned, not when they are received. In accrual accounting, cash does not need to change hands before the revenue is recognized. Under the cash basis method of accounting, income is not counted until cash is actually received, and expenses are not counted until they are actually paid.

1. May 31 Insur. Exp.   450

  450

2. 31 Supplies Exp. 1,550

1,550

3. 31 Depreciation Exp. 300

     300

31 Depreciation Exp. 250     

250

    

    

4. 31 Interest Exp. 180

180

    

5. 31 Unearned Rent Rev. 2,500

2,500

6. 31 Salary Exp. 900

900