Get professional solution for assignment help,homework help,easy writing help,and This is Writing for all Universities in USA,UK,and Australia.

1. Davenport University ACCT 510 Chapter
4 Part 10
Get helpforDavenport-University ACCT510 Chapter4 Part 10. We provide assignment, homework,
discussions and case studies help for all subjects Davenport-University for Session 2015-2016.
CCT510 CHAPTER 4BRIEFEXERCISES PART10
BRIEF EXERCISES
Ex. 176
The income statementof Gentry'sShoe Repairisas follows:
GENTRY’S SHOE REPAIR
Income Statement
For the Month EndedApril 30, 2008
Revenue
Shoe RepairRevenue...................................................................$7,500
Expenses
SalariesExpense ..........................................................................$3,400
DepreciationExpense...................................................................350
UtilitiesExpense............................................................................400
RentExpense................................................................................600
SuppliesExpense .........................................................................1,050
Total Expenses......................................................................5,800

2. NetIncome.............................................................................................$1,700
On April 1, the owner,Lee Gentry, hada capital balance of $12,900. DuringApril,Gentry
withdrew$3,000 cash forpersonal use.
Instructions
(a) Prepare closingentriesatApril 30.
(b) Prepare anowner'sequitystatementforthe monthof April.
4 - 42 TestBank for AccountingPrinciples, EighthEdition
Ex. 177
Identifywhichof the followingaccountswouldappearinapost- closingtrial balance.
AccumulatedDepreciationJackson,Drawing
DepreciationExpense Service Revenue
InterestPayable Store Equipment
Ex. 178
The trial balances of FoleyCompanyfollow withthe accountsarrangedinalphabeticorder.
Analyze the dataand prepare (a) the adjustingentriesand(b) the closingentriesmade byFoley
Company.
Trial Balances
UnadjustedAdjustedPost-Closing
AccountsPayable $10,000 $10,000 $10,000

3. AccountsReceivable 2,2003,200 3,200
AccumulatedDepreciation13,000 17,000 17,000
AdvertisingExpense016,300 0
Cash 60,000 60,000 60,000
DepreciationExpense 04,000 0
Equipment75,000 75,000 75,000
Foley,Capital 82,200 82,200 102,400
Foley,Drawing11,000 11,000 0
PrepaidAdvertising17,800 1,500 1,500
PrepaidRent15,000 11,000 11,000
RentExpense 0 4,000 0
Service Revenue96,000 105,000 0
Supplies3,200 700 700
SuppliesExpense 2,0004,500 0
UnearnedRevenue 23,000 15,000 15,000
WagesExpense 38,000 45,000 0
WagesPayable 0 7,000 7,000
Ex. 179
Indicate the propersequence of the stepsinthe accountingcycle byplacingnumbers1-8inthe
blankspaces.
____ a. Analyze businesstransactions.
____ b.Journalize andpostadjustingentries.

4. ____ c. Journalize andpostclosingentries.
____ d.Journalize the transactions.
____ e.Prepare a post-closingtrial balance.
____ f.Prepare a worksheet.
____ g.Prepare financial statements.
____ h.Post to ledgeraccounts.
Ex. 180
Prepare the necessarycorrectingentryforeachof the following.
a. A collectiononaccountof $370 from a customerwascreditedtoAccountsReceivable $730
and debitedtoCash$730.
b. The purchase of suppliesonaccountfor $250 wasrecordedas a debitto Equipment $250
and a creditto AccountsPayable $250.
Ex. 181
An examinationof the accountsof ShawCompanyfor the monthof June revealedthe following
errorsafter the transactionswere journalizedandposted.
1. A check for$750 from R. Linton,a customeron account, wasdebitedtoCash$750 and
creditedtoService Revenue,$750.
2. A paymentforAdvertisingExpensecosting$420 was debitedtoUtilitiesExpense,$240 and
creditedtoCash $240.

5. 3. A bill for$840 for Office SuppliespurchasedonaccountwasdebitedtoOffice Equipment,
$480 and creditedtoAccountsPayable $480.
Instructions
Prepare correctingentriesforeachof the above assumingthe erroneousentriesare not
reversed.Explainhowthe transactionasoriginallyrecordedaffectednetincomefor the monthof
June.
4 - 46 TestBank for AccountingPrinciples,EighthEdition
Ex. 182
As Jeff Willswasdoinghisyear-endaccounting,he noticedthatthe bookkeeperhadmade errors
inrecordingseveral transactions.The erroneoustransactionsare as follows:
(a) A checkfor $700 was issuedforgoodspreviouslypurchasedonaccount.The bookkeeper
debitedAccountsReceivable andcreditedCashfor$700.
(b) A checkfor $380 wasreceivedaspaymentonaccount.The bookkeeperdebitedAccounts
Payable for$830 andcreditedAccountsReceivable for$830.
(c) When makingthe entrytorecord the year's depreciationexpense,the bookkeeperdebited
AccumulatedDepreciationfor$1,000 andcreditedCashfor $1,000.
(d) Whenaccruing interestonanote payable,the bookkeeperdebitedInterestReceivable for
$200 and creditedInterestPayable for$200.
Instructions

6. Prepare the appropriate correctingentries.(Donotreverse the originalentries.)
Ex. 183
JonScott, CPA,wasaskedby Jeff Pine toreview the accountingrecordsandprepare the
financial statementsforhisupholsteringshop.Jonreviewedthe recordsandfoundthree errors.
1. Cash paidon accounts payable for$930 was recordedas a debittoAccountsPayable $390
and a creditto Cash $390.
2. The purchase of suppliesonaccountfor $500 wasdebitedtoEquipment$500 and creditedto
AccountsPayable $500.
3. Jeff withdrew$1,200 of cash and the bookkeeperdebitedAccountsReceivablefor$120 and
creditedCash$120.
Instructions
Prepare an analysisof each errorshowingthe
(a) incorrectentry.
(b) correct entry.
(c) correctingentry.
4 - 48 TestBank for AccountingPrinciples,EighthEdition
Ex. 184
Compute the dollaramountof currentassetsbasedon the followingaccountbalances.
AccountsReceivable $16,000
AccumulatedDepreciation27,000

7. Cash 24,000
Equipment93,000
PrepaidRent7,000
Short-termInvestments15,000
Ex. 185
The financial statementcolumnsof the worksheetforAudioConceptsatDecember31,2008, are
as follows:
AUDIO CONCEPTS
Worksheet
For the Year EndedDecember31, 2008
Income StatementBalance Sheet
AccountsDebitCreditDebitCredit
Cash 15,000
AccountsReceivable 7,000
Supplies4,000
PrepaidInsurance 6,000
AudioEquipment209,000
AccumulatedDepreciation—AudioEquipment29,000
AccountsPayable 19,000
Note Payable 70,000
SalariesPayable 3,000
J. Green,Capital 112,000
J. Green,Drawing14,000

8. AudioRevenue 123,000
AdvertisingExpense21,000
DepreciationExpense 12,000
Insurance Expense 3,000
RentExpense 17,000
SalariesExpense 42,000
SuppliesExpense 6,000
Totals101,000 123,000 255,000 233,000
NetIncome 22,000 22,000
123,000 123,000 255,000 255,000
Instructions
(a) Calculate the balance of J.Green,Capital that wouldappearona balance sheetat
December31, 2008.
(b) Prepare a classifiedbalance sheetforAudioConceptsatDecember31,2008 assumingthe
note payable isa long-termliability.
Completingthe AccountingCycle 4- 49
4 - 50 TestBank for AccountingPrinciples,EighthEdition
Ex. 186
The financial statementcolumnsof the worksheetforMeltonCompanyasof December31, 2008
are as follows:
MELTON COMPANY
Worksheet

9. For the Year EndedDecember31, 2008
Income StatementBalance Sheet
AccountsDebitCreditDebitCredit
Cash 20,000
AccountsReceivable 6,000
Supplies 4,500
PrepaidInsurance 7,000
Equipment50,000
AccumulatedDepreciation4,800
Patents7,500
AccountsPayable 23,500
BondsPayable (due 2012) 18,000
Melton,Capital 46,000
Melton,Drawing4,200
Service Revenue25,400
SalariesExpense 5,200
DepreciationExpense 4,800
Insurance Expense 5,000
InterestExpense 3,500
Totals18,500 25,400 99,200 92,300
NetIncome 6,900 6,900
25,400 25,400 99,200 99,200
Instructions
Prepare a classifiedbalance sheetforMeltonCompany.

10. AEx.187
ReisnerCompanypreparedthe followingadjustingentriesatyearendon December31, 2007:
(a) InterestExpense ...........................................................................200
InterestPayable ...................................................................200
(b) UnearnedRevenue.......................................................................1,500
Service Revenue..................................................................1,500
(c) Insurance Expense .......................................................................1,200
PrepaidInsurance ................................................................1,200
(d) InterestReceivable.......................................................................100
InterestRevenue..................................................................100
(e) SuppliesExpense .........................................................................250
Supplies................................................................................250
(f) WagesExpense............................................................................3,000
WagesPayable ....................................................................3,000
In an efforttominimize errorsinrecordingtransactions,ReisnerCompanyutilizesreversing
entries.
Instructions
Prepare reversingentriesonJanuary1,2008, for the adjustingentriesgivenwhere appropriate.
4 - 52 TestBank for AccountingPrinciples,EighthEdition

11. aEx. 188
On December31, 2008 the adjustedtrial balance of the DixonPersonnel Agencyshowsthe
followingselecteddata:
CommissionReceivable,$7,000
CommissionRevenue,$70,000
InterestExpense,$10,500
InterestPayable,$2,500
UtilitiesExpense,$4,800
AccountsPayable,$2,400
Analysisindicatesthatadjustingentrieswere made for(a) $7,000 of employmentcommission
revenue earnedbutnotbilled,(b) $2,500 of accruedbut unpaidinterest,and(c) $2,400 of utilities
expense accruedbutnotpaid.
Instructions
(a) Prepare the closingentriesatDecember31,2008.
(b) Prepare the reversingentriesonJanuary1,2009.
(c) Enter the adjustedtrial balance datainT-accounts.Post the entriesin(a) and(b) and rule
and balance the accounts.
(d) Prepare the entriestorecord(1) the collectionof the accruedcommissiononJanuary8,(2)
paymentof the utilitybill onJanuary10, and(3) paymentof all the interestdue ($3,000) on
January15.
(e) Postthe entriesin(d) tothe temporaryaccounts.
(f) What isthe interest expense forthe monthof January2009?

12. 4 - 54 TestBank for AccountingPrinciples,EighthEdition
aEx. 189
Transactionand adjustmentdataforGore Companyforthe calendaryear endisas follows:
1. December24 (initial salaryentry):$12,000 of salariesearnedbetweenDecember1 and
December24 are paid.
2. December31 (adjustingentry):SalariesearnedbetweenDecember25 and December31 are
$2,000. These will be paidinthe January8 payroll.
3. January 8 (subsequentsalaryentry):Total salarypayroll amountingto$7,000 waspaid.
Instructions
Prepare twosetsof journal entriesasspecifiedbelow.The firstsetof journal entriesshould
assume thatthe companydoesnotuse reversingentries,andthe secondsetshouldassume that
reversingentriesare utilizedbythe company.
Assume noreversingentriesAssume reversingentries
(a) Initial SalaryEntry
Dec. 24
(b) AdjustingEntry
Dec. 31
(c) ClosingEntry
Dec. 31
(d) ReversingEntry
Jan.1
(e) SubsequentSalaryEntry
Jan.8

13. Completingthe Accounting Cycle 4- 55
4 - 56 TestBank for AccountingPrinciples,EighthEdition
COMPLETION STATEMENTS
190. The firststepinpreparinga worksheetistoprepare a______________ fromthe general
ledgeraccounts.
191. The account balancesappearinginthe adjustedtrial balance columnsare extendedtothe
______________ columnsandthe ______________ columns.
192. The processof transferringnetincome (orloss) forthe periodtoOwner'sCapital is
accomplishedbymaking______________ entries.
193. At the endof an accountingperiod,all revenueandexpense accountsare closedtoa
temporaryaccountcalled______________.
194. The Owner'sDrawingaccountis closedtothe ______________ account at the endof the
accountingperiod.
195. Afterall closingentrieshave beenjournalizedandposted,the final stepinthe accounting
cycle isto prepare a ______________ trial balance.
196. The preparationof a ______________ and ______________ entriesare twooptional
stepsinthe accountingcycle.
197. Two permanentaccountsthatare part of the stockholder'sequityinacorporationare
______________ and______________.
198. The fourmajor classificationsof assetsinaclassifiedbalance sheetare:
________________, ________________, ________________ and ________________.

14. 199. The ______________ of a companyis the average time thatit takesto purchase
inventory,selll itonaccount,andthencollectcash fromcustomers.
200. Assetsthatdo not have a physical substance yetoftenare veryvaluable are called
______________ assets.
201. Liabilitiesare generallyclassifiedaseither______________ or ______________ on a
classifiedbalance sheet.
http://www.justquestionanswer.com/viewanswer_detail/ACCT-510-ACCT510-ACCT-510-CHAPTER-4-
BRIEF-EXERCISES-PART-10-64162