j_u_l_i_4_n_n_3
New member
Hi Yahoo! I enrolled late in Accounting 1, so I missed a lot of information in the first 3 chapters. I was reading the book like mad last night and was able to do the other homework problems, but I don't understand how to do the following two problems. If anyone could help me, it would be greatly appreciated and I'll give out 10 points when I get my paper back to the person with the correct answers. Please and thank you so much!
Question 1:
On July 10, 2010, Frank Company purchases for cash a new delivery truck to be used in the business for $52,000. The truck has an estimated residual value of $4,000 and an expected life of 4 years. On December 31, 2011, the adjusting entry to record depreciation for the year 2011 would require a:
Answer 1:
Debit to _________ (Account title)
For $___________ (Amount)
Question 2:
The next 3 questions are based on the following information:
(Hint: do a complete set of financial statements before answering these questions.)
Paula Company has the following adjusted account balances at December 31, 2011.
Cash- $95,000
Rent Expenses- $115,000
Depreciation Expenses- $5,000
Accounts Payable $22,000
Office Supplies- $1,000
Dividends- $11,000
Land- $220,000
Revenues- $350,000
Equipment- $230,000
Salaries Expense- $140,000
Accounts Receivable- $95,000
Office Supplies Expense- $8,000
Common Stock ($1 par)- $500,000
Prepaid Rent- $60,000
Unearned Revenue- $20,000
Salaries Payable- $11,000
Accumulated Depreciation: Equipment- $40,000
Retained Earnings (1/11/2011): $37,000
Answer 2A:
The income statement prepared at December 31, 2011, would report net income of:
$__________
Answer 2B:
The balance sheet prepared at December 31, 2011, would report total owners' equity of
$__________
Answer 2C:
The balance sheet prepared at December 31, 2011, would report total assets of:
$__________
Answer 2D:
The balance sheet prepared at December 31, 2011, would report total current liabilities of:
$__________
Question 1:
On July 10, 2010, Frank Company purchases for cash a new delivery truck to be used in the business for $52,000. The truck has an estimated residual value of $4,000 and an expected life of 4 years. On December 31, 2011, the adjusting entry to record depreciation for the year 2011 would require a:
Answer 1:
Debit to _________ (Account title)
For $___________ (Amount)
Question 2:
The next 3 questions are based on the following information:
(Hint: do a complete set of financial statements before answering these questions.)
Paula Company has the following adjusted account balances at December 31, 2011.
Cash- $95,000
Rent Expenses- $115,000
Depreciation Expenses- $5,000
Accounts Payable $22,000
Office Supplies- $1,000
Dividends- $11,000
Land- $220,000
Revenues- $350,000
Equipment- $230,000
Salaries Expense- $140,000
Accounts Receivable- $95,000
Office Supplies Expense- $8,000
Common Stock ($1 par)- $500,000
Prepaid Rent- $60,000
Unearned Revenue- $20,000
Salaries Payable- $11,000
Accumulated Depreciation: Equipment- $40,000
Retained Earnings (1/11/2011): $37,000
Answer 2A:
The income statement prepared at December 31, 2011, would report net income of:
$__________
Answer 2B:
The balance sheet prepared at December 31, 2011, would report total owners' equity of
$__________
Answer 2C:
The balance sheet prepared at December 31, 2011, would report total assets of:
$__________
Answer 2D:
The balance sheet prepared at December 31, 2011, would report total current liabilities of:
$__________