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Study Questions with Answers - The Double Entry Accounting System | COB 241, Assignments of Financial Accounting

Material Type: Assignment; Professor: Brown; Class: FINANCIAL ACCOUNTING; Subject: College of Business; University: James Madison University; Term: Unknown 1989;

Typology: Assignments

Pre 2010

Uploaded on 02/25/2009

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Chapter 04 The Double-Entry Accounting System
COB 241 Molly Brown Chapter 4 Exercise Solutions
EXERCISE 4-3A
Account Normal Balance
a. Cash Debit
b. Interest Expense Debit
c. Depreciation Expense Debit
d. Accumulated
Depreciation
Credit
e. Accounts Payable Credit
f. Unearned Revenue Credit
g. Service Revenue Credit
h. Dividends Debit
i. Land Debit
j. Accounts Receivable Debit
pf3
pf4
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COB 241 Molly Brown Chapter 4 Exercise Solutions EXERCISE 4-3A Account Normal Balance a. Cash Debit b. Interest Expense Debit c. Depreciation Expense Debit d. Accumulated Depreciation Credit e. Accounts Payable Credit f. Unearned Revenue Credit g. Service Revenue Credit h. Dividends Debit i. Land Debit j. Accounts Receivable Debit

EXERCISE 4-7A

a. ASSETS = LIABILITIES +

STOCKHOLDERS’

EQUITY

Cash Accounts Payable Common Stock

  1. 50,000 2. 30,000 7. 8,500 5. 12,000 1. 50,

  2. 62, 000 4. 53,000 Bal. 3,500 Bal. 50,

  3. 8,

  4. 5,000 Dividends Bal.15,500 8. 5, Bal. 5, Accounts Receivable

  5. 90,000 6. 62,000 Service Revenue Bal. 28 ,000 3. 90, Bal. 90, Supplies

  6. 12,000 10. 10, Bal. 1,500 Salaries Expense

    1. 53, Van Bal. 53,
  7. 30 , Bal. 30 ,000 Supplies Expense

    10, 

    Bal. 10, Accumulated Depr.

  8. 8 ,000* Depreciation Expense Bal. 8 ,000 9. 8, Bal. 8 , *[($30,000  $6,000) 3] = $8,

EXERCISE 4-10A

General Journal

  • a. Cash 12, Date Account Titles Debit Credit
    • Unearned Revenue 12,
  • b. Supplies 1,
    • Cash 1,
  • c. Accounts Receivable 25,
    • Service Revenue 25,
  • d. Equipment 54,
    • Cash 12,
    • Notes Payable 42,
  • e. Repairs Expense 1,
    • Accounts Payable 1,
  • f. Cash 19,
    • Accounts Receivable 19,
  • g. Accounts Payable
    • Cash
  • h. Prepaid Insurance 4,
    • Cash 4,
  • i. Interest Expense 1,
    • Interest Payable 1,
  • j. Depreciation Expense 5,
    • Accumulated Depreciation 5,
  • k. Insurance Expense 3,
    • Prepaid Insurance 3,

EXERCISE 4-14A

a. Out of balance; debits are overstated; debits are greater by $400. b. Out of balance; credits are understated; debits are higher by $1,200. c. Not out of balance; the liability account, Notes Payable, will be understated by $400 and the revenue account, Revenue, will be overstated by $400. d. Out of balance; debits are overstated; the asset account, Cash, is overstated by $1,800; debits are higher by $1,800. e. Not out of balance; the asset account, Office Supplies, is understated by $520, but the asset account, Office Equipment, is overstated by $520.