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Material Type: Assignment; Professor: Brown; Class: FINANCIAL ACCOUNTING; Subject: College of Business; University: James Madison University; Term: Unknown 1989;
Typology: Assignments
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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
a. ASSETS = LIABILITIES +
Cash Accounts Payable Common Stock
50,000 2. 30,000 7. 8,500 5. 12,000 1. 50,
62, 000 4. 53,000 Bal. 3,500 Bal. 50,
8,
5,000 Dividends Bal.15,500 8. 5, Bal. 5, Accounts Receivable
90,000 6. 62,000 Service Revenue Bal. 28 ,000 3. 90, Bal. 90, Supplies
12,000 10. 10, Bal. 1,500 Salaries Expense
30 , Bal. 30 ,000 Supplies Expense
10,
Bal. 10, Accumulated Depr.
8 ,000* Depreciation Expense Bal. 8 ,000 9. 8, Bal. 8 , *[($30,000 $6,000) 3] = $8,
General Journal
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.