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Week 4 P4-4

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BE4-1 Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example.

(a) Purchased $100 of supplies for cash. Cash -100/ Net Income 0

(b) Recorded an adjusting entry to record use of $20 of the above supplies. Cash 0/ Net Income -20

(c) Made sales of $1,300, all on account. Cash 0/ Net Income 1300

(d) Received $800 from customers in payment of their accounts. Cash 800/ Net Income 800

(e) Purchased equipment for cash, $2,500. Cash -2500/ Net Income 0

(f) Recorded depreciation of building for period used, $600. Cash 0/ Net Income -600
P4-2A
A. | | …show more content…

Cash Prepaid Insurance
Bal. May 1 2500 Bal. May 1 1800
Bal. May 31 2500 May 31 Cr 450 Bal. May 31 1350

Supplies Land
Bal. May 1 2600 Bal. May 1 15000
May 31 Cr 1550 Bal. May 30 15000
Bal. May 30 1050

Buildings Equipment
Bal. May 1 70000 Bal. May 1 16800
Bal. May 31 70000 Bal. May 31 16800

Accounts Payable Unearned Rent Revenue
Bal. May 1 4700 Bal. May 1 3300
Bal. May 31 4700 May 31 Dr 2500 Bal. May 31 800

Mortgage Payable Common Stock
Bal. May 1 36000 Bal. May 1 60000
Bal. May 31 36000 Bal. May 31 60000

Rent Revenue Salaries and Wage Expense
Bal. May 1 9000 Bal. May 1 3000
May 31 Cr 2500 May 31 Cr 900
Bal. May 31 11500 Bal. May 31 3900

Utility Expense Advertising Expense
Bal. May 1 800 Bal. May 1 500
Bal. May 31 800 Bal. May 31 500

Insurance Expense Supplies Expense
Bal. May 1 450 Bal. May 1 1550
Bal. May 31 450 Bal. May 31 1550

Depreciation Expense Interest Expense
Bal. May 1 0 Bal. May 1 0
May 31 Dr 6600 May 31 Dr 180
Bal. May 31 6600 Bal. May 31 180

Interest Payable Salary Payable
Bal. May 1 0 Bal. May 1 0
May 31 Cr 180 May 31 Cr 900
Bal. May 31 180 Bal. May 31 900

Accumulated Depreciation
Bal. May 1 0
May 31 Cr 550
Bal. May 31 550

C.

Adjusted Trial Balance Vang Hotel
Account Debit Credit

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