The formatting didn’t transfer very well but you can still check the accounts and values.

4-7A

2001

a) Jan. 31 Amortization Expense, Equipment                                  6,000

Accumulated Amortization, Equipment 6,000

To record amortization; 72,000/3 yrs = 24,000/yr × 3/12 = 6,000.

b) 31 Unearned Consulting Fees 6,000

Consulting Fees Earned 6,000

To record fees earned.

c) 31 Rent Expense 30,000

Prepaid Rent 30,000

To record expired rent; 45,000 × 4/6 = 30,000.

d) 31 Wages Expense                         19,000

Wages Payable 19,000

To record accrued wages.

e) 31 Interest Expense 1,470

Interest Payable 1,470

To record accrued interest; 84,000 × 7% = 5,880 × 3/12 = 1,470.

f) 31 Accounts Receivable 9,500

Consulting Fees Earned 9,500

To record accrued fees.

g) 31 Insurance Expense 1,500

Prepaid Insurance 1,500

To record expired insurance; 2,700/18 months = 150/month × 10 months.

h) 31 Amortization Expense, Office Furniture                          900

Accumulated Amortization, Office Furniture                             900

To record amortization of office furniture.

i) Jan. 31 Accounts Receivable                                                       4,100

Repair Revenues Earned                                                4,100

To record accrued repair revenues.

j) 31 Store Supplies Expense                                                  4,300

Store Supplies Inventory                                                 4,300

To record store supplies used; 1,600 + 3,000 – 300 = 4,300.

 

Problem 4-14A (35 minutes) Part 1

2001

Dec. 31      Office Supplies Expense…………………        12,760

Office Supplies…………………………..                           12,760

To record the cost of supplies used during
the year; $3,000 + $12,400 – $2,640.

31      Insurance Expense…………………………        12,312

Prepaid Insurance……………………..                           12,312

To record the cost of insurance coverage
that expired during the year.

Cost per    No. of        2001

Policy      Month     Months      Cost

1            $660           12        $  7,920

2              363             9             3,267

3              225             5         1,125

Total                                         $12,312

31      Salaries Expense…………………………….          2,100

Salaries Payable………………………..                              2,100

To record accrued but unpaid wages.

31      Amortization Expense, Building……..        11,250

Accumulated Amortization, Building                                           11,250

To record amortization expense. Annual
amortization
= ($855,000 $45,000)/30 = $27,000;
amortization for five months
= $27,000
× 5/12.

31      Rent Receivable……………………………….          2,400

Rent Earned……………………………….                              2,400

To record earned but unpaid rent.

31      Unearned Rent…………………………………          4,350

Rent Earned……………………………….                              4,350

To record the amount of rent earned; 2 × $2,175.

Jan.   6      Salaries Payable………………………            2,100

Salaries Expense……………………..            8,400

Cash……………………………………                               10,500

To record payment of accrued and current

salaries; 4 × $2,100 = 8,400.

15 Cash………………………………………….            4,800

Rent Receivable………………….                                 2,400

Rent Earned………………………..                                 2,400

To record past due rent for two months.


Advertisements