ACCT 504 Week 2 Homework (E2-17A, E2-18A, E3-22A, E3-23A)

This Tutorial contains Excel Files which can be used to solve for any values (your Question may have different company name or values, but that can be solved using Excel file)

E2-17A

Dr Anna Grayson opened a medical practice specializing in physical therapy. During the first month of operation (May), the business, titled. Anna Grayson, Professional Corporation (P.C.), experienced the following events:

1.         Record the transactions in the journal of

Dr. Anna Grayson, P.C. List the transactions by date and give an explanation for each transaction

6          Grayson invested \$138,000 in the business, which in turn issued its common stock to her.

9          The business paid cash for land costing \$63,000.

Grayson plans to build an office building on the land.

12        The business purchased medical supplies for \$1,500 on account.

15        Dr. Anna

15-31

During the rest of the month,

Grayson

treated patients and earned service revenue of

\$9,400,

receiving cash for half the revenue earned.

15-31

The business paid cash expenses: employee salaries,

\$2,800;

office rent,

\$ 900\$900;

utilities,

\$ 900\$900.

31        The business sold supplies to another physician for cost of

\$400.

30,000,

signing a note payable to the bank.

\$600

on account.

E3-22A

Clark Truck Rentals Company faced the following situations.

a.         The business has interest expense of \$ 3,000

that it must pay early in January 2015

b.         Interest revenue of \$4,500 has been earned but not yet received.

c.         On July 1, 2014, when the business collected \$13,900 rent in advance, it debited Cash and credited Unearned Rent Revenue. The tenant was paying for two years’ rent.

d.         Salary expense is \$5,500 per daylong dash—Monday through Friday dash—and

the business pays employees each Friday. For the purpose of this calculation, assume

December 31 falls on a Thursday.

e.         The unadjusted balance of the Supplies account is \$3,000.

The total cost of supplies on hand is \$ 1,500.

f.          Equipment was purchased at the beginning of this year at a cost of \$120,000.

The equipment’s useful life is five years. There is no residual value. Record depreciation for this year and then determine the equipment’s book value.

Journalize the adjusting entry needed at December

31, 2014, for each situation. Consider each fact separately

E3-23A

Inc., follows.

31-Dec-14

Account          (Amounts in thousands)

Cash    Debit

cash     4400

Accounts receivable    1,800

Inventories      2,400

Prepaid expenses         1,900

Property, plant, and equipment           16,700

Accumulated depreciation, property, plant, and equipment

Other assets     9,700

Accounts payable

Income tax payable

Other liabilities

Common stock

Retained earnings (beginning, December 31, 2013)

Dividends       1,700

Sales revenue

Cost of goods sold      25,600

Selling, administrative, and general expense  10,400

Income tax expense    2,000

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