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Manchester Community College *

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113

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Accounting

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Apr 3, 2024

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ACC 113 WEEK 3 HOMEWORK ASSIGNMENT DUE: 10/18/23 by 5:59PM (prior to class) Do all the journal entries that are necessary: 1. We loaned $25,000 to a client on 11-1-x1 that will be paid in full 6 months later. We are charging an annual interest rate of 10%. What entry is needed on 12-31-X1. 25000 * .05 = 1250 -> 26250 Date Accounts Debit Credit 1/1 Loans 25000 Loans Receivable 25000 Date Accounts Debit Credit 12/31 Accounts Receivable 26250 Loans Receivable 26250 2. On 3-1-x1 paid $2,500 for the insurance that covers one year. On 3-31-x1 record the insurance expense for January. On 4-30-x1 record the insurance expense for April. Date Accounts Debit Credit 3/1 Prepaid Insurance 2500 Cash 2500 Date Accounts Debit Credit 3/31 Insurance Expense 208.33 Prepaid Insurance 208.33 Date Accounts Debit Credit 4/30 Insurance Expense 208.33 Prepaid Insurance 208.33 3. On 2-1-x1 a customer gave us a $7,550 deposit for work to be completed in the future. The work was performed on 7-1- x1. Date Accounts Debit Credit 2/1 Cash 7550 Unearned Revenue 7550 Date Accounts Debit Credit Unearned Revenue 7550 Service Revenue 7550 4. The daily payroll expense is $300 per employee. The 5 day work week ends on Friday and is paid on Friday. There are 10 employees. The month ended on Thursday 1-31. Date Accounts Debit Credit 1-31 Salary Expense 12000 1

Salary Payable 12000 Date Accounts Debit Credit 2-1 Salary Expense 3000 Salary Payable 12000 Cash 15000 5. On 9-30-x1 paid the rent for 6 months in advance by putting it all to the prepaid rent account, the monthly rent is $2,200. No other entries were made during the year. What entry is needed on 12-31-X1. What will be the prepaid account balance on 12- 31-x1? Date Accounts Debit Credit 9/30 Prepaid Rent 13200 Cash 13200 Date Accounts Debit Credit 12-31 Rent Expense 6600 Prepaid Rent 6600 5.A What will be the prepaid account balance on 12-31-x1? $6600 Prepaid account balance 6. A truck that cost $70,000 was purchased on 1-1-x1 with cash. It has a 7 year life. What entry is needed on 1-1-x1 and what entry is needed on 12-31-x1. Date Accounts Debit Credit 1/1 Truck 70000 Cash 70000 Date Accounts Debit Credit 12/31 Depreciation Expense 10000 Accumulated Depreciation - Truck 10000 7. A tenant moved into our apartment house on 9-1-x1 and paid for 3 months rent in advance. The monthly rent is $1,000. No entries are made during the year except to record the receipt of the money. We have not received any other money from the tenant, but we are reassured to get our money come January. Do the entry for 9-1-X1, 12-31-X1 Date Accounts Debit Credit 9/1 Cash 3000 Unearned Rent Revenue 3000 Date Accounts Debit Credit 12-31 Unearned Rent Revenue 3000 Rent Revenue 3000 Date Accounts Debit Credit 12-31 Rent Receivable 1000 Rent Revenue 1000 2

8. The daily payroll expense is $400 per employee. The 5 day work week ends on Friday and is paid on Friday. There are 10 employees. The month ended on Wednesday 1-31. Date Accounts Debit Credit 1/31 Salary Expense 1200 Salary Payable 1200 Date Accounts Debit Credit 2/2 Salary Expense 800 Salary Payable 1200 Cash 2000 3

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