Parrish Ch. 4 Pg. 101 4-5 11/25/19 For the following entries please identify if the entry is correct.  If not correct the entry and explay WHY it is incorrect.  Thank you.  1) To record depreciation on trucks for one year.  The trucks cost $30000 and have no salvage value.  They are being depreciated strait line over 6 years. Depreciation Expense       $1500            Accumulated Depreciation       $1500 2) To record one year's interest on a loan to an officer of the compnay.  The loan was $10000 at 7% interest  Interest Revenue     $730               Interest Receivable    $730 3) The Supplies account started with a balance of $1900. At the end of the period, a count of remaining supplies was indicated we had $563 left. Supplies Expense      $563         Supplies                         $563 4) Employees have earned $1900 since last payday Wages Expense   $1900         Wages Payable          $1900 5) The company received a bill from the County Treasurer for $700 property taxes.  The taxes are due next month 6) To record sales made on the last day of the year which company which the company has not yet billed Sales       $2800       Accounts Receivable    $2800 7) To record one month of rent expense. Three months ago, the company paid $8160 for one years rent Rent Expense       $680         Prepaid Rent        $680 8) The company received an electric bill for $800 for the current month.  The bill is due  next month. Utilities Expense    $800       Utilities Payable $800 9) The supplies account had a balance of $2300 at the end of the month.  The count at the end of the month showed a balance of $400 Supplies      $1900           Supplies Expense $1900 10) The company performed $1000 of services which the client pay for in advance. Undearned service fees     $1000             Service fee revenue       $1000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

Parrish Ch. 4 Pg. 101 4-5 11/25/19

For the following entries please identify if the entry is correct.  If not correct the entry and explay WHY it is incorrect.  Thank you. 

1) To record depreciation on trucks for one year.  The trucks cost $30000 and have no salvage value.  They are being depreciated strait line over 6 years.

Depreciation Expense       $1500

           Accumulated Depreciation       $1500

2) To record one year's interest on a loan to an officer of the compnay.  The loan was $10000 at 7% interest

 Interest Revenue     $730

              Interest Receivable    $730

3) The Supplies account started with a balance of $1900. At the end of the period, a count of remaining supplies was indicated we had $563 left.

Supplies Expense      $563

        Supplies                         $563

4) Employees have earned $1900 since last payday

Wages Expense   $1900

        Wages Payable          $1900

5) The company received a bill from the County Treasurer for $700 property taxes.  The taxes are due next month

6) To record sales made on the last day of the year which company which the company has not yet billed

Sales       $2800

      Accounts Receivable    $2800

7) To record one month of rent expense. Three months ago, the company paid $8160 for one years rent

Rent Expense       $680

        Prepaid Rent        $680

8) The company received an electric bill for $800 for the current month.  The bill is due  next month.

Utilities Expense    $800

      Utilities Payable $800

9) The supplies account had a balance of $2300 at the end of the month.  The count at the end of the month showed a balance of $400

Supplies      $1900

          Supplies Expense $1900

10) The company performed $1000 of services which the client pay for in advance.

Undearned service fees     $1000

            Service fee revenue       $1000

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Depreciation Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education