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Homework answers / question archive / Saudi Electronic University - ACCT 201 FINANCIAL ACCOUNTING ACCT 201 ASSIGNMENT 3 Q1) What is a prepaid expense? Q2

Saudi Electronic University - ACCT 201 FINANCIAL ACCOUNTING ACCT 201 ASSIGNMENT 3 Q1) What is a prepaid expense? Q2

Accounting

Saudi Electronic University - ACCT 201

FINANCIAL ACCOUNTING ACCT 201

ASSIGNMENT 3

Q1) What is a prepaid expense?

Q2. What is unearned revenue?

Q3. The adjusted trial balance of Ryan Financial Planners appears below. Using the information from the adjusted trial balance, you are required to prepare for the month ending December 31:

 

 

  1. an income statement.
  2. a retained earnings statement.
  3. a statement of financial position.

RYAN FINANCIAL PLANNERS

 

Adjusted Trial Balance

December 31, 2012

 

Debit

Credit

Cash                                                                    

Accounts Receivable..........................................................................

$4,400

2,200

 

Office Supplies...................................................................................

1,800

 

Office Equipment...............................................................................

15,000

 

Accumulated Depreciation—Office Equipment................................

 

€ 4,000

Accounts Payable...............................................................................

 

3,800

Unearned Revenue.............................................................................

 

5,000

Share Capital–Ordinary.....................................................................

 

10,000

Retained Earnings (Beginning balance, 1st Dec 2012).......................

 

4,400

Dividends ..........................................................................................

2,500

 

Service Revenue.................................................................................

 

3,700

Office Supplies Expense....................................................................

600

 

Depreciation Expense........................................................................

2,500

 

Rent Expense.....................................................................................

    1,900

            

 

$30,900

$30,900

 

 

Q4. The trial balance before adjustment of XYZ Company reports the following balances:

 

 

 

     Dr.  

      Cr.   

Accounts receivable

$100,000

 

Allowance for doubtful accounts

 

$    2,500

Sales (all on credit)

 

750,000

Sales returns and allowances

40,000

 

Instructions

Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivable and (2) 1% of net sales.

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