Ch 3 Wrong Answers

Question 0

There is a 4 month $12,000 note dated October 1, prepare a February 1 journal entry to record receipt of $12,400 from the borrower.

Answer 0

Feb. 1 Cash. 12,400
Notes rec. 12,000
Int. receivable. 300
Int. revenue. 100. (earned the following year)

Question 1

Prepare an adjusting entry to record $300 accrued interest?

Answer 1

Interest receivable. 300

Interest revenue. 300

Question 2

Interest notes payable of 300 is accrued, prepare journal entry?

Answer 2

Int. exp. 300

Int. payable. 300

Question 3

Bad debt expense for the year is $900, prepare journal entry

Answer 3

Bad debt exp. 900

Allowance for doubtful accounts. 900

Question 4

Prepare a reverse entry for the adjustment entry of debating salaries and wages expense and crediting salaries and wages payable for $4200?

Answer 4

Wages payable. 4200

Wages expense. 4200

Question 5

Prepare journal entry for received cash of $2300 for services
Completed for Forengi Co

Answer 5

Cash. 2300

Service revenue. 2300

Question 6

One third of unearned rent was recognized as revenue during the quarter, make adjustment entry, unearned rent = $9300

Answer 6

Unearned rent revenue. 3100

Rent revenue. 3100

Question 7

Make adjustment entries for the end of August: on August 1 roddick borrowed $30,000 from a local bank at an annual interest rate of 8 %

Answer 7

Interest exp. 200

Int payable. 200