ACCT 550 (Intermediate Accounting) Entire Course
ACCT 550 (Intermediate Accounting) Entire Course
ACCT 550 (Intermediate Accounting) Entire Course
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computer<br />
for $5,100<br />
with<br />
personal<br />
funds. (The<br />
computer<br />
will be used<br />
exclusively<br />
for business<br />
purposes.)<br />
E3-5 (Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the current year<br />
includes the following selected accounts before adjusting entries have been prepared.<br />
Debit Credit<br />
$<br />
3,600<br />
Prepaid<br />
Insurance<br />
Supplies 2,800<br />
Equipment 25,000<br />
Accumulated<br />
Depreciation—<br />
Equipment<br />
$<br />
8,400<br />
Notes Payable 20,000<br />
Unearned Rent<br />
6,300<br />
Revenue<br />
Rent Revenue 60,000<br />
Interest<br />
Expense<br />
Salaries and<br />
Wages<br />
Expense<br />
14,000<br />
An analysis of the accounts shows the following.<br />
<br />
<br />
<br />
The equipment depreciates $250 per month.<br />
One-third of the unearned rent was earned during the quarter.<br />
Interest of $500 is accrued on the notes payable.<br />
Supplies on hand total $650.<br />
<br />
Insurance expires at the rate of $300 per month.
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