University:
Michigan State University
Course:
ACC 300 | Intermediate Financial Accounting I
Academic year:

2021
Views:

415

Pages:

2
Author:

5prinzg1s

PROBLEM 3.3B DANA, INC. 35 Minutes, Medium a. Income Statement Transaction Oct. 1 Oct. 4 Oct. 8 Oct. 12 Oct. 20 Oct. 24 Oct. 25 Oct. 29 Revenue Expenses = NE I I NE NE I NE NE I NE NE I NE NE NE NE Balance Sheet Net Income Assets D I I D NE I NE NE P3.3B D I I NE NE I D D Liabilities = NE NE NE I NE NE D NE Owners' Equity D I I D NE I NE D PROBLEM 3.3B DANA, INC. (concluded ) b. General Journal Oct. 1 Rent Ex p ense Cash Paid October rent. 4,000 4,000 4 Accounts Receivable Service Revenue Billed Milton Hotels for services. 8,500 8 Cash 4,700 8,500 Service Revenue Collected cash from Dirt Valley Development for services provided. 12 Advertising Expense Accounts Pa yable Placed ad in the newspaper to be published on October 25. Total amount due in 30 days. 20 Cash 4,700 320 320 8,500 Accounts Receivable Received payment from Milton Hotels for services billed on Oct. 4. 24 Cash Accounts Receivable Service Revenue Collected partial payment from Dudley Co. and billed remainder. c. 8,500 300 3,300 3,600 25 Accounts Payable Cash Paid newspaper for advertisement. 320 29 Dividends Cash Declared and paid a cash dividend. 2,600 320 2,600 Three situations in which a cash payment does not involve an expense include: (1) the payment of a cash dividend, (2) the payment of a liability for a previously recorded expense, and (3) the purchase of an asset, including expenses paid in advance such as insurance, rent, and advertising. P3.3B (p.2)