Generally Accepted Accounting Principles and Trial...

Problem set C
PROBLEM 3-1C
For each of the following entries, enter the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.) A. To record receipt of unearned revenue. B. To record this period’s earning of prior unearned revenue. C. To record payment of an accrued expense.
D. To record receipt of an accrued revenue.
E. To record an accrued expense.
F. To record an accrued revenue
G. To record this period’s use of a prepaid expense.
H. To record payment of a prepaid expense. I. To record this period’s depreciation expense.

______ 1. Interest Expense 600 Interest Payable 600
______ 2. Interest Payable 600 …show more content…
When the cash was received, the Unearned Training Fees account was credited. The fee for the fifth month will be recorded when it is collected in 2009.
f. On November 1, the school agreed to teach a four-month class (beginning immediately) for an individual for $1,700 tuition per month payable at the end of the class. The services are being provided as agreed, and no payment has been received.
g. The school’s five employees are paid weekly. As of the end of the year, four days’ wages have accrued at the rate of $150 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December.

CHAMPLAIN CONFUSER SYSTEMS
Unadjusted Trial Balance
December 31, 2008
Cash
$ 25,000

Accounts receivable
-0-

Teaching supplies
3,800

Prepaid insurance
9,800

Prepaid rent
500

Professional library
12,000

Accumulated depreciation—Professional library

$ 3,000
Equipment
69,000

Accumulated depreciation—Equipment

22,900
Accounts payable

6,000
Salaries payable

-0-
Unearned training fees

10,000
S. Champlain, Capital

40,000
S. Champlain, Withdrawals
14,000

Tuition fees earned

99,900
Training fees earned

25,000
Depreciation expense—Equipment
-0-

Depreciation expense—Professional library
-0-

Salaries expense
54,800

Insurance expense
-0-

Rent expense
5,500

Teaching supplies expense
-0-

Advertising expense
6,000

Utilities expense

Show More

Generally Accepted Accounting Principles and Trial Balance Essay