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Class Exercise - Chapter 3 Question 1 Record the following selected transactions in general journal form for Sun Orthopedic Clinic, Ine. Include a brief explanation of the transaction as part of each journal entry. Oct. 1 The clinic issued 4,000 additional shares to Doctor Soges at $50 per share. Oct. 4 The clinic purchased diagnostic equipment. The equipment cost $75,000, of which $25.000 was paid in cash; a note payable was issued for the balance. Oct. 12 Issued a check for $9,000 in full payment of an account payable to Zeller Laboratories. Oct. 19 Purchased surgical supplies for $2,600. Payment is not due until November 28. Oct. 25 Collected a $24,000 account receivable from Health One ansurance Company Oct. 30 Declared and paid a $300,000 cash dividend to sharcholders. Question 2 Brown Consulting Services organized as a corporation on January 18 and engaged in the following transactions during its first two weeks of operation: Jan. 18 Issued shares in exchange for $30,000 cash. Jan. 22 Borrowed $20,000 from its bank by issuing a note payable. Jan. 23 Paid SIO0 for a radio advertisement aired on January 24. Jan. 25 Provided $1,000 of services to clients for cash. Jan. 26 Provided $2,000 of services to clients on account. Jan. 31 Collected $800 cash from clients for the services provided on January 26. Required: a. Record each of these transactions in general journal form. b. Determine the balance in the Cash account on January 31. Be certain to state whether the balance is debit or credit. Class Exercise - Chapter 4 Question 1 Prepaid Expense) The Company will have an atheising campaign for 3 years requiring it to pay a lump sum of $30,000 for putting up an advertisement in the Ming Weekly Media commencing 1 January in 2008. What would be the journal entry on tumary 2008 show the appropriate adjusting entries for the year ended 31 December for 2005 and in 2009 Question 2 (Acued Reve) A 10% Syear term loan of $500,000 was lent to Tom Dot Company two years ago on 1 April 2006 with half year interest recevable at the end of September and March of every year. Show the adjusting entry for the year ended on 31 December 2008 Question 3 (Umearned Revesse) A sum of $36,000 was received on 1 April 2008 in respect of 3 yearsrent income for letting out the office premises. What would be the journal entry on 1 April 2008? Show the relevant entries with financial year ending on 30 September 2008 Question 4 (Depreciation) On January 2, 2002. Hagen Corporation purchased equipment costing $72,000. Hagen performs adjusting entries monthly a. Record this equipment's depreciation expense on December 31, 2007, assuming its estimated life was eight years on January 2, 2002 b. Determine the amount of the equipment's accumulated depreciation reported in the statement of financial position dated December 31, 2007 (Accumulated Depreciation at the total depreciation taken to date.) 1 Questions Delsey Limited adjusts its wounts at the end of each month Below is an extract of the trial balance of Delsey Limited before making any month end adjustments at 31 December 2018 Trial Balance 3 December 2018 teadjusted Adjustments Adjusted IS/FP Trial Balance Trial Halance Dr CY Dr CF Dr Cr Insurance expense 13.200 Prepaid insurance 15.000 Depreciation furniture 8.400 Accumulated depreciation 12.300 furniture Salary expense 33,500 Supplies expense 2,309 Supplies 3.124 Uneamed marketing revenue 18.450 Micketing rescue 23.400 Share capital 20.000 Retained camings 4.983 Cash 3,000 79,131 79.133 The following data is provided regarding the adjusting entries for the month of December 2018 1) Salary accrued for the month, 59,800 2) Depreciation of furniture for the month, $2,400. 3) Portion of insurance expired in December, S1,200, 4) Supplies used was $350. 5) Uncamed marketing revenuo collected in advance had been cared during December, 85,400. 6) Utilities expenses accrued for the month, $960. Required: a) Prepare the necessary adjusting journal entries for the month of December 2018 b) Update the account balances in the above Trial Balance, input new accounts if necessary c) Indicate in the last column of the above Trial Balance (IS/FP) whether the account is an item of (0) Revenue (R) (1) Expense (E) (um) Asset (A), Contra Asset (CA) (iv) Liabilities (L) (v) Equity (OE) 2

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