ACC 303 homework chapter 3

Date

Account Titles and Explanation

Debit

Credit

: 

$

BLUES TRAVELER CORPORATION
TRIAL BALANCE
APRIL 30, 2014

Debit

Credit

Cash

$6,194

Accounts Receivable

5,381

Supplies

3,108

Equipment

6,241

Accounts Payable

$7,185

Common Stock

8,141

Retained Earnings

2,141

Service Revenue

5,341

Office Expense

4,461

$25,385

$22,808

1.

Cash received from a customer on account was recorded (both debit and credit) as $1,521 instead of $1,971.

2.

The purchase on account of a computer costing $2,422 was recorded as a debit to Office Expense and a credit to Accounts Payable.

3.

Services were performed on account for a client, $2,391, for which Accounts Receivable was debited $2,391 and Service Revenue was credited $366.

4.

A payment of $236 for telephone charges was entered as a debit to Office Expense and a debit to Cash.

5.

The Service Revenue account was totaled at $5,341 instead of $5,421.

Blues Traveler Corporation
Trial Balance (Corrected)
April 30, 2014

Debit

Credit

$

$

Totals

$

$

1.

Performed services for patients who had dental plan insurance. At January 31, $760 of such services was performed but not yet billed to the insurance companies.

2.

Utility expenses incurred but not paid prior to January 31 totaled $510.

3.

Purchased dental equipment on January 1 for $89,500, paying $23,900 in cash and signing a $65,600, 3-year note payable. (a) The equipment depreciates $490 per month. (b) Interest is $550 per month.

4.

Purchased a one-year malpractice insurance policy on January 1 for $27,000.

5.

Purchased $2,070 of dental supplies. On January 31, determined that $540 of supplies were on hand.

No.

Account Titles and Explanation

Debit

Credit

1.

2.

3 (a)

3 (b)

4.

5.

No.

Date

Account Titles and Explanation

Debit

Credit

1.

10/31

(To record the use of supplies during October)

2.

10/31

(To record revenue for services performed for which 
payment has not yet been received)

3.

10/31

(To record liability for accrued payroll)

4.

10/31

(To reduce the Unearned Service Revenue account for service that has been performed)

Inventory 12/31/14

$62,120

Cost of Goods Sold

$226,590

Common Stock

77,410

Selling Expenses

17,010

Retained Earnings

48,680

Administrative Expenses

38,070

Dividends

19,590

Income Tax Expense

33,450

Sales Returns and Allowances

12,550

Sales Discounts

15,950

Sales Revenue

412,380

No.

Account Titles and Explanation

Debit

Credit

1.

(To close accounts with credit balances)

2.

(To close accounts with debit balances)

3.

(To close net income / (loss))

4.

[removed]

IFRS reverses the rules of debits and credits, that is, debits are on the right and credits are on the left.

[removed]

IFRS uses the same process for recording transactions as GAAP.

[removed]

The chart of accounts under IFRS is different because revenues follow assets.

[removed]

None of the these statements are correct.

[removed]

have a cost that does not exceed the benefits.

[removed]

be transparent.

[removed]

provide a suitable starting point.

[removed]

all of these are correct.

[removed]

when a company no longer reports under its national standards.

[removed]

when the company issues its most recent financial statement under IFRS.

[removed]

three years prior to the reporting date.

[removed]

none of these choices.

[removed]

recast previously issued financial statements in accordance with IFRS.

[removed]

use GAAP in the reporting period but subsequently use IFRS.

[removed]

prepare at least three years of comparative statements.

[removed]

use GAAP in the transition year but IFRS in the reporting year.

[removed]

to ensure that the information is a faithful representation.

[removed]

in accordance with the Sarbanes-Oxley Act.

[removed]

to provide users of the financial statements with information on GAAP in one period and IFRS in the other period.

[removed]

to provide users of the financial statements with information on IFRS for at least two periods.