Jennifer Chan Jesse Lee Nick Rosas Group 8 Jennifer Chan Jesse Lee Nick Rosas

P4-6 Computing Amounts on Financial Statements and Finding Financial Information The following information was provided by the records of Collegetown Apartments (a corporation) at the end of the annual fiscal period, December 31, 2007:

Rent Revenue Rent revenue collected in cash during 2007 for occupancy in 2007. Rent revenue earned for occupancy in December 2007; not collected until 2008.

Salary Expense Salaries incurred and paid during 2007. Salaries earned by employees during December 2007 that will be paid in January 2008.

Maintenance supplies expense h. Maintenance supplies on January 1, 2007 (balance on hand) Maintenance supplies purchased for cash during 2007. j. Maintenance supplies counted on December 31, 2007. They gave u a beginning balance of 3000 and ending inventory of 1700 The amount purchased was 8000 So in order to have an ending balance of 1700 You need to have used 9300 amount of supplies, which goes to your maintenance supplies expense account Because you gave the cash in advance but they owe u money even tough they still will earn it later And you debit Maintenance Supplies expense   From Maintenance Supplies you got a beginning balance of 3000 from the h part of the problem Maintenance Supplies is an Asset account therefore a Debit account 3000 + 8000 - 9300 = 1700 that 9300 is also your expense because you used it to make whatever and thus must be debit to your maintenance supplies expense since it’s a credit from the asset account everything must balance out

Rent receivable b. Rent revenue earned for occupancy in December 2007; not collected until 2008.

Receivables from employees g. Cash advances to employees in December 2007 for salaries that will be earned in January 2008.

Maintenance supplies h. Maintenance supplies on January 1, 2007 (balance on hand) Maintenance supplies purchased for cash during 2007. j. Maintenance supplies counted on December 31, 2007.

Unearned rent revenue c. In December 2007, collected rent revenue in advance for January 2008.

Salaries payable f. Salaries earned by employees during December 2007 that will be paid in January 2008.

Jennifer Chan Jesse Lee Nick Rosas Presented by: Group 8 Jennifer Chan Jesse Lee Nick Rosas