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Pc Depot Essay

4580 words - 19 pages

Chapter 4

Changes from Tenth Edition

The chapter has been updated.


Instructors will differ in the coverage that they give to this chapter, depending on their personal preference and on the background of their students. For executive groups, the material may either be omitted altogether or suggested as optional reading. For students who have previously had a course in accounting, a review of this chapter is probably desirable, even though there should be nothing new in it for them. For beginning students, we find it highly desirable to give much practice in the mechanics of accounting. As pointed out in the text, this practice is intended ...view middle of the document...

One of the cases is an unincorporated business and the other is a corporation, so that the student can observe that there is a very little difference in the recordkeeping for these two types of businesses. Also, in one case the accounting period is a year and in the other it is a month, to emphasize the similarity of accounting for these different time intervals.

Copies Express is a straightforward complete cycle problem.

Octane Service Station involves a complete cycle of transactions. It involves several judgmental matters. Some instructors regard it as being too difficult for use here and defer it until a later chapter.

Note: Octane Service Station is quite difficult. Although given in Chapter 4, it can be used as well in any of the following chapters, or even as a review after Chapter 14.


Problem 4-1

|Cash | |Accounts Payable |
|Beg. Bal. |$900 |$3,400 |(3) | |(3) |$3,400 |$3,600 |Beg. Bal. |
|(4) |5,350 |950 |(5) | | | |2,350 |(1) |
|Bal. |$1,900 | | | | | |$2,550 |Bal. |
| |
|Accounts Receivable | |Notes Payable |
|Beg. Bal. |$3,000 |$5,350 |(4) | |(5) |$950 |$950 |Beg. Bal. |
|(2) |6,350 | | | | | | | |
|Bal. |$4,000 | | | | | | | |
| |
|Inventory | | | | | |
|Beg. Bal. |$5,700 |$4,150 |(2) | | | | | |
|(1) |2,350 | | | | | | | |
|Bal. |$3,900 | | | | | | | |

Problem 4-2

|1) |Dr. Prepaid Rent ...

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