【正文】 equity and assets decrease by the same amount.Req. 2Accounts ReceivableBeg. bal. 1,000(f) 800400 (j) End. bal. 1,400E3–9.2/1Rent expense (+E, SE) 275 Cash (A) 2752/2Fuel expense (+E, SE) 490 Accounts payable (+L) 4902/4Cash (+A) 820 Unearned revenue (+L) 8202/7Cash (+A) 910 Transport revenue (+R, +SE) 9102/10Advertising expense (+E, SE) 175 Cash (A) 1752/14Wages payable (L) 2,300 Cash (A) 2,3002/18Cash (+A) Accounts receivable (+A) 1,6002,200 Transport revenue (+R, +SE) 3,8002/25Parts supplies (+A) 2,550 Accounts payable (+L) 2,5502/27Retained earnings (SE) 200 Dividends payable (+L) 200E3–10.Req. 1 and 2CashAccounts ReceivableSuppliesBeg. 6,400(a) 19,000(b) 600(c) 850 (d) 7,200 2,300 (g)16,500 (i) 2,200 (j) 960 (k),0007,200 (d)Beg. 1,500(k) 96012,09024,8002,460EquipmentLandBuildingBeg. 9,500(h) 920Beg. 7,400Beg. 25,30010,4207,40025,300Accounts PayableUnearned Fee RevenueNote Payable(g) 2,3009,600 Beg. 400 (e)3,840 Beg. 600 (b)48,500 Beg.7,7004,44048,500Common StockAdditional Paidin CapitalRetained Earnings 1,600 Beg. 100 (h)7,000 Beg. 820 (h)(j) 2,20011,560 Beg. 1,700 7,820 9,360Rebuilding Fees Revenue Rent Revenue 0 Beg.19,000 (a) 0 Beg.850 (c)19,000850Wages ExpenseUtilities ExpenseBeg. 0 (i) 16,500Beg. 0(e) 40016,500400Item (f) is not a transaction。 equity and assets decrease by the same amount.E3–8. (continued)g. Cash (+A) 320,000 Lift revenue (+R, +SE) 320,000Debits equal credits. Revenue increases retained earnings (a part of stockholders39。 equity and assets decrease by the same amount.e. Cash (+A) 390,000 Unearned pass revenue (+L) 390,000Debits equal credits. Since the season passes are sold before Vail Resorts provides service, revenue is deferred until it is earned. Assets and liabilities increase by the same amount.f. Two transactions occur: (1) Accounts receivable (+A) 800 Ski shop sales revenue (+R, +SE) 800Debits equal credits. Revenue increases retained earnings (a part of stockholders39。 equity and assets decrease by the same amount.i.Retained earnings (SE) 597 Cash (A) 597Debits equal credits. Assets and stockholders’ equity decrease by the same amount.j.Utilities expense (+E, SE) 68 Cash (A) Accounts payable (+L) 5513Debits equal credits. Expenses decrease retained earnings (part of stockholders39。 equity and assets increase by the same amount.E3–7. (continued)d.Accounts payable (L) 32,074 Cash (A) 32,074Debits equal credits. Assets and liabilities decrease by the same amount.e.Inventory (+A) 32,305 Accounts payable (+L) 32,305Debits equal credits. Assets and liabilities increase by the same amount.f.Wages expense (+E, SE) 3,500 Cash (A) 3,500Debits equal credits. Expenses decrease retained earnings (part of stockholders39。 5 games)k.NoneNo revenue earned in September。 exchange of promises only.e.Sales revenue $15,000 (= 1,000 shirts x $15 per shirt)Revenue earned when goods are delivered.f.NonePayment related to revenue recorded previously in (e) above.g.NoneNo revenue earned in September。 earnings process is not yet plete – Unearned Revenue is recorded upon receipt of cash.M3–4.Expense Account Affected Amount of Expense Incurred in Julye.Cost of Goods Sold $6,800f.NoneNo expense is incurred in July。 to decrease stockholders’ equity, an account must be debited. Thus revenues are recorded as credits and expenses as debits.10.ItemIncreaseDecreaseRevenuesCreditDebitLossesDebitCreditGainsCreditDebitExpensesDebitCredit11.ItemDebitCreditRevenuesDecreaseIncreaseLossesIncreaseDecreaseGainsDecreaseIncreaseExpensesIncreaseDecrease12.TransactionOperating, Investing, or FinancingDirection of the Effect on CashCash paid to suppliersOperating–Sale of goods on accountNoneNoneCash received from customersOperating+Purchase of investmentsInvesting–Cash paid for interestOperating–Issuance of stock for cashFinancing+13. Total net profit margin ratio is calculated as Net Ine 184。 Net Sales (or Operating Revenues). The net profit margin ratio measures how much of every sales dollar is profit. An increasing ratio suggests that the pany is managing its sales and expenses effectively.ANSWERS TO MULTIPLE CHOICE 1. c 2. a 3. b 4. b 5. c 6. c 7. d 8. b 9. a10. bAuthors39。 payment related to June electricity usage.g.Wages Expense $3,500h.Insurance Expense $500 incurred and expensed in July and $1,000 not incurred until future months (recorded as Prepaid Expense (A)).i.Repairs Expense $700j.Utilities Expense $900 M3–5.a.Cash (+A) 15,000Games Revenue (+R, +SE) 15,000b.Cash (+A) 3,000Accounts Receivable (+A) 5,000Sales Revenue (+R, +SE) 8,000c.Cash (+A) 4,000Accou