In fundamentals of accounting Chapter 3 I need answers to M3-1, M3-2, M3-3, M3-13, E3-12, and E3-13. M3-1. Reporting cash basis versus accrual basis. Mostert Music Company had the following transactions in March: a. Sold music lessons to customers for $10,000; received $6,000 in cash and the rest on account. b. Paid $600 in wages for the month. c. Received a $200 bill for utilities that will be paid in April. d. Received $1,000 from customers as deposits on music lessons to be given in April. Complete the following statements for March: Cash Basis Income Statement: Revenues-Cash Sales, Customer Deposits,/ Expenses Wages Paid/ Expenses Wages Expense Utilities Expense Net Income=.

M3-2. Identifying Accrual Basis Revenues:

The following transactions are July 2013 activities of Bill Extreme Bowling Inc. which operates several bowling centers. If revenue is to recognized in July explain why.

Activity a. Bill's collected $12,000 from customers for services related to games played inJuly. Amount or explanation:

Activity b. Bill's billed a customer for $25 for a party held at the center on the last day of July. The bill is to paid in August. Amount or explanation.

Activity c. The men's and women's bowling leagues give Bill's advance payments totaling $1,500 for the fall season that starts in September. Amount or explanation.

Activity d. Bill's received $1,000 from credit sales made to customers last month (in June). Amount or explanation.

M3-3 Identifying Accrual Basis Expenses

The following transactions are July 2013 activities of Bill's Extreme Bowling Inc. which operates several bowling centers. If an expense is to be recognized in July, explain why.

Activity e. Bill's paid $1,500 to plumbers for repairing a broken pipe in the restrooms. Amount or explanation.

Activity f. Bill's paid $2,000 for the June electricity bill and received the July bill for $2,500 which will be paid in August. Amount or explanation.

Activity g. Bill's paid $5,475 to employees for work in July. Amount or explanation.

M3-13 Preparing Accrual Basis Journal Entries for Business Activities:

Quick Cleaners Inc. has been in business for several years. It specializes in cleaning houses, but has some small business clients as well. Prepare journal entries for the following transactions, which occured during a recent month, and determine QCI's preliminary net income.

a. Issued $25,000 of QCI stock for cash.

b. Incurred $600 of utilities costs this month and will pay them next month.

c. Paid wages for the current month, totaling $2,000.

d. Performed cleaning services on account worth $2,800.

e. Some of Quick Cleaners' equipment was repaired at a total cost of $150. The company paid the full amount immediately.

E3-12 Recording and Posting Accrual Basis Journal Entries:

Ricky's Piano Rebuilding Company has been operating for one year 2012. At the start of 2013 its oncome statement accounts had zero balances and its balance sheet account balances were as follows:

Cash $6,000 Accounts Receivable $25,000 Supplies $1,200 Equipment $8,000 Land $6,000 Building $22,000 Accounts Payable $8,000 Unearned Income (deposits) $3,200 Notes Payable $40,000 Contributed Capital $8,000 Retained Earnings $9,000.

Required:

1. Create T-accounts for the balance sheet accounts and for these additional accounts: Service Revenue Rent Revenue Wage Expense and Utilities Expense. Enter the beginning balances.

2. Prepare journal entries for the following January 2013 transactions using the letter of each transaction as a reference:

a. Received a $500 deposit from a customer who wanted her piano rebuilt in February.

b. Rented a part of the building to a bicycle repair shop; $300 rent received in January.

c. Delivered five rebuilt pianos to customers who paid $14,500 in cash.

d. Delivered two rebuilt pianos to customers for $7,000 charged on account.

e. Received $6,000 from customers as payment on their accounts.

f. Received an electric and gasutility billfor$350 for January services to be paid in February.

g. Ordered $800 in supplies.

h. Paid $1,700 on account in January.

i. Paid $10,000 in wages to employees in January for work done this month.

j. Received and paid cash for the supplies in (g).

3. Post the journal entries to the T-accounts.. Show the unadjusted ending balances in the T-accounts.

E3-13 Preparing an Unadjusted Trial Balance:

Use the balances in the completed T- accounts in E3-12 to prepare an unadjusted trial balance at the end of January 2013.