Test One chapters 1 4

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					Test One

Problem

      1. The balances for the accounts listed below appeared in the Adjusted Trial Balance columns of the work sheet.
         Indicate whether each balance should be extended to (a) the Income Statement columns or (b) the Balance Sheet
         columns. (18 points)

           (1)     Salaries Payable ____               (7)      L. Wang, Drawing ____
           (2)     Fees Earned ____                    (8)      Equipment ____
           (3)     Accounts Payable ____               (9)      Accounts Receivable ____
           (4)     L. Wang, Capital ____               (10)     Accumulated Depreciation ____
           (5)     Supplies Expense ____               (11)     Salary Expense ____
           (6)     Unearned Rent ____                  (12)     Depreciation Expense ____

      2. The following accounts were taken from the Adjusted Trial Balance columns of the work sheet for the year ended
         June 30 for JB Co.:

           Accumulated Depreciation                                                        $ 25,000
           Fees Earned                                                                      100,000
           Depreciation Expense                                                               9,500
           Rent Expense                                                                      44,000
           Prepaid Insurance                                                                  9,000
           Supplies                                                                             500
           Supplies Expense                                                                   3,500

           Prepare an income statement. (16 points)
                                                     JB Company
                                                   Income Statement
                                              For the year ending 6/30/xx
4. On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year
   ended October 31 for Pelavin Co., journalize the closing entries. (20 points)

   Cash                                                               $ 21,500
   Accounts Receivable                                                  45,200
   Supplies                                                              5,000
   Equipment                                                           169,900
   Accumulated Depreciation                                                           $ 69,000
   Accounts Payable                                                                     42,500
   Capital                                                                             152,600
   Drawing                                                               30,000
   Fees Earned                                                                         404,500
   Salary Expense                                                      300,500
   Rent Expense                                                         60,000
   Depreciation Expense                                                 25,000
   Supplies Expense                                                      9,500
   Miscellaneous Expense                                                 2,000
                                                                      $668,600        $668,600
                                                                      ========        ========


   Date      Accounts                                                               Debit         Credit
5.Prior to adjustment at July 31, the end of the current fiscal year, Salary Expense has a debit balance of $300,500. Salaries
             owed but not paid as of the same date total $1,500. (10 points)

                   Present the entries to record the following:

                   (1) Accrued salaries as of July 31.
                   (2) Closing of Salary Expense as of July 31.

            Date       Accounts                                                                  Debit         Credit
Test One
Answer Section

PROBLEM

     1.
          (a)   Income statement: 2, 5, 11, 12
          (b)   Balance sheet: 1, 3, 4, 6, 7, 8, 9, 10
     2.
                                                   JB Co.
                                              Income Statement
                                      For the Year Ended June 30, 20--

          Fees earned                                                              $100,000
          Expenses:
             Rent expense                                             $44,000
             Depreciation expense                                       9,500
             Supplies expense                                           3,500
               Total expenses                                                           57,000
          Net income                                                                   $43,000
                                                                                       =======
     3. (a)

                                         Camp Ground Services                               )
                                              Work Sheet                                    )
                                For the Month Ended December 31, 20--                       )
                                                                                            )
                                                 Trial Balance           Adjustments        )
          Account Title                           Dr.      Cr.            Dr.           Cr. )

          Cash                                 4,500      .....      .....     ..... )
          Supplies                             4,150      .....      ..... (a) 3,150 )
          Prepaid Insurance                    8,700      .....      .....   (b) 900 )
          Equipment                           42,000      .....      .....     ..... )
          Accumulated                          .....     10,200      ..... (c) 1,500 )
          Depreciation
          Tom Aba, Capital                     .....     33,050       .....        .....    )
          Tom Aba, Drawing                     2,900      .....       .....        .....    )
          Service Revenue                      .....     52,500       .....        .....    )
          Salary Expense                      26,600      .....   (d) 1,000        .....    )
          Rent Expense                         5,000      .....       .....        .....    )
          Miscellaneous Expense                1,900      .....       .....        .....    )
                                              95,750     95,750                             )
                                                                                            )
          Supplies Expense                     .....     .....    (a) 3,150        .....    )
          Insurance Expense                    .....     .....    (b)   900        .....    )
          Depreciation Expense                 .....     .....    (c) 1,500        .....    )
          Salaries Payable                     .....     .....        .....     d) 1,000    )
          Net Income                                                  6,550        6,550    )
                                                                                            )
          (
     ( Adjusted
     (Trial Balance              Income Statement   Balance Sheet
     (   Dr.        Cr.              Dr.      Cr.      Dr.        Cr.
     (
     ( 4,500     .....             .....    .....    4,500       .....
     ( 1,000     .....             .....    .....    1,000       .....
     ( 7,800     .....             .....    .....    7,800       .....
     (42,000     .....             .....    .....   42,000       .....
     ( .....    11,700             .....    .....    .....      11,700
     ( .....    33,050             .....    .....    .....      33,050
     ( 2,900     .....             .....    .....    2,900       .....
     ( .....    52,500             .....   52,500    .....       .....
     (27,600     .....            27,600    .....    .....       .....
     ( 5,000     .....             5,000    .....    .....       .....
     ( 1,900     .....             1,900    .....    .....       .....
     ( 3,150     .....             3,150    .....    .....       .....
     (   900     .....               900    .....    .....       .....
     ( 1,500     .....             1,500    .....    .....       .....
     ( .....     1,000             .....    .....    .....       1,000
     (98,250    98,250            40,050   52,500   58,200      45,750
     (======    ======            12,450   ......   ......      12,450
     (                            52,500   52,500   58,200      58,200
     (                            ======   ======   ======      ======

4.
     Oct. 31    Fees Earned                          404,500
                  Income Summary                                 404,500

           31   Income Summary                       397,000
                  Salary Expense                                 300,500
                  Rent Expense                                    60,000
                  Depreciation Expense                            25,000
                  Supplies Expense                                 9,500
                  Miscellaneous Expense                            2,000

           31   Income Summary                         7,500
                  Capital                                          7,500

           31   Capital                               30,000
                  Drawing                                         30,000
5.

     (1) Salary Expense                                 1,500
            Salaries Payable                                       1,500

     (2) Income Summary                              302,000
           Salary Expense                                        302,000

				
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