Week 2 Exercises by W09xxzb

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									                                                American Public University System
                                          ACCT100, Assignment 2 (Week 2 Exercises)

Week 2 Exercises


Exercise 1
Jeff Anderer Enterprises purchases computer equipment on May 1, 2010 for $4,500. The
company expects to use the equipment for 3 years. It has no salvage value.
1. What adjusting journal entry should the company make at the end of each month if
    monthly financials are prepared (annual depreciation is $1,500)?
2. What is the book value of the equipment at May 31, 2010?




Exercise 2
The adjusted trial balance of Rocky Acre Spread Inc. on December 31, 2010 includes the
following accounts: Accumulated Depreciation, $6,000; Depreciation Expense, $2,000;
Note Payable $7,500; Interest Expense $150; Utilities Expense, $300; Rent Expense,
$500; Service Revenue, $19,600; Salaries Expense, $4,000; Supplies, $200; Supplies
Expense, $1,200; Wages Payable, $600. Prepare an income statement for the month of
December.




Exercise 3
The adjusted trial balance of Wilcox Company on December 31, 2010 includes the
following accounts: A. Wilcox, Capital $12,600; A. Wilcox, Drawing $6,000; Service
Revenue $35,000; Salaries Expense $13,000; Insurance Expense $2,000; Rent Expense
$3,500; Supplies Expense $500; and Depreciation Expense $1,000.

Prepare an owner’s equity statement for the year.
                                                American Public University System
                                          ACCT100, Assignment 2 (Week 2 Exercises)


Exercise 4
Compute the net income for 2010 based on the following amounts presented on the
adjusted trial balance of D-Lay Company.

       Accumulated Depreciation                       $20,000
       Depreciation Expense                            10,000
       Salaries Expense                                15,000
       Service Revenue                                 40,000
       Unearned Revenue                                 8,000




Exercise 5
The following accounts were included on Megan’s Style Consultants adjusted trial
balance at December 31, 2010:
       Accounts payable                                         $ 2,000
       Accounts receivable                                        5,500
       Cash                                                      11,000
       Megan, Capital                                            40,000
       Megan, Drawing                                            10,000
       Interest expense                                           3,000
       Note payable, due 8/31/13                                 60,000
       Supplies                                                   1,000
       Service revenue                                           39,000
       Equipment                                                  5,000

(a) What are total current assets?
(b) What are total current liabilities?
                                                   American Public University System
                                             ACCT100, Assignment 2 (Week 2 Exercises)

Exercise 6
The following information is available for Horton Company for the year ended December
31, 2010:

       Accounts payable                                               $ 2,700
       Accumulated depreciation, equipment                              4,000
       Horton, Capital                                                  7,800
       Intangible assets                                                2,500
       Notes payable (due in 5 years)                                   7,500
       Accounts receivable                                              1,500
       Cash                                                             2,600
       Short-term investments                                           1,000
       Equipment                                                        7,500
       Long-term investments                                            6,900

Instructions
Use the above information to prepare a classified balance sheet for the year ended December 31,
2010.

								
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