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Accounting Principles I - EXAM I - Part II - Chapters 1 & 2




Question;NAME___Solve the following problems and save this file on your hard drive. Then submit your file to your instructor on Canvas.PART A (10 Points, 1/2 point each) For the accounts listed below indicate whether the account is a real account or a temporary account and if the normal balance of the account is a debit or credit.NORMAL BALANCE DR or CRREAL OR TEMPORARY (R) or (T)1. Sally Wright, Capital2. Accounts Receivable3. Wages Payable4. Service Fees Revenue5. Utility Expense6. Cash7. Accounts Payable8. Office Supplies9. Equipment10. Sally Wright, Drawing PART B (22 Points) Journalize each of the following transactions in the general journal below, you may omit the third line explanations. a. On January 5, Sue Howe began a new business with a transfer of $20,000 from her personal savings account to a new account in the name of Howe?s Catering. b. On January 8, Sue purchased Kitchen Equipment with a cost of $8,000 for her business. Out of the business account, Sue paid $2,000 cash and signed a note for the balance. c. On January 12, Howe?s Catering purchased, on credit, an advertisement in the newspaper for $420. This ad will run for one day, January 12. d. On January 18, Howe?s Catering catered a party at PVCC. At the end of the party they were paid $1,800 in cash for services rendered. (Sue titled her revenue account ?Catering Sales?) e. On January 21, Sue withdrew $500 cash from the business for living expenses.Howe's Catering General JournalDATEACCOUNT TITLESDRCRPART C (16 Points) Silver Mine Real Estate Company is in need of an Income Statement for the month ended January 31. You have been asked to prepare this statement for them. Based on the following information, in the space provided below, prepare an Income Statement in good form.Wages Expense $ 1,400Rent Expense $ 600Commissions Revenue $13,300Advertising Expense $ 2,400Utility Expense $ 640Interest Revenue $ 150Insurance Expense $ 1,100Maintenance Expense $ 390SILVER MINE REAL ESTATE COMPANYINCOME STATEMENTPART D (20 Points)B. Bristle of the Bristle Insurance Company has provided you with the following information for the year ended December 31. He is on the way to his banker to request a loan and he has asked you to prepare a Balance Sheet for him. In the space provided below, prepare a Balance Sheet in good form for Bristle Insurance Co.Notes Payable $ 3,400Equipment $18,000Accounts Receivable $8,600Building $75,000Cash?B. Bristle, Capital $62,700Accounts Payable $5,600Supplies $800Mortgage Payable $60,000Land $22,000BRISTLE INSURANCE COMPANYBALANCE SHEET


Paper#40411 | Written in 18-Jul-2015

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