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ACCOUNTING I Chapters 1-4 Exam Problems

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Question;PART I: The trial balance of Kelita Karmel Co. shown below is out of balance.KELITA KARMEL COTrial BalanceAugust 31, 19XXCash $ 2,500Accounts Receivable 3,000Office Supplies 3,500 Office Equipment 2,800Accounts Payable $ 2,903Kelita, Capital 10,000Service fees earned 2,420Wages Expense 5,222 Totals $17,022 $15,323An examination of the company?s records revealed the following additional information:1. A $360 collection of an account receivable was recorded as $630.2. A computer purchased on credit for use in the office was recorded with a debit to Office Supplies and a credit to Accounts Payable for $2,500.3. Services sold on credit for $900 were recorded with a debit to Accounts Receivable for $900 and a credit to Service Fees Earned for $90.4. A payment of wages was recorded with a debit to Wage Expense for $200 and a debit to Cash for $200.5. Recalculating the Service Fees Earned account balance before any corrections had been made revealed that the balance should be $2,520.6. An additional investment of $1,000 made by Kelita during the month was not entered in the capital account (the entry to Cash was made).7. A $310 payment of an account payable was recorded with a credit to Cash for $310 and a credit to Accounts Payable for $301.Prepare a corrected trial balance on the Trial Balance form in document sharing.PART II: As the bookkeeper of Ed?s Repair Service, use the information that follows to prepare a work sheet for the month of November. You will need to utilize the worksheet in document sharing.ED?S REPAIR SERVICETRIAL BALANCENOVEMBER 30, 2007Account Title Debit CreditCash $ 3,204 Prepaid Insurance 4,000 Repair Supplies 770 Repair Equipment 3,106 Accumulated Depreciation, Repair Equipment $ 650Accounts Payable 1,904Ed Clean, Capital 6,258Revenue from Repairs 5,634Wages Expense 1,600 Rent Expense 1,560 Advertising Expense 206 Totals $14,446 $14,446Adjustment Data:A. Insurance expired, $300B. Repair supplies on hand $170.C. Depreciation on repair equipment, $250.D. Wages earned but unpaid, $106PART III: The schedule below presents the trial balance for the Sigma Consultants Company on December 31, 2007.Sigma Consultants CompanyTrial BalanceDecember 31, 2007Account Title Debit CreditCash $ 12,786 Accounts Receivable 24,840 Office Supplies 991 Prepaid Rent 1,400 Office Equipment 6,700 Accumulated Depreciation, Office Equipment $ 1,600Accounts Payable 1,820Notes Payable 10,000Unearned Fees 2,860Kevin Moriarty, Capital 29,387Kevin Moriarty, Withdrawals 15,000 Fees Revenue 58,500Salaries Expense 33,000 Utilities Expense 1,750 Rent Expense 7,700 Totals $104,167 $104,167The following information is also available:a. Ending inventory of office supplies, $86.b. Prepaid rent expired, $700.c. Depreciation of office equipment, for the period, $600.d. Interest accrued on the note payable, $600.e. Salaries accrued at the end of the period, $200.f. Fees still unearned at the end of the period, $1,410.g. Fees earned but not billed $600.Prepare the adjusting entries on the general journal form in document sharing.

 

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