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The Goldwater Company?s accounting year ends March 31, 20XX.;A trial balance as of this date is entered in the Trial Balance;columns of the work sheet on pages 76 and 77.;REQUIRED: Complete the work sheet, using the following;additional data, and then answer questions 1 through 5.;DO NOT send the work sheet to us.;Additional data as of March 31, 20XX (ADJUSTING ENTRIES);a. Interest earned on marketable securities;but not received $ 120;b. Unpaid salaries 100;c. An unrecorded and unpaid advertising bill;was discovered 85;d. Supplies on hand determined by a physical;count 90;e. Depreciation on equipment not recorded 2,380;f. One-half of the prepaid insurance premiums;expired during the period 360;g. Of the advances received from clients, $800;has been earned 800;1. The total of the Adjustments debit column is;A. $3,470. C. $4,065.;B. $3,575. D. $4,425.;2. The total of the Adjusted Trial Balance credit column is;A. $35,705. C. $38,005.;B. $36,405. D. $39,785.;3. The net income for the year ended March 31, 20XX, is;A. $5,265. C. $7,765.;B. $5,385. D. $7,985.;4. The total of the Balance Sheet debit column is;A. $19,735. C. $25,120.;B. $22,740. D. $30,760.;5. The balance of the Accounts Payable account in the Balance Sheet credit column is;A. $1,125. C. $1,295.;B. $1,210. D. $1,395.;The General Ledger account balances as of December 31, 20XX, for the Cougar Detective;Agency are entered in the Trial Balance columns of the work sheet on pages 78 and 79.;REQUIRED: Complete the work sheet, using the following additional data, and;then answer questions 6 through 9. DO NOT send the work sheet to us.;Additional data as of December 31, 20XX (ADJUSTING ENTRIES);a. Depreciation of $1,050 on the vehicle and $305 on office;equipment hasn?t been recorded for the current year $1,355;b. Salaries due but unpaid at year end 250;c. A physical count of unused office supplies showed a balance of $180 180;d. Interest due on notes payable 30;e. Services billed to clients for December haven?t yet been recorded 740;6. On the Balance Sheet for the Cougar Detective Agency, the balance in the Office;Supplies account will be shown as a;A. debit of $180. C. debit of $340.;B. credit of $180. D. credit of $340.;7. The balance to be shown in the Fee Revenue account on the Income Statement for the;Cougar Detective Agency is a;A. debit of $23,705. C. debit of $24,445.;B. credit of $23,705. D. credit of $24,445.;8. What is the net income for the Cougar Detective Agency for the year ended;December 31, 20XX?;A. $8,815. C. $10,170.;B. $9,155. D. $14,175.;9. The balance to be shown in the Accumulated Depreciation?Vehicle account on the;Balance Sheet for the Cougar Detective Agency is a credit of;A. $1,050. C. $2,200.;B. $2,100. D. $2,405.;Base your answers to questions 10 through 15 on the following information;The Mid-Valley Accounting Agency, owned and operated by Jeffery Thomas, organized for;business on January 1, 20XX. It?s assumed, in this problem, that 11 months have elapsed;since the company began operations, and that the January 1 through November 30 transactions;have been entered in the journal and posted to the ledger. The company?s chart of;accounts is as follows;MID-VALLEY ACCOUNTING AGENCY;Chart of Accounts;Current Assets (100?199);100 Cash;101 Marketable Securities;110 Accounts Receivable;111 Notes Receivable;112 Interest Receivable;120 Prepaid Insurance;121 Prepaid Rent;122 Prepaid Advertising;130 Office Supplies;131 Accounting Supplies;Fixed Assets (200?299);200 Office Furniture;201 Accumulated Depreciation?Office Furniture;210 Office Machines;211 Accumulated Depreciation?Office Machines;220 Land;Current Liabilities (300?399);300 Accounts Payable;301 Notes Payable;310 Salaries Payable;320 Interest Payable;70 Examination;Owner?s Equity (500?599);500 Jeffery Thomas, Capital;501 Jeffery Thomas, Drawing;550 Income Summary;Revenue (600?699);600 Fee Income;610 Interest Income;Expenses (700?799);700 Salaries Expense;701 Rent Expense;702 Advertising Expense;703 Utilities Expense;704 Office Supplies Expense;705 Accounting Supplies Expense;706 Depreciation Expense?Office Furniture;707 Depreciation Expense?Office Machines;708 Telephone Expense;709 Miscellaneous Expense;710 Insurance Expense;720 Interest Expense;1000 Expense and Revenue Summary;Examination 71;An unadjusted trial balance was prepared from the ledger accounts on November 30, as;follows;MID-VALLEY ACCOUNTING AGENCY;Trial Balance;November 30, 20XX;Cash $ 7,200;Marketable Securities 4,000;Accounts Receivable 4,285;Notes Receivable 2,500;Prepaid Insurance 2,700;Prepaid Rent 100;Office Supplies 275;Accounting Supplies 320;Office Furniture 2,400;Accumulated Depreciation?Office Furniture $ 220;Office Machines 3,600;Accumulated Depreciation?Office Machines 330;Accounts Payable 2,250;Notes Payable 2,000;Jeffery Thomas, Capital 10,000;Jeffery Thomas, Drawing 3,500;Fee Income 35,295;Interest Income 40;Salaries Expense 15,200;Rent Expense 1,100;Advertising Expense 900;Utilities Expense 650;Depreciation Expense?Office Furniture 220;Depreciation Expense?Office Machines 330;Telephone Expense 430;Miscellaneous Expense 425;$50,135 $50,135;The following transactions took place during the month of December;Dec. 1 Contracted with the local newspaper for three months of advertising and;paid in full the total fee of $600.;1 Purchased additional office supplies on account, $45.;2 Billed the Hughes Body and Fender Shop for services rendered, $150.;3 Paid $700 on account for office equipment purchased in June.;3 Received $320 cash for services rendered.;4 Jeffery Thomas withdrew $250 from the business for his personal use.;5 Received a check for $30 representing interest due on marketable;securities.;72 Examination;5 Received a bill from Steno Services Company for outside clerical service;performed, $35. Charge is to be recorded as a miscellaneous expense of;doing business.;8 Paid telephone expense of $55.;9 Received $270 from clients on account.;9 Billed the Vingsen Modeling Agency for services rendered, $300.;10 Paid an electric bill in full, $85.;11 Purchased a tract of land for $6,000 by issuing a note payable for $4,000;and paying the balance in cash.;11 Accepted a 90-day $1,000 note receivable from the Stansbury;Manufacturing Company for services performed.;12 Purchased accounting supplies on account, $100.;15 Paid semimonthly salaries of $690.;16 Received $400 cash for services performed.;18 Billed the Coleman Coal Company for work performed, $220.;18 Paid creditors in full for office supplies purchased on December 1 and;accounting supplies purchased on December 12.;19 Received $125 from clients on account.;19 Paid miscellaneous expenses of $15.;22 Invested another $1,000 in high-grade marketable securities.;23 Paid for advertisement presented on radio station WALX, $95.;23 Received a check from the Hughes Body and Fender Shop for $150, payment;on account.;26 Received $175 cash for work performed.;29 Paid miscellaneous expenses of $40.;30 Paid semimonthly salaries of $690.;30 Wrote off $100 of prepaid rent as of November 30 to rent expense for;December.;Additional data (ADJUSTING ENTRIES);a. Accrued interest on notes payable was $10 as of December 31, 20XX.;b. One month?s advertising was expended in accordance with the agreement made;with the newspaper on December 1.;c. Office supplies on hand were determined to be $75 as of December 31.;d. Salaries earned but not yet paid amounted to $45 on December 31.;e. Accrued interest on notes receivable was $30 as of December 31.;f. Accounting supplies on hand were determined to be $210 as of December 31.;g. Unexpired insurance premiums amounted to $1,800 as of December 31.;h. Depreciation on office furniture and office machines was determined to be $20 and;$30, respectively, for the month of December.;REQUIRED;1. Journalize the December transactions (omit explanations).;2. Post the journal entry amounts to the ledger accounts.;3. Prepare a trial balance as of December 31, 20XX, (before adjustments) directly on;the work sheet.;4. Complete the work sheet, using the adjustments.;5. Complete questions 10 through 15. DO NOT send the accounting forms to us.;Examination 73;10. On December 26, cash in the amount of $175 was received for work performed. When;you record this transaction in the General Journal, to which account should the credit;entry be made?;A. Cash C. Interest Income;B. Accounts Payable D. Fee Income;11. What is the correct adjusting entry for the expired insurance premium as of;December 31?;A. Insurance Expense 1,800;Prepaid Insurance 1,800;B. Prepaid Insurance 1,800;Insurance Expense 1,800;C. Insurance Expense 900;Prepaid Insurance 900;D. Prepaid Insurance 900;Insurance Expense 900;12. What is the net income for the Mid-Valley Accounting Agency for the year ended;December 31, 20XX?;A. $13,440. C. $15,240.;B. $14,105. D. $16,350.;13. The balance in the Cash account, as shown on the work sheet in the Balance Sheet;debit column, is;A. $4,305. C. $2,995.;B. $3,895. D. $2,305.;14. The balance in the Fee Income account, as shown on the work sheet in the Income;Statement credit column, is;A. $35,295. C. $37,860.;B. $37,685. D. $38,130.;15. From the information on the work sheet, determine what the balance in the Jeffery;Thomas, Capital account would be if a post-closing trial balance is prepared as of;December 31, 20XX.;A. $21,490 C. $10,000;B. $15,185 D. $6,250;74 Examination;Base your answers to questions 16 through 25 on information given in previous;study units in this Accounting program.;16. An owner?s investment in a firm may be classified as a/an;A. use of funds. C. source of income.;B. source of funds. D. additional expense.;17. An example of a debit entry is;A. an increase in an asset account.;B. an increase in a liability account.;C. a decrease in an asset account.;D. an increase in a capital account.;18. The post-closing trial balance would include which one of the following accounts?;A. Cash C. Salary Expense;B. Sales D. Interest Income;19. The form listing the balance and titles of the accounts in the ledger on a given date;is the;A. income statement. C. trial balance.;B. capital statement. D. retained earnings statement.;20. If revenue was $55,000, expenses were $47,500, and the owner?s withdrawals were;$12,000, the amount of net income or net loss would be;A. $55,000 (net income). C. $47,500 (net loss).;B. $7,500 (net income). D. $4,500 (net loss).;21. If, during an accounting period, assets increased by $80,000 and owner?s equity;decreased by $15,000, what change occurred to the total liabilities?;A. A decrease of $65,000 C. An increase of $95,000;B. An increase of $15,000 D. An increase of $80,000;22. The journal is the book in which a complete transaction is originally recorded. At the;end of the accounting period, the information in the journal must be put into the;individual records in the ledger. This transferring process is called;A. journalizing. C. extending.;B. balancing. D. posting.;Examination 75;23. The Supplies account has a balance of $810 at the beginning of the year and was;debited during the year for $1,950, representing the total of supplies purchased during;the year. If $650 of supplies are on hand at the end of the year, the supplies expense;to be reported on the income statement for the year would be;A. $650. C. $2,050.;B. $710. D. $2,110.;24. A business enterprise pays weekly salaries of $20,000 every Friday for the five-day;week ending on that day. If the fiscal period happens to end on a Thursday, an;adjusting entry would be necessary. This adjusting entry would consist of;A. debit Salaries Expense, $4,000, credit Salaries Payable, $4,000.;B. debit Salaries Expense, $16,000, credit Salaries Payable, $16,000.;C. debit Salaries Payable, $4,000, credit Salaries Expense, $4,000.;D. debit Salaries Payable, $16,000, credit Salaries Expense, $16,000.;25. After all of the account balances have been extended to the Income Statement;columns of the work sheet, the totals of the Debit and Credit columns are $874,038;and $800,438, respectively. What is the amount of net income or net loss for the;period?;A. $73,600 (net loss) C. $126,838 (net loss);B. $73,600 (net income) D. $36,800 (net income)

 

Paper#75992 | Written in 18-Jul-2015

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