Description
[Problem 1]
A partial adjusted trial balance of Safin Company at January 31, 2012, shows the following.
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SAFIN COMPANY ADJUSTED TRIAL BALANCE JANUARY 31, 2012 |
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Debit |
Credit |
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Supplies |
$1,020 |
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Prepaid Insurance |
3,120 |
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Salaries and Wages Payable |
$920 |
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Unearned Revenue |
870 |
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Supplies Expense |
950 |
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Insurance Expense |
520 |
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Salaries and Wages Expense |
1,920 |
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Service Revenue |
2,120 |
Answer the following questions, assuming the year begins January 1.
(a) If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of supplies was
purchased in January, what was the balance in Supplies on January 1?
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Beginning balance of supplies |
$ |
(b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original
insurance premium was for one year, what was the total premium and when was the policy
purchased?
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Total premium |
$ |
The policy was purchased on
August 31, 2011 July 31, 2011 August 1, 2011
(c) If $2,820 of salaries and wages was paid in January, what was the balance in Salaries and
Wages Payable at December 31, 2011?
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Beginning balance of salaries and wages payable |
$ |
(d) If $1,720 was received in January for services performed in January, what was the balance in
Unearned Service Revenue at December 31, 2011?
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Beginning unearned service revenue December 31, 2011 |
$ |
[Problem 2]
Selected accounts of Leno Company are shown below.
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Supplies |
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Beg. Bal. |
710 |
10 ? 31 |
520 |
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Salaries and Wages Expense |
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10 ?15 |
880 |
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10 ?31 |
800 |
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Unearned Service Revenue |
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10 ?31 |
570 |
10 ?20 |
760 |
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Service Revenue |
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10 ?17 |
3,280 |
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10 ?31 |
2,610 |
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10 ?31 |
570 |
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Accounts Receivable |
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10 ? 17 |
3,280 |
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10 ?31 |
2,610 |
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Salaries and Wages Payable |
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10 ?31 |
800 |
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Supplies Expense |
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10 ?31 |
520 |
From an analysis of the T-accounts, reconstruct the October transaction entries.(Credit account
titles are automatically indented when amount is entered. Do not indent manually.)
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Date |
Account Titles and Explanation |
Debit |
Credit |
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10/1 5 |
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10/1 7 |
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10/2 0 |
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From an analysis of the T-accounts, reconstruct the adjusting journal entries that were made on
October 31, 2012.(Credit account titles are automatically indented when amount is entered.
Do not indent manually.)
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No. |
Account Titles and Explanation |
Debit |
Credit |
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1. |
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(To record the use of supplies during October) |
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2. |
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(To record revenue for services performed for which payment has not yet been received) |
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3. |
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(To record liability for accrued payroll) |
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4. |
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(To record service revenue earned) |
[Problem 3]
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[Problem 4]
Presented below are selected account balances for Alistair Co. as of December 31, 2012.
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Inventory 12/31/12 |
$61,010 |
Cost of Goods Sold |
$227,220 |
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Common Stock |
76,240 |
Selling Expenses |
17,030 |
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Retained Earnings |
46,020 |
Administrative Expenses |
39,950 |
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Dividends |
19,950 |
Income Tax Expense |
33,720 |
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Sales Returns and Allowances |
13,700 |
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Sales Discounts |
15,500 |
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Sales Revenue |
412,730 |
Prepare closing entries for Alistair Co. on December 31, 2012.(Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
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No. |
Account Titles and Explanation |
Debit |
Credit |
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1. |
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(To close accounts with credit balances) |
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2. |
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(To close accounts with debit balances) |
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3. |
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(To close net income / (loss)) |
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4. |
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(To close dividends) |
[Problem 5]
Snyder Miniature Golf and Driving Range Inc. was opened on March 1 by Mickey Snyder. The
following selected events and transactions occurred during March.
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Mar. 1 |
Invested $64,430 cash in the business in exchange for common stock. |
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3 |
Purchased Michelle Wie’s Golf Land for $39,080 cash. The price consists of land $10,370; building $22,650; and equipment $6,060. (Make one compound entry.) |
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5 |
Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,740. |
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6 |
Paid cash $1,550 for a one-year insurance policy. |
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10 |
Purchased golf equipment for $2,710 from Young Company, payable in 30 days. |
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18 |
Received golf fees of $1,280 in cash. |
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25 |
Declared and paid a $1,390 cash dividend. |
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30 |
Paid wages of $860. |
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30 |
Paid Young Company in full. |
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31 |
Received $860 of fees in cash. |
Journalize the March transactions. (Use Service Revenue account to record fees.)(Credit account
titles are automatically indented when amount is entered. Do not indent manually.)
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Date |
Account Titles and Explanation |
Debit |
Credit |
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Mar. 1 |
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Mar. 3 |
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Mar. 5 |
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Mar. 6 |
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Mar. 10 |
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Mar. 18 |
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Mar. 25 |
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Mar. 30 |
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Mar. 30 |
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Mar. 31 |
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[Problem 6]
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[Problem7]
Complete the worksheet. (Solve Highlighted Debits and Credits)
MADRASAH CO.
Worksheet (Partial)
For the Month Ended April 30, 2012
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Adjusted Trial Balance |
Income Statement |
Balance Sheet |
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Account Titles |
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Dr. Cr. Dr. Cr. Dr. Cr.
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Cash 29,619 |
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Accounts Receivable 9,567 |
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Prepaid Rent Expense 2,526 |
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Equipment 20,697 |
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Accum. Depreciation —Equip |
5,141 |
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Notes Payable |
8,347 |
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Accounts Payable |
7,119 |
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Owner’s Capital |
37,607 |
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Owner’s Drawings 6,650 |
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Service Revenue |
15,237 |
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Salaries and Wages 9,487 Expense |
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Rent Expense 2,760 |
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Depreciation Expense 145 |
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Interest Expense |
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Interest Payable |
329 |
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Totals 73,780 |
73,780 |
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Net Income |
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Totals |
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