post university acc 111 mid term paper

ACCOUNTING MID TERM

John’s
House Painting Company has the following transactions for the year

1. December 1 – Issued capital stock for
$100,000 to start a house painting business.

2. December 1 – Paid
one year insurance premium costing $4,800.

3. December 1 – Paid gas expense $200.

4. December 1 – Purchased equipment costing $4,800
on credit.

5. December 12 – Purchased supplies costing $800
on credit.

6. December 18 – Painted three houses totaling $12,000
and billed customers.

7. December 23 – Painted three rooms and billed
customers $500.

8. December 28 – Received $2,000 for houses
painted in #6.

9. December 31 – Paid for equipment purchased in
#4.

10. December 31 – Received $1,000 for a job to
paint a house in January next year.

11. December 31 – Paid a $1,000 dividend.

Required:

1. Prepare journal
entries for the above transactions.

2. Post the above
transactions to T Accounts.

3. Prepare a Trial
Balance.

4. Prepare
adjusting entries in journal format and post to T Accounts.

Supplies on Hand
December 31 was $400.

The Equipment is to
be depreciated over 48 months starting with December.

(HINT; Record one month depreciation
expense).

Wages owed but not
paid on December 31 was $200.

One month of insurance
has expired.

5. Prepare an Adjusted
Trial Balance.

6. Prepare an
Income Statement, Statement of Retained Earnings and a Balance Sheet.

7. Prepare closing
entries in journal format and post to the T Accounts.

8. Prepare a
Post-Closing Trial Balance.