basic act201 maths_mid questions 2021 mid questions PDF

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ACT 201 Mid Questions (50) 1. Raymond opened a hotel for business on May 1, 2019. His account has extracted the

following trial balance from his books of account as at May 31 2019.

Account Title Cash Supplies Prepaid Insurance Land Building Accounts payable Unearned Revenue Loan Raymond’s, Capital Rent Revenue Advertising Expense Salaries Expense Utilities Expense Total

Trial Balance Dr. $ 2500 1900 2400 15000 70000

Cr. $

5300 3600 35000 60000 9200 500 3000 1000 113,100

113,100

Notes: The following additional information is to be taken into account.  Insurance expires at the rate of $200 per month.  Supplies show $900 of unused supplies on May 31.  Depreciation $300 on the building per month.  Loan interest 12% per year. The loan was taken on May 1.  Unearned rent of $1500 has been earned.  Salaries of $300 are accrued at May 31. Required: A. Journalize the adjustment on May 31, 2019. No explanation is required. (12) B. Journalize the closing entries for May 31, 2019. No explanation is required. (10) 2. Axiata company purchased $3,700 of merchandise on July 5 with terms 2/10, n/30. On

July 7, it returned $850 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system. Write down the correct journal entry to record the payment on July 12. (3) 3. On February 3, Smart Company sold merchandise in the amount of $4,300 to Truman

Company, with credit terms of 3/10, n/30. The cost of the items sold is $2,970. Smart uses the perpetual inventory system. Truman pays the due on February 8. Write down the journal entry that Smart makes on February 8. (3) 4. On September 12, Vander Company sold merchandise in the amount of $6,600 to Jepson

Company, with credit terms of 3/10, n/30. The cost of the items sold is $4,800. Vander

uses the periodic inventory system. Write down the journal entry that Vander will make on September 12. (3) 5. On September 12, Radar Company sold merchandise in the amount of $7,400 to Jepson

Company, with credit terms of 3/10, n/30. The cost of the items sold is $4,800. Jepson uses the periodic inventory system. Jepson pays the due on September 18. Write down the journal entry that Jepson makes on September 18. (3) 6. Atom company that uses perpetual inventory system purchased $3,600 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $800 worth of merchandise. Write down the correct journal entry to record the return on July 7. (3) 7. On September 12, Rayan Company sold merchandise in the amount of $7,200 to Johnson

Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,700. Ryan uses the periodic inventory system. Write down the journal entry that Rayan makes on September 12. (3) 8. Crystal company purchased $3,700 of merchandise on July 5 with terms 2/10, n/30 FOB

shipping point. On July 6, it paid freight cost $850. Assuming the company uses a periodic inventory system. Write down the correct journal entry to record the transaction on July 6. (3) 9. Ellis company accumulates the following yearly adjustment data at Dec 31-

a) Revenue of $800 collected in advance has been earned. b) Salaries of $600 are unpaid. c) Prepaid rent $450 has expired. d) Supplies of $550 have been used. e) Revenue earned but unbilled total $750. f) Interest of $250 has accrued on a note payable. g) Deprecation charged $340 for building during the year. Required: Identify the status of the accounts before adjustment.

(7)...