Exam 13 October 2019, questions and answers PDF

Preview

Summary

Download Exam 13 October 2019, questions and answers PDF

Description

Question 1 Agazzi Shop (a sole proprietorship) had the following transactions during the first month of business. Aug. 2 Invested $12,000 cash in the business. 3 Purchased Computer on account for $500 from Smart Buy. 7 Paid insurance of $2,000 as of starting year August 2018. 12 Performed services for clients, for which $1,300 was collected in cash and $670 was billed to the clients. 15 Paid August rent $600. 20 Agazzi withdraws $400 from the business (for personal use).

24 Paid Smart Buy $350 cash for the computer purchased August 3. Required: Journalize the transactions for the current accounting period (the month of August).

Question 2 Based on the following trial balance for Smyth's Repair Shop, prepare an income statement, statement of changes in equity, and a statement of financial position. Smyth made no additional investments in the company during the year. Smyth's Repair Shop Trial Balance December 31 Dr Cash....................................................... Accounts receivable…………….…...... Supplies……………………………..... Repair shop equipment……………..… Service truck…………………….….... Accounts payable.................................. Smyth, Capital…………………….….. Smyth, Withdrawals.............................. Service Revenue…………………...…. Supplies expense…………………...… Rent expense………………………….. Utility expense……………………….. Gas expense……………………..……. Wages expense……………….……..… Totals………………………….……….

Cr $ 12,500 1,500 500 27,000 33,000 $ 2,600 39,525 36,000 125,000 3,425 18,000 6,000 7,200 22,000 $167,125

167,125

Question 3

The adjusted trial balance of Hanson Hawk Company at September 30, 2012 includes the following accounts: Owner's Capital $27,700; Owner's Drawings $9,750; Service Revenue $42,800; Insurance Expense $1,950; Salaries Expense $18,000; Rent Expense $3,000; Supplies Expense $650; and Depreciation Expense $1,100. Prepare an owner’s equity statement for the year....