Homework #2 PDF

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Started on State Completed on Time taken Grade 9.97 out of 10.00 (100%) QUESTION 1

Correct

Mark 0.50 out of 0.50

Analyze an Adjusted Trial Balance The trial balance of Fisher Supplies contains the following balance sheet accou likely income statement account that will be used to adjust these accounts. a. Prepaid Insurance Insurance expense

!

b. Accumulated Depreciation Depreciation expense

!

c. Supplies Supplies expense

!

d. Unearned Revenue Earned revenue

!

e. Interest Payable Interest expense

!

!

QUESTION 3

!

Correct

!

!

Mark 0.50 out of 0.50

Adjusting Entry for Depreciation Cowley Company just completed its first year of operations. The December 31 $15,000. There is no balance in the Accumulated Depreciation—Equipment ac account. The accountant estimates the yearly equipment depreciation to be $3 to record the yearly depreciation for equipment.

General Journal Description

Debit

!

Depreciation expense

Correct

3000

!

Accumulated depreciation - equipment

QUESTION 4

Credit

!

0

!

0

! 3000

!

Mark 1.00 out of 1.00

Closing Entries The adjusted trial balance of the Matthews Corporation, prepa following accounts: Debit Service Fees Earned

$97,900

Interest Income Salaries Expense

Credit

5,600 $50,200

Advertising Expense

4,700

Depreciation Expense

9 100

To close the revenue accounts.

Dec.31

Income Summary

!

74300

!

0

Salaries Expense

! 0

Advertising Expense

! 0

Depreciation Expense

! !

Income Tax Expense

0

!

0

!

50200

! 4700

! 9100

! 10300

!

To close expense accounts.

Dec.31

Income Summary

!

29200

! !

Retained Earnings

0

!

0

! 29200

!

To close the Income Summary account.

Dec.31

Retained Earnings

!

Cash Dividends

To close the Dividends account.

15400

! !

0

!

0

! 15400

!

a. Jan. 1

Cash

20800

!

! !

Unearned Service Revenue

0

!

0

! 20800

!

To record 6 month contract.

3467

!

Unearned Service Revenue

b. Jan. 31

! !

Service Fees Earned

0

!

0

! 3467

!

To record January service fees earned on contract.

780

!

Fees Receivable

c. Jan. 31

! !

Service Fees Earned

0

!

0

! 780

!

To record unbilled service fees at January 31.

QUESTION 6

Correct

Mark 0.75 out of 0.75

Analysis of Adjusted Data Selected T-account balances for Coyle Company ar entries have already been posted. The firm uses a calendar-year accounting p

Supplies Bal

910

Supplies Expense Bal

1,070

b. The amount in the Insurance Expense account represents the adjustment m expense. If the original insurance premium was for one year, what was the am the insurance policy start? $ 2304

! Total premium

! Policy start date

August 1

c. If we assume that no balance existed in Wages Payable or Wages Expense o wages during January? $ 2700

! d. If the truck has a useful life of five years, what is the monthly amount of dep has Coyle owned the truck? $ 171

! monthly depreciation 24

! months owned the truck

QUESTION 7

St t

Correct

t f St

Mark 0.50 out of 0.50

kh ld

'E

it

0

Less: Dividends paid (enter as negative)

-7500

!

-750

$

$

70600

Balance, January 31

76100

!

QUESTION 8

Correct

!

!

14670

!

!

Mark 0.50 out of 0.50

Prepare an Income Statement from an Adjusted Trial Balance The Century Company’s adjusted trial balance contains the following balances Retained Earnings $42,500; Dividends $10,000; Sales $100,000; Cost of Goods Expenses $15,000; Interest Expense $7,500. Prepare an income statement for the year. Do not use negative signs with you Century Company Income Statement For Year Ended December 31 $ Sales

!

100000

! Expenses $ 40000

Cost of goods sold

! Selling & administrative expense

Interest expense

!

15000

! 7500

! Total expenses

!

62500

Income summary

!

0

!

72000

!

To close the revenue account.

Income summary

!

! 0

Cost of goods sold

!

Selling and administrative expense

Interest expense

45000

!

0

! 0

!

0

! 28800

! 10800

! 5400

!

To close the expense accounts.

Income summary

Retained earnings

!

27000

! !

0

!

0

! 27000

!

To close the income summary account.

Retained earnings

!

7200

! Dividends

!

0

!

0

! 7200

!

To close the dividends account.

The balance of $30,600 in the retained earnings account is from the beginning earnings balance after posting the closing entries?

CORNELL CATERING SERVICE Balance Sheet

a.

May 31 ASSETS

LIABILITIES & STOCKHOLDERS' EQUITY

Current Assets:

Current Liabilities: $

!

Cash

12200

Accounts Payable

!

! Accounts Receivable

!

28300

!

Total Current Liabilities

16400

Supplies

!

Total Current Assets

56900

!

Noncurrent Liabilities:

Notes Payable

Noncurrent Assets:

Equipment

Total Noncurrent Assets

!

Total Noncurrent Liabilities

!

55000

! 55000

!

Total Liabilities

Stockholders' Equity:

Common Stock

!

Accounts Receivable

!

28300 Total Current Liabilities

" 16400

Supplies

!

Total Current Assets

44900

Noncurrent Liabilities:

!

Notes Payable

Noncurrent Assets:

!

Total Noncurrent Liabilities

!

Equipment

80000

!

Total Noncurrent Assets

80000

Total Liabilities

!

Stockholders' Equity:

Common Stock

!

Retained Earnings

!

Total Stockholders' Equity

$ Total Assets

124900

!

Total Liabilities and Stockholders' Equity

Retained Earnings

6,246

Dividends

3,480

Service Fees Earned

70,080

Rent Expense

14,400

Salaries Expense

40,080

Supplies Expense

5,640

Insurance Expense

3,900

Depreciation Expense-Equipment

864

Interest Expense

756 $89,436

Totals

$89,436

Required a. Prepare an income statement and a statement of stockholders' equity for th 31. b. Prepare closing entries directly to Retained Earnings in general journal form

a. FINE CONSULTING SERVICE Income Statement For Year Ended December 31 Revenue $ 70080

Service Fees Earned

! Expenses

Rent Expense

Salaries Expense

14400

! 40080

!

Balance, January 1

Common Stock

Retained Earnings

$

$

2400

Less: Dividends paid (enter as a negative)

8646

!

0

!

4440

!

4440

!

0

!

-3480

-3480

!

! $

Balance, December 31

$

6246

! Add: Net Income

Total

! $

$

2400

9606

7206

!

!

!

FINE CONSULTING SERVICE Balance Sheet December 31 Assets

Liabilities $ 3240

Cash

Accounts Payable

! 3924

Accounts Receivable

! 3672

Supplies

!

Total Liabilities

1800

Prepaid Insurance

Equipment

Long - Term Notes Payable

! 7680

!

Stockholders' Equity

Retained Earnings

!

0

!

70080

!

To close the Revenue account.

31

Retained Earnings

!

65640

! 0

Rent Expense

! 0

Salaries Expense

! 0

Supplies Expense

! 0

Insurance Expense

! 0

Depreciation Expense-Equipment

! 0

Interest Expense

!

0

! 14400

! 40080

! 5640

! 3900

! 864

! 756

!

To close the expense accounts.

31

Retained Earnings

!

3480

! Dividends

!

0

! To close the dividends account.

0

! 3480

!...