BUS 251 Study Guide - Midterm Guide: Accrual, Net Income, Current Liability
9 Apr 2013
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Your midterm will also have theoretical questions where you will be asked to explain an accounting idea in words. You may want to review the sample ones on exam guidance or ones on mini-midterms. Section 1: the accounting cycle (40 marks = 40 minutes) Andy smith has been operating for 3 years. The company provides lawn- mowing, tree trimming and weeding services to private residences in the lower mainland. Andy incorporated the company on january 1st, 1996 and contributed equipment with a fair market value of ,000 to the business in exchange for common shares valued at ,000 and a ,000 loan, payable to andy. The following is the trial balance for ayc at january 1st, 1999: Interest on the loan is paid on june 30th and december 31st each year. Andy does not anticipate receiving any payments on principal until the business becomes better established. 1: prepare any adjusting entries required at march 31st, 1999.
