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Quizz 1 (including solution).docx

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Kevin Petit- Frere

ADM 1340 T Quiz No. 1 (Winter 2014) NAME: _________________________ STUDENT #: ____________________ Instructions: 1. This quiz is 30 minutes in length. 2. This is a close-book, close-notes exam. 3. Acalculator is allowed. 4. Please write or print neatly. Statement of Academic Integrity The School of Management does not condone academic fraud, an act by a student that may result in a false academic evaluation of that student or of another student. Without limiting the generality of this definition, academic fraud occurs when a student commits any of the following offences: plagiarism or cheating of any kind, use of books, notes, mathematical tables, dictionaries or other study aid unless an explicit written note to the contrary appears on the exam, to have in his/her possession cameras, radios (radios with head sets), tape recorders, pagers, cell phones, or any other communication device which has not been previously authorized in writing. Statement to be signed by the student: I have read the text on academic integrity and I pledge not to have committed or attempted to commit academic fraud in this examination. Signed: ______________________________________ Note: an examination copy or booklet without that signed statement will not be graded and will receive a final exam grade of zero. Question 1 (10 points) SAPPAfruits sell its products to local grocery stores. The company adjusts its accounts annually. On June 30, 2014 the SAPPA's unadjusted trial balance was as follows: SAPPA Fruits Unadjusted Trial Balance June 30, 2014 Debits Credits Cash 36,000 Supplies 25,000 Accounts payable 6,000 Unearned revenue 7,000 Common shares 7,000 Retained earnings 40,000 Revenues 43,000 Salary expenses 32,000 Rent expense 10,000 103,000 103,000 Additional information: th 1) As of June th , 25% of the supplies was still on hand. 2) On June 30 , estimations revealed that $3,000 of the unearned revenues recorded were still unearned. Required: 1) Prepare the adjustment entries required at June 30, 2014 2) Post these adjustments to the General Ledger 3) Prepare anAdjusted Trial Balance Solution 1) Adjustment entries June. 30 Supplies Expense (25,000-(25,000 x 25%) = 18,250)…18,750 (1point) Supplies…………...…….…..…………..……. 18,750 (1 point) (To record supplies expenses) June. 30 Unearned Revenue (7,000 – 3,000 = 4,000)……. 4,000 (1point) Revenues ……………….………………….…..  4,000 (1 point) (To record earned revenue) 2) Posting to General Ledger: (1 Point) (1 Point) Supplies Expense Supplies Jul. 1 Bal. 25,000 Adj. 18,750 Adj. 18,750 Jun. 30 Bal. 18,750 Jun. 30 Bal. 6,250 (1 Point) (1 Point) Revenues Unearned Revenues 43,000 Jul. 1 Bal. 7,000 Adj. 4,000 Adj. 4,000 Jun. 30 Bal. 47,000 Jun. 30 Bal. 3,000 3) Adjusted Trial Balance: (2 points) = 0.5 point per right answer in red below. SAPPA Fruits Adjusted Trial Balance June 30, 2014 Debits Credits Cash 36,000 Supplies 6,250 Accounts payable 6,000 Unearned revenue 3,000 Common shares 7,000 Retained earnings
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