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ACCT 203 Midterm: 2nd Midterm Study Guide (Chapters 1-5 &7)

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School
George Mason University
Department
Accounting
Course
ACCT 203
Professor
Hylton

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Document Summary

David just finished compiling his firm"s retained earnings statement for the month ended may 31. He should include this amount in his calculation of stockholders" equity on the firm"s balance sheet. Closing entries and a post-closing trial balance are steps in the accounting cycle that occur at the end of the accounting period. Salaries and wages expense should have been accrued on december 31st, but the entry was not made. the result of this oversight is that liabilities are understated. Suppose that a company did not make an adjusting entry to record revenue earned but not yet billed to customers. the result of this error would be to understate assets, net income, and stockholders" equity. Assets will be overstated and net income will be overstated. Which of the following is an example of a deferral? expensing a part of the cost of a building.

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Related Questions

On December 31 adjusting entries for the following transactions.1. Fees accrued but not billed, $6,300. 2. The Supplies accountbalance on December 31, $4,750; Supplies on hand, $960. 3. Wagesaccrued but not paid, $2,700. 4. Depreciation of office equipment,$1,650. 5. Rent expired during year, $10,800. need help with ageneral journal The balances for the accounts listed below appearedin the Adjusted Trial Balance columns of the work sheet. Indicatewhether each balance should be extended to (a) the Income Statementcolumns or (b) the Balance Sheet columns. 1. Salaries Payable 2.Fees Earned 3. Accounts Payable 4. Common Stock 5. Supplies Expense6. Unearned Rent 7. Retained Earnings 8. Equipment 9. AccountsReceivable 10. Accumulated Depreciation 11. Salary Expense 12.Depreciation Expense The following accounts were taken from theAdjusted Trial Balance columns of the end-of-period spreadsheet forApril 30, for Finnegan Co.: Accounts Amount AccumulatedDepreciation $32,000 Fees Earned 78,000 Depreciation Expense 7,250Rent Expense 34,000 Prepaid Insurance 6,000 Supplies 400 SuppliesExpense 1,800 Required: Prepare an income statement. Be sure tocomplete the statement heading. Refer to the lists of Accounts inthe information given, Labels, and Amount Descriptions for theexact wording of the answer choices for text entries. You will notneed to enter colons (:) on the income statement. On January 1,Hannah's Pool Service Company had a retained earnings balance of$252,000. During the year Hannah's stockholders bought anadditional $32,000 in common stock and received dividends of$52,200. For the year ended December 31 Hannah's Pool ServiceCompany reported a net income of $73,200. Required: Prepare aretained earnings statement for the year ended December 31. Referto the Instructions and the lists of Labels and Amount Descriptionsfor the exact wording of the answer choices for text entries.“Less” or “Plus” will automatically appear if it is required. Besure to complete the statement heading. The following data weretaken from the Adjusted Trial Balance columns of the end-of-periodspreadsheet for April 30 for Abigail Company: Accounts AmountAccumulated Depreciation $42,400 Prepaid Rent 6,800 Supplies 850Unearned Fees 7,310 Trucks 49,300 Cash 3,400 Common Stock 2,000Retained Earnings ? Required: Prepare a classified balance sheet.Be sure to complete the statement heading. Refer to the lists ofAccounts in the information given, Labels, and Amount Descriptionsfor the exact wording of the answer choices for text entries. Youwill not need to enter colons (:) on the Balance Sheet. On thebasis of the following data taken from the Adjusted Trial Balancecolumns of the work sheet for the year ended March 31 for BanesDomino's Corporation. Banes Domino's Corporation ADJUSTED TRIALBALANCE December 31, 20-- ACCOUNT TITLE DEBIT CREDIT 1 Cash30,000.00 2 Accounts Receivable 45,200.00 3 Supplies 5,000.00 4Equipment 169,900.00 5 Accumulated Depreciation 32,000.00 6Accounts Payable 12,500.00 7 Common Stock 51,600.00 8 RetainedEarnings 20,000.00 9 Dividends 47,000.00 10 Fees Earned 510,000.0011 Salary Expense 244,500.00 12 Rent Expense 48,000.00 13Depreciation Expense 25,000.00 14 Supplies Expense 9,500.00 15Miscellaneous Expense 2,000.00 16 Totals 626,100.00 626,100.00Required: Journalize the four closing entries. Refer to the Chartof Accounts for exact wording of account titles.

1.) Record February and March transactions in the General Journal and post to the General Ledger.

2.) Record adjusting entries for February and March in the General Journal and post to the General Ledger.

3.) Prepare the adjusted trial balance as of February 28 and March 31.

4.) Prepare the following February and March financial statements:

a) Income Statement for month ended February 28 and March 31

b) Statement of Stockholders Equity for month ended February 28 and March 31

c) Balance Sheet as of February 28 and March 31

d) Statement of Cash Flows for month ended February 28 and March 31

e) Record February and March closing transactions in the General Journal and post to the General Ledger.

f) Prepare a post-closing trial balance as of February 28 and March 31.

February Transactions
1-Feb Paid six months of rent in advance, $6,000.
4-Feb Paid wages and salaries for $2,335, part of which was accrued in January.
7-Feb Purchased supplies on account, $930
11-Feb Performed car repair services on account, $3,910.
17-Feb Collected cash from credit sales made in January and February, $4,200.
20-Feb Made a monthly payment on the equipment note, $80.
23-Feb Performed car repair services and received cash at the time of sale, $4,390.
25-Feb Accrued for the bonus earned by the shop manager that will be paid in April, $950.
February Adjusting Entries
28-Feb The estimated depreciation on building and equipment is $700.
28-Feb One month of rent has expired, $1,000.
28-Feb The annual interest rate is 4% on all notes and paid quarterly. Round to nearest dollar.
28-Feb The supplies remaining at the end of the month was $750.
28-Feb Accrued wages and salaries worked in February that will be paid 3-4, $1,900.
28-Feb The estimated income taxes for the month is $815.
March Transactions
1-Mar Performed car repair services and received cash at the time of sale, $3,950.
4-Mar Paid wages and salaries for $2,100, part of which was accrued in February.
10-Mar Issued stock to new investors, $10,000.
15-Mar Made the interest payment on all notes, all is accrued in interest payable.
15-Mar Paid annual income taxes that was accrued in income taxes payable.
20-Mar Made a monthly payment on the equipment note, $80.
22-Mar Paid cash for advertising, $150.
27-Mar Performed car repair services on account, $4,020.
30-Mar Paid dividends to owners, $360.
March Adjusting Entries
31-Mar The estimated depreciation on building and equipment is $700.
31-Mar One month of rent has expired, $1,000.
31-Mar The annual interest rate is 4% on all notes and paid quarterly. Round to nearest dollar.
31-Mar Accrued wages and salaries worked in March that will be paid 4-4, $1,890.
31-Mar The estimated income taxes for the month is $720.
Thunderduck Car Repair
Post-Closing Trial Balance
As of January 31, 20X1
Debit Credit
Cash $ 7,330
Accounts Recievable $ 4,960
Supplies $ 675
Prepaid Rent $ -
Building $ 87,000
Equipment $ 109,000
Wages and Salaries Payable $ 1,940
Income tax payable $ 9,340
Utilities payable $ -
Accumulated Depreciation $ 41,900
Accounts Payable $ 5,290
Note payable $ 30,500
Interest payable $ 102
Common stock $ 88,200
Retained Earnings $ 31,693
TOTAL $ 208,965 $ 208,965

[The following information applies to the questions displayed below.]

Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2013. The annual reporting period ends December 31. The trial balance on January 1, 2015, follows (the amounts are rounded to thousands of dollars to simplify):
Account Titles Debit Credit
Cash $ 3
Accounts Receivable 5
Supplies 12
Land 0
Equipment 60
Accumulated Depreciation $ 6
Software 15
Accumulated Amortization 5
Accounts Payable 5
Notes Payable (short-term) 0
Salaries and Wages Payable 0
Interest Payable 0
Income Tax Payable 0
Common Stock 71
Retained Earnings 8
Service Revenue 0
Salaries and Wages Expense 0
Depreciation Expense 0
Amortization Expense 0
Income Tax Expense 0
Interest Expense 0
Supplies Expense 0
Totals $ 95 $ 95
Transactions during 2015 (summarized in thousands of dollars) follow:
1. Borrowed $12 cash on a six-month note payable dated March 1, 2015.
2. Purchased land for future building site; paid cash, $9.
3. Earned revenues for 2015, $160, including $40 on credit and $120 collected in cash.
4. Issued additional shares of stock for $3.
5. Recognized salaries and wages expense for 2015, $85 paid in cash.
6. Collected accounts receivable, $24.
7. Purchased software, $10 cash.
8. Paid accounts payable, $13.
9. Purchased supplies on account for future use, $18.
10. Signed a $25 service contract to start February 1, 2016.
Data for adjusting journal entries:
11. Unrecorded amortization for the year on software, $5.
12. Supplies counted on December 31, 2015, $10.
13. Depreciation for the year on the equipment, $6.
14. Accrued interest of $1 on notes payable.
15. Salaries and wages earned but not yet paid or recorded, $12.
16.

Income tax for the year was $8. It will be paid in 2016.

I need help with preparing an income statement, retained earnings statement, the balance sheet, and the post-closing trial balance. I also need help checking my answers for my adjusted trial balance with the adjusted entries included.

thank you