ACCT 2001 : Exam 1 Review
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On December 1, JumpStart Company provides $2,800 in services to clients.
Required:
(a) | Journalize this event as if the clients had paid cash at the time the services were rendered.* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(b)(1) | Journalize this event as if the clients had been rendered the services on account.* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(b)(2) | Assume that the clients paid $1,200 of the amount on account on December 30. Journalize this transaction.* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
*Refer to the Chart of Accounts for exact wording of account titles * The Journal should consist of 6 rows. Chart of Accounts.
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Pitman Company is a small editorial services company owned andoperated by Jan Pitman. On October 31, 2019 the end of the currentyear, Pitman Companyâs accounting clerk prepared the followingunadjusted trial balance:
Pitman Company
UNADJUSTED TRIAL BALANCE
October 31, 2019
ACCOUNTTITLE | DEBIT | CREDIT | |
---|---|---|---|
1 | Cash | 7,500.00 | |
2 | Accounts Receivable | 38,400.00 | |
3 | Prepaid Insurance | 7,200.00 | |
4 | Supplies | 1,980.00 | |
5 | Land | 112,500.00 | |
6 | Building | 300,250.00 | |
7 | Accumulated Depreciation-Building | 87,550.00 | |
8 | Equipment | 135,300.00 | |
9 | Accumulated Depreciation-Equipment | 97,950.00 | |
10 | Accounts Payable | 12,150.00 | |
11 | Unearned Rent | 6,750.00 | |
12 | Jan Pitman, Capital | 371,000.00 | |
13 | Jan Pitman, Drawing | 15,000.00 | |
14 | Fees Earned | 324,600.00 | |
15 | Salaries and Wages Expense | 193,370.00 | |
16 | Utilities Expense | 42,375.00 | |
17 | Advertising Expense | 22,800.00 | |
18 | Repairs Expense | 17,250.00 | |
19 | Miscellaneous Expense | 6,075.00 | |
20 | Totals | 900,000.00 | 900,000.00 |
The data needed to determine year-end adjustments are asfollows:
a. | Unexpired insurance at October 31,$600. |
b. | Supplies on hand at October 31,$675. |
c. | Depreciation of building for theyear, $12,000. |
d. | Depreciation of equipment for theyear, $8,600. |
e. | Unearned rent at October 31,$2,250. |
f. | Accrued salaries and wages atOctober 31, $2,800. |
g. | Fees earned but unbilled on October31, $10,050. |
Required: | |
1. | Journalize the adjustingentries using the following additional accounts: Salaries and WagesPayable; Rent Revenue; Insurance Expense; DepreciationExpenseâBuilding; Depreciation ExpenseâEquipment; and SuppliesExpense. Refer to the Chart of Accounts for exact wording ofaccount titles. |
2. | Determine the balances of theaccounts affected by the adjusting entries, and prepare an adjustedtrial balance. |
CHARTOF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pitman Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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1. Journalize the adjusting entries using the followingadditional accounts: Salaries and Wages Payable; Rent Revenue;Insurance Expense; Depreciation ExpenseâBuilding; DepreciationExpenseâEquipment; and Supplies Expense. Refer to the Chart ofAccounts for exact wording of account titles.
How does grading work?
PAGE 10
JOURNAL
ACCOUNTING EQUATION
Score: 158/176
DATE | DESCRIPTION | POST.REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 | Adjusting Entries | |||||||
2 | ? | ? | ||||||
3 | ? | |||||||
4 | ? | ? | ? | ? | ||||
5 | ? | ? | ? | |||||
6 | ? | ? | ? | ? | ||||
7 | ? | ? | ? | |||||
8 | ? | ? | ? | ? | ||||
9 | ? | ? | ? | |||||
10 | ? | ? | ||||||
11 | ? | |||||||
12 | ? | ? | ? | ? | ||||
13 | ? | ? | ? | |||||
14 | ? | ? | ? | ? | ||||
15 | ? | ? | ? |
Pitman Company is a small editorial services company owned andoperated by Jan Pitman. On October 31, 2019 the end of the currentyear, Pitman Companyâs accounting clerk prepared the followingunadjusted trial balance:
Pitman Company
UNADJUSTED TRIAL BALANCE
October 31, 2019
ACCOUNTTITLE | DEBIT | CREDIT | |
---|---|---|---|
1 | Cash | 7,500.00 | |
2 | Accounts Receivable | 38,400.00 | |
3 | Prepaid Insurance | 7,200.00 | |
4 | Supplies | 1,980.00 | |
5 | Land | 112,500.00 | |
6 | Building | 300,250.00 | |
7 | Accumulated Depreciation-Building | 87,550.00 | |
8 | Equipment | 135,300.00 | |
9 | Accumulated Depreciation-Equipment | 97,950.00 | |
10 | Accounts Payable | 12,150.00 | |
11 | Unearned Rent | 6,750.00 | |
12 | Jan Pitman, Capital | 371,000.00 | |
13 | Jan Pitman, Drawing | 15,000.00 | |
14 | Fees Earned | 324,600.00 | |
15 | Salaries and Wages Expense | 193,370.00 | |
16 | Utilities Expense | 42,375.00 | |
17 | Advertising Expense | 22,800.00 | |
18 | Repairs Expense | 17,250.00 | |
19 | Miscellaneous Expense | 6,075.00 | |
20 | Totals | 900,000.00 | 900,000.00 |
The data needed to determine year-end adjustments are asfollows:
a. | Unexpired insurance at October 31,$600. |
b. | Supplies on hand at October 31,$675. |
c. | Depreciation of building for theyear, $12,000. |
d. | Depreciation of equipment for theyear, $8,600. |
e. | Unearned rent at October 31,$2,250. |
f. | Accrued salaries and wages atOctober 31, $2,800. |
g. | Fees earned but unbilled on October31, $10,050. |
Required: | |
1. | Journalize the adjustingentries using the following additional accounts: Salaries and WagesPayable; Rent Revenue; Insurance Expense; DepreciationExpenseâBuilding; Depreciation ExpenseâEquipment; and SuppliesExpense. Refer to the Chart of Accounts for exact wording ofaccount titles. |
2. | Determine the balances of theaccounts affected by the adjusting entries, and prepare an adjustedtrial balance. |
CHART OF ACCOUNTSPitman CompanyGeneral Ledger
ASSETS | |
11 | Cash |
12 | Accounts Receivable |
13 | Prepaid Insurance |
14 | Supplies |
15 | Land |
16 | Building |
17 | AccumulatedDepreciation-Building |
18 | Equipment |
19 | AccumulatedDepreciation-Equipment |
LIABILITIES | |
21 | Accounts Payable |
22 | Unearned Rent |
23 | Salaries and Wages Payable |
EQUITY | |
31 | Jan Pitman, Capital |
32 | Jan Pitman, Drawing |
REVENUE | |
41 | Fees Earned |
42 | Rent Revenue |
EXPENSES | |
51 | Salaries and Wages Expense |
52 | Utilities Expense |
53 | Advertising Expense |
54 | Repairs Expense |
55 | Depreciation Expense-Building |
56 | Depreciation Expense-Equipment |
57 | Insurance Expense |
58 | Supplies Expense |
59 | Miscellaneous Expense |
1. Journalize the adjusting entries using the followingadditional accounts: Salaries and Wages Payable; Rent Revenue;Insurance Expense; Depreciation ExpenseâBuilding; DepreciationExpenseâEquipment; and Supplies Expense. Refer to the Chart ofAccounts for exact wording of account titles.
How does grading work?
PAGE 10
JOURNAL
ACCOUNTING EQUATION
Score: 164/176
DATE | DESCRIPTION | POST.REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 | Adjusting Entries | |||||||
2 | ? | ? | ||||||
3 | ? | |||||||
4 | ? | ? | ? | |||||
5 | ? | ? | ||||||
6 | ? | ? | ? | |||||
7 | ? | ? | ||||||
8 | ? | ? | ? | |||||
9 | ? | ? | ||||||
10 | ? | ? | ||||||
11 | ? | |||||||
12 | ? | ? | ? | |||||
13 | ? | ? | ||||||
14 | ? | ? | ? | |||||
15 | ? | ? |
2. Determine the balances of the accounts affected by theadjusting entries, and prepare an adjusted trial balance.
Question not attempted.
Pitman Company
ADJUSTED TRIAL BALANCE
Score: 0/103
October 31, 2019
ACCOUNTTITLE | DEBIT | CREDIT | |
---|---|---|---|
1 | Cash | ||
2 | Accounts Receivable | ||
3 | Prepaid Insurance | ||
4 | Supplies | ||
5 | Land | ||
6 | Building | ||
7 | Accumulated Depreciation-Building | ||
8 | Equipment | ||
9 | Accumulated Depreciation-Equipment | ||
10 | Accounts Payable | ||
11 | Unearned Rent | ||
12 | Salaries and Wages Payable | ||
13 | Jan Pitman, Capital | ||
14 | Jan Pitman, Drawing | ||
15 | Fees Earned | ||
16 | Rent Revenue | ||
17 | Salaries and Wages Expense | ||
18 | Utilities Expense | ||
19 | Advertising Expense | ||
20 | Repairs Expense | ||
21 | Depreciation Expense-Building | ||
22 | Depreciation Expense-Equipment | ||
23 | Insurance Expense | ||
24 | Supplies Expense | ||
25 | Miscellaneous Expense | ||
26 | Totals |