ACCT 2001 : Exam 1 Practice

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azuremammoth471

15 Mar 2019

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On december 1, 2013, lauren landry launched a cpa firm called landry. Accounting services, which is organized as a corporation and provides bookkeeping, tax, and general accounting services. Landry adopts the calendar year for reporting purposes and expects to prepare the company"s first set of financial statements on december 31, 2013. The chart of accounts for its accounting system is included below: Dec. 1 landry invested ,000 cash, a ,000 computer system and ,500 of office furniture in the business in exchange for common stock. Dec. 1 borrowed ,000 by signing an 10% note payable with a local bank. The principal and interest is due in one year. Dec. 2 paid of general liability and property insurance. #1000 was for a half year of service (beginning. #1001 for ,000 representing the first month"s rent of ,000 and a ,000 security deposit. Hint: debit the deposits account (a current asset) for the security deposit.

Related Questions

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.

CHART OF ACCOUNTS

JumpStart Company

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Office Supplies
14	Prepaid Insurance
15	Land
16	Office Equipment
17	Building
18	Truck

	LIABILITIES
21	Accounts Payable
22	Unearned Revenue
23	Notes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Wages Expense
53	Rent Expense
54	Utilities Expense
55	Maintenance Expense
59	Miscellaneous Expense

pinkcoyote714

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

	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: 158/176

	DATE	DESCRIPTION	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Adjusting Entries
2	?	?
3		?
4	?	?	?				?
5		?		?	?
6	?	?	?				?
7		?		?	?
8	?	?	?				?
9		?		?	?
10	?	?
11		?
12	?	?	?				?
13		?		?		?
14	?	?	?		?
15		?		?			?

cyanprairie-dog383

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

How does grading work?

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 164/176

	DATE	DESCRIPTION	DEBIT	CREDIT
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

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ACCT 2001 : Exam 1 Practice

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