pod 6 quiz 3

7/30/2019 Pod 6 Quiz 3

http://slidepdf.com/reader/full/pod-6-quiz-3 1/23

Part 1 Step 1. Prepare the following entries

Step 2. Post the entries to the trial balanceStep 3. Create the final trial balance

1 The Company Used up $3,000 of supplies

2 There was $1,000 of prepaid rent expired.

3 There was $4,000 of prepaid insurance used

4 The Company recorded $2,000 of depreciation expense

5 Salaries for the month incurred both not paid equal $5,000

Account Debit

ENTRY 1 Supplies Expense 3,000

Supplies

ENTRY 2 Rent Expense 1,000

Prepaid Rent

ENTRY 3 Insurance Expense 4,000

Prepaid Insurance

ENTRY 4 Depreciation Expense 2,000

Accumlated Depreciation

ENTRY 5 Salary Expense 5000

Salary Payable

Open Trial Balance ADJUSTMENTS

AC # ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT

Jackie Grant Accounting 1- QUIZ 3

7/30/2019 Pod 6 Quiz 3


10 CASH 10,000$

11 BUILDING 20,000$

12 ACCUMULATED DEPRECIATION 5,000$ 2,000$

13 SUPPLIES 25,000$ 3,000$

17 PREPAID RENT 50,000$ 1,000$

18 PREPAID INSURANCE 100,000$ 4,000$

21 SALARY PAYABLE 75,000$ 5,000$

31 HART CAPITAL 25,000$

41 SALES 200,000$

51 RENT EXPENSE 10,000$ 1,000$

52 SUPPLIES EXPENSE 15,000$ 3,000$

53 INSURANCE EXPENSE 5,000$ 4,000$

54 SALARY EXPENSE 30,000$ 5,000$

55 DEPRECTION EXPENSE 40,000$ 2,000$

TOTALS 305,000$ 305,000$ -$ -$

(DEBITS MUST EQUAL CREDITS) 15,000$ 15,000$

7/30/2019 Pod 6 Quiz 3


PART 2 There was no opening balance in the Capital Account in the beginningPrepare the Financials for December 2007

Use the Schedules provided below

TRIAL BALANCE

Debit Credit

CASH 3,400$

ACCOUNTS RECEIVABLE 7,500$SUPPLIES 3,000$

ACCOUNTS PAYABLE 500$

NOTES PAYABLE 1,000$

R U HAPPY CAPITAAL 10,000$

R U HAPPY DRAWING 1,000$

SERVICE FEES 8,000$

ADVERTISING EXPENSE 1,100$

RENT EXPENSE 1,800$UTILITIES EXPENSE 1,500$

MISCELLANEOUS EXPENSE 200$

TOTAL 19,500$ 19,500$

7/30/2019 Pod 6 Quiz 3


RU HAPPY

INCOME STATEMENT

FOR THE YEAR ENDED 12/31/07

Revenue:

Service Revenues (fees from trial bal?)

Expenses:

Rent Expense 1,800

Utilities Expense 1,500

Advertising Expense 1,100

Miscellanous Expense 200

TOTAL EXPENSES

NET INCOME

RU HAPPY

STATEMENT OF OWNERS EQUITY

FOR THE YEAR ENDED 12/31/07

R U Happy, Captial (from Trial Balance) 10,000

Add Net income 3,400

LESS R U Happy Drawing -1,000

R U Happy Capital as of 12/31/07 12,400

7/30/2019 Pod 6 Quiz 3


RU HAPPY

BALANCE SHEET

DECEMBER 31, 2007

Assets:

Cash

Accounts Recieveable

SuppliesTOTAL ASSETS

Liabilities

Accounts Payable

Notes Payable

TOTAL LIABILITIES

Owners Equity

RU Happy Capital (as of 12/31 from statement of owners equity)

PLUS Total Liabilibities (from above)

PART 3 CLOSING ENTRIES

Create the four closing entries from the TRIAL BALANCE Below:

7/30/2019 Pod 6 Quiz 3


Account title Trial Balance

Debit Credit

Cash 20,000$

Accounts Receivable 25,000$

Merchandise inventor 83,000$

Office Supplies 21,000$Prepaid Rent 18,000$

Store Equipment 42,000$

Accum Depreciation 12,000$

Accounts Payable 21,500$

Salaries Payable

Ted Johnson Capital 135,000$

Ted Johnson Drawing 4,000$

Sales 160,000$

Travel Expense 2,000$Booze Expense 3,000$

Supplies Expense

Purchases 85,000$

Advertising Expense 1,000$

Purchase Discount

Transportation In 9,000$

Hot Fudge Sunday Exp 2,500$

Depreciation Exp

Office Supplies Exp

Rent Exp

Salary Exp 12,000$

Utilities Exp. 1,000$

TOTAL 328,500$ 328,500$

7/30/2019 Pod 6 Quiz 3


Closing Entry Number One

Debit Credit

1 Service Revenue (sales above) 160,000

Income Summary 160,000

Closing entry Number Two

Debit Credit

2 Income Summary 115,500

Travel Expense 2,000

Booze Expense 3,000

Purchases 85,000

Advertising 1,000

Transportation 9,000

Hot Fudge Sundae Expense 2,500

Salary Expense 12,000

Utilities Expense 1,000

7/30/2019 Pod 6 Quiz 3


Closing entry Number Three

Debit Credit

3 Income Summary 44,500

Ted Johnson Capital 44,500

Closing entry Number Four Debit Credit

4 Ted Johnson Capital 4,000

Ted Johnson Drawing 4,000

Part 4 Post the entries created in the previous problem to only the T accounts listed below

7/30/2019 Pod 6 Quiz 3


TED JOHNSON CAPITAL

4,000 135,000

44,500

175,500 BALANCE

TED JOHNSON DRAWING

4,000 4,000

INCOME SUMMARY ACCOUNT

expenses 115,500 160,000 sales

44,500 44,500 Net Income because revenues > expenses

Part 5 The Balance Sheet for ABC Company is listed below.

Calculate the ratios in the boxes provided:

Cash 3,000$ Accounts Payable

Accounts Receivable 4,000$ Salary Payable

Prepaid Rent 5,000$ Total Debt

Supplies 6,000$ Stockholders Equity

Total Assets 18,000$ Total Liabilities and Equit

Closed to capital

Balance 0

7/30/2019 Pod 6 Quiz 3


A. Current Ratio B. Debt Ratio

Total Current Assets Total Liabilities

Current Ratio= Total Current Liabilities Debt Ratio = Total Assets

18,000 7,000

2.58 = 7,000 .39 = 18,000

Part 6 Using the T accounts given below, record the selected transactions.

(Not all T accounts per transactions may have to be used)

BUYERS ENTRIES

Nov. 1 2007 Purchased $12,000 merchandise on account, Term 1/10, N/30, FOB Shipping Point

1-Nov 12,000 11/1 12,000

Nov. 2 2007 Paid the transportation charge of $60

1-Nov 12,000 11/1 12,000

2-Nov 60

Cas

Merchandise/

Inventory Accounts Payable Cas

Merchandise/

Inventory Accounts Payable

7/30/2019 Pod 6 Quiz 3


Nov. 6 2007 Return $2,000 of the merchandise bought on November 1

1-Nov 12,000 11/6 2,000 6-Nov 2,000 11/1 12,0002-Nov 60

Nov. 10 2007 Paid the balance due from November 1st and 6th.

1-Nov 12,000 11/6 2,000 6-Nov 2,000 11/1 12,000

2-Nov 60 11/10 100 10-Nov 10,000

Bal.

Seller's Entries

Nov. 1 2007 Sold $12,000 merchandise on account (Total cost for this sale equals $8,000). Terms 1/10, N30, FOB Shipping Point

I HOPE THIS IS OKAY- I FOUND IT CONFUSING THE OTHER WAY

Nov. 6 2007 Received $2,000 of merchandise that was returned to the company.

Nov. 10 2007 Received the balance due from November 1st and 6th.

1-Nov 12,000 6-Nov 2,000 6-Nov 2,000 1-Nov

10-Nov 100 10-Nov 100

10-Nov 9,900

Accoun balance

balance 0

Accounts Recieveable Sales Revenue

Bal $9,960 0

Merchandise/


Merchandise/


7/30/2019 Pod 6 Quiz 3


1-Nov 8,000 6-Nov 1,340 6-Nov 1,340 1-Nov 8,000

balance 6,600 balance 6,600

10-Nov 9,900

balance 9,900

Cost of Goods Sold

Cash

Inventory/Merchandise

7/30/2019 Pod 6 Quiz 3


Credit

3,000

1,000

4,000

2,000

5000

Closing Trial Balance

DEBIT CREDIT

7/30/2019 Pod 6 Quiz 3


10,000$

20,000$

7,000$

22,000$

49,000$

96,000$

80,000$

25,000$

200,000$

11,000$

18,000$

9,000$

35,000$

42,000$

-$ -$

312,000$ 312,000$

7/30/2019 Pod 6 Quiz 3


7/30/2019 Pod 6 Quiz 3


8,000

-4,600

3,400

7/30/2019 Pod 6 Quiz 3


3,400

7,500

3,00013,900

500

1,000

1,500

12,400

1,500

13,900

7/30/2019 Pod 6 Quiz 3


7/30/2019 Pod 6 Quiz 3


3,000$

4,000$

7,000$

11,000$

18,000$

7/30/2019 Pod 6 Quiz 3


11/2 60

7/30/2019 Pod 6 Quiz 3


11/2 60

11/2 60

11/10 9,900

12,000

9,900

Balance $9,960

pod 6 quiz 3

Documents