Please help

1.

Iftotal liabilities increased by $1

5,000

and stockholders’ equity increased by

$5,000

during a period of time, then total assets must change by what amount and direction during that same period?

A.

$

2

0,000 decrease.

B.

$20,000 increase.

C.

$25,000 increase.

D.

$30,000 increase.

2.	Which accounts normally have CREDIT balances? A. Revenues, liabilities, and dividends. B. Revenues, liabilities, and assets. C. Revenues, liabilities, and retained earnings. D. Revenues, liabilities, and expenses.

2,800

4,200

1,400

Dividends

700

Revenues

2

1,000

Expenses

17,500

What did BARNES COMPANY show as total CREDITS on its trial balance?

A.

$30,100

B.

$29,400

C.

$28,700

D.

$30,800

3.

BARNES COMPANY showed the following balances at the end of its first year: Cash $7,000 Prepaid insurance 700 Accounts receivable 3, 500

Accounts payable

Notes payable

Common stock

4.	On July 7, 2010, SHIREMAN ENTERPRISES received cash $1,400 for services rendered. The entry to record this transaction is: DEBIT CREDIT A. Service revenue 1,400 Cash 1,400 B. Cash 1,400 Accounts receivable 1,400 C. Cash 1,400 Service revenue 1,400 D. Accounts payable 1,400 Cash 1,400

5.

The purpose of the general ledger is to: A. Record chronologically the day’s transactions. B. Keep a record of documentation to support each transaction. C. Keep in one place all information about changes in specific account balances. D. Make sure that all assets, liabilities, etc. have normal balances at all times.

SECTION II: PREPARING THE CURRENT ASSET SECTION OF A CLASSIFIED BALANCE SHEET (15 POINTS)

Partial information is provided below for KELLOGG CORPORATION for the 2011 calendar year. Prepare only the “CURRENT ASSET” SECTION of a classified balance sheet below, using good accounting form. The accounts are listed in alphabetical order.

Accounts payable

Common stock

Accounts receivable, net	945
910
	Cash	411
397
Current portion of long-term debt	723
Inventories	824
Long-term debt	3,053
Notes payable – current	1,268
Other assets	5,471
Other current assets	248
Other long-term liabilities	1,572
Other current liabilities	1,119
Property, plant, and equipment (net)	2,816
Retained earnings	1,672
Supplies	520

SECTION III: PREPARING A TRIAL BALANCE (20 POINTS)

Accounts are listed below, in alphabetical order, for SWISHER COMPANY, as of January 31, 2010. Prepare a trial balance, using good accounting form, in the space below.

Notes payable

2,000

Cash

3,000

1,000

Accounts Payable	$500	$5,000
Accounts Receivable		2,000	Rent Expense	500
Advertising expense	5,000	Retained earnings, Jan 1
	3,000	Service Revenue
Common Stock	2,200	Supplies	200
Dividends		1,000	Wages Expense

SECTION IV: IDENTIFYING FINANCING, INVESTING, AND OPERATING EVENTS AND COMPLETING AN ACCOUNTING SPREADSHEET

PART 1

For the 10 events described below for BENNER ENTERPRISES, during the month of APRIL 2009, identify the nature of the event as financing, investing, or operating, by placing the appropriate letter in the blank box to the far left of the statement: “F” for financing, “I” for investing, and “O” for operating. Also prepare the necessary journal entry with the date and explanation for all of the transactions except 4/1 and 4/12th.

APR 1	Stockholders invested $15,000 cash in the business in exchange for common stock.
APR 2	Paid $700 for office rent for the month.
APR 3	Purchased $500 of supplies on account.
APR 9	Received $1,000 cash for services provided
APR 12	Paid $200 cash dividend
APR 15	Performed $4,200 of services on account and billed for those services.
APR 17	Paid $2,500 for employee salaries
APR 20	Paid for the supplies purchased on account of April 3
APR 23	Received a cash payment of $1,500 for services provided on account on April 15
APR 29	Purchased office equipment for $2,000 paying $200 in cash and the balance on account.

Section V. Fill in the blanks:

1. Debit = ______________.

2. Credit = _____________.

3. The general journal is the ______________________(book of original entry or the general ledger.)

4. The accrual basis of accounting records _______________when __________________ and ________________ when __________________.

5. The ________________ _________________ tries to match ________________with ____________________.

Section VI. Prepare the necessary closing entries:

Revenues = $10,000

Expenses= $ 5,000

Withdrawals= $2,000

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