Handout Questions

Please solve equations , no explanation needed

Acct 5000
Chapter 1 Handout
13. If a business has the following balances, how much is total liabilities?
Assets
Liabilities
Cash $ 5,000
Accounts Receivable 2,575
Total Liabilities?
Equipment 14,000
Owner’s Equity
Anna Mills, Capital 2,600
14. During the first year, Fox Supply has total assets of $15,000 and liabilities of $10,875. During the
second year, assets increase by $1,375, and owner’s equity increases by $950. How much is total
liabilities at year-end?
15. Shell Company’s Year 5 balance sheet had the following balances: owner’s equity of $4,600 and
liabilities of $3,800. During the next year, assets increased by $300, and liabilities decreased by $150.
What was the change in owner’s equity?
18. Apple Tree had the following balances when formed: Assets Liabilities Cash $2,400 Notes payable
$1,500 Equipment 1,300 Owner’s Equity Johnny, capital 2,200 Total assets $3,700 Total liabilities
and owner’s equity $3,700
During the first year of operations, the following transactions occurred:
• Collected $12,000 cash in rental revenue.
• Made a $2,000 investment in equity securities using $1,000 cash and a $1,000 note payable.
• Incurred and paid $2,000 in cash for utilities expense, $3,500 in rent expense, and $2,200 in wages
expense.
• Johnny, Apple Tree’s owner, withdrew $200 in cash from the business and contributed $1,500 in
equipment. Show the cumulative effect on the accounting equation from the transactions for the year.
Acct 5000
Chapter 2 Handout
13. Prepare the journal entry to record payment in cash of salaries for $750, rent for $675, utilities for
$250, and legal expenses for $130 on January 15, 2018.
14. Record the journal entry to record the purchase of inventory on account for $1,200 on September
22, 2018.
15. What would the journal entry look like for rental revenue earned on August 9, 2018, for $890 that
the customers paid for on account?
19. At the beginning of the year, Atlanta Co.’s Accounts Payable had a credit balance of $1,300. The
company made purchases of $1,700 on account. If the ending balance was a credit of $600, what were
the cash payments to suppliers?
20. During the year, Clayton Corp. sold $1,550 of inventory. The company’s beginning inventory was
$1,200, and the ending inventory was $740. How much inventory did the company purchase during the
year?
21. Morrow Co. had an ending balance of $1,900 for Equipment. The company purchased $2,300 of
equipment and retired $750 of equipment during the year. What was the beginning balance of the
account?
Acct 5000
Chapter 3 Handout
10. Accrued Revenue A law firm allows its clients to pay on the tenth of every month for services
rendered rather than for each visit. Since the last billing cycle, the law firm provided 200 hours of
services at $80 per hour.
a. Find the amount of accrued revenue the law firm should record at the end of the year.
b. Journalize the adjusting entry to record the asset for the accrued revenue
11. Accrued Revenue An electrical company provides services for a new building at a rate of $50 per
hour. Once completed, the owner of the building will pay for the total amount of hours worked. By the
end of the year, the electrical company has worked 150 hours at the building and expects to finish the
project after working an additional 50 hours in the next period.
a. Calculate the accrued revenue the electrical company should record.
b. Journalize the adjusting entry to record the asset
12. Accrued Revenue By the end of the year, a CPA firm has provided a client with 30 hours of service to
prepare a tax return. The client agrees to pay for hours performed monthly on the fifteenth of the
following month. The CPA firm bills clients $35 per hour.
a. Calculate the accrued revenue the CPA firm should show in the year-end financial statements.
b. Record the journal entry to show the adjustment
13. Accrued Expense A business’s lawyer charges $60 per hour to meet with the board of directors. The
business pays for the expense on the fifth of every month. By the end of the year, the board members
and lawyer had met 51 hours since the last pay period.
a. How much should the business record as an accrued legal expense at year-end?
b. Record the journal entry to make the adjustment
14. Accrued Expense A company pays its employees every other Friday, with daily wages of $340,
including weekends. The previous payday occurred on Friday, June 24.
a. If the company’s year ended June 30, what amount should the wages payable account on the balance
sheet show?
b. Journalize the adjusting entry to record the payables accrued
15. Accrued Expense A company pays its telephone bill on the fifteenth of each month at a daily rate of
$15.
a. Calculate the amount of Telephone Utilities Payable at December 31.
b. Journalize the adjusting entry to record the liability
16. Unearned Revenue A new gym begins business in November, offering a special for its membership
plan of one year for $240. During November, 12 people sign up for the plan starting December 1; during
December, 20 people sign up for the plan starting December 15.
a. Calculate the amount of the unearned revenue at year-end on December 31.
b. Journalize the adjusting entry to record the revenue
17. Unearned Revenue A rental company owns a building from which it leases out multiple offices.
During the year, it received the following advance rental payments for one-year leases from separate
tenants: $24,000 in June, $36,000 in August, and $12,000 in October. The leases started the first of the
month following the payment. Assume that these are the only advance rental payments received and
that no adjusting entries were made during the year.
a. Find the balance of the unearned rent revenue account at year-end on December 31.
Also, find the amount of the adjustment needed at year-end
b. Journalize the adjusting entry to record the revenue earned.
18. Unearned Revenue A magazine company sells a one-year subscription for $42 that will begin the
month after the payment is received. During November, the company sells 200 subscriptions. The
company did not sell any other subscriptions in the period.
a. Find the adjustment needed at December 31 to record any revenue earned for the November
subscriptions.
b. Journalize the adjusting entry to record the revenue
19. Prepaid Expense On June 1, Company A signed a rental agreement for a new building and paid
$24,000 in advance for the year of rent beginning the same day.
a. Determine the amount of the adjustment that should be made on December 31, the year-end for the
rent on this building.
b. Record the journal entry to show the adjustment
20. Prepaid Expense At the beginning of the quarter, a company had $2,670 of supplies on hand. During
the period, the company purchased $500 worth of supplies. At the end of the year, on December 31, the
supplies on hand are $1,220.
a. How much of an adjustment should the company make to show the use of the supplies?
b. Record the journal entry to make the adjustment
21. Prepaid Expense On December 15, Company B paid $18,000 for a six-month insurance policy
starting on that day.
a. How much should Company B show as Insurance Expense for the year ended December 31? What will
be the balance of Prepaid Insurance at the end of the year?
b. Record the journal entry to show the adjustment made on December 31