ACCT 221 Midterm : Ch. 1-6
Problem
1. Journalize the following selected transactions for April 2013 in a two-column journal. Journal entry explanations may be omitted.
April 1
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Received cash from stockholder, Kevin Marks, in return for stock, $14,000.
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2
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Received cash for providing accounting services, $9,500.
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3
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Billed customers on account for providing services, $4,200.
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4
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Paid advertising expense, $700.
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5
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Received cash from customers on account, $2,500.
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6
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Dividends paid, $1,010.
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7
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Received telephone bill, $900.
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8
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Paid telephone bill, $900.
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Date
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Description
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Post Ref
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Debit
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Credit
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2. Journalize in a two column journal the adjusting entries required at August 31, 2013. Omit explanations.
1. Fees accrued but unbilled are $4,500.
2. The supplies account balance on December 31 is $5,250. The supplies on hand are $1,015.
3. Wages accrued but not paid are $3,500.
ACCT 221 Midterm : Ch. 1-6 Problem 1.Journalize the following selected transactions for April 2013 in a two-column journal. Journal entry explanations may be omitted. April 1 Received cash from stockholder, Kevin Marks, in return for stock, $14,000. 2 Received cash for providing accounting services, $9,500. 3 Billed customers on account for providing services, $4,200. 4 Paid advertising expense, $700. 5 Received cash from customers on account, $2,500. 6 Dividends paid, $1,010. 7 Received telephone bill, $900. 8 Paid telephone bill, $900. Date Description Post Ref Debit Credit 2.Journalize in a two column journal the adjusting entries required at August 31, 2013. Omit explanations. 1. Fees accrued but unbilled are $4,500. 2. The supplies account balance on December 31 is $5,250. The supplies on hand are $1,015. 3. Wages accrued but not paid are $3,500. 4. Depreciation of office equipment is $2,200. 5. Rent expired during year, $7,800. Date Description Post Ref Debit Credit 3.On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Boles Athletic Company, journalize the four closing entries. Cash $ 30,000 Accounts Receivable 45,200 Supplies 5,000 Equipment 169,900 Accumulated Depreciation $ 32,000 Accounts Payable 12,500 Capital Stock 71,600 Dividends 47,000 Fees Earned 510,000 Salary Expense 244,500 Rent Expense 48,000 Depreciation Expense 25,000 Supplies Expense 9,500 Miscellaneous Expense 2,000 $626,100 $626,100 Date Description Post Ref Debit Credit 4. Merchandise with a list price of $7,500 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid transportation costs of $300. Prior to payment, $2,000 of the merchandise is returned. The correct amount is paid within the discount period. Record the foregoing transactions of the buyer in the sequence indicated below. (a) Purchased the merchandise. (b) Recorded receipt of the credit memorandum for merchandise returned. (c) Paid the amount owed. Date Description Post Ref Debit Credit 5. Merchandise with a list price of $3,800 and costing $2,000 is sold on account, subject to the following terms: FOB shipping point, 2/10, n/30. The seller prepays the $50 shipping charges and bills the customer, (seller pays Cash). Prior to payment for the goods, the seller issues a credit memorandum for $800 to the customer for merchandise costing $500 that is returned. The correct amount is received within the discount period. Record the foregoing transactions of the seller in the sequence indicated below. (a) Sold the merchandise, recognizing the sale and cost of merchandise sold. (b) Paid the transportation charges. (c) Issued the credit memorandum. (d) Received payment from the customer. Date Description Post Ref Debit Credit 6. The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account: June 1Balance25 units at $60 6Sale20 units 8Purchase20 units at $61 16Sale10 units 20Purchase20 units at $62 23Sale25 units 30Purchase15 units at $63 Determine the cost of the inventory balance at June 30, using (1) the first-in, first-out method and (2) the last-in, first-out method. Identify the quantity, unit price, and total cost of each lot in the inventory.