ACCT 221 Mid-Term Exam_Ch_1_5

ACCT 221 Mid-Term Exam_Ch_1_5. ACCT 221 Mid-Term Exam: Ch. 1-5

 

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

ACCT 221 Mid-Term Exam_Ch_1_5