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    Mid Term I

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    chaos1989
    The document contains test questions and answers, trial balance information for Gary's Tree Service, journal entries for various accounting transactions, income statements and balance sheets. Key details include: - Gary's Tree Service trial balance totals $73,350 in debits and credits - Journal entries were prepared for Great Designs Company to record capital invested and payment of accrued fees - Nadia Company financial statements include an income statement showing $2,980 in net income and a balance sheet with total assets of $19,050

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    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd

    Mid Term I

    Uploaded by

    chaos1989
    1K views10 pages
    The document contains test questions and answers, trial balance information for Gary's Tree Service, journal entries for various accounting transactions, income statements and balance sheets. Key details include: - Gary's Tree Service trial balance totals $73,350 in debits and credits - Journal entries were prepared for Great Designs Company to record capital invested and payment of accrued fees - Nadia Company financial statements include an income statement showing $2,980 in net income and a balance sheet with total assets of $19,050

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    Acct Exam

    Original Title

    MidTermI

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    The document contains test questions and answers, trial balance information for Gary's Tree Service, journal entries for various accounting transactions, income statements and balance sheets. Key details include: - Gary's Tree Service trial balance totals $73,350 in debits and credits - Journal entries were prepared for Great Designs Company to record capital invested and payment of accrued fees - Nadia Company financial statements include an income statement showing $2,980 in net income and a balance sheet with total assets of $19,050

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    1K views10 pages

    Mid Term I

    Uploaded by

    chaos1989
    The document contains test questions and answers, trial balance information for Gary's Tree Service, journal entries for various accounting transactions, income statements and balance sheets. Key details include: - Gary's Tree Service trial balance totals $73,350 in debits and credits - Journal entries were prepared for Great Designs Company to record capital invested and payment of accrued fees - Nadia Company financial statements include an income statement showing $2,980 in net income and a balance sheet with total assets of $19,050

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 10

    Name: Lubiane Incorvaia Test Midterm 1. A 2. C 3. B 4.

    Accounts Receivable Fees Earned Accrued Fees [($18,000/5 months) x 8 months]

    28,800 28,800

    5. Unearned Fees Fees Earned Fees Earned ($10,250 - $3,125)

    7,125 7,125

    6. Gary's Tree Service Trial Balance Cash Supplies Accounts Payable Garry Ryan, Capital Wage Expense Machinery Wage Payable Service Revenue Rent Expense Unearned Expense Accumulated Depreciation - Machinery Prepaid Rent Garry Ryan, Drawing Debit 25,000 1,000 7,000 32,910 2,000 18,350 3,600 21,000 11,500 1,500 7,340 12,200 3,300 73,350 Credit

    73,350

    7.

    a. $3,600 b. $300 c. $18,000 d. $750

    8.

    a. Revenues were understated by $19,100 ($8,900 + $10,200) b. Expenses were understated by $7,000

    c. Net Income was understated by $12,100 ($8,900 + $10,200-$7,000)

    9. Dec. 31

    Depreciation Expense Accumulated Depreciation - office equip

    1,400 1,400 2,650 2,650

    31 Depreciation Expense Accumulated Depreciation - prod. Equip

    10. Supplies Expense Supplies Supplies Used ($3,500-$350) 3,150 3,150

    11. 31-Dec Insurance Expense Prepaid Insurance Insurance Expired [($1,500/12)x7] 12. Date Dec 31 Accounts Receivable Fees Earned Accrued Fees Supplies Expense Supplies Supplies Used ($4,750-$960)) Wages Expenses Wages Payable Accrued Wages Depreciation Expense Accum. Depreciation - Office Equip Depreciation on office equip. Rent Expense Prepaid rent Prepaid rent expired Description Post Ref. 875 875

    31

    31

    13.

    Description a. Supplies Expense Supplies Supplies Used [($245+$735)-$343)] Interest Expense Interest Interest paid [(12/100 x $17,000) / 6] Wages Expenses Wages Payable Accrued Wages ($5,500/2) Wages Expenses Wages Payable Accrued Wages ($650/4) d. Unearned Revenue Revenue Earned Revenue Earned [(60/100)x46,000)] Accounts Receivable Fees Earned Accrued Fees

    Post Ref.

    b.

    c.

    e.

    14. a. Journal Date Nov Description 15 Cash Great Designs Company, Capital Invested cash in Advertising campaign 15 Accounts Payable Fees Paid Accrued Fees Post Ref.

    Dec

    b. 15.

    Jounal Entries were prepared because fees were paid because the work was performed.

    Nadia Company Income Statement

    For the year ended December 31, 2014 Fees earned Total revenue Expenses: Wages Expense Rent Expense Utilities Expense Depreciation Expense Misc. Expense Total Expenses Net Income

    10,930 10,930 2,450 1,900 1,475 1,150 975 7,950 $2,980

    Nadia Company Statement of Owner's Equity For the year ended December 31, 2014 Nadia Porter, capital Net income for the year Less withdrawals Increase in owner's equity Nadia Porter, capital, December 31, 2014 13,000 2,980 700 2,280 10,720

    Nadia Company Balance Sheet December 31, 2014 Assets Current Assets: Cash Accounts Receivable Prepaid Expenses Total current assets Property, plant, and equipment: Equipment Less accumulated depreciation Total Property, plant, and equipment: Total assets Current Liabilities: 5,130 3,300 420 $8,850

    12,400 2,200

    O 10,200 Nadia Porter, Capital

    10,200 19,050 Total liabilities and owner's eq

    16. Description a. Wages Expenses Wages Payable Accrued Wages [($22,000 / 5 days) x 2 days] Post Ref.

    Wages Expenses Wages Payable Accrued Wages [($22,000 / 5 days) x 3 days] b. Insurance Expense Prepaid Insurance Insurance Expired ($18,000 + $5,300) Insurance Expense Prepaid Insurance Insurance Expired ($18,000 - $2,700) c.

    Debit 6,300

    Credit

    6,300

    3,790 3,790

    2,700 2,700

    1,650 1,650

    10,800 10,800

    Debit 637

    Credit

    637

    340 340

    2,750 2,750

    163 163

    27,600 27,600

    5,700 5,700

    Debit 2,700

    Credit

    2,700

    2,700 2,700

    Liabilities Current Liabilities: Accounts payable Notes Payable Total liabilities $700.00 3,070 $3,770.00

    Owner's Equity Nadia Porter, Capital Total liabilities and owner's equity 10,720 $14,490.00

    Debit 8,800

    Credit

    8,800

    13,200 13,200

    23,300 23,300

    15,300 15,300

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