ACCT215 Principles of Accounting I

ACCT215 Principles of Accounting I
First Exam Part II (30% of exam grade); Total Five Questions (6 Points/Question)
Please submit in PDF or Word or Excel file in Blackboard by the due date.
Name: _______________________
1. Prepare a December 31 balance sheet in proper form for Surety Insurance using the following
accounts and amounts:
Commissions revenue……....... $40,000

Accounts payable……………… 3,500
Accounts receivable…………… 5,000
M. Bruno, Capital……………… 103,500
Office equipment………………. 10,000
Advertising expense…………. 3,200
Cash…………………………….. 7,500
Land...................................... 35,000
Note payable.......................... 50,000
Office supplies........................ 500
Salaries expense.................... 12,000
Salaries payable..................... 1,000
Building............................... 100,000
2. From the information given below, prepare a November income statement, a November statement
of owner’s equity, and a November 30 balance sheet. On November 1 of the current year, Lois Bell
began Lois Bell, Interior Design with an initial investment of $50,000 cash. On November 30, her records
showed the following (alphabetically arranged) items and amounts.
Accounts payable……………. $12,000 Office furnishings……….. $40,000

Accounts receivable………. 23,000 Owner's withdrawals……. 6,000
Cash……………………… 17,200 Rent expense…………… 3,600
Revenue earned………………. 30,000 Salaries expense………. 6,200
Notes payable………………… 4,250 Telephone expense……. 250

3. Western Company had $500 of store supplies available at the beginning of the current year. During
the year Western Company purchased $2,750 worth of store supplies. On December 31 of this year
$375 worth of store supplies remained.
a) Calculate the amount of Western Company's store supplies expense for the current year. (Show your
calculations.)
b) Prepare the journal entry to adjust the supplies account.
4. Barnes Company has 20 employees who are each paid $80 per day for a 5-day workweek. The
employees are paid each Friday. This year the accounting period ends on Tuesday.
a) Prepare the December 31 year-end adjusting journal entry Barnes Company should make to accrue
wages.
b) Show the December 31 adjusting entry to record $750 of earned but unpaid salaries of employees at
the end of the current accounting period.

5. Based on the following trial balance for Smyth's Repair Shop, prepare an income statement,
statement of owner's equity, and a balance sheet. Smyth made no additional investments in the
company during the year.
Smyth's Repair Shop

Trial Balance
December 31
Cash..................................................................................... $ 12,500
Accounts receivable............................................................ 1,500
Supplies................................................................................ 500
Repair shop equipment........................................................ 27,000
Service truck........................................................................ 33,000
Accounts payable................................................................ $ 2,600
Smyth, Capital..................................................................... 39,525
Smyth, Withdrawals............................................................ 36,000
Service Revenue.................................................................. 125,000
Supplies expense................................................................. 3,425
Rent expense........................................................................ 18,000
Utilities expense.................................................................. 6,000
Gas expense......................................................................... 7,200
Wages expense.................................................................... 22,000
Totals................................................................................... $167,125 167,125

ACCT215 Principles of Accounting I - First Exam Part II Questions

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ACCT215 Principles of Accounting I - First Exam Part II Questions

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Commissions revenue……....... $40,000

Accounts payable……………. $12,000 Office furnishings……….. $40,000

b) Prepare the journal entry to adjust the supplies account.

Smyth's Repair Shop

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