Problem 1 (6 points) - During the month of September, the new business incurred the following transactions: 7300

Date
a.      To begin operations, owners deposited $15,000 cash in the business’s bank account. Thea business received t
b.      The business purchased equipment for $3,000 on account.
c.      The business purchased office supplies for $500 cash.
d.      The business provided $3000 of landscaping works to a customer on account. b
e.      The business paid $500 cash toward the equipment previously purchased on account in transaction b.
f.       The business received $2,000 in cash for services provided to a new customer.
g.      The business paid $100 cash to repair equipment. c
h.      The business paid $1000 cash for September’s salary expense.
i.       The business received a utilities bill amounting to $200; it has not paid this bill.
j.       The business received $2,000 cash from a customer on account.
k.      The business paid cash dividends of $1,500. d

Requirements
1.      Journalize the transactions (preparing T-accounts is optional) 3.3 points e
2.      Prepare Income statement (1 points) and the balance sheet (1.7 points)

ყველა გატარება xფასდება ცალკე f

თუ რომელიმე გატარება შეცდომაა, უწყისებიც არ იქნება სწორი ,
ამიტომ სტრუქტურა თუ სწორია და რიცხვები არასწორი ქულის
ნახევარი/მეოთხედი იწერება g
T accounts არ ვუფასებთ

h
2.7
Account Dr Cr
Cash 15400 i
Acc Receivable 1000
Supplies 500
Prepaid ? 0 j
Land 0
Building 0
Equipment 3000 k
Accumulated Depr 0
Asset1 0
Asset2 0
Asset3 0
Asset4 0
Acc Payable 2500
Note Payable 0
Utility payable 200
X payable 0
Y payable 0
Common stocks 15000
R/E 0
Dividends 1500
Revenue 5000
Expenses 1300
22700 22700
 8100
Account DebiT CrediT Cash Acc Receivable Supplies
cash 15000 15000 500 3000 2000 500
common stocks 15000 2000 500
2000 100
equipm 3000 1000
A/P 3000 1500
15400 1000 500
supplies 500
cash 500 Land Building Equipment
3000

A/R 3000
revenue 3000

ac/p 500 0 0 3000

cash 500
Acc Payable Note Payable Utility payable
cash 2000 500 3000
revenue 2000

repair expense 100

cash 100
2500 0
salary exp 1000
cash 1000 R/E Revenue Dividends
3000 1500
utility expense 200 2000
utility payable 200

cash 2000
A/R 2000 0 5000 1500

dividends 1500 income statament ASSETS LIABILITIES

cash 1500 Revenue 5000 Cash 15400 Acc Payabl
Expenses 1300 Acc Receiv 1000 Note Payab
Income 3700 Supplies 500 Utility pay
Prepaid ? 0 X payable
R/E statament Land 0 Y payable
R/E bgn 0 Building 0 Total liabil
Income 3700 Equipment 3000
Dividends 1500 Accumulat 0 EQUITY
R/E ending 2200 Asset1 0 Common st
Asset2 0 R/E
Asset3 0 Total equit
Asset4 0
Total Asset 19900 Total E&L
 Supplies Prepaid ? Asset1 Asset2

0 0 0

Equipment Accumulated Depr Asset3 Asset4

0 0 0

Utility payable Common stocks X payable Y payable

200 15000

200 15000 0 0

Dividends Expenses
100
1000
200

1300

LIABILITIES
2500
0
200
0
0
2700

15000
2200
17200

19900
Problem 2 - (4.2 points) The trial balance of Company shown below pertains to December 31, 2019, which is the end of its ye
a.      Supplies at the beginning of the year was $1000, during the year, company purchased $5000 supplies and $2
b.      Depreciation on furniture $20,000.
c.      Salaries owed but not yet paid, $5,000.
d.      Accrued service revenue, $15,000.
e.      Of the $45,000 balance of unearned service revenue, $30,000 was earned during the year.
f.       One-year Insurance was prepaid on November 1, $12, 000
Journalize the Company adjusting entries for December 31

a supply exp 4000

supply 4000
0.7 თითო გატარებაზე
b Depr expe 20000
Acc depr 20000

c salary exp 5000

salary payable 5000

d A/R 15000
revenue 15000

e Unearned 30000
revenue 30000

f Insurance 2000
prepaid insurane 2000

f
019, which is the end of its year-long accounting period. Data needed for the adjusting entries include the following:
rchased $5000 supplies and $2,000 worth supplies are on hand at year-end.

ng the year.

ატარებაზე
Problem 3 - (5 points) - A company uses the allowance method to account for its uncollectible accounts. Account Receivable h
During the year, following events occurred (Journalize following transactions 4 points)
a.      Credit sales totaled $200 000
b.      Collected $50 000 of its Accounts Receivable
c.      Wrote off $3000 of Account Receivable
d.      Uncollectible account expense is estimated to be 5% of Account receivable (hint: prepare T accounts f
What is the ending balance of account receivable (0.5 points) and Allowance for uncollectible accounts (0.5 points)

A/R
a A/R 200000 100000
revenue 200000 200000
50000
b cash 50000 3000
A/R 50000 247000

c Allowance 3000
A/R 3000

d uncollectib 14350
Allowance 14350 თითო გატარებას 1 ქულა და საბო
ccounts. Account Receivable had beginning balance of $100 000 and the allowance for uncollectible accounts had $1000 credit balance.

ble (hint: prepare T accounts for A/R and Allowance for uncollectible accounts)
counts (0.5 points)

Allowance
3000 1000

14350

12350

20.05
20.55

ატარებას 1 ქულა და საბოლოო ბალანსებს 0.5

s had $1000 credit balance.
Problem 4. (3.8 points) The following information is available for the ABC company for the month of November:

a.      On November 30, after all transactions have been recorded, the balance in the company's Cash accoun
b.      The company's bank statement shows a balance on November 30 of $29,279.
c.      Outstanding checks at November 30 include check #1 in the amount of $1,525 and check #2 in the am
d.      A credit memo included with the bank statement indicates that the bank collected $780 on a nonintere
e.      A debit memo included with the bank statement shows a $67 NSF check from a customer
f.       A deposit placed in the bank's night depository on November 30 totaled $1,675, and did not appear on
g.      Examination of the checks on the bank statement with the entries in the accounting records reveals tha
h.      Included with the bank statement was a debit memorandum in the amount of $25 for bank service cha

Avisa Company
Bank Reconcilation
Nov-30
Bank statement balance $29,279 Book balance $27,202
Add: Add:

Collect a $780 note less $10

collection fee
Deposit in transit 1,675 $770
Error on check #3445 90 860
30,954 28,062
Deduct: Deduct
Outstanding checks NSF check $67
#3030 $1,525 Service charge 25 92
#3556 1,459 2,984
Adjusted bank balance $27,970 Adjusted book balance $27,970
 month of November:

nce in the company's Cash account has a balance of $27,202.

of $1,525 and check #2 in the amount of $1,459.

ank collected $780 on a noninterest-bearing note receivable for ABC company (bank collection). The bank deducted a $10 collection fee (se
heck from a customer
led $1,675, and did not appear on the bank statement (deposit in transit)
the accounting records reveals that check #3 for the payment of an account payable was correctly written for $2,450, but was recorded in th
mount of $25 for bank service charges. It has not been recorded on the company's books.

თითოეული ჩანაწერი და ჯამი ცალკე შევაფასოთ

3.8 0.422222
ducted a $10 collection fee (service charge), and credited the remainder of $770 to ABC's account.

$2,450, but was recorded in the accounting records as $2,540.

Problem 5 – (6 points) ABC company purchases inventory in crates of merchandise; each crate of inventory is a unit. The fisc
ends each February 28. The store began 2019 with an inventory of 18,000 units that cost a total of €990,000. During the year, th
purchased merchandise on account as follows:

April (33,000 units at €60).................................... €1,980,000

August (53,000 units at €64)................................. 3,392,000
November (63,000 units at €70) ........................... 4,410,000
Total purchases ..................................................... €9,782,000

Cash payments on account totaled €9,492,000. During fiscal 2019, the store sold 158,000 units of merchandise for €15,484,000

Company uses the average cost method for inventories. Operating expenses for the year were €2,860,000. ABC paid 70% in ca

·        Make summary journal entries to record the store’s transactions for the year ended February 28, 2019. comp
·        Prepare a T-account to show the activity in the Inventory Account. (1 point)
·        Prepare the store’s Income Statement for the year ended February 28, 2019. Show totals for gross profit, inc

55
Inventory 9782000 Inventory
A/P 290000 990000
Cash 9492000 9782000

A/R 10084000
cash 5400000 580526.946108
98 sales revenue 15484000

COGS 10191473.05
inventory 10191473.05 avarage cost

operatging expenses 2860000

cash 2002000
accrued liabilities 858000 აქაც ცალ-ცალკე ვაფასებთ ყველაფ
მოგება/ზარალის სტრუ
income tax exp 851384
income tax payable 851384
crate of inventory is a unit. The fiscal year of
otal of €990,000. During the year, the store

nits of merchandise for €15,484,000, of which €5,400,000 was for cash and the balance was on account.

re €2,860,000. ABC paid 70% in cash and accrued the rest as accrued liabilities. The store accrued income tax at the rate of 35%.

year ended February 28, 2019. company uses a perpetual inventory system. (4 points)

019. Show totals for gross profit, income before tax, and net income. (1 point)

Inventory sales 15484000

COGS 10191473
gross profit 5292527
10191473.05
oper exp 2860000

income before 2432527

tax exp 851384.4311

64.50299401 net income 1581143

ცალ-ცალკე ვაფასებთ ყველაფერს, გატარება თითო ერთი ქულა

მოგება/ზარალის სტრუქტურა თუ სწორია 0.5
ax at the rate of 35%.
Problem 1 (1.7 points) Amounts of the assets and liabilities of Alan Sanders Realty Company, as of July 31, 2014,
are given as follows. Also included are revenue, expense, and selected stockholders’ equity figures for the year ended
on that date (amounts in millions):

Total revenue .........................................$37.8 cash 1.8

Receivables...............................................0.6 A/R 0.6
Current liabilities .....................................2.1 investment 135.6
Common stock.........................................21.8 PPE 1.9
Interest expense........................................0.6 other 10.7
Salary and other employee expenses.......13.8 total 150.6
Long-term liabilities ...............................102.2
Investment assets (long-term) .................135.6
Property and equipment, net ...................1.9
Other expenses.........................................5.3 სტრუქტურა 0.5, ნაწილობრივ სწორი რიცხვე
Retained earnings, beginning..................16.9
Retained earnings, ending ..........................?
Cash.........................................................1.8
Other assets (long-term) .........................10.7

Requirement
Construct the balance sheet of Alan Sanders Realty Company at July 31, 2014. Use the accounting equation to compute ending
Company, as of July 31, 2014,
quity figures for the year ended

Current liabilities ......... 2.1 25

Long-term liabilities ..... 102.2
total 104.3

Common stock............... 21.8

R/E ending 24.5

ურა 0.5, ნაწილობრივ სწორი რიცხვები 0.5-1, ყველაფერი სწორი 1.7

35
დივიდენდი 10.5

e accounting equation to compute ending retained earnings. 1.7 points

Problem 1 (6 points) - During the month of September, the new business incurred the following transactions:
7300
Apr 2 Arguetta received $70,000 cash and issued common stock to the stockholders. Date
3 Purchased supplies, $2,000, and equipment, $9,200, on account. a
4 Performed services for a client and received cash, $1,400.
7 Paid cash to acquire land, $42,500.
11 Performed services for a customer and billed the customer, $2,800. b
16 Paid for the equipment purchased April 3 on account.
17 Paid the telephone bill, $150.
18 Received partial payment from customer on account, $300.
22 Paid the water and electricity bills, $170. c
29 Received $2,500 cash for repairing a customer’s brick walkway.
30 Paid employee salaries, $4,900.
30 Declared and paid dividends of $2,600.
d
Requirements
1.      Journalize the transactions (preparing T-accounts is optional) 3.3 points
2.      Prepare Income statement (1 points) and the balance sheet (1.7 points) e

ყველა გატარება ფასდება ცალკე

f

მარტო გატარებები და მოგება/ზარალი ფასდება

T accounts არ ვუფასებთ g

h
Account Dr Cr
Cash 14680
Acc Receivable 2500 i
Supplies 2000
Prepaid ? 0
Land 42500 j
Building 0
Equipment 9200
Accumulated Depr 0 k
Asset1 0
Asset2 0
Asset3 0
Asset4 0
Acc Payable 2000
Note Payable 0
Utility payable 0
X payable 0
Y payable 0
Common stocks 70000
R/E 0
Dividends 2600
Revenue 6700
Expenses 5220
78700 78700
 8100
Account DebiT CrediT Cash Acc Receivable Supplies
Cash 70000 70000 42500 2800 300 2000
Common stocks 70000 1400 9200
2500 150
supplies 2000 300
equipment 9200 7670
A.P 11200 14680 2500 2000

Cash 1400 Land Building Equipment

Revenue 1400 42500 9200

Land 42500
Cash 42500
42500 0 9200
Acc Receivable 2800
Revenue 2800 Acc Payable Note Payable Utility payable
9200 11200
A.P 9200
Cash 9200

tel exp 150

Cash 150 2000 0

Cash 300 R/E Revenue Dividends

Acc Receivable 300 1400 2600
2800
util exp 170 2500
cash 170

Cash 2500 0 6700 2600

Revenue 2500
income statament ASSETS LIABILITIES
salary exp 4900 Revenue 6700 Cash 14680 Acc Payabl
cash 4900 Expenses 5220 Acc Receiv 2500 Note Payab
Income 1480 Supplies 2000 Utility pay
dividernds 2600 Prepaid ? 0 X payable
cash 2600 R/E statament Land 42500 Y payable
R/E bgn 0 Building 0 Total liabil
Income 1480 Equipment 9200
Dividends 2600 Accumulat 0 EQUITY
R/E ending -1120 Asset1 0 Common st
Asset2 0 R/E
Asset3 0 Total equit
3.05 Asset4 0
Total Asset 70880 Total E&L
4
 Supplies Prepaid ? Asset1 Asset2

0 0 0

Equipment Accumulated Depr Asset3 Asset4

0 0 0

Utility payable Common stocks X payable Y payable

70000

0 70000 0 0

Dividends Expenses
150
170
4900

5220

LIABILITIES
2000
0
0
0
0
2000

70000
-1120
68880

70880
Problem 3 - (4.2 points) Journalize the adjusting entry needed on December 31, end of the current accounting period, for each

a insurance 5100
a. Details of Prepaid Insurance are shown in the account prepaid ins

b interest re 600
Prepaid expense interest revenue

c salary exp 3480

Jan 1 Bal 2.100 salary payable

Mar31 4.800 d supply exp 7200

supply=\

e unearned r 8160
revenue

f depr exp 8500

acc depr

Hall prepays insurance on March 31 each year. At December 31, $1,800 is still prepaid.
a.      Hall pays employees each Friday. The amount of the weekly payroll is $5,800 for a five-day work
b.      Hall has a note receivable. During the current year, Hall has earned accrued interest revenue of $6
c.      The beginning balance of supplies was $3,200. During the year, Hall purchased supplies costing $
d.      Hall is providing services for Milam Investments, and the owner of Milam paid Hall $10,200 as t
e.      Depreciation for the current year includes Office Furniture, $3,200, and Equipment, $5,300. Mak
nt accounting period, for each of the following independent cases affecting Hall Corp. Include an explanation for each entry.

5100

600
0.7

3480

7200

8160

8500

0 is still prepaid.
ll is $5,800 for a five-day work week. The current accounting period ends on Wednesday.
accrued interest revenue of $600 that it will collect next year.
ll purchased supplies costing $6,100, and at December 31 supplies on hand total $2,100.
Milam paid Hall $10,200 as the annual service fee. Hall recorded this amount as Unearned Service revenue. Hall estimates that it has earn
and Equipment, $5,300. Make a compound entry.
for each entry.

Hall estimates that it has earned 80% of the total fee during the current year.
 Problem 4. (3.8 points) Harry Sparks operates a bowling alley. He has just received the
monthly bank statement at September 30 from City National Bank, and the statement shows
an ending balance of €565. Listed on the statement are an EFT rent collection of €345, a
service charge of €9, two NSF checks totaling €135, and a €12 charge for printed checks. In
reviewing his cash records, Sparks identifies outstanding checks totaling €639 and a
September 30 deposit in transit of €1,970. During September, he recorded a €320 check for
the salary of a part-time employee as €32. Sparks’s Cash account shows a September 30 cash
balance of €1,995. How much cash does Sparks actually have at September 30? Prepare bank
reconciliation (3.8 points)

book bank
bgn balanc 1995 bgn balance 565

EFT collect 345 deposit in transit 1970

charge 9 outstanding check 639

NSF 135
charge 2 12
error 288

1896 1896
10 13
Problem 5. (6 points) Nashville Sales, Inc.’s inventory records for a particular development program
show the following at August 31:
Aug 1 Beginning inventory ........... 6 units @ $170 _ $1,020
Aug 15 Purchase................................. 8 units @$172 _ 1,376
Aug 26 Purchase................................. 14 units @$180 _ 2,520

At August 31, eleven of these programs are on hand. Journalize the following for Nashville
Sales, under the perpetual system:

1.      Total August purchases in one summary entry. All purchases were on credit. (1 points)
2.      Total August sales and cost of goods sold in two summary entries. The selling price was $575 per unit, a
3.      Under FIFO, how much gross profit would Nashville Sales earn on these transactions? (1 points) What i

1 POINT Inventory 3896

A/P 3896
თუ გატარება სწორია და რიცხვი არასწორი 0.

A/R 9775
sales revenue 9775
3 POINTS
COGS 2936
inventory 2936

1 POINT ENDING INVENTORY 1980

1 POINT Gross profit 6839

 6
8
14
28

11
17 SOLD

rice was $575 per unit, and all sales were on credit. Assume that Nashville Sales uses the FIFO Inventory method. (3 points)
ctions? (1 points) What is the FIFO cost of Nashville Sales, Inc.’s ending inventory? (1 points)

რიცხვი არასწორი 0.5

24.35
thod. (3 points)