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Quiz 1
Quiz 1
Required:
For each of the transactions, prepare journal entries. Be sure to categorize each
account as an asset (A), liability (L), stockholders’ equity (SE), revenue (R), or
expense (E).
2. ABC Corp was organized on January 1, current year. At the end of the current year, the
following financial data are available:
a. Total revenues $ 299,000
b. Total expenses (excluding income taxes) 184,000
c. Income tax expense (all unpaid as of December 31) 34,500
d. Cash 70,150
e. Receivables from customers (all considered collectible) 34,500
f. Merchandise inventory (by inventory count at cost) 96,600
g. Payables to suppliers for merchandise purchased from them (will be paid during the
following year) 26,450
h. Common stock 59,800
Required:
Preparing an Income Statement and Balance Sheet