|ACCT 201 Principles of Financial Accounting
Practice Exam - Chapter 3
Reporting & Preparing Financial Statements
Dr. Fred Barbee
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Part II: Short Problems
Short Problem #1
The following are steps in the accounting cycle. List them in the order in which they are completed
|Preparing Adjusted Trial Balance|
|Preparing an Unadjusted Trial Balance|
|Preparing the Financial Statements|
|Closing the Temporary Accounts|
|Adjusting the Accounts|
|Preparing a Post-Closing Trial Balance|
Short Problem #2
Classified balance sheets commonly include the following categories:
Indicate the typical classification of each item listed below by placing the letter of the correct balance sheet category a through g in the blank space next to the item.
|1.||Buildings used in business operations|
|3.||Land held for future plant expansion|
|4.||Long-term note payable|
Short Problem #3
Following are selected accounts and their balances for a company after the adjustments as of May 31, the end of its fiscal year. (All accounts have normal balances).
Prepare all necessary closing entries for this company.
Part III: Problems
|In general journal form, record the December 31 adjusting entries for the following transactions and events. Assume that December 31 is the end of the annual accounting period.|
|a.||The Prepaid Insurance account shows a debit balance of $2,340, representing the cost of a three-year fire insurance policy that was purchased on October 1 of the current year.|
|b.||The Office Supplies account has a debit balance of $400; a year-end inventory count reveals $80 of supplies still available.|
|c.||On November 1 of the current year, Rent Earned was credited for $1,500. This amount represented the rent earned for a three-month period beginning November 1.|
|d.||Depreciation on office equipment is $600.|
|e.||Accrued salaries amount to $400.|
Last Modified January 15, 2003