|ACCT 201 Principles of Financial Accounting
Practice Examination #1
Combined Chapters 1 - 4
Dr. Fred Barbee
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Short Problem #1
|Weston Enterprises uses a periodic inventory system. Prepare general journal entries to record the following transactions.|
|a.||(June 10) Weston purchased merchandise on credit from Easton for $9,000, terms 2/10, n/30, FOB destination. Transportation costs of $350 were paid by Easton.|
|b.||(June 12)Weston returned $600 of merchandise from the June 10 purchase.|
|c.||(June 19)Weston paid Easton for the June 10 purchase.|
|On December 31 of Year 1 a company forgot to record $7,000 of depreciation on office equipment. In the Year 1 financial statements, what is the effect of this error on assets, net income, and equity?
|The balances for the accounts of Perkin's Janitorial, Inc., for the year ended December 31 are shown below. Each account shown had a normal balance.|
|Unearned Janitorial Fees||
Calculate the correct balance for Cash and prepare a trial balance.
|Prepare general journal entries on December 31 to record the following unrelated year-end adjustments.|
|a.||Depreciation on office equipment for the year is $4,000.|
|b.||The Prepaid Insurance account has a $4,680 debit balance before adjustment. An examination of insurance policies shows $950 of insurance expired.|
|c.||The company has three office employees who earn $100 per day for a five-day workweek that ends on Friday. The employees were paid on Friday, December 26, and have worked full days on Monday, Tuesday, and Wednesday, December 29, 30, and 31.|
|d.||On November 1, the company received 6 months' rent in advance from a tenant whose rent is $700 per month. The $4,200 was credited to the Unearned Rent account.|
|e.||The company collects rent monthly from its tenants. One tenant whose rent is $750 per month has not paid his rent for December.|
Last Modified September 19, 2002