UNIT 4 EXAM 1

ACC111 Redesign Exam One Directions & Check Numbers

This is comprehensive exam covers all steps in the accounting cycle. I cannot stress enough that you

should start early in the week to be success in completing the exam. Only providing yourself with a day

or two to complete will prove to be a difficult task.

You must use the workbook pages to complete the exam, as you will have to submit the completed

problem for a grade. The directions to complete the exam are in the attached file. Please follow them

closely and complete all parts. For your reference, there is a similar problem (CP 3-7) located at the end

of Chapter 3 that can be used to help you.

I have provided “check numbers” below after you complete each requirement. It is important that you

check your work using these numbers before moving on, as future work may be incorrect if your

numbers do not match the check numbers provided.

Good Luck!!

Part A, Requirement #3

After posting all transactions, please calculate the ending balance for each t-account. Then check your ending balances for each of the following accounts:

Cash $125 Accounts Receivable $9,000 Accounts Payable $11,100

Repair Revenue $13,800 Interest Expense $250 Wages Expense $5,000

****If the ending balances do not match, complete the following steps:

1. Check your math 2. Verify that you have posted your transactions correctly 3. Re-evaluate your journal entries

Part B, Requirement #6

After posting the adjusting entries, please calculate the ending balance for each t-account. Then check your ending balances for each of the following account:

Prepaid Rent $800 Unearned Repair Revenue $2,000 Accum Dep’n Truck $208

Repair Revenue $11,800 Insurance Expense $150 Wages Expense $6,500

If the balances do not match, complete the following steps:

1. Check your math 2. Verify that you have posted your transactions correctly 3. Re-evaluate your journal entries

Part B, Requirement #7

After preparing the adjusted trial balance, the totals of the debit and credit columns should be $32,108

If the debit and credit column totals do not match, complete the following steps:

ACC111 Redesign Exam One Directions & Check Numbers

1. Check your math (add the columns from the bottom up if you continue to get the same totals) 2. Make sure that all accounts with general ledger balances have been moved to the adjusted trial balance 3. Verify that you have each amount in the correct column 4. Check each amount to ensure you have transferred the correct amount from each account

Part B, Requirement #7, #8

#7 – (Income Statement) Net Income $1,617

#8 (Statement of Changes in Equity) Common Stock $5,000; Retained Earnings $1,617; Total Equity $6,617

#8 (Balance Sheet) Total Assets $21,717 Total Liabilities $15,100 Total Stockholders’ Equity $6,617

Part B, Requirement #9

TIP: Don’t forget which accounts temporary and which ones are permanent. Remember, temporary accounts must have a ZERO balance after the closing process is complete.

Post-Closing Trial Balance – Debit/Credit Totals $21,925

If the debit/credit total is incorrect, check the following account balances to verify that the amounts are correct. If the amounts are not correct, go back and check your work.

Prepaid Insurance $1,650 Unused Supplies $350 Acc dep – Truck $208

Unearned repair revenue $2,000 Retained Earnings $1,617

To find errors:

1. Check your math 2. Verify that balances were transferred correctly 3. Check that the balances were placed in the correct debit/credit column