Repeat question re: accounting

ch_6_long_problem_3_4_assignment_v3.xlsx

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Ch 6 LP 3

					Chapter 6 - Long Problems
										Possible Marks	Your Mark
3.	(a)				An Important Restaurant Corporation
					Income Statement
					for the year ended July 31, 2008
			Revenues
						3,000				1
			Other income							1
				Total Revenue			3,000
			Expenses
						1,300				1
			Other expenses							1
						200				1
			Income tax expense							1
				Total expenses						1
				Net income			650
					An Important Restaurant Corporation
					Statement of Retained Earnings
					for the year ended July 31, 2008
		Retained earnings at July 31, 2007					8,000
		Add:	Net income							1
		Subtotal								1
		Less:	Dividends				0
		Retained earnings at July 31, 2008					8,650
					An Important Restaurant Corporation
					Balance Sheet
					at July 31, 2008
				Assets
			Cash							1
							5,000			1
			Property & equipment							1
			Less: Accumulated depreciation			2,000				1
				Total Assets			Sherrill Palmer: Sherrill Palmer: Does the Balance Sheet balance?			1
				Liabilities
			Accounts payable							1
						650				1
				Total Liabilities						1
				Stockholders' Equity
			Common stock			5,700
			Retained earnings			8,650
				Total Stockholders' Equity			14,350
				Total Liabilities and
				Stockholders' Equity						1
	(b)									1
		Other income								1
			Income summary				0
		To close the temporary (nominal) revenue accounts
		Income summary				0
										1
			Other expenses							1
										1
			Income tax expense							1
		To close the temporary (nominal) expense accounts
		Income summary				0
			Retained earnings							1
		To close the income summary account
	(c)				An Important Restaurant Corporation
					General Ledger
		Cash			Accounts payable			Common stock
		3,000				1,000			5,700
		Accounts receivable			Property & Equipment			Accumulated Deprec.
		5,000			10,000				2,000
		Income tax payable				Retained earnings
			650				8,000
								7/31 CE		1
							8,650
		Sales				Salaries & Wages
		7/31 CE	3,000	3,000		1,300	1,300	7/31 CE
		Other income
		7/31 CE	300	300		Other expenses
						500		7/31 CE		1
		Income summary				Interest expense
		7/31	2650	3300	7/31	200		7/31 CE		1
		7/31 CE	650	650
						Income tax expense
						650		7/31 CE		1
	(d)				An Important Restaurant Corporation
					Post-Closing Trial Balance
					at July 31, 2008
							Dr	Cr
		Cash								1
							5,000
		Property & equipment								1
		Accumulated depreciation						2,000
		Accounts payable								1
								650
		Common stock								1
		Retained earnings						8,650
				Totals						1
										34	0

Ch 6 LP 4

4.	(b), (e) and (h)				Lively Inn
					General Journal					Possible Marks	Your Mark
		Date
		2008			Description		Dr	Cr
					Adjusting Entries
		2/29					50			1
				Food inventory						1
			To record food used in sales
		2/29					10			1
				Accrued expenses payable						1
			To accrue interest on note payable
		2/29	Other expenses							1
				Supplies inventory						1
			To record supplies used during period
		2/29					20			1
				Accrued expenses payable						1
			To accrue incurred by unpaid salaries
		2/29	Other expenses							1
										2
			To record expired insurance
		2/29								2
				Accumulated depreciation						1
			To record depreciation expense
					Closing Entries
		2/29								2
										2
										2
				Income summary						1
			To close revenue accounts
		2/29	Income summary							1
										2
										2
										2
										2
										2
			To close expense accounts
		2/29	Retained earnings							1
				Income summary						1
			To close income summary account
					Reversing Entries
		3/1								2
				Salaries expense				20
			To reverse salaries expense accrual
		3/1								2
										2
			To reverse interest expense accrual

	(a), (c) and (f)				Lively Inn
					General Ledger

		Cash			Accounts payable			Common stock
		300				120			200

		Accounts receivable			Prepaid insurance			Note payable
		225			50	10	Adj.		100
					40
										1
		Food Inventory					Accrued expenses
		140		Adj.					Adj	2
									Adj.	2
										1
		Supplies Inventory			Furniture & Equipment
		10		Adj.	200					1
		5								1
							Accumulated depreciation
								55
		Income summary							Adj.	1
		2/29	355		2/29					2
					2/29 CE					1
						Retained earnings
								300
									2/29 CE
										1
		Room sales				Salaries & Wages
		2/29 CE	200	200		100		2/29 CE		1
					Adj.					1
		Food sales				Depreciation expense
		2/29 CE		80		20		2/29 CE		2
										1
		Beverage sales				Interest expense
		2/29 CE		50		50		2/29 CE		2
					Adj.					1
										1
		Cost of food sold
		100		2/29 CE		Other expenses				1
						20		2/29 CE		1
					Adj.					1
					Adj.					1
										1
	(d)				Lively Inn
					Income Statement					1
										1
		Revenues
		Room sales								1
		Food sales								1
		Beverage sales								1
			Total revenues							1
		Expenses
		Salaries expense								1
		Cost of food sold								1
		Other expenses								1
		Interest expense								1
		Depreciation expense								1
			Total expenses							1
				Net Loss						1
					Lively Inn
					Balance Sheet
					at February 29, 2008					1
			Assets
		Cash								1
		Accounts receivable								2
		Food inventory								1
		Supplies inventory								2
		Prepaid insurance								1
		Furniture & fixtures								2
		Less: Accumulated depreciation								2
			Total Assets							1
			Liabilities
		Accounts payable								2
		Accrued expenses								1
		Notes payable								2
			Total Liabilities							1
			Stockholders' Equity
		Common stock								1
		Retained earnings								2
			Total Stockholders' Equity							1
			Total Liabilities & Stockholders' Equity
	(g)				Lively Inn
					Post-Closing Trial Balance
					at February 29, 2008
							Dr	Cr
										2
										2
										2
										2
										2
										2
										2
										2
										2
										2
										2
										2
				Totals						2
										129	0