Please help
Shavone05
financial_accounting_3.docx
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1. |
If total liabilities increased by $15,000 and stockholders’ equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?
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2. |
Which accounts normally have CREDIT balances?
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3. |
BARNES COMPANY showed the following balances at the end of its first year:
What did BARNES COMPANY show as total CREDITS on its trial balance?
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4. |
On July 7, 2010, SHIREMAN ENTERPRISES received cash $1,400 for services rendered. The entry to record this transaction is:
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5. |
The purpose of the general ledger is to:
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SECTION II: PREPARING THE CURRENT ASSET SECTION OF A CLASSIFIED BALANCE SHEET (15 POINTS)
Partial information is provided below for KELLOGG CORPORATION for the 2011 calendar year. Prepare only the “CURRENT ASSET” SECTION of a classified balance sheet below, using good accounting form. The accounts are listed in alphabetical order.
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Accounts receivable, net |
945 |
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Accounts payable |
910 |
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Cash |
411 |
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Common stock |
397 |
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Current portion of long-term debt |
723 |
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Inventories |
824 |
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Long-term debt |
3,053 |
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Notes payable – current |
1,268 |
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Other assets |
5,471 |
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Other current assets |
248 |
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Other long-term liabilities |
1,572 |
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Other current liabilities |
1,119 |
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Property, plant, and equipment (net) |
2,816 |
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Retained earnings |
1,672 |
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Supplies |
520 |
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SECTION III: PREPARING A TRIAL BALANCE (20 POINTS)
Accounts are listed below, in alphabetical order, for SWISHER COMPANY, as of January 31, 2010. Prepare a trial balance, using good accounting form, in the space below.
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Accounts Payable |
$500 |
Notes payable |
$5,000 |
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Accounts Receivable |
2,000 |
Rent Expense |
500 |
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Advertising expense |
5,000 |
Retained earnings, Jan 1 |
2,000 |
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Cash |
3,000 |
Service Revenue |
3,000 |
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Common Stock |
2,200 |
Supplies |
200 |
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Dividends |
1,000 |
Wages Expense |
1,000 |
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SECTION IV: IDENTIFYING FINANCING, INVESTING, AND OPERATING EVENTS AND COMPLETING AN ACCOUNTING SPREADSHEET
PART 1
For the 10 events described below for BENNER ENTERPRISES, during the month of APRIL 2009, identify the nature of the event as financing, investing, or operating, by placing the appropriate letter in the blank box to the far left of the statement: “F” for financing, “I” for investing, and “O” for operating. Also prepare the necessary journal entry with the date and explanation for all of the transactions except 4/1 and 4/12th.
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APR 1 |
Stockholders invested $15,000 cash in the business in exchange for common stock.
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APR 2 |
Paid $700 for office rent for the month.
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APR 3 |
Purchased $500 of supplies on account.
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APR 9 |
Received $1,000 cash for services provided
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APR 12 |
Paid $200 cash dividend
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APR 15 |
Performed $4,200 of services on account and billed for those services.
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APR 17 |
Paid $2,500 for employee salaries
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APR 20 |
Paid for the supplies purchased on account of April 3
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APR 23 |
Received a cash payment of $1,500 for services provided on account on April 15
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APR 29 |
Purchased office equipment for $2,000 paying $200 in cash and the balance on account. |
Section V. Fill in the blanks:
1. Debit = ______________.
2. Credit = _____________.
3. The general journal is the ______________________(book of original entry or the general ledger.)
4. The accrual basis of accounting records _______________when __________________ and ________________ when __________________.
5. The ________________ _________________ tries to match ________________with ____________________.
Section VI. Prepare the necessary closing entries:
Revenues = $10,000
Expenses= $ 5,000
Withdrawals= $2,000
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