ACG 2021 - 5 Questions, show all work in detail

ACG 2021 Midterm Assessment

1. Prepare year-end adjusting entries for each of the following situations (omit explanations): 3 points each.

a. The Supplies account showed a beginning debit balance of $400 and purchases of $2,800. The ending debit balance was $800.

b. Depreciation on buildings is estimated to be $7,300.

c. A one-year insurance policy was purchased for $2,400. Nine months have passed since the purchase. d. Accrued interest on notes payable amounted to $200.

e. The company received a $9,600 advance payment during the year on services to be performed. By the end

of the year, one-third of the services had been performed. f. Payroll for the five-day workweek, to be paid on Friday, is $10,000. The last day of the period is a Tuesday.

g. Services totaling $920 had been performed but not yet billed or recorded.

2. Below are the adjusted accounts of Sterling Company for the month ended May 31, 20x5. Prepare Sterling’s

closing entries (omit explanations). 3 points each.

Accounts Payable $ 6,000 Office Equipment $75,000

Accounts Receivable 24,000 Prepaid Rent 11,000

Accumulated Depreciation- Salaries Expense 18,000

Office Equipment 30,000 Retained Earnings 60,000

Cash 12,000 Dividends 7,500

Commissions Revenue 54,000 Utilities Expense 1,000

Depreciation Expense-

Office Equipment 1,500

3. Feldman Company had a balance of $360,000 in Retained Earnings on December 31, 2013. During 2014, the

company reported a net income of $48,000, and dividends of $36,000 were paid. Prepare the company's

statement of retained earnings for the year ended December 31, 2014 in proper form. 17 points.

4. Using the following data, prepare a classified balance sheet for Blanchard Company as of December 31, 20x5

in proper form. 25 points.

Cash $ 200 Accumulated Depreciation–

Building

$ 1,000

Investments in Short-Term Government Securities

400 Franchise 1,800

Accounts Receivable 800 Accounts Payable 1,600

Inventory 3,000 Revenues Received in Advance 400

Prepaid Rent 100 Notes Payable (in two years) 4,000

Investment in Land Held

for future use

2,700 Common Stock 12,000

Land 2,000

Building 8,000

5. Use the information from the following single-step income statement to prepare a multistep income statement

in proper form. 25 points.

Midway Industries

Income Statement

For the Year Ended December 31, 20x5

Revenues

Net sales $10,000

Interest income 300 Total revenues $10,300

Costs and expenses

Costs of goods sold $ 5,000 Selling expenses 3,000

General and administrative expenses 1,800

Interest expense 800 Total costs and expense

10,600

Net income (loss) ($ 300)