FINAL EXAM NAME__Abileni Orozco__ 1) Given the following information, prepare adjusting entries for the year ended

December 31,13: a. The trial balance shows the Supplies account has $5,200. A count of supplies in the supplies storeroom shows that supplies are $2,100. (5 points) b. Depreciation on the equipment for the year is $3,500. (5 points) c. The note payable on the trial balance is $20,000. The note was issued on July 1 of 2013 for a 12-month period and has 10% interest. Accue the interest expense from July 1 to December 31. (5 points) d. The Prepaid Insurance account is $3,600. It was paid on October 1 for a 1-year period. Make the entry to adjust the prepaid insurance account as of December 31. (5 points) e. Merchandise inventory. on the trial balance is $36,200. A count of inventory in the warehouse shows a count of $42,000. (10 points) Date 12/31 Account/description Supplies Expense Supplies Depreciation Expense Accumulated Depreciation Interest Expense Interest Payable Insurance Expense Prepaid Insurance Merchandise Inventory Income Summary PR Debit 3,100 Credit 3,100 3,500 3,500 833.33 833.33 600 600 36,200 36,200

12/31

12/31

12/31

12/31

2) From the trial balance below, prepare the Income Statement, Statement of Owners Equity and the Balance Sheet for Graceland Tourist Services: (the underlined places are for you to fill in names or amounts) DONT FORGET THE COMPANY NAME IN THE TITLES. (each statement is worth 10 points)

GRACELAND TOURIST SERVICES TRIAL BALANCE 12/31/2013 Account title Cash Accounts receivable Supplies Equipment Accounts payable Notes payable Unearned revenue Grace B, Capital Grace B, Drawing Tourist Revenues Salaries expense Rent expense Supplies expense Advertising expense Miscellaneous expense Totals Debit $1,500 2,300 500 52,000 Credit

$4,300 25,000 3,000 20,450 13,200 59,300 21,450 12,000 250 7,550 1,300 $112,050

$112,050

GRACELAND TOURIST SERVICES Income Statement For the year ended December 31, 2013 Revenue Less expenses:
Salaries expense Rent Expense Supplies expense Advertising expense Miscellaneous expense

59,300

21,450 12,000 250 7,550 1,300

Total expenses Net Income

42550 16750

GRACELAND TOURIST SERVICES Statement of Owner's Equity For the year ended December 31, 2013 Grace B, capital, 1/1/2013 Add: Net Income Less: Grace B., Drawing Grace B, capital, 12/31/2013

20,450 16750 13,200 24000

GRACELAND TOURIST SERVICES Balance Sheet 31-Dec-13 Assets: Supplies Equipment Accounts receivable Cash Total assets Liabilities Notes Payable Accounts Payable Unearned Revenue Total liabilities

500 52,000 2300 15000 69800

25000 43000 3000 71000

Grace B, capital Total liabilities and owner's equity

24000 95000

3. Post the following amounts to T-accounts.

9/1 Earl Smith opened a paralegal services company called Law by Earl with a $10,000 investment of cash.(3) 9/5 Law by Earl bought supplies for $2,000 on account.(3) 9/6 Law by Earl earned $5,000 in legal fees (revenue) for cash.(3) 9/10 Law by Earl also earned $7,500 on account from Eagle Trading Company.(3) 9/15 Law by Earl paid salaries of $1300.(3) 9/20- Law by Earl borrowed $30,000 on a note payable.(3) 9/25 Law by Earl paid amount owed on supplies. (3) 9/28- Law by Earl received money owed from Eagle Trading Company. (3) 9/29 paid salaries of $1300.(3) 9/30 determined that there was $500 of supplies left in the storeroom.(3)

Cash 10,000 5,000 13,000 30,000 2,000 7,500 7,500 13,000 17000

Supplies 2,000 500

Earl Smith, Capital 10,000

1,500

10,000

Accounts Payable 2,000 2,000 7,500 7,500 0

Revenue 5,000 13,000 13,000

Salaries

5,000

26,000

Notes Payable 30,000

30,000 4. Given the following information, determine the cost of goods sold for Little Eva Company as of December 31, 2013: (5 points) Merchandise Inventory, January 1, 2013: $52,500 Merchandise inventory, December 31, 2013: $75,600 Purchases: $525,500 Purchase returns: $12,500 Cost of Goods Sold = $489,900

5. Green Corporation sold $500,000 of common stock to investors on February 1, 2013. As of the end of 2013, Green Corporation had earned $160,500. Prepare entries to show the sale of common stock and the close of income summary at the end of the year. (5 points total) Date Feb 1 Account/description Cash Common Stock Income Summary Retained Earnings PR Debit Credit 500,000 500,000 160,500 160,500

Feb 30