Acct 2293 Exam#1 - ,7 Financial Statements 42 Marks ——...

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Unformatted text preview: ,7 Financial Statements - 42 Marks ——*______ J \r Read Carefully: You have started working for a small business owned by Mike Yang. Mike operates a small consulting business named Yang’s Computer Consulting. This is the 3rd month of operation. The information is for the month of January 2007. All the accounts are in Alphabetical order and have normal balances. All adjustments have been made. I Account Name I Balance Account Receivable ! Accounts P_ayable - Accumulated Amortization Amortization Expense Cash ‘ Equipment 8,000 22,000 96,000 Insurance Exggise 1,400 Mike Yang, Cagital 136,400 . Mike Yang, Withdrawal 30,000 r Prep_ai_d Insurance 3,900 Rent Expense 41,600 Service Revenue Earned 155,500 Suppfles 2,400 Sup_lies Exp_e_nse Unearned Revenue Utilities Egense Waes Exgense Waes Pa able 5,200 Required: Using the above information, create the following reports: Trial Balance Income Statement Owner‘s Equity Statement Balance Sheet PP’NL‘ f . 2 I . Q ~ L]. i ., J GENERAL JOURNAL REQUIRED: { if 0n the next page, provide the Wntries (if needed) for each of the transactions listed. NOTE: Transactions do not relate to one another DO NOT write a description for each transaction. 1. Owrier setup a business by investing $24,000 cash and equipment valued at $7,000 into the business. 2. Purchased $6,000 of supplies on account. 3. Billed a customer $1 ,800 for services performed. Customer will pay within the next 30 days. 4. Owner withdrew $500 cash from the business for personal use. 5. Received $3,000 cash for services performed for a customer. 6. Paid $18,000 cash for two years of rent. 7. Hired an assistant. The assistant will start in two weeks and will be paid $450 per week. 8. Received the monthly utility bill of $350. The bill will be paid within the next two weeks. 9. At the start of the month, the supplies aceount had a balance of $1,700. At the end of the month, the balance was $1,150. 12. The business borrowed $10,000 cash with a short term note payable. l3. Unrecorded and unpaid salaries equaled $3,750 at the end of the month. as part of the closing process. 15. The business had one expens part of the closing process. 16. The business had a net income of $5 off the income summary account. Short Calculations — 15 Marks Calculate the following missing values: Company Fompany Company Company Company A B C D E December 31, 2005 7 $124,000 E? $70,000 $121,000 $82,500 50,000 58,500 61,500 Liabilities December 31, 2006 Assets 49,000 90,000 Liabilities 160,000 52,000 C? 38,100 16,500 24,000 0 18,000 During 2006 Owner Invesn-nent Net Income Withdrawals Provide Values here: Definitions fi [0 Marks Terminohgy Definition BALANCE SHEET 2 ASSETS 3 LIABILITIES u I ’ 4 . . OWNER’S EQUITY iv 5 i { 1 REVENUES /—// fix Q‘ , ‘ EXPENSES K J {I \ I/ I MATCHING PRINCIPLE Hi" mi- / I. i g ACCRUAL PREPAID EXPENSE l0 UNEARN ED REVENUE Fill In The Blanks — 9 Marks Businesses can be formed in 3 different ways ~ what are they? Give ONE BRIEF advantage and disadvantage for each method~ don’t use the same advantage and disadvantage repeatedly. Business Form ...
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This note was uploaded on 07/09/2008 for the course ACCT 2293 taught by Professor Sepand during the Summer '07 term at Kwantlen Polytechnic University.

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Acct 2293 Exam#1 - ,7 Financial Statements 42 Marks ——...

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