Ch5 Homework unproctoredTest

Ch5 Homework unproctoredTest - Homework Manager - Financial...

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Online Homework System Assignment Worksheet 6/28/08 - 12:31 AM Name: ____________________________ Class: Financial Accounting ACCT 116A - Tuttle (Summer2) Class #: ____________________________ Section #: ____________________________ Instructor: Tracy Tuttle Assignment: Chapter 5 Homework Question 1: (3 points) Exercise 5.7: Closing Entries of a Profitable Company L.O. 2, 4 Gerdes Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report: Gerdes Psychological Services, INC Income Statement For the year Ended December 31, 2007 Revenue: Counseling revenue $ 350,000 Expenses: Advertising expense $ 2,900 Salaries expense 93,000 Office supplies expense 1,600 Utilities expense 850 Malpractice insurance expense 5,000 Office rent expense 22,000 Continuing education expense 2,550 Depreciation expense: fixtures 3,000 Miscellaneous expense 8,000 Income taxes expense 37,500 176,400 Net income $ 173,600 The firm's statement of retained earnings indicates that a $6,000 cash dividend was declared and paid during 2007. Instruction a: Prepare the necessary closing entries on December 31, 2007. General Journal Debit Credit __________ ____________ __________ ____________ __________ ____________ __________ ____________ __________ ____________ __________ ____________ __________ ____________ __________ ____________ __________ ____________ __________ ____________ __________ ____________ __________ ____________ __________ ____________ Page 1 of 11 Homework Manager - Financial Accounting ACCT 116A - Tuttle (Summer2) 6/27/2008 http://mh7.brownstone.net/modules/unproctoredTest.Print
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__________ ____________ __________ ____________ __________ ____________ __________ ____________ Instruction b: If the firm's Retained Earnings account had a $98,000 balance on January 1, 2007, at what amount should Retained Earnings be reported in the firm's balance sheet dated December 31, 2007? Omit the "$" sign in your response. Retained Earnings as on December 31, 2007 $ ____________ Question 2: (3 points) Problem 5.2A: Preparing Financial Statements and Closing Entries of a Profitable Company L.O. 1, 2, 4-6 Lawn Pride, Inc., provides lawn mowing services to both commercial and residential customers. The company performs adjusting entries on a monthly basis, whereas closing entries are prepared annually at December 31. An adjusted trial balance dated December 31, 2007, follows. LAWN PRIDE, INC. Adjusted Trial Balance December 31, 2007 Debits Credits Cash $58,525 Accounts receivable 4,800 Unexpired insurance 8,000 Prepaid rent 3,000 Supplies 1,075 Trucks 150,000 Accumulated depreciation: trucks $120,000 Mowing equipment 20,000 Accumulated depreciation: mowing equipment 12,000 Accounts payable 1,500 Notes payable 50,000 Salaries payable 900 Interest payable 150 Income taxes payable 1,050 Unearned mowing revenue 900 Capital stock 20,000 Page 2 of 11 Homework Manager - Financial Accounting ACCT 116A - Tuttle (Summer2) 6/27/2008 http://mh7.brownstone.net/modules/unproctoredTest.Print
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This note was uploaded on 09/24/2008 for the course ACCT 116A taught by Professor Tuttle during the Summer '08 term at San Diego.

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Ch5 Homework unproctoredTest - Homework Manager - Financial...

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