Sample midterm 1

Sample midterm 1 - #30 We are Econ3a, Inc. We purchase...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
#30 We are Econ3a, Inc. . We purchase stuff and sell it for a profit. Here is our trial balance at 1/1/2009: DR/ (CR) Cash 100,000 Accounts receivable 30,000 Inventory 25,000 Prepaid expenses 5,000 Fixed assets 200,000 Accounts payable (50,000) Accrued payroll - Debt (175,000) Common stock (5,000) Retained earnings (130,000) - (1) (2) Purchased $70,000 of inventory with cash on hand (3) Sold goods for $70,000 on credit which cost $30,000 (4) Made a $1,100 payment on the debt ($600 for interest and $500 for principle) (5) Purchased inventory for $10,000 on account. (6) Collected $65,000 from customers. (7) Paid $40,000 to vendors against outstanding payables. (8) (9) (10) (11) BASED ON ALL OF THE ABOVE i. II. FOR THE INCOME STATEMENT, CHOOSE FROM THE FOLLOWING ACCOUNT TITLES Revenues Salaries expense Advertising expense Cost of Goods Sold (or COGS) Interest expense Consultant expenses Rent expense We had the following activity during January: Paid $12,000 for payroll. NOTE: ALL OF THE BALANCE SHEET ACCOUNT TITLES YOU MAY NEED ARE LISTED IN THE ABOVE TRIAL BALANCE. FOR EACH NUMBER (1-11) ABOVE, RECORD THE JOURNAL ENTY OR STATE NO ENTRY IF THERE IS NONE. TRACK ACTVITY IN WHATEVER MANNER YOU PREFER, AND SHOW THE BALANCE SHEET AS OF THE END OF THE MONTH AND THE INCOME STATEMENT FOR THE MONTH. Made no new bank borrowings, but the debt already on the trial balance matures at $500/ month Noticed that there was $1,000 of payroll for the last couple days of the month which has not been paid yet , but for which we have received the benefit from our employees. Paid $2,000 for advertising which was completed by January 15th. On the last day of the month, paid $10,000 for consulting services for which we have not yet received the benefit. .
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
ACCOUNT DEBIT CREDIT (1) NO ENTRY (2) Inventory 70,000 Cash 70,000 (3) Accounts receivable 70,000 Sales 70,000 (3a) COGS 30,000 Inventory 30,000 (4) Debt 500 Interest expense 600 Cash 1,100 (5) Inventory 10,000 Accounts payable 10,000 (6) Cash 65,000 Accounts receivable 65,000 (7) Accounts payable 40,000 Cash 40,000 (8) Prepaid expenses 10,000 Cash 10,000 (9) Salaries expense 12,000 Cash 12,000 (10) Salaries expense 1,000 Accrued payroll 1,000 (11) Advertising expense 2,000 Cash 2,000
Background image of page 2
30,000 25,000 5,000 200,000 70,000 70,000 70,000 10,000 1,100 65,000 30,000 65,000 10,000 40,000 10,000 12,000 2,000 29,900 35,000 75,000 15,000 200,000 - 50,000 - 175,000 5,000 130,000 10,000 1,000 500 24,400 40,000 20,000 1,000 174,500 5,000 154,400 70,000 30,000 600 12,000 1,000 70,000 30,000 600 13,000 NET INCOME 24,400 2,000 - 2,000 - Debt Salaries expense Cash Accounts Receiv. Inventory COGS Interest exp. Fixed Assets Prepaid Expenses Rent Expense Advertising Exp. Common Stock
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/14/2009 for the course ECON 3A taught by Professor Loster during the Fall '07 term at UCSB.

Page1 / 21

Sample midterm 1 - #30 We are Econ3a, Inc. We purchase...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online