f04mid1 - JEE TA FALL OF ’04 ECON 10A __.r 102) Douglas...

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

View Full Document Right Arrow Icon
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

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

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

Unformatted text preview: JEE TA FALL OF ’04 ECON 10A __.r 102) Douglas Brothers reports the following transactions for May, 20x5: (a) May I Performed a service on account, $4700. 1 Purchased a one~year insurance policy for cash, $2280. 15 Paid wages to employees, $1000, 20 Completed a job for a customer and collected $4000 cash. 23 Collected $1100 of the amount due from May I. 30 Accrued wages of $1900. Show the amount of revenue and expense reco under both the cash basis and the accrual basis chart. 5'00 11 N735) '7»?an CA5 H—BAS [S ACCOUNTING 23 O m Ewen“ $2280 — — $1100 ACCRUAL-BASIS ACCOUNTING — 00000 E— 00000 00» — 0000 Revenue $4700 Expense $1000 r790 7090 AI? *May 1 — May 3] = 1 month of a one—year insurance policy costing $2230 expired. Listed below are the basic assumptions. underlying principles. and constraints discussed in this chapter. H 3. Economic entity assumption 9. b. Going concern assumption h. c. Periodicity assumption i. d. Monetary unit assumption j. e. Historical cost principle k. f. Realization principle Identify by letter the assumption. principle, or constraint that below. I. 2 3 4. 5. 6 7 S 9. 10. l]. thHHlulnNsleh Matching principle Full-disclosure principle Cost effectiveness Materiality Conservatism Revenue is recognized only after certain criteria are satisfied. lnforrnation that could affect decision making should be reported. Cause-and-effeet relationship between revenues and expenses. The basis for measurement of many assets and liabilities. Relates to the qualitative characteristic of timeliness —-1 All economic events can be identified with a particular entity. The benefits of providin A consequence is that G g accounting information should exceed the cost of doing so. AAP need not be followed in all situations. Not a qualitative characteristic. but a practical justification for some accounting choices. Assumes the entity will continue inde mite y. Inflation causes a violation of this assumption. relates to each statement or phrase gnized for each transaction as of May 31, 20X5, of accounting by completing the following L6 n - 113) Based on the following adjusted trial balance, prepare an income statement for Little Company [.53 for the year ended December 31, 20X5. Little Company Adjusted Trial Balance December 31, 20x5 Debit Credit Cash $10,500 Accounts receivable 10,000 Supplies 2,700 Office furniture H1000 Accum. depnl-offiee fu rnitu re $ 4,350 Salary payable 760 Unearnecl service revenue 14140 J. Little, capital 11,980 J. Little, withdrawals 2,800 Service revenue 30,000 Salary expense 8260 Rent expense 2560 Supplies expense 850 Depn. expense-office him. 560 Total $43,230 $8,230 Answer: Little Company Income Statement For the Year Ended December 31, 20X5 Revenue: Service revenue $30,000 Expenses: Salary expense $8260 Rent expense 2560 Supplies expense 850 Depreciation expenseeof 1‘ ice furniture _56Q Total expenses 12(230 Net income @931 n ‘@23) Credit terms are i/ifl n/30 indicates that the buyer is: A) allowed a 10% discount if payment is made within 30 days @allowed a 1% discount if payment is made within ll) days C] allowed a l% discount if payment is made within 30 days é, D) allowed a 30% discount if payment is made within IO days 109) State whether the following accounts would appear on an income statement, balance sheet, or 6) statement of DWner's equity. a) statement of owner's equity at) Owner's withdrawals 13) Equipment b) balance sheet C) Service revenue (3) income statement d) Rent expense d) income statement 9) Accounts receivable a) balance sheet 1) ACcounts payable 0 balance sheet 3) Cash g) balance sheet I I'll Beginning owner's equity h) statement of owner‘s equity @ 52-3 Accounting has its own vocabulary and basic relationships. Match the accounting terms at left with the corresponding definitions at right. _7 1. Posting A. Record of transactions 7 _Q 2. Normal balance B. Always an asset ‘ 6; 3. Payable C. Left side of an account _ A 4. journal D. Side of an account where increases are recorded _ J 5. Receivable E, Copying data from the journal to the ledger __-I 6. Capital F. Using up assets in the course of operating a business 7 _C_ 7. Debit c. Alwaysa liability _L: 8. Expense H. Revenues — Expenses 7J1 9. Net income 1. Grouping of accounts 10. Ledger Jr Owner's equity in the business 54-3 After closing its accounts at May 31, ZDXX, Oracle Corporation had the following account balances (adapted) with amounts given in millions: —-—.______—_____ Long-termliabilities . . . . . . .. $ 518 Property . . . . . . . , . . . . . . . . .. $ 988 nm— . an. Oracle Corporation @ Post-Closing Trial Balance May 31, zoxx Cash Accounts receivable Other current assets $1,786 2,479 1,182 Millions 988 825 ProperL Other assets Accounts payable Short-term notes payable Other current liabilities Long-term liabilities Owners’ equity $ 284 2,759 518 Total $7 onn C7 can 104) Prepare journal entries in good form for the following transactions 65" a) Owner invested [and valued at $18,800 and cash :31 $6600 into the business. b) Purchased office supplies on account, 14850, c) Paid $100 utilities for the current month. (1) Billed a client $4200 for services rendered. e) Received $1200 on account. 1) Ownerwithdrew $1600 to pay personalexpenses‘ [12,90 ([00 9499 General Journal Accounts — — = m V f: I u Accounts Payable Service Revenue = 1200 Accounts Receivable Owner, Withdrawals 107) Prepare adjusting entries for the following items on December 31, the end of the fiscal year [or @ Cleaner Carpets. a) Prepaid rent expired during the year,$3700 b) Supplies used during the year, $2500 c) Salaries owed to employees al year-end, $2720 d) Unearned service revenue earned, $2140 e) Services performed but unbilled, $3530 1) Depreciation on equipment, $3200 GENERAL IOURNAL mm ' -a) —Rent Expense mcnflh—t mo Est-— -—e:r- — —_ 14o — -_ ssso — —— Ere-— -— TH‘IR TEST WAS: M D. M 3 Fl) 8 --. ...
View Full Document

Page1 / 4

f04mid1 - JEE TA FALL OF ’04 ECON 10A __.r 102) Douglas...

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