Quiz 3 - Fa09

Quiz 3 - Fa09 - Name_4-Digit #_Section_ Accounting Cycle:...

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Name___________________________4-Digit #________Section__________ Accounting Cycle: [093Q3] Collect information that will enable you to determine the correct balances in all accounts at the end of Year 2. 1. Ramtin Company [the firm] was formed on February 28, Year 1, when five people each invested $40,000 in the firm. On that same date, one investor lent $30,000 to the firm that is to be repaid on February 28, Year 2, along with $5,000 interest. 2. The firm leased an office space for one year on March 1, Year 1, and moved in that same day. The monthly rate was $7,000 and the rent for the entire twelve months was paid as agreed on October 1, Year 1. 3. On March 1, Year 1, the firm rented some equipment for three years. The firm paid $7,200 at the time of signing the rental agreement. This amount covers the entire 36-month lease period. 4. On March 13, Year 1, the firm purchased some supplies on account for use in the business at a cost of $6,000. 5. On March 17, Year 1, the firm returned 10% of the supplies it had purchased due to defects. 6. On March 15, Year 1, the firm hired eight employees at a monthly salary of $4,000 each. These employees started working for the firm immediately. These employees are to be paid at the middle of each month for the period ending on that day. Their first payday will be on April 15, Year 1.
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This note was uploaded on 02/23/2010 for the course BUAD 250A at USC.

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Quiz 3 - Fa09 - Name_4-Digit #_Section_ Accounting Cycle:...

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