Quiz 4 - Fa09

Quiz 4 - Fa09 - Name_4-Digit_Section Accounting Cycle[093Q4...

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Name___________________________4-Digit #________Section__________ Accounting Cycle: [093Q4] Collect information that will enable you to obtain correct balances in all accounts at the end of Year 2. 1. Charlotte Company [the firm] was formed on April 1, Year 1, when eight people each invested $50,000 in the firm. On that same date, one investor lent $60,000 to the firm that is to be repaid on February 28, Year 2, along with $8,000 interest. 2. The firm leased an office space for one year on May 1, Year 1, and moved in that same day. The monthly rate was $6,000 and the rent for the entire twelve months is to be paid February 1, Year 2. 3. On May 1, Year 1, the firm rented some equipment for two years. The firm paid $9,600 at the time of signing the rental agreement. This amount covers the first year of the 24-month lease period. Another $9,600 has to be paid on May 1, Year 2. 4. On May 20, Year 1, the firm purchased some supplies on account for use in the business at a cost of $8,000. 5. On May 7, Year 1, the firm purchased another $7,000 in supplies for cash. 6. On May 20, 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 on the 10th of each month for the period ending on that day. Their first payday will be on June 10, 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 4 - Fa09 - Name_4-Digit_Section Accounting Cycle[093Q4...

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