prelim one 2008 good probs drafter for 2009

prelim one 2008 good probs drafter for 2009 - ORIE 3150...

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ORIE 3150 Name (please print) ________________________________ Prelim I Spring 2009 Helpful equations: A = L + SE Current ratio = current assets / current liabilities Gross margin = Net Sales – Cost of Goods Sold Gross margin percentage = Gross margin / Net Sales Net Sales = Gross Sales – Discounts – Allowances Discounts are sales discounts. Allowances are selling price reductions due to defective merchandise. Nothing else is subtracted from Gross Sales to get Net Sales. Revenue Recognition requires all of these: a. Purchase agreement. b. Delivery or very good buy and hold. c. Seller's price to the buyer is fixed or determinable. d. Collectability is reasonably assured. Beginning SE + Stock Sold + Net Income ̶ Dividends Ending SE
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1. Provide the journal entries required for Inco Inc., an interior design consulting firm. September 4: Paid $5,000 cash rent for September. September 8: Sold 10,000 shares of common stock to an investor for $15 per share. September 10: Billed Ben Affleck $10,000 for design work done Sept. 1-10. Affleck’s payment is not due until October 11. September 14: Paid $500 owed to Staples for office supplies bought and used last month, but never paid for. September 16: Signed a contract with Mandy Moore to do design work in December. Moore paid in advance and gave Inco a $12,000 check when the contract was signed.
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2. Listed in random order are figures for the Borat Corp. Unearned Sales Revenue account is used to account for prepayments and deposits received from customers. Sort the accounts, discard unneeded data, and prepare a balance sheet in the proper format for December 31, 2008. Accounts Payable
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prelim one 2008 good probs drafter for 2009 - ORIE 3150...

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