Exam I Review Exercises

Exam I Review Exercises - statement....

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ACCT 320 Exam I: Additional Review Problems Adjusting Entries: 1. A year-end physical count of office supplies on hand reveals supplies worth $1,800. The balance sheet reflected a balance in the office supplies account of $3,700 before any year-end adjustments were made. What is the amount of supplies expense that will be included on the current year income statement? __________________________ 2. On December 1, 2007, Nelson collected rent of $7,200 (for December, January, and February rent) from a tenant renting some space in its warehouse and credited Unearned Rent Revenue for the entire amount. What is the balance sheet value of Unearned Rent Revenue on 12/31/07? __________________________ 3. On July 31, 2008, Smith Company paid $10,200 to rent warehouse space for the period 7/31/08 to 7/31/09. This warehouse space was also rented from 7/31/07 to 7/31/08. Smith’s 1/1/08 balance sheet reflected a balance in the Prepaid Rent account relating to this warehouse of $5,775. Determine the amount of rent expense that would appear on Smith’s 2008 income
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Unformatted text preview: statement. __________________________ Reporting Special Income Items Plush Textiles had a beginning balance in its retained earnings account of $580,000 on January 1, 2008. Income from Continuing Operations (before-tax) was $225,000 for 2008. The companys tax rate is 30% for all years presented. Following is a list of special items that have not been considered in the amounts above. All amounts are before taxes: Extraordinary gain $31,000 Correction of a 2007 revenue understatement $50,000 Loss from operations of a discontinued textiles division $22,000 Gain on sale of the textiles division $60,000 Omission of depreciation charges from January and February 2008 $10,000 Prepare a partial income statement for 2008 starting with Income From Continuing Operations before tax. What is the 12/31/08 balance in the Retained Earnings account? _______________________...
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Exam I Review Exercises - statement....

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