Exam I Review Exercises

Exam I Review Exercises - statement Reporting Special...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
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
This is the end of the preview. Sign up to access the rest of the document.

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 company’s 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? _______________________...
View Full Document

Page1 / 2

Exam I Review Exercises - statement Reporting Special...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online