Prelim1Part2Ver2KEY - Part II Journal Entries(60 Points Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement

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Part II: Journal Entries (60 Points) Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share Problem 1, Part 1 . (20 Points) Record journal entries for the following transactions in the space provided below, as if today were December 1, 2006. In cases where no entry is required, please write "No entry required for this transaction" for your answer to grade correctly. Unless otherwise stated, assume the transaction takes place today (December 1, 2006). a. Borrowed $5,000 cash on a five year, 12 percent note payable, dated June 1, 2006 b. Purchased land for a future building site on credit, $12,000. c. Recorded sales revenue for 2006 totaling $61,000, including $7,000 cash and the balance on credit. d. Sold 650 additional shares of capital stock for $1 cash per share (par value = $1). e. Recognized $12,500 in remaining expenses for 2006, including $6,000 on credit. (Use “Remaining Expenses” account) f. Jack Little sells 50 shares to his Admin TA, Katie, for $12 per share. He purchased the shares for $15 per share. g. Collected accounts receivable, $8,500. h. Purchased additional assets, $6,750 cash (Use the “Remaining Assets” account). i. Paid accounts payable, $4,900. j. Purchased supplies on account for future use, $1,500. Problem 1, Part 2 (10 Points) Record adjusting journal entries for the following transactions in the space provided on the following page. In cases where no entry is required, please select the option "No entry required for this transaction" for your answer to grade correctly. k.
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This test prep was uploaded on 09/24/2007 for the course AEM 2210 taught by Professor Little,j. during the Spring '07 term at Cornell University (Engineering School).

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Prelim1Part2Ver2KEY - Part II Journal Entries(60 Points Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement

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