Ch1_5_1_5e - Practice Exam Chapters 1-5(1 Problem I a...

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Practice Exam Chapters 1-5 (1) Prepare December 31, 2009, adjusting entries for English Corporation for each of the following items: a. An inventory of office supplies on hand reveals a count of $1,800. The ledger reflects a balance in the office supplies account of $3,700. b. On December 1, 2009, English collected rent of $7,200 (for December and January rent) from a tenant renting some space in its warehouse and credited unearned rent revenue for that amount. c. English borrowed $40,000 from its bank on May 1, 2009. The entry recorded at that time included a credit to notes payable for $40,000. No payments are due until 2010. The annual interest rate is 12%. d. A one-year insurance policy insuring the company's truck was purchased on October 1, 2009. The entry at that time included a debit to prepaid insurance of $4,800. e. Depreciation expense for 2009 was $13,000. The December 31, 2009 adjusted trial balance for the Supplementary Corporation is presented below. Account Title Debits Credits Cash 21,000 Problem I Problem II
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Accounts receivable 300,000 Allowance for uncollectible accounts 20,000 Prepaid rent expense 10,000 Inventory 50,000 Equipment 600,000 Accumulated depreciation - equip 250,000 Accounts payable 40,000 Note payable (due in six months) 60,000 Salaries payable 8,000 Interest payable 2,000 Capital stock 400,000 Retained earnings 100,000 Sales revenue 800,000 Cost of goods sold 480,000 Salaries expense 120,000 Rent expense 30,000 Depreciation expense 60,000 Interest expense 4,000 Bad debt expense 5,000 ________ Totals 1,680,000
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This note was uploaded on 01/29/2011 for the course ACCT 3311 taught by Professor Smith during the Spring '10 term at University of the Incarnate Word.

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Ch1_5_1_5e - Practice Exam Chapters 1-5(1 Problem I a...

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