ACC120 Midterm 1 Version B Winter 2011- Solution-1

ACC120 Midterm 1 Version B Winter 2011- Solution-1 -...

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Question 1 (12 marks) At March 31, 2011 account balances after adjustments for Canwatch Theatre are as follows: Account Balances Accounts (After Adjustment) Cash. ................................................................................ $ 5,500 Concession supplies. ........................................................ 4,200 Theatre equipment. ........................................................... 46,300 Accumulated depreciation—theatre equipment. ............... 10,000 Accounts payable. ............................................................ 8,000 N. Maddux, capital. ........................................................... 21,000 N. Maddux, drawings. ....................................................... 17,000 Admission ticket revenues. ............................................... 61,000 Popcorn revenues. ............................................................ 32,000 Candy revenues. ............................................................... 20,500 Advertising expense. ........................................................ 13,000 Concession supplies expense. ......................................... 20,000 Depreciation expense. ...................................................... 3,000 Film rental expense. ......................................................... 17,000 Rent expense. .................................................................. 12,000 Salaries expense. ............................................................. 10,000 Utilities expense. ............................................................... 4,500 Instructions a) Prepare an Income Statement for the month of March, 2011. (9 marks) CANWATCH THEATRE Income Statement Month Ended March 31, 2011 (insert date information ) Revenues Admission ticket revenues 61,000 Popcorn revenues 32,000 Candy revenues 20,500 Expenses 113,500 Advertising expense 13,000 Concession supplies expense 20,000 Depreciation expense 3,000 Film rental expense 17,000 Rent expense 12,000 Salaries expense 10,000 Utilities expense 4 ,500 79 ,500 Profit 3 4,000 b) What is the balance of the Owner’s Equity as of March 31, 2011 ? (3 marks) 38,000 Calculation, Part (b) 21,000 + 34,000 – 17,000 = 38,000
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Question 2 (9 marks) Date Description of Event that took place Nov 1 Wang invested 140000 Cash in the business Nov 8 Purchased land (72000) and Bldg (60400) for
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This note was uploaded on 02/24/2011 for the course ACCT 120 taught by Professor Arthurguha during the Spring '11 term at Seneca.

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ACC120 Midterm 1 Version B Winter 2011- Solution-1 -...

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