Spring_2011_Acct 510_midterm 1

Spring_2011_Acct 510_midterm 1 - Acct 510_1900-2145: Exam 1...

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Acct 510_1900-2145: Exam 1 Name: _______________________ Question 1: ABC Corp. Balance Sheet As of December 31, 2006 Assets Liability Cash $6,000 Accounts Payable $3,000 Accounts Receivable $4,000 Stockholders' Equity Common Stock $3,000 Retained Earnings $4,000 Total Liability and Stockholders' Equity Total Assets $10,00 0 $10,00 0 1. On January 1 st , 2007, ABC Corp bought an equipment for $1000. The equipment has an useful life of 4 years and is used in production. 2. On April 1 st , 2007, ABC Corp received $1,200 cash from Mr. A for services to be performed in the future. The service agreement is for a period of two years starting from April 1 st , 2007. The service will be performed evenly throughout the two-year period. 3. On December 31 st , 2007, ABC Corp pays $300 cash dividend to its stockholders. a) Make journal entries for the follow transactions. Indicate whether each of the accounts is an assets (A), a liability (L), or an equity (E) (3 points each) b) Prepare the unadjusted trial balance. (2 points) c) Make the appropriate adjusting entries at year end. Indicate whether each of the accounts is an assets (A), a liability (L), or an equity (E) (3 points each) d) Prepare the adjusted trial balance (2 points) e) Make the appropriate closing entries (2 points each) Indicate whether each of the accounts is an assets (A), a liability (L), or an equity (E)
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Questions 2: Instructions: You are an accountant for Rhody Corporation. Please make journal entries for the following transactions and indicate whether an account is an asset (A), liability (L), or equity (E). You do not need to make adjusting entries at year-end . (3 points each) 1. On January 1, $40,000 is invested in Rhody Corporation in exchange for common stock. Two thousand shares are issued with a par value of $1 per share. 2.
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This note was uploaded on 07/08/2011 for the course ACCOUNTING 510 taught by Professor Chavis during the Spring '09 term at CSU Fullerton.

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Spring_2011_Acct 510_midterm 1 - Acct 510_1900-2145: Exam 1...

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