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Quiz+1+-+Ch+3+Accouting+Info+System+Solution - Virginia...

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Virginia Tech Pamplin College of Business Intermediate Financial Accounting Quiz 1 – Spring Semester 2011 Instructor: Lynn Almond READ AND HEED: This quiz is due on or before class period on Friday, February 4, 2011. This quiz will not be accepted after this time – no exceptions, no excuses. If I do not have it you will receive a zero. This is an open book quiz. It is ok to work with your classmates on this. Name: ANSWER KEY ID: _____________________________________ Signature: __________________________________ Class Time: _______________________ Please round all calculations to the nearest dollar. 1. Below is an unadjusted trial balance for Acme Machine Tool Company as of December 31, 2011. Account Title Debit Credit Cash 161,500 Accounts Receivable 45,000 Prepaid Insurance 4,500 Prepaid Rent 6,000 Inventory 26,000 Shop Supplies 12,000 Note Receivable 20,000 Equipment 20,000 Accumulated Depreciation 5,500 Accounts Payable 42,000 Salaries Payable 0 Note Payable 80,000 Common Stock 100,000 Retained Earnings 0 Sales Revenue 651,500 Cost of Goods Sold 122,000 Salaries Expense 299,000 Rent Expense 66,000 Insurance Expense 49,500 Utilities Expense 42,000 Depreciation Expense 5,500 Totals 879,000 879,000 The Acme Machine Tool Company needs to prepare financial statements at the end of December, 2011 for presentation to its bank. Acme Machine Tool began operation on January 1, 2011 and is completing their first full year of operations. You have just acquired Acme Machine Tool as a new client for your CPA firm. The owner told you about the following events that have occurred:
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a. Acme Machine Tool pays the rent for the entire year on January 1 of each year. The rent is currently $72,000 per year.
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