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Exam _1 Review - Prof Theresa F Henry Exam I Review...

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Prof. Theresa F. Henry Intermediate Accounting I Exam I Review February 4, 2008 Question 1 The following unadjusted trial balance was taken from the books of Deccie’s Train Store, Inc. on December 31, 2006. Cash $ 14,000 Accounts Receivable 38,000 Allowance for Doubtful Accounts $ 1,800 Note Receivable 7,000 Merchandise Inventory 54,000 Prepaid Insurance 4,800 Furniture and Equipment 100,000 Accumulated Depreciation of F. & E. 20,000 Accounts Payable 9,200 Unearned Revenue 2,000 Common Stock 44,000 Retained Earnings 45,000 Dividends 400 Sales 300,000 Cost of Goods Sold 131,000 Salaries Expense 60,000 Rent Expense 12,800 Totals $422,000 $422,000 Additional information as of 12/31/06 is as follows: a. A four year $4,800 insurance policy was purchased on July 1. b. Deccie had sales of $3,200 during the last week of December for which he has not received cash payment from customers. He has not yet recorded these sales. c. The useful life of Furniture & Equipment is 10 years with no salvage value. d. Interest at 8% is receivable on the note for one full year. e. Salaries owed to employees at December 31, $7,800. f. A customer paid $2,000 in advance for services to be performed in December 2006 and January 2007.
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Prof. Theresa F. Henry Intermediate Accounting I Exam I Review February 4, 2008 REQUIRED: A. Prepare the required adjusting entries for the year ending December 31, 2006. B. Prepare the required closing entries for the year ending December 31, 2006.
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Prof. Theresa F. Henry Intermediate Accounting I Exam I Review February 4, 2008 Question 2 The following information is to be used as the basis for the income statement for Lucky Fin Enterprises for the year ended December 31, 2006. Lucky Fin Enterprises is composed principally of Lucky Fin Pubs and Lucky Fin Sporting Goods.
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