Exam _1 Review Solutions

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

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Prof. Theresa F. Henry Intermediate Accounting I Exam I Review February 4, 2008 SOLUTIONS Question 1 A. Prepare the required adjusting entries for the year ending December 31, 2006. a) Dr. Insurance Expense 600 Cr. Prepaid Insurance 600 b) Dr. Accounts Receivable 3,200 Cr. Sales 3,200 c) Dr. Depreciation Expense 10,000 Cr. Accumulated Depreciation 10,000 d) Dr. Interest Receivable 560 Cr. Interest Revenue 560 e) Dr. Salaries Expense 7,800 Cr. Salaries Payable 7,800 f) Dr. Unearned Revenue 1,000 Cr. Sales 1,000 B. Prepare the required closing entries for the year ending December 31, 2006. Dr. Sales 304,200 Dr. Interest Revenue 560 Cr. Income Summary 304,760 Dr. Income Summary 222,200 Cr. Cost of Goods Sold 131,000 Cr. Salaries Expense 67,800 Cr. Rent Expense 12,800 Cr. Insurance Expense 600 Cr. Depreciation Expense 10,000 Dr. Income Summary 82,560 Cr. Retained Earnings 82,560 Dr. Retained Earnings 400 Cr. Dividends 400
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Prof. Theresa F. Henry Intermediate Accounting I Exam I Review February 4, 2008 Question 2 A. Prepare a multiple-step income statement for Lucky Fin Enterprises for the year ended 12/31/06. Lucky Fin Enterprises Income Statement For the Period Ended 12/31/06 Sales $1,400,000 Cost of Goods Sold (490,000) Gross Profit $ 910,000 Less Operating Expenses: Selling : Wages and Salaries 128,000
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern