Exam _1 Review Solutions

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

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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
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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 Sales Commissions
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This note was uploaded on 04/09/2008 for the course ACC 3110 taught by Professor Henry during the Spring '08 term at Seton Hall.

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

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